Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Compagnie Générale des Etablissements Michelin is a French multinational tire manufacturer headquartered in Clermont-Ferrand, recognized as one of the world's largest producers by annual revenue. The company primarily designs, manufactures, and markets tires for a wide array of vehicles, including passenger cars, trucks, aircraft, motorcycles, bicycles, agricultural machinery, and civil engineering equipment, with tires accounting for 83% of net sales—broken down into replacement tires, long-distance transport, specialty, and original equipment categories. Beyond tires, it develops connected mobility solutions (12% of sales), such as fleet management tools, travel guides, and applications like ViaMichelin, and high-tech polymer composites (5%), applied in seals, belts, and fabrics for sectors including mobility, construction, aeronautics, low-carbon energies, and healthcare. Operating under brands like Michelin, BFGoodrich, and Uniroyal, it employs around 121,000 people globally, with sales distributed across North America (38.6%), Europe (26.5%), and other regions. Michelin drives innovation in sustainable mobility, pioneering inventions like the radial tire and run-flat technology, while maintaining a significant presence in motorsports and publishing renowned guides.
10.10% operating margin is respectable but not wide. ROIC at 7.63%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 4.4% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 14% versus the prior year, cash generation momentum has weakened. ROIC dropped from 9.82% to 7.63%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
€25.99B
▼ -4.4% YoY
Net Income (TTM)
€1.66B
▼ -12.0% YoY
Op. Margin
10.10%
▼ -1.6pp YoY
ROIC
7.63%
▼ -2.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
€1.79B
▼ -13.6% YoY
Op. Cash Flow (TTM)
€2.42B
▼ -0.8% YoY
Net Debt
€2.64B
Cash & Equiv.
€3.97B
3Y CAGR: -3.1%
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