Fact based stock research
Michelin (ENXTPA:ML)
FR001400AJ45
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Michelin stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), Michelin (Tires & Rubber, France) shares have much better financial characteristics than comparable stocks. Shares of Michelin are low in value (priced high) with a consolidated Value Rank of 30 (worse than 70% of alternatives). But they show above-average growth (Growth Rank of 68) and are safely financed (Safety Rank of 96, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on Michelin's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Michelin exhibits low value (Obermatt Value Rank of 30), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 68). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 96) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | France |
| Industry | Tires & Rubber |
| Index | CAC 40, CAC All, SBF 120, Employee Focus EU, Energy Efficient |
| Size class | XX-Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Michelin
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 76 |
|
36 |
|
42 |
|
30 |
|
| GROWTH | ||||||||
| GROWTH | 71 |
|
93 |
|
45 |
|
68 |
|
| SAFETY | ||||||||
| SAFETY | 36 |
|
88 |
|
84 |
|
96 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
90 |
|
72 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
96 |
|
78 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), Michelin (Tires & Rubber, France) shares have much better financial characteristics than comparable stocks. Shares of Michelin are low in value (priced high) with a consolidated Value Rank of 30 (worse than 70% of alternatives). But they show above-average growth (Growth Rank of 68) and are safely financed (Safety Rank of 96, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on Michelin's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Michelin exhibits low value (Obermatt Value Rank of 30), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 68). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 96) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 76 |
|
36 |
|
42 |
|
30 |
|
| GROWTH | ||||||||
| GROWTH | 71 |
|
93 |
|
45 |
|
68 |
|
| SAFETY | ||||||||
| SAFETY | 36 |
|
88 |
|
84 |
|
96 |
|
| COMBINED | ||||||||
| COMBINED | 70 |
|
88 |
|
63 |
|
78 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 30 (worse than 70% compared with alternatives), Michelin shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Michelin. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 72% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 21 which means that the stock price compared with what market professionals expect for future profits is higher than 79% of comparable companies, indicating a low value concerning Michelin's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 46 which means that the stock price compared with what market professionals expect for future profit levels is higher than 54% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 40 is also low. Compared with invested capital, the stock price is higher than for 60% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 30, is a hold recommendation based on Michelin's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Michelin? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Michelin only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 63 |
|
36 |
|
31 |
|
21 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 78 |
|
49 |
|
49 |
|
46 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 65 |
|
44 |
|
49 |
|
40 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 60 |
|
70 |
|
74 |
|
72 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 76 |
|
36 |
|
42 |
|
30 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 68 (better than 68% compared with alternatives), Michelin shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Michelin. Profit Growth has a rank of 80, which means that currently professionals expect the company to grow its profits more than 80% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 72 (above 72% of alternative investments). But Sales Growth has a below the median rank of 40, which means that, currently, professionals expect the company to grow less than 60% of its competitors, and Capital Growth also has a lower rank of 36. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 68, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Michelin. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 47 |
|
46 |
|
28 |
|
40 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 8 |
|
78 |
|
46 |
|
80 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
66 |
|
54 |
|
36 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 64 |
|
88 |
|
69 |
|
72 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 71 |
|
93 |
|
45 |
|
68 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 96 (better than 96% compared with alternatives) for 2024, the company Michelin has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Michelin is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Michelin. Leverage is at 81, meaning the company has a below-average debt-to-equity ratio. It has less debt than 81% of its competitors. Refinancing is at a rank of 63, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 63% of its competitors. Finally, Liquidity is also good at a rank of 76, which means that the company generates more profit to service its debt than 76% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 96 (better than 96% compared with alternatives), Michelin has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Michelin but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 29 |
|
65 |
|
77 |
|
81 |
|
| REFINANCING | ||||||||
| REFINANCING | 51 |
|
54 |
|
66 |
|
63 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 79 |
|
76 |
|
65 |
|
76 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 36 |
|
88 |
|
84 |
|
96 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
45 |
|
34 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
69 |
|
28 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
83 |
|
92 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
77 |
|
91 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
90 |
|
72 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Michelin from December 19, 2024.
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