Rankings Autos & parts Michelin
Michelin
74
15070100
A view of the same findings, not a new score. How it works
A strong score: the model found few serious problems, but analysts see limited upside from here.
Biggest deductions
- Multiples vs own history and peers−5
- Quality of growth−4
- ROIC−3
Strengths
- Pricing power (the Michelin brand)+2
- EU anti-dumping duties on Chinese tyres+1
- Buybacks+1
How the score is built
From 100 to 74, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 32.38 EUR
- Median analyst target
- 34.50 EUR
- Upside to median
- +6.5%
- Analysts
- 14
- Target range
- 28.00 – 42.00 EUR
- 52-week change
- +17%
- P/E (trailing)
- 14.4
- Forward P/E
- 11.3
- PEG
- 0.88
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−10 of −30
- −4Quality of growthRevenue has fallen from €28.6bn (2022) to €25.7bn TTM and EPS from €2.79 to €2.25; volume fell 4.7% in 2025 and a further 0.9% in H1 2026. The transport segment has shrunk from 7.5 to €5.8bn.
- −3ROICROIC has fallen from 12.8% (2021) and 12.3% (2023) to 8.8% TTM – close to the WACC of 7.9%.
- −3MarginThe operating margin is 10.4% TTM vs 11.8% in 2023 and 12.4% in 2021, and the reported segment margin was 11.4% in H1; the Transport segment earns only 5.9%.
Price
Today's multiples against the company's own history and its peers. · 1 finding−5 of −35
- −5Multiples vs own history and peersForward P/E 11.3 vs 8.3–12.0 in 2021–25 (top of the range), trailing P/E 15.0 vs 9.3–14.0 and EV/EBIT 10.1 vs 7.5–10.0 – both the highest in the period – even though earnings are below the 2022–23 level. The price assumes an EPS lift of 17.5% in 2026, and the median price target gives only about 5% upside.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 5 findings−10 of −35
- −3Weak first-fit and regionsOE volume fell in H1 by 1% in Europe and North America and 7% in China, and replacement volume fell 2% in Europe and 4% in North and Central America; agricultural tyres remain weak.
- −2Asian low-price competitionImports of cheap Asian tyres are pressuring margins, and EU anti-dumping duties leave the cheaper segments exposed to Chinese competition.
- −2Tariffs and costsProduction and logistics costs rose 130 m € in H1 due to tariffs and inflation.
- −2Repeated restructuringsAbout EUR 220m in one-off costs for the wind-down of the Tuscaloosa plant (USA) in H1 2026, after the closure of Cholet and Vannes in France (1,254 jobs) in 2025.
- −1CurrencyA weak dollar caused a negative currency effect of 3.1% of revenue in H1 (−2.6% reported vs +0.5% at constant exchange rates).
Plus
Only documented strengths. · 3 findings+4 of +15
- +2Pricing power (the Michelin brand)Sales volume for the Michelin brand rose 5% in the replacement markets, price-mix was +0.9%, and segment operating income rose 7% at constant exchange rates despite falling volume.
- +1EU anti-dumping duties on Chinese tyresThe EU's anti-dumping duties on passenger car tyres from China (typically 24–45%) took effect on 8 July; Jefferies calculates that imports from China have fallen 70%, which favours local production.
- +1BuybacksDividend (€0.94bn) and buybacks (€0.97bn) TTM are below FCF after leasing (about €2.3bn); new programme of up to €2bn over three years, and the share count has fallen 1.4% over a year.
Caveats
What the score does not capture, or where the data is weak.
Reported EPS is 2.25 € TTM (burdened by about 220 m € in one-off costs for the closure of Tuscaloosa), while the analysts' 2.74 € for 2026 is adjusted; forward P/E 11.3 is based on adjusted figures. Segment operating income (Michelin's key metric) is 1.45 bn € reported / 1.555 bn € before currency in H1. Cyclical set to no, because about three quarters of sales are replacement tyres, but the margin is noticeably affected by rubber and oil prices (raw materials contributed +199 m € in H1). Net debt (4.6 bn € in June) is seasonal and increased by three acquisitions. The company form (commandite par actions) gives the managing partners great control – no points given. Q3 revenue about 22/10; insider trading not investigated.
Also in Autos & parts
The highest scores in the same industry.
