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Compagnie Generale des Etablissements Michelin SCA Unsponsored ADR (MGDDY)
:MGDDY
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Compagnie Generale des Etablissements Michelin
(OTC:MGDDY)
67Neutral
Compagnie Generale des Etablissements Michelin (MGDDY) vs. S&P 500 (SPY)
Market Cap
$25.20B
Dividend Yield3.16%
Average Volume (3M)115.64K
Price to Earnings (P/E)12.5
Beta (1Y)0.64
Revenue Growth-2.34%
EPS Growth-16.59%
CountryUS
Employees118,400
SectorIndustrials
Sector Strength66
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.43
Shares Outstanding1,411,494,500
10 Day Avg. Volume0
30 Day Avg. Volume115,642
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.71
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Compagnie Generale des Etablissements Michelin Business Overview & Revenue Model
Company DescriptionCompagnie Generale des Etablissements Michelin (MGDDY), commonly known as Michelin, is a leading global tire manufacturer headquartered in Clermont-Ferrand, France. The company operates in the automotive industry, producing a wide range of tires for various vehicles, including cars, trucks, motorcycles, bicycles, and aircraft. Michelin is renowned for its innovation in tire technology and commitment to sustainable mobility solutions. In addition to tires, Michelin offers travel-related services such as road maps, travel guides, and digital services designed to enhance the mobility experience.
How the Company Makes MoneyMichelin generates revenue primarily through the sale of its tire products across different segments, including passenger vehicles, commercial trucks, specialty vehicles, and aviation. The company's extensive product portfolio caters to both original equipment manufacturers (OEMs) and the replacement tire market. Additionally, Michelin earns income from its travel-related services, which include digital solutions and mobility assistance products. Key revenue streams also include partnerships and collaborations with automotive manufacturers and retailers, which help expand its market reach and distribution capabilities. Michelin's commitment to research and development in tire technology and sustainable solutions further enhances its competitive position and contributes to its financial performance.
Compagnie Generale des Etablissements Michelin Financial Statement Overview
Summary
Compagnie Generale des Etablissements Michelin shows solid financial health with strong cash flow management and improving balance sheet leverage. However, a slight decline in revenue growth and net profit margin indicates potential challenges in maintaining profitability levels. Operational efficiency remains consistent, supported by stable EBIT and EBITDA margins.Income Statement
The company has shown a stable gross profit margin, maintaining around 28% over the years. Net profit margin has been slightly decreasing, from 7.2% in 2021 to 7% in 2023, indicating slight pressure on profitability. Revenue growth was negative in 2023, at -0.86%, after a positive growth of 20.1% in 2021, suggesting a possible plateau in revenue expansion. EBIT and EBITDA margins have remained flat, pointing to consistent operational efficiency.75
Positive
Balance Sheet
The debt-to-equity ratio improved from 0.61 in 2021 to 0.35 in 2023, reflecting better financial leverage management. Return on Equity (ROE) decreased slightly from 12.3% in 2021 to 11% in 2023, showing a slight decrease in shareholder returns. The equity ratio improved to 51% in 2023 from 42% in 2021, indicating a stronger equity position relative to total assets.70
Positive
Cash Flow
Operating cash flow to net income ratio improved significantly from 1.05 in 2021 to 2.67 in 2023, showing better cash generation relative to net income. Free cash flow rebounded strongly in 2023 to $3.05 billion from a negative position in 2022, indicating strong cash management. The free cash flow to net income ratio was positive at 1.54 in 2023, highlighting robust cash flow relative to earnings.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 27.75B | 28.34B | 28.59B | 23.80B | 20.47B | 24.14B | Gross Profit |
| 8.06B | 7.95B | 7.54B | 6.99B | 5.71B | 7.08B | EBIT |
| 3.38B | 2.65B | 3.02B | 2.78B | 1.40B | 2.69B | EBITDA |
| 5.53B | 4.88B | 4.95B | 4.54B | 3.44B | 4.48B | Net Income Common Stockholders |
| 1.92B | 1.98B | 2.00B | 1.84B | 632.00M | 1.74B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.47B | 2.80B | 2.65B | 4.81B | 4.98B | 1.65B | Total Assets |
| 19.66B | 35.20B | 35.35B | 34.70B | 31.64B | 31.68B | Total Debt |
| 0.00 | 6.24B | 7.34B | 7.82B | 8.62B | 6.89B | Net Debt |
| -1.59B | 3.73B | 4.97B | 3.44B | 3.92B | 5.42B | Total Liabilities |
| 11.54B | 17.24B | 18.23B | 19.73B | 19.01B | 18.45B | Stockholders Equity |
| 8.12B | 17.95B | 17.11B | 14.97B | 12.63B | 13.23B |
| Cash Flow | Free Cash Flow | ||||
| 3.02B | 3.05B | -210.00M | 1.20B | 2.15B | 1.52B | Operating Cash Flow |
| 5.19B | 5.29B | 1.93B | 2.91B | 3.37B | 3.32B | Investing Cash Flow |
| -2.91B | -2.93B | -1.95B | -1.75B | -1.39B | -2.25B | Financing Cash Flow |
| -1.99B | -2.34B | -1.86B | -1.43B | 1.34B | -1.74B |
Compagnie Generale des Etablissements Michelin Technical Analysis
Neutral
17.86
Price Trends
17.75
Positive
17.16
Positive
18.21
Negative
Market Momentum
0.06
Positive
47.09
Neutral
23.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGDDY, the sentiment is Neutral. The current price of 17.86 is below the 20-day moving average (MA) of 18.33, above the 50-day MA of 17.75, and below the 200-day MA of 18.21, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 23.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MGDDY.
