Compagnie Générale des Établissements Michelin Société en commandite par actions (ML.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Compagnie Générale des Établissements Michelin Société en commandite par actions manufactures and sells tires worldwide.The company offers tires for private use covering cars, racing, biking, motorcycles, scooters, and mopeds; and professional use, such as freight and people transport, agriculture, construction and industrial, mining and quarries, corporate fleets, tradesmen and professionals, civil and military operations, light rail, and aircraft.It is also involved in the provision of tire-related services, including development of mobility solutions for fleet managers, vehicle manufacturers, farmers, distributors, and individuals; mobility services, such as road maps, mobile apps, itineraries, and travel guides; lifestyle products comprising car and bike accessories, shoe soles, and sports and leisure gears; and high-tech materials that include 3D metal printing, specialty, rubber, biosourced, and recycled materials.

Compagnie Générale des Établissements Michelin Société en commandite par actions was incorporated in 1863 and is based in Clermont-Ferrand, France.

Show Full description

1.b. Last Insights on ML

Michelin's recent performance is driven by strong 2025 cash flows, with segment operating income of €2.9b and free cash flow before M&A of €2.1b. A planned €2b share buyback also boosts investor sentiment. The company's strategic acquisitions, such as Flexitallic, accelerate growth in Polymer Composite Solutions. Additionally, Michelin's focus on higher value-added tires and services contributes to its positive outlook. Its robust financial position and solid earnings call highlights reinforce its market presence.

1.c. Company Highlights

Last Price	31.57
Change Percentage	-1.10%
Open	31.8
Previous Close	31.92
Market Cap ( Millions)	22519
Volume	436581
Year High	35.7
Year Low	25.51
M A 50	31.35
M A 200	30.61

FCF Yield	7.95%
Dividend Yield	4.37%
ROE	9.30%
Debt / Equity	36.56%
Net Debt / EBIDTA	62.95%
Price To Book	1.22
Price Earnings Ratio	13.23
Price To FCF	12.58
Price To sales	0.87
EV / EBITDA	5.47

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Michelin: Implementation of a partial share buyback management agreement

Mar -02

Source:

Michelin trained chef joins Mowi to inspire salmon lovers

Mar -02

Source:

Are Auto-Tires-Trucks Stocks Lagging Michelin (MGDDY) This Year?

Feb -27

Source:

Michelin: Restatement of 2025 segment reporting, after creation of the Polymer Composite Solutions reporting segment

Feb -26

Source:

The world’s Billionaire’s Rows

Feb -25

Source:

What Makes Michelin (MGDDY) a Strong Momentum Stock: Buy Now?

Feb -19

Source:

Restaurant commerce enablement platform inKind raises $450m

Feb -18

Source:

How to Approach Penske Automotive Stock Post Q4 Earnings?

Feb -17

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.55%)

6. Segments

Automotive and Associated Distribution

Expected Growth: 4.6%

Michelin’s growth driven by rising demand for fuel-efficient tires, expanding automotive market in Asia, and increasing need for tire replacement and maintenance services.

Road Transport and Associated Distribution

Expected Growth: 4.5%

Michelin's road transport and distribution services will grow driven by increasing demand for logistics, e-commerce growth, and the need for efficient supply chain management, as well as investments in digitalization and sustainability

Specialty Activities and Associated Distribution

Expected Growth: 4.5%

Michelin's specialty activities, such as mining, construction, and motorsports, will drive growth, while its distribution channels, including online platforms and dedicated stores, will enhance customer reach and experience.

7. Detailed Products

Tires

Michelin is one of the world's leading tire manufacturers, producing a wide range of tires for various vehicles, including passenger cars, trucks, buses, and motorcycles. Michelin tires are known for their high-quality, durability, and innovative features such as advanced tread patterns and fuel-efficient designs.

Michelin Wheels

Michelin Wheels offers a range of wheel products, including steel and alloy wheels, designed to provide optimal performance, safety, and style for vehicles. Michelin Wheels are engineered to meet the demands of various driving conditions and vehicle types.

