- Michelin has revised its forecast for 2025 segment operating income.
- The company now anticipates adjusted free cash flow of between €1.5 billion and €1.8 billion. Previously, the forecast was above €1.7 billion.
- The North American business underperformed more severely than projected.
- Third-quarter sales volume in North America dropped close to 10%.
- This decline was primarily due to diminishing demand from OEMs in the Truck and Agriculture sectors.
- The Truck replacement market experienced weak sales, reflecting a sluggish economy.
- Consumer sales (B2C) faced several challenges in the North American market.
- Group competitiveness has been negatively affected by tariff impositions.
- The US dollar weakened more than anticipated, from 1.17 to 1.15, creating additional pressure on group-level free cash flow.
- In terms of analyst recommendations, Michelin has 11 buy ratings, 4 hold ratings, and 1 sell rating.
Michelin on Smartkarma
Michelin, the well-known tire company, has garnered analyst attention on Smartkarma, with Baptista Research providing bullish coverage. In a report titled “Michelin – Can Its Growth in Specialty Segments Boost Overall Profit Margins?”, the analysts delve into the company’s recent financial results. Despite facing challenges, Michelin showcases resilience in a competitive market by capitalizing on its strong brand and innovative capabilities. The company’s strategic direction lies in its “Michelin in Motion Strategy 2030″, which emphasizes diversification beyond tires into services, experiences, and polymer composite solutions.
A look at Michelin Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Compagnie Generale des Etablissements Michelin, a manufacturer of auto parts specializing in tires, showcases a promising long-term outlook based on its Smartkarma Smart Scores. With a solid Value score of 4, Michelin is deemed to offer good value for investors. Coupled with a strong Dividend score of 4, the company provides healthy returns to its shareholders. While its Growth score stands at 3, indicating moderate growth prospects, Michelin excels in Resilience with a score of 4, showcasing its ability to withstand market uncertainties. Additionally, the company holds a Momentum score of 3, reflecting its current market momentum. Overall, Michelin‘s scores suggest a favorable outlook for investors eyeing long-term prospects in the auto parts industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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