How to buy Michelin shares (2024) – invest in Michelin stocks
Almost everyone is familiar with Michelin due to the Michelin stars awarded to high-quality restaurants. However, this is not the company’s main source of revenue. Michelin primarily earns money from selling tires. In this article, we will discuss how and where you can buy Michelin shares and you can find the current stock price of Michelin.
Do you have confidence in the future of Michelin? There is a high chance that people will increasingly use cars, especially after the pandemic, as individuals often prefer their private vehicles over public transportation. With its travel guides and restaurant ratings, the company has built a strong position, which can make investing in Michelin stocks even more interesting.
Would you like to know where you can invest in Michelin shares? Then directly check out the overview of the most reliable brokers:
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What is the stock price of Michelin?
Are you curious about the performance of Michelin’s stock price? The graph below shows how well (or poorly) Michelin’s stocks perform. You can open a position directly by using the buttons.
Company information of Michelin
Below, you will find the key company information of Michelin.
Stock prices of Michelin over the last 5 days
In the table below, you can see the stock prices of Michelin from the last 5 days:
Why might it be interesting to invest in Michelin stocks?
- Strong brand: Michelin is a strong and recognizable international brand known for its high quality.
- International presence: Michelin operates in more than 170 countries, which diversifies the risks across different regions.
- R&D investment: Michelin invests heavily in research and development, which enables it to stay ahead of the competition.
- Dividend: Michelin offers an attractive dividend that investors can benefit from.
- Cyclical nature: The demand for tires is cyclical, as people postpone buying new cars when they have less disposable income. Therefore, it is important to closely monitor the economic situation when considering an investment in Michelin.
- Competition: Michelin faces competition from various other companies in the tire manufacturing industry.
- Rising costs: Michelin experiences increasing raw material and labour costs, which puts pressure on the profit margins.
Who are the main competitors of Michelin?
- Bridgestone
- Goodyear
- Continental
- Pirelli
- Hankook
- Yokohama
- Step 1: First, open an account with a reliable stockbroker.
- Step 2: Complete the steps to fully open your account.
- Step 3: Deposit funds directly from your bank account to your investment account.
- Step 4: Select the Michelin stock and determine the amount you want to invest.
- Step 5: Press the “Buy” button to purchase Michelin shares directly.
About Michelin
Michelin is one of the world’s largest tire manufacturers and is still family owned. Through this clever structure, the family business has attracted large amounts of capital. The company’s headquarters are located in Clermont-Ferrand, France.
The history of Michelin
Michelin was founded in 1889 by the Michelin brothers, Andre and Edouard. To further expand the company, they became the owners of Citroën in 1934, which was sold again in 1974.
A versatile enterprise
Michelin is a versatile enterprise that does more than just produce tires. An example of this is the travel guides the company has been publishing since 1900. Additionally, the company is known for the stars it awards to high-level restaurants.
The Michelin mascot
The company has a well-known mascot named Bibendum. In the past, the mascot was made up of car tires, but nowadays, it is made up of bicycle tires. This mascot is featured in Michelin’s publications, such as its roadmaps.
Milestones of the company
- The first interchangeable bicycle tire (1891)
- The first rubber tire for automobiles (1895)
- The first comfortable tire for trucks (1926)
- The first tires reinforced with metal grating (1936)
Acquisition of Uniroyal Goodrich
In 1989, Michelin acquired the American tire manufacturer Uniroyal Goodrich. This company was the second-largest tire manufacturer in the United States after Goodyear. Michelin paid $0.9 billion for the acquisition and also took over existing debts amounting to $0.8 billion. This acquisition strengthened the company’s position in the American tire market.
Michelin’s travel guides and maps
Michelin has been publishing travel guides since 1900 and roadmaps since 1910. Initially, the company only published roadmaps and travel guides for France. Nowadays, the company publishes roadmaps and travel guides for almost all of Europe and countries beyond.
The company started these travel guides to promote the sale of their tires. The roadmaps and travel guides encouraged car tourism, which was beneficial for tire sales. The editorial team for the roadmaps and travel guides quickly became independent of the tire trade.
The Michelin Red Guide
In the annually published Red Guide, you can find a selection of hotels and restaurants. The Red Guide is particularly known for the Michelin stars awarded to restaurants with excellent cuisine. To award the stars, approximately 70 inspectors inspect around 50,000 restaurants in Europe each year.
Restaurants are very pleased with these stars, as a mention in the Red Guide guarantees quality.
Tire manufacturer affected by high raw material prices
In the first half of 2017, high raw material prices affected Michelin’s profits. To maintain their results, Michelin had to increase its prices. The high raw material prices resulted in a setback of up to 331 million euros. In the second half of 2017, raw material prices began to decrease slightly.
Before investing in Michelin stocks, it is wise to thoroughly research the development of raw material prices. Investigate which commodities are important and how they influence the stock price. This allows you to achieve the best results with investments in Michelin stocks.
When considering an investment in Michelin shares, it is best to consider the economic situation. People are more likely to buy a new car when the economy performs well, which leads to an increase in the demand for tires.
Don’t forget to compare Michelin with other tire manufacturers when considering an investment. This allows you to determine whether it is wise to invest in Michelin shares at the moment.
