# Compagnie Generale des Etablissements Michelin SCA (ML.PA)

Canonical: https://gigainvestors.com/s/ML.PA

Analysis as of: 2026-10-16T07:34:30.362Z. Financial observations: FY2002–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 34.09 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 5 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.12×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.12×

- FY2018: 0.12×

- FY2019: 0.12×

- FY2020: 0.09×

- FY2021: 0.12×

- FY2022: 0.12×

- FY2023: 0.09×

- FY2024: 0.10×

- FY2025: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 13.3%

- ROIC, second-lowest year: 9.7%

- Typical minus recent gross margin: 1.7 pp

- Typical gross margin (annual median): 28.7%

- Recent gross margin (lower of latest and 3-year median): 27.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.5%

- ROIC including acquisitions, ten-year median: 8.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 16.1%

- FY2017: 17.2%

- FY2018: 13.7%

- FY2019: 13.8%

- FY2020: 8.8%

- FY2021: 13.5%

- FY2022: 13.0%

- FY2023: 11.5%

- FY2024: 10.6%

- FY2025: 9.7%

### economics: pass

- Owner earnings / net income, 5-yr: 0.86×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 8.1B

- Net income, five-year total: EUR 9.4B

- Return on incremental invested capital: 13.2%

- Working capital / revenue, annual change: -0.3 pp

- Working capital / revenue, change between three-year averages: -2.7 pp

- Working capital / revenue, final three-year average: 21.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.95×

- FY2022: 0.91×

- FY2023: 0.79×

- FY2024: 0.78×

- FY2025: 0.89×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 16.1% vs 10.6%

- Per-share earnings: 2.32 to 2.61 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.7%

- Ordinary dilution, 5-year annual growth: -0.4%

- Market cap gain: EUR 636M

- Cumulative retained earnings: EUR 10.0B

- Diluted shares, 10-year annual growth: -0.7%

- Diluted shares, 5-year annual growth: -0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 1.5%

- Per-share value change: EUR 0.29

- Per-share value, starting three-year median: EUR 2.32

- Per-share value, ending three-year median: EUR 2.61

- Buybacks concentrated in cheaper years (correlation): 0.05

- Average buyback yield: 1.2%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 6.2B

- Cumulative net income, 10 years: EUR 17B

- ROIC, first three-year median: 16.1%

- ROIC, last three-year median: 10.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 2.32

- FY2017: EUR 2.36

- FY2018: EUR 2.33

- FY2019: EUR 2.45

- FY2020: EUR 0.89

- FY2021: EUR 2.57

- FY2022: EUR 2.79

- FY2023: EUR 2.76

- FY2024: EUR 2.61

- FY2025: EUR 2.39

### accounting: pass

- Sloan accruals: -6.2%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.29×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.25×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.3%

- FY2017: -4.1%

- FY2018: -3.8%

- FY2019: -5.0%

- FY2020: -8.6%

- FY2021: -3.1%

- FY2022: 0.2%

- FY2023: -9.4%

- FY2024: -6.6%

- FY2025: -6.2%

## Holders

## Price story

Up 22% since Oct 2023 · sales -4.4%

Story as of 2026-10-16T10:00:00.894Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -4.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: EUR 21B 

- FY2017: EUR 22B 

- FY2018: EUR 22B 

- FY2019: EUR 24B 

- FY2020: EUR 20B 

- FY2021: EUR 24B 

- FY2022: EUR 29B 

- FY2023: EUR 28B 

- FY2024: EUR 27B 

- FY2025: EUR 26B 

### Gross margin · FY2025

gross margin 27%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 33.9% 

- FY2017: 32.5% 

- FY2018: 29.6% 

- FY2019: 29.0% 

- FY2020: 27.5% 

- FY2021: 29.0% 

- FY2022: 26.1% 

- FY2023: 28.0% 

- FY2024: 28.5% 

- FY2025: 27.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in automobiles & auto parts; annual sales are EUR 26 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2025: revenue 25992000000; grossProfit 7019000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ML.PA: 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.