Compagnie Generale des Etablissements Michelin Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $506.61M | 3.42 | 10.41% | 8.74% | -11.02% | -51.66% | |
78 Outperform | $28.86B | 14.92 | 7.90% | 2.19% | -4.75% | -20.41% | |
67 Neutral | $25.20B | 12.46 | 10.91% | 3.16% | -2.34% | -16.59% | |
62 Neutral | $6.19B | 18.75 | 6.46% | 1.56% | -11.10% | -46.32% | |
62 Neutral | $8.06B | 13.61 | 3.91% | 3.11% | 3.80% | -14.06% | |
54 Neutral | $1.92B | ― | -3.92% | 3.04% | -2.57% | -248.28% | |
48 Neutral | $2.51B | 36.43 | 1.49% | ― | -5.92% | ― |
* Industrials Sector Average
Performance Comparison
MGDDY
Compagnie Generale des Etablissements Michelin
17.86
-0.69
-3.72%
BWA
BorgWarner
28.65
-5.93
-17.15%
DAN
Dana Holding
13.33
1.12
9.17%
GT
GoodYear Tire
9.24
-4.31
-31.81%
TEN
Tsakos Energy Navigation
17.06
-6.95
-28.95%
BRDCY
Bridgestone
20.04
-2.18
-9.81%
Compagnie Generale des Etablissements Michelin Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: 4.94% | Next Earnings Date: Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong operational performance with significant improvements in operating income and cash flow generation, alongside notable environmental achievements. However, challenges such as volume declines in specialty segments and market distortions from budget tire inflows posed concerns. Overall, the company maintained a positive outlook with strong segment operating income and cash flow targets.Highlights
Strong Segment Operating Income
Segment operating income reached 13.2% of sales in H1, showing an improvement from 12.1% in H1 2023.
Cash Flow Generation
Generated a strong cash flow of EUR 669 million before acquisition, driven by disciplined budget business management.
Environmental Achievements
Reduced CO2 emissions (Scope 1 and 2) by 7.2% and water withdrawal by 6.3% versus the first semester of 2023.
Record Operating Margin
Achieved 13.2% operating margin, a record high, with a EUR 100 million increase in segment operating income like-for-like.
Positive Mix Improvement
Achieved a strong 1.9% mix improvement, more than offsetting negative price effects from indexation clauses.
Lowlights
Volume Decline in Specialty Segment
Experienced a 7.2% volume decline in specialties, driven by lower sales in original equipment and mining adjustments.
Negative Pricing Impact
Pricing was negatively impacted by 0.8% due to indexation clauses in the contractual business.
Market Distortions
Distorted markets due to strong inflows of budget tires, particularly in passenger car and light truck segments.
Currency Headwinds
Negative currency effects impacted top-line results, notably from currencies like the Turkish lira and Japanese yen.
Company Guidance
During the Q2 2024 earnings call for Michelin (ML.PA), the company's executives provided robust guidance for the remainder of the year. They projected a segment operating income exceeding EUR 3.5 billion at constant exchange rates and free cash flow surpassing EUR 1.5 billion before acquisitions. In H1 2024, Michelin achieved a 13.2% operating income margin, up from 12.1% in H1 2023, driven by a 1.9% improvement in mix and a strong cash flow generation of EUR 669 million. The company maintained a focus on value-driven approaches and geographical segmentation, with a notable contribution from its Connected Solutions in the road transportation segment. Additionally, Michelin highlighted a favorable operating cost environment, with benefits from raw materials, energy, and seafreight, although labor costs continue to rise. Despite a challenging environment with inflated markets due to Asian tire imports, Michelin's strategic focus on high-value segments and geographies supported its strong financial outlook.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.