MichelinXPAR:ML +2.75%83 ROA % is 4.71% as of Dec. 2025, which is 17% below its 10-year median of 5.65. GuruFocus rates XPAR:ML with a GF Score™ of 83/100 and a GF Value™ of €30.15 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,336 Vehicles & Parts companies, Michelin ranks better than 62.95% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Michelin's annualizedNet Income for the quarter that ended in Dec. 2025 was €1,662 Mil.
Michelin's average Total Assets over the quarter that ended in Dec. 2025 was €35,286 Mil. Therefore, Michelin's annualized ROA % for the quarter that ended in Dec. 2025 was 4.71%.
The historical rank and industry rank for Michelin's ROA % or its related term are showing as below:
XPAR:ML'
s ROA % Range Over the Past 10 Years
Min: 2 Med: 5.65 Max: 6.81
Current: 4.63
During the past 13 years, Michelin's highest ROA % was 6.81%. The lowest was 2.00%. And the median was 5.65%.
XPAR:ML's ROA % is ranked better than 62.95% of 1336
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs XPAR:ML: 4.63
Michelin (XPAR:ML) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Michelin ROA % Related Terms
Michelin ROA % Historical Data
* Premium members only.
The historical data trend for Michelin's ROA % can be seen below:
* 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.
For the Auto Parts subindustry, Michelin's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Michelin's ROA % distribution charts can be found below:
* The bar in red indicates where Michelin's ROA % falls into.
* 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Michelin (XPAR:ML) has a ROA % of 4.71% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Michelin and its competitors. This is 17% below median its historical median of 5.65. Over the past decade, Michelin's ROA % has ranged from 2.00 to 6.81. According to the industry distribution chart, Michelin ranks #495 out of 1336 companies in the Vehicles & Parts industry, placing it in the top 37.1%.
Is Michelin's ROA % too high?
Michelin's current ROA % of 4.71% is 17% below median its 10-year median of 5.65. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 6.81. The Vehicles & Parts industry median ROA % is 2.95. Michelin's value of 4.71% is 59.7% above this industry median. Based on the distribution chart, Michelin ranks #495 out of 1336 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Michelin has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Michelin's ROA % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Michelin ranks #495 out of 1336 companies for ROA %. This puts Michelin in the upper half of its industry. The industry median ROA % is 2.95. Michelin's value of 4.71% is 59.7% above this benchmark. Historically, Michelin's own ROA % has ranged from 2.00 to 6.81 over the past decade. While the company's 10-year median is 5.65 vs. the industry median of 2.95, Michelin has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Vehicles & Parts company?
The median ROA % among Vehicles & Parts companies is 2.95, based on 1,336 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Michelin's current ROA % of 4.71% is 59.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Michelin and its competitors. For the Vehicles & Parts industry, the median ROA % is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Michelin's current ROA % is 4.71%, which is 17% below median its own 10-year median of 5.65. 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?
Based on GuruFocus' analysis, Michelin (XPAR:ML) is currently considered Modestly Overvalued. The stock's GF Value™ is €30.15, compared to a current price of €33.57 — trading 11.3% above its estimated fair value. The current ROA % is 4.71%, which is 17% below median its 10-year median of 5.65 and 59.7% above the Vehicles & Parts industry median of 2.95. Michelin's overall GF Score™ is 83/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Michelin (XPAR:ML), the current ROA % is 4.71% 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 (XPAR:ML) Overvalued in 2026?
Based on GuruFocus' analysis, Michelin stock appears to be overvalued.
The current stock price of €33.57 is trading 11.3% above its estimated GF Value™ of €30.15.
GuruFocus considers Michelin to be Modestly Overvalued.
Key valuation signals for XPAR:ML:
ROA %: 4.71% (17% below median its 10-year median of 5.65)
GF Value™: €30.15 vs. price of €33.57 (11.3% above fair value)
Industry Position: 59.7% above the Vehicles & Parts median (#495 of 1336)
No single metric tells the full story. See the XPAR:ML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
83GF Score
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