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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.

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1.b. Last Insights on ML

Breaking News: Michelin reported segment operating income of €2.9 billion in 2025, at constant exchange rates. The Group generated high free cash flow before M&A of €2.1 billion and strengthened its financial position. Group sales totaled €26.0 billion, weighed down by lower business volumes and a stronger euro, but partly offset by a better sales mix. No analyst recommendation is available from the provided data.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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A Look At Michelin (ENXTPA:ML) Valuation After Strong 2025 Cash Flows And €2b Share Buyback Plan

Feb -14

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Rivian Q4 Earnings Top Expectations, Revenues Decline Y/Y

Feb -13

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3 Special Awards Announced at the MICHELIN Guide Restaurant Celebration Saudi Arabia 2026

Feb -13

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Penske Q4 Earnings Miss Expectations, Dividend Raised

Feb -13

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Michelin (MGDDF) Full Year 2025 Earnings Call Highlights: Navigating Challenges and Reinforcing ...

Feb -13

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Michelin | Disclosure of the total number of voting rights and of the number of shares making up the Company’s capital

Feb -12

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Michelin delivered segment operating income of €2.9 billion in 2025, at constant exchange rates. The Group generated high free cash flow before M&A of €2.1 billion and strengthened its financial position.

Feb -11

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Restaurant Guy Savoy at Caesars Palace Earns Forbes Five-Star Award for the 14th Consecutive Year

Feb -11

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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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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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

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Debica

A-Score: 6.6/10

Value: 8.7

Growth: 3.9

Quality: 4.2

Yield: 8.1

Momentum: 5.0

Volatility: 9.7

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VW

A-Score: 6.3/10

Value: 9.8

Growth: 3.4

Quality: 2.1

Yield: 9.4

Momentum: 6.5

Volatility: 6.7

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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

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BMW

A-Score: 5.9/10

Value: 7.2

Growth: 5.6

Quality: 2.6

Yield: 8.1

Momentum: 6.5

Volatility: 5.7

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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 ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

34.2$

Current Price

34.2$

Potential

-0.00%

Expected Cash-Flows