Risk factor
Negligible price volatility
Profitability factor
Solid dividends
About
Compagnie Générale des Établissements Michelin Société en commandite par actions is a global leader in the production and distribution of tires. The company provides a comprehensive array of tires for personal vehicles, including automobiles, racing, bicycles, motorcycles, scooters, and mopeds. Additionally, it supplies specialized tires for professional and industrial uses such as freight and passenger transportation, agricultural equipment, construction and industrial machinery, mining and quarry operations, corporate vehicle fleets, tradespeople, civil and military applications, light rail systems, and aircraft. Beyond its core tire business, Michelin offers a range of associated services, encompassing the development of mobility solutions for fleet managers, vehicle manufacturers, farmers, distributors, and individual customers. Its mobility-focused offerings also extend to practical tools like road maps, mobile applications, itinerary planning, and travel guides. Furthermore, the company diversifies into lifestyle products, featuring car and bike accessories, shoe soles, and sporting and leisure gear. Michelin is also engaged in high-tech materials, with initiatives in 3D metal printing, specialty rubbers, and sustainable biosourced and recycled materials. Founded in 1863, the company maintains its headquarters in Clermont-Ferrand, France.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. In particular, the stock is reasonably priced on P/E, of fair value on E
Target Price
The average target price of ML.PA is 31.8 and suggests 9.7% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to d