Michelin (MEX:ML) Profitability Rank: 8 (As of Dec. 2025) — 14% Above Median

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MEX:ML Michelin MEX:ML
85 GF Score
Price MXN733.29
GF Value MXN629.94
! 7 Warning Signs
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What is Michelin Profitability Rank?

Michelin MEX:ML 85 Profitability Rank is 8 as of Dec. 2025, which is 14% above its 10-year median of 7.00. GuruFocus rates MEX:ML with a GF Score™ of 85/100 and a GF Value™ of MXN629.94. The stock has 7 warning signs investors should review.

Michelin has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Michelin's Operating Margin % for the quarter that ended in Dec. 2025 was 9.62%. As of today, Michelin's Piotroski F-Score is 6.


Michelin Profitability Rank Related Terms


MEX:ML vs ORLY, AZO: Profitability Rank Comparison

For the Auto Parts subindustry, Michelin's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Michelin Profitability Rank vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Michelin's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Michelin's Profitability Rank falls into.


MEX:ML
85GF Score
Michelin MEX:ML
Profitability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Michelin Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Michelin has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Michelin's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=26291.695 / 273332.43
=9.62 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Michelin has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Michelin operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 8 mean?
Michelin (MEX:ML) has a Profitability Rank of 8 as of Dec. 2025. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Michelin and its competitors. This is 14% above median its historical median of 7.00. Over the past decade, Michelin's Profitability Rank has ranged from 6.00 to 9.00.
Is Michelin's Profitability Rank too high?
Michelin's current Profitability Rank of 8 is 14% above median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 9.00. Overall, Michelin has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Michelin's Profitability Rank compare to ORLY and AZO?
Michelin's Profitability Rank of 8 can be compared against companies in the Vehicles & Parts industry. Historically, Michelin's own Profitability Rank has ranged from 6.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Vehicles & Parts company?
A good Profitability Rank depends on the Vehicles & Parts industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Michelin and its competitors. Michelin's current Profitability Rank is 8, which is 14% above median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Michelin stock overvalued right now?
Michelin (MEX:ML) has a current Profitability Rank of 8. The stock's GF Value™ is MXN629.94, compared to a current price of MXN733.29 — trading 16.4% above its estimated fair value. The current Profitability Rank is 8, which is 14% above median its 10-year median of 7.00. Michelin's overall GF Score™ is 85/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Michelin (MEX:ML), the current Profitability Rank is 8 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Michelin (MEX:ML) Overvalued in 2026?

Based on GuruFocus' analysis, Michelin stock appears to be overvalued. The current stock price of MXN733.29 is trading 16.4% above its estimated GF Value™ of MXN629.94.

Key valuation signals for MEX:ML:

  • Profitability Rank: 8 (14% above median its 10-year median of 7.00)
  • GF Value™: MXN629.94 vs. price of MXN733.29 (16.4% above fair value)
  • GF Score™: 85/100 with 7 warning signs

No single metric tells the full story. See the MEX:ML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Michelin Business Description

Address 23, Place des Carmes, Dechaux, Puy-de-Dome, Clermont-Ferrand, FRA, 63000
Michelin manufactures tires for passenger vehicles. The company also makes tires for all types of commercial vehicles as well as bicycle, motorcycle, earthmover, aviation, and agricultural tires. Its operations are organized into three operating segments namely Automotive and two-wheel; Road transportation; and Specialty businesses. The company generates maximum revenue from Automotive segments. The Specialty businesses include the Mining, Beyond-road, Two-wheel and Aircraft tire activities, as well as the High-Tech Materials activities. The Services & Solutions businesses are included for the majority part in the Road transportation and related distribution segment.
85GF Score

Get the complete analysis for MEX:ML

Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN733.29
Price
MXN629.94
GF Value