### Why customers stay

Margins ranged from 27% to 28.5% during 2023–25; it earns 13.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2023: grossProfit / revenue = 28%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2024: grossProfit / revenue = 28.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2025: grossProfit / revenue = 27%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); 10-year return on capital observations [[2016,0.16080553547095305],[2017,0.17178749861475381],[2018,0.13742025325880314],[2019,0.13761011382935434],[2020,0.08798450603071867],[2021,0.1354778625894863],[2022,0.12962439417275437],[2023,0.11468989724851075],[2024,0.10626915775443069],[2025,0.0965923780859261]]; median 0.13255112838112032. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back EUR 668 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2016: growth capex 0; upkeep 1815000000; owner earnings 1253000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2017: growth capex 323000000; upkeep 1345000000; owner earnings 1700000000. Growth capex / owner earnings = 0.19.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2018: growth capex 34887350.95320821; upkeep 1500112649.0467918; owner earnings 1559887350.9532082. Growth capex / owner earnings = 0.022365301527632376.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2019: growth capex 0; upkeep 1801000000; owner earnings 1570400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2020: growth capex 0; upkeep 1221000000; owner earnings 1046400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2021: growth capex 0; upkeep 1705000000; owner earnings 1759000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2022: growth capex 197000000; upkeep 1944000000; owner earnings 1816400000. Growth capex / owner earnings = 0.1084562871614182.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2023: growth capex 0; upkeep 2236000000; owner earnings 1559200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2024: growth capex 0; upkeep 2265000000; owner earnings 1478000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2025: growth capex 0; upkeep 2029000000; owner earnings 1475400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); Dividend observations: [[2016,515000000],[2017,584000000],[2018,637000000],[2019,665000000],[2020,357000000],[2021,410000000],[2022,803000000],[2023,893000000],[2024,961000000],[2025,974000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); FY2025: cash repurchases 668000000 EUR.

### Are managers owners

Insiders own 5.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ML.PA SharesStats.PercentInsiders = 5.801 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.9 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:30.362Z); Closing price 34.09 EUR; reporting-to-trading FX 1; FY2025 annual sales per share 37.2562369652622; price multiple 0.9150145794859958. FY2025 cash earnings/share 2.1147988619016562. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-10: EUR 24.66 per share

