MichelinMEX:ML 84 3-Year ROIIC % is 51.90 as of Dec. 2025, which is 364% above its 10-year median of 11.19. GuruFocus rates MEX:ML with a GF Score™ of 84/100 and a GF Value™ of MXN654.13. The stock has 6 warning signs investors should review. Among 1,256 Vehicles & Parts companies, Michelin ranks better than 88.38% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Michelin's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 51.90%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Michelin's 3-Year ROIIC % or its related term are showing as below:
MEX:ML's 3-Year ROIIC % is ranked better than 88.38% of 1256
companies
in the Vehicles & Parts industry
Industry Median: 4.08
vs MEX:ML: 51.90
Michelin (MEX:ML) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Michelin 3-Year ROIIC % Related Terms
Michelin 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Michelin's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Michelin's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Michelin's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Michelin (MEX:ML) has a 3-Year ROIIC % of 51.90 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Michelin and its competitors. This is 364% above median its historical median of 11.19. According to the industry distribution chart, Michelin ranks #146 out of 1256 companies in the Vehicles & Parts industry, placing it in the top 11.6%.
Is Michelin's 3-Year ROIIC % too high?
Michelin's current 3-Year ROIIC % of 51.90 is 364% above median its 10-year median of 11.19. The Vehicles & Parts industry median 3-Year ROIIC % is 4.08. Michelin's value of 51.90 is 1172.1% above this industry median. Based on the distribution chart, Michelin ranks #146 out of 1256 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Michelin has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Michelin's 3-Year ROIIC % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Michelin ranks #146 out of 1256 companies for 3-Year ROIIC %. This places Michelin in the top 12% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 4.08. Michelin's value of 51.90 is 1172.1% above this benchmark. While the company's 10-year median is 11.19 vs. the industry median of 4.08, 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 3-Year ROIIC % for a Vehicles & Parts company?
The median 3-Year ROIIC % among Vehicles & Parts companies is 4.08, based on 1,256 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Michelin's current 3-Year ROIIC % of 51.90 is 1172.1% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Michelin and its competitors. For the Vehicles & Parts industry, the median 3-Year ROIIC % is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Michelin's current 3-Year ROIIC % is 51.90, which is 364% above median its own 10-year median of 11.19. 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 3-Year ROIIC % of 51.90. The stock's GF Value™ is MXN654.13, compared to a current price of MXN733.29 — trading 12.1% above its estimated fair value. The current 3-Year ROIIC % is 51.90, which is 364% above median its 10-year median of 11.19 and 1172.1% above the Vehicles & Parts industry median of 4.08. Michelin's overall GF Score™ is 84/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Michelin (MEX:ML), the current 3-Year ROIIC % is 51.90 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 12.1% above its estimated GF Value™ of MXN654.13.
Key valuation signals for MEX:ML:
3-Year ROIIC %: 51.90 (364% above median its 10-year median of 11.19)
GF Value™: MXN654.13 vs. price of MXN733.29 (12.1% above fair value)
Industry Position: 1172.1% above the Vehicles & Parts median (#146 of 1256)
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 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.
84GF Score
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