French stock alert

FRA

CLOSING UPDATE: Cie Generale des Etablissements Michelin keeps sliding: down 4.3% in 5 days 26 July 2017 18:07 CEST

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's French market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Cie Generale des Etablissements Michelin, France's 2nd largest automobiles & parts company by market capitalisation, extended its slide on Wednesday, shedding an additional 45.0c (or 0.4%) to trade at EUR115.95. Trading volume was 1.2 times average at the end of the day.

Technical indicators complementing today's significant downtrend:

+ The negative 0.32 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price sank 4.3% in the last week.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Price/Earnings of 12.8 [10.2]

+ Price/Earnings/Growth of 0.85 [0.3]

+ Price/Sales of 1 [0.5]

Note

Cie Generale des Etablissements Michelin today is at a discount of 6.4% to the 12-month high of EUR123.85 on 17 Jul, 2017. It is at a premium of 29.5% to the 12-month low of EUR89.53 on 03 Aug, 2016.

The stock has outperformed 59% of the French market over the past 6 months.

Bullish Signals:

In the last three months the stock has hit a new 52-week high seven times, pointing to a significant uptrend.

Tobin's Q Ratio is 0.8. Compared with the rest of the market the stock is undervalued.

Net profit margin has averaged 6.2% in the last 3 years. This is better than the sector average of 5.1% and suggests a high margin of safety.

The Brand Value represents an impressive 15.9% of the estimated Enterprise Value of EUR23.6 billion (US$27.4 billion).

As per the Du Pont analysis, Return on Equity of 15.6% is better than sector average of 14.0%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Return on Equity 15.6% [14.0%]

Return on Assets 6.6% [4.3%]

Return on Capital Employed 13% [11.7%]

TODAY'S ALERT

Afternoon Alert: Cie Generale des Etablissements Michelin keeps sliding: down 4.3% in 5 days

26 July 2017 14:04 CEST

Cie Generale des Etablissements Michelin (FR:ML) extended its slide on Wednesday, shedding an additional 50.0c (or 0.4%) to trade at EUR115.90. Trading volume was 1.4 times average so far today.

Cie Generale des Etablissements Michelin (FR:ML; EPA:ML; PA:ML; FP:ML)

ISIN: FR0000121261

PermID: 4295867411

Source: www.BuySellSignals.com