- 2016-11: EUR 25.25 per share

- 2016-12: EUR 26.43 per share

- 2017-01: EUR 24.85 per share

- 2017-02: EUR 26.51 per share

- 2017-03: EUR 28.46 per share

- 2017-04: EUR 29.99 per share

- 2017-05: EUR 28.00 per share

- 2017-06: EUR 29.10 per share

- 2017-07: EUR 28.59 per share

- 2017-08: EUR 28.63 per share

- 2017-09: EUR 30.88 per share

- 2017-10: EUR 31.05 per share

- 2017-11: EUR 30.46 per share

- 2017-12: EUR 29.89 per share

- 2018-01: EUR 32.20 per share

- 2018-02: EUR 31.68 per share

- 2018-03: EUR 29.98 per share

- 2018-04: EUR 29.14 per share

- 2018-05: EUR 27.68 per share

- 2018-06: EUR 26.08 per share

- 2018-07: EUR 27.53 per share

- 2018-08: EUR 25.49 per share

- 2018-09: EUR 25.74 per share

- 2018-10: EUR 22.69 per share

- 2018-11: EUR 23.11 per share

- 2018-12: EUR 21.68 per share

- 2019-01: EUR 23.71 per share

- 2019-02: EUR 26.38 per share

- 2019-03: EUR 26.35 per share

- 2019-04: EUR 28.79 per share

- 2019-05: EUR 25.74 per share

- 2019-06: EUR 27.89 per share

- 2019-07: EUR 25.11 per share

- 2019-08: EUR 23.90 per share

- 2019-09: EUR 25.60 per share

- 2019-10: EUR 27.28 per share

- 2019-11: EUR 27.23 per share

- 2019-12: EUR 27.28 per share

- 2020-01: EUR 26.25 per share

- 2020-02: EUR 24.06 per share

- 2020-03: EUR 20.27 per share

- 2020-04: EUR 22.28 per share

- 2020-05: EUR 22.72 per share

- 2020-06: EUR 23.09 per share

- 2020-07: EUR 22.09 per share

- 2020-08: EUR 23.66 per share

- 2020-09: EUR 22.93 per share

- 2020-10: EUR 23.16 per share

- 2020-11: EUR 26.11 per share

- 2020-12: EUR 26.24 per share

- 2021-01: EUR 28.48 per share

- 2021-02: EUR 29.94 per share

- 2021-03: EUR 31.91 per share

- 2021-04: EUR 30.09 per share

- 2021-05: EUR 31.45 per share

- 2021-06: EUR 33.63 per share

- 2021-07: EUR 34.43 per share

- 2021-08: EUR 34.26 per share

- 2021-09: EUR 33.20 per share

- 2021-10: EUR 33.93 per share

- 2021-11: EUR 32.63 per share

- 2021-12: EUR 36.04 per share

- 2022-01: EUR 36.93 per share

- 2022-02: EUR 31.00 per share

- 2022-03: EUR 30.74 per share

- 2022-04: EUR 29.76 per share

- 2022-05: EUR 30.31 per share

- 2022-06: EUR 25.98 per share

- 2022-07: EUR 27.17 per share

- 2022-08: EUR 24.31 per share

- 2022-09: EUR 23.16 per share

- 2022-10: EUR 25.81 per share

- 2022-11: EUR 26.73 per share

- 2022-12: EUR 25.99 per share

- 2023-01: EUR 28.96 per share

- 2023-02: EUR 29.74 per share

- 2023-03: EUR 28.15 per share

- 2023-04: EUR 28.83 per share

- 2023-05: EUR 26.56 per share

- 2023-06: EUR 27.06 per share

- 2023-07: EUR 29.77 per share

- 2023-08: EUR 28.91 per share

- 2023-09: EUR 29.07 per share

- 2023-10: EUR 28.02 per share

- 2023-11: EUR 30.81 per share

- 2023-12: EUR 32.46 per share

- 2024-01: EUR 30.82 per share

- 2024-02: EUR 34.19 per share

- 2024-03: EUR 35.52 per share

- 2024-04: EUR 36.18 per share

- 2024-05: EUR 37.15 per share

- 2024-06: EUR 36.11 per share

- 2024-07: EUR 36.60 per share

- 2024-08: EUR 35.51 per share

- 2024-09: EUR 36.46 per share

- 2024-10: EUR 31.05 per share

- 2024-11: EUR 30.75 per share

- 2024-12: EUR 31.80 per share

- 2025-01: EUR 33.60 per share

- 2025-02: EUR 34.16 per share

- 2025-03: EUR 32.41 per share

- 2025-04: EUR 32.17 per share

- 2025-05: EUR 33.68 per share

- 2025-06: EUR 31.54 per share

- 2025-07: EUR 31.26 per share

- 2025-08: EUR 30.93 per share

- 2025-09: EUR 30.54 per share

- 2025-10: EUR 27.69 per share

- 2025-11: EUR 28.15 per share

- 2025-12: EUR 28.31 per share

- 2026-01: EUR 31.35 per share

- 2026-02: EUR 34.40 per share

- 2026-03: EUR 29.19 per share

- 2026-04: EUR 30.84 per share

- 2026-05: EUR 31.51 per share

- 2026-06: EUR 33.75 per share

- 2026-07: EUR 34.97 per share

- 2026-08: EUR 35.00 per share

- 2026-09: EUR 33.75 per share

- 2026-10: EUR 33.89 per share

## Annual estimated value (EUR per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.