Michelin Rims

Michelin Rims provides a variety of wheel rims for passenger and commercial vehicles, designed for optimal performance, safety, and durability. Michelin Rims are engineered to meet the demands of various driving conditions and vehicle types.

Michelin Solutions

Michelin Solutions offers a range of innovative solutions and services, including tire management, vehicle maintenance, and data analysis, designed to help fleet owners and managers optimize their operations, reduce costs, and improve efficiency.

Michelin Lifestyle

Michelin Lifestyle includes a range of products and services, such as Michelin Guide (a travel guide and restaurant rating system), Michelin Insight (data analysis and consulting), and Michelin Design (design and engineering services).

Michelin Tweel

Michelin Tweel is an airless tire designed for low-speed, high-load applications, such as agriculture, construction, and material handling. Michelin Tweel offers improved durability, reduced maintenance, and enhanced performance in challenging environments.

8. Compagnie Générale des Établissements Michelin Société en commandite par actions's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Michelin is moderate. While there are alternative tire products available, Michelin's strong brand reputation, extensive distribution network, and innovative products make it difficult for substitutes to gain significant traction.

Bargaining Power Of Customers

Michelin's customers, primarily automotive manufacturers and consumers, have relatively low bargaining power. The company's strong brand and reputation, as well as its extensive product offerings, limit the ability of customers to negotiate prices or demand concessions.

Bargaining Power Of Suppliers

Michelin's suppliers, primarily providers of raw materials such as rubber and steel, have moderate bargaining power. While Michelin has a large and diversified supplier base, suppliers can still exert some influence on prices and delivery terms.

Threat Of New Entrants

The threat of new entrants in the tire industry is relatively low. Michelin has a long history, strong brand reputation, and significant resources, making it difficult for new companies to enter the market and compete effectively.

Intensity Of Rivalry

The intensity of rivalry in the tire industry is high. Michelin competes with several large and established players, including Bridgestone, Goodyear, and Continental. The competition is driven by factors such as price, product innovation, and brand reputation.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	28.35%
Debt Cost	5.18%
Equity Weight	71.65%
Equity Cost	8.96%
WACC	7.89%
Leverage	39.57%

11. Quality Control: Compagnie Générale des Établissements Michelin Société en commandite par actions passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Mercedes-Benz

A-Score: 6.7/10

Value: 8.7

Growth: 4.9

Quality: 3.3

Yield: 10.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

Debica

A-Score: 6.6/10

Value: 8.7

Growth: 3.9

Quality: 4.2

Yield: 8.1

Momentum: 5.0

Volatility: 9.7

1-Year Total Return ->

A-Score: 6.3/10

Value: 9.8

Growth: 3.4

Quality: 2.1

Yield: 9.4

Momentum: 6.5

Volatility: 6.7

1-Year Total Return ->

SAF-Holland

A-Score: 6.1/10

Value: 7.8

Growth: 7.9

Quality: 3.4

Yield: 6.9

Momentum: 5.5

Volatility: 5.3

1-Year Total Return ->

BMW

A-Score: 5.9/10

Value: 7.2

Growth: 5.6

Quality: 2.6

Yield: 8.1

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

Michelin

A-Score: 5.9/10

Value: 6.0

Growth: 4.6

Quality: 4.7

Yield: 8.8

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.32%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.89%

Compagnie Générale des Établissements Michelin Société en commandite par actions - FR001400AJ45

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ML

1.c. Company Highlights

Less Volatile

Higher Yield

Strong Momentum

Earnings Beats

Revenues Miss

Stable Momentum

Average Growth

Fairly Valued

Earnings Miss

Revenues Beats

Average Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.55%)

6. Segments

Automotive and Associated Distribution

Expected Growth: 4.6%

Road Transport and Associated Distribution

Expected Growth: 4.5%

Specialty Activities and Associated Distribution

Expected Growth: 4.5%

7. Detailed Products

Tires

Michelin Wheels

Michelin Rims

Michelin Solutions

Michelin Lifestyle

Michelin Tweel

8. Compagnie Générale des Établissements Michelin Société en commandite par actions's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Compagnie Générale des Établissements Michelin Société en commandite par actions passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

31.57$

Current Price

31.57$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA