Investing in Michelin
If you are one of those people and you have decided to buy Michelin shares, it is important that you know everything about this company, such as how much a Michelin share is worth, how you can buy them and what are their advantages and weaknesses.In that case, we invite you to continue with us and find out if buying a Michelin share is a good option.
What is Michelin?
It is a French company that specializes in manufacturing tires since 1889, called SCA Compagnie Générale des Etablissements Michelin. Together with its biggest competitor Bridgestone, it is positioned as the largest tire manufacturer in the world.It is headquartered in the city of Clermont-Ferrand in Puy-de-Dome, France. It also has more than 170 factories around the world, several roofing plants in Argentina and Mexico.In conjunction with other tire distributors, Michelin Spain created a management system called Signus, in order to have the capacity to recycle used tires. In addition, the company participates in several categories of automotive competitions, such as the motorcycle world championship and the world rally championship.On the other hand, the company produces guide editions in various categories such as: gastronomic, road and tourist maps. A few years ago, together with another company, it started to develop software to help drivers with GPS included.And as we mentioned at the beginning of this post, Michelin has an icon called Bidenbum, which is made of several white tires.
The company’s market capitalization is worth approximately 19 billion euros. Michelin’s share price can be found on the Euronext Paris market under the A section. Michelin shares belong to the French stock index CAC 40 under the symbol ML. You will also have the possibility to search by the acronym MGDDY for Michelin within the Nasdaq index. There are currently almost 180 million shares outstanding, which provides a dividend yield of approximately 3.5%. Its shareholder base is quite diverse, with a majority of foreign investors, specifically 59%. The remaining 27.4% are French investors, 11.8% are private investors and only 1.8% are employees of the company.This company has won the tire manufacturer of the year award on several occasions. In 2007 it broke the record for the largest tire produced, made under the 59/80R63 model used on a giant dump truck for mining excavation.If you have not yet made the decision to buy Michelin shares, we will show you the advantages and disadvantages of investing in Michelin on the stock market below.Buying Michelin shares: Advantages
- It is recognized worldwide: Both the company and its mascot are known by the majority of the world’s population, which adds to the value of Michelin’s shares.
- The company’s activities are excellently distributed: this gives it a fair market share on all continents.
- It has a very successful pricing policy: It bases its work process on reducing as much as possible its exposure to the prices of the raw materials it uses. The company rather seeks to produce them by itself while being ecologically responsible.
- It produces the same product, but for different purposes: it is already known to produce tires, but it also creates them for handling in agronomy, for championship motorcycles, in civil engineering and others.
- Constantly invests in innovation and research: Whenever it has the opportunity, it improves its level of manufacturing to automate the process in each of its factories.
- It has succeeded in improving the process for manufacturing environmentally friendly tires: Now this type of product has less rolling resistance and the company wants them to represent more of the tire market.
- It is one of the most consolidated companies from a monetary point of view: Compared to its competitors, it is not only considered as a solid company, but also has an excellent score with Michelin stocks of stable price.
Buying Michelin shares: Disadvantages
- Michelin’s stock price is a bit high compared to its competitors. This could be a problem for those investors who decide to buy a large amount of Michelin stocks since the total price would be quite high.
- Manufactures products for a sometimes stagnant market: For some time now, the tire market has been a bit stagnant, due to the fact that it has little activity dedicated to trucks.
If you are still not sure how to invest in Michelin we will explain it step by step. The first thing you should know is that there are many ways to do it, but we recommend you to buy through a stock broker. They work online trading with the market of your choice.Some of them are international and others operate from a specific area, the most used worldwide are: eToro, Plus500, IQ Option, Degiro, Interactive Brokers, XTB and TradeStation. We will show you how to buy a Michelin stock using IQ Option just follow the steps explained below:
- Create your account by completing the form on the screen and log in again.
- Deposit the money to be invested, choosing the desired payment method.
- Fill in the form to finalize the transaction and wait a few minutes until the funds are active.
- Then search for the action by clicking on the + button and type Michelin.
- Then choose the section called shares and click on the title you wish to buy.
- Finally, you have to place all the elements to create a low or high position.
- First learn all about stock investing: Learn first by researching all the basics that go into knowing how to invest in Michelin stock. Then start analyzing all the facts about the company, from its founding, stock history and statistics.
- Determine what type of investment you want to apply: For this devise an investment plan that will help you know how much you can lose or for how long you can invest.