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Goodyear Tire & Rubber

WBAG:GYT
Snowflake Description

Good value with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GYT
WBAG
$5B
Market Cap
  1. Home
  2. AT
  3. Automobiles
Company description

The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services worldwide. The last earnings update was 69 days ago. More info.


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GYT Share Price and Events
7 Day Returns
5.1%
WBAG:GYT
6.9%
Europe Auto Components
3.4%
AT Market
1 Year Returns
-
WBAG:GYT
-21.7%
Europe Auto Components
-2%
AT Market
GYT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Goodyear Tire & Rubber (GYT) 5.1% 12.6% -0.4% - - -
Europe Auto Components 6.9% 10.9% 19.9% -21.7% -5.7% 6%
AT Market 3.4% 6% 10.1% -2% 43.4% 29.5%
1 Year Return vs Industry and Market
  • No trading data on GYT.
  • No trading data on GYT.
Price Volatility
GYT
Industry
5yr Volatility vs Market

Value

 Is Goodyear Tire & Rubber undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Goodyear Tire & Rubber to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Goodyear Tire & Rubber.

WBAG:GYT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.5%
Perpetual Growth Rate 10-Year AT Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for WBAG:GYT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AT Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.16
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.157 (1 + (1- 21%) (120.98%))
1.846
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.85
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.51% + (1.846 * 5.96%)
11.52%

Discounted Cash Flow Calculation for WBAG:GYT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Goodyear Tire & Rubber is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

WBAG:GYT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.52%)
2019 521.50 Analyst x2 467.65
2020 730.33 Analyst x3 587.29
2021 711.00 Analyst x1 512.71
2022 714.00 Analyst x1 461.70
2023 717.00 Analyst x1 415.77
2024 715.51 Est @ -0.21% 372.06
2025 715.56 Est @ 0.01% 333.67
2026 716.69 Est @ 0.16% 299.69
2027 718.58 Est @ 0.26% 269.45
2028 721.01 Est @ 0.34% 242.44
Present value of next 10 years cash flows $3,962.42
WBAG:GYT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $721.01 × (1 + 0.51%) ÷ (11.52% – 0.51%)
$6,585.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,585.03 ÷ (1 + 11.52%)10
$2,214.23
WBAG:GYT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,962.42 + $2,214.23
$6,176.65
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,176.65 / 232.26
$26.59
WBAG:GYT Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in WBAG:GYT represents 0.88786x of NasdaqGS:GT
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88786x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 26.59 x 0.88786
€23.61
Value per share (EUR) From above. €23.61
Current discount Discount to share price of €18.21
= -1 x (€18.21 - €23.61) / €23.61
22.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Goodyear Tire & Rubber is available for.
Intrinsic value
23%
Share price is €18.21 vs Future cash flow value of €23.61
Current Discount Checks
For Goodyear Tire & Rubber to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Goodyear Tire & Rubber's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Goodyear Tire & Rubber's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Goodyear Tire & Rubber's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Goodyear Tire & Rubber's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
WBAG:GYT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.92
NasdaqGS:GT Share Price ** NasdaqGS (2019-04-18) in USD $20.51
Europe Auto Components Industry PE Ratio Median Figure of 42 Publicly-Listed Auto Components Companies 13.18x
Austria Market PE Ratio Median Figure of 51 Publicly-Listed Companies 14.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Goodyear Tire & Rubber.

WBAG:GYT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:GT Share Price ÷ EPS (both in USD)

= 20.51 ÷ 2.92

7.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Goodyear Tire & Rubber is good value based on earnings compared to the Europe Auto Components industry average.
  • Goodyear Tire & Rubber is good value based on earnings compared to the Austria market.
Price based on expected Growth
Does Goodyear Tire & Rubber's expected growth come at a high price?
Raw Data
WBAG:GYT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
-11.2%per year
Europe Auto Components Industry PEG Ratio Median Figure of 33 Publicly-Listed Auto Components Companies 1.1x
Austria Market PEG Ratio Median Figure of 32 Publicly-Listed Companies 1.34x

*Line of best fit is calculated by linear regression .

WBAG:GYT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.01x ÷ -11.2%

-0.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Goodyear Tire & Rubber earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Goodyear Tire & Rubber's assets?
Raw Data
WBAG:GYT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $20.95
NasdaqGS:GT Share Price * NasdaqGS (2019-04-18) in USD $20.51
Europe Auto Components Industry PB Ratio Median Figure of 47 Publicly-Listed Auto Components Companies 1.48x
Austria Market PB Ratio Median Figure of 59 Publicly-Listed Companies 1.27x
WBAG:GYT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:GT Share Price ÷ Book Value per Share (both in USD)

= 20.51 ÷ 20.95

0.98x

* Primary Listing of Goodyear Tire & Rubber.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Goodyear Tire & Rubber is good value based on assets compared to the Europe Auto Components industry average.
X
Value checks
We assess Goodyear Tire & Rubber's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. Goodyear Tire & Rubber has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Goodyear Tire & Rubber expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-11.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Goodyear Tire & Rubber expected to grow at an attractive rate?
  • Goodyear Tire & Rubber's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Goodyear Tire & Rubber's earnings are expected to decrease over the next 1-3 years, this is below the Austria market average.
  • Goodyear Tire & Rubber's revenue growth is positive but not above the Austria market average.
Annual Growth Rates Comparison
Raw Data
WBAG:GYT Future Growth Rates Data Sources
Data Point Source Value (per year)
WBAG:GYT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts -11.2%
WBAG:GYT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 1.3%
Europe Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
Europe Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
Austria Market Earnings Growth Rate Market Cap Weighted Average 9%
Austria Market Revenue Growth Rate Market Cap Weighted Average 2.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
WBAG:GYT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
WBAG:GYT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 16,286 1
2022-12-31 16,165 1
2021-12-31 16,153 4
2020-12-31 15,950 1,361 561 11
2019-12-31 15,611 1,080 503 11
WBAG:GYT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 15,475 916 693
2018-09-30 15,670 1,288 487
2018-06-30 15,663 1,259 265
2018-03-31 15,508 1,055 255
2017-12-31 15,377 1,158 346
2017-09-30 15,047 1,113 1,003
2017-06-30 14,973 1,439 1,191
2017-03-31 15,166 1,643 1,246
2016-12-31 15,158 1,557 1,264
2016-09-30 15,480 1,342 323
2016-06-30 15,817 1,346 277
2016-03-31 16,110 1,577 267

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Goodyear Tire & Rubber's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Goodyear Tire & Rubber's revenue is expected to grow by 1.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
WBAG:GYT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Goodyear Tire & Rubber Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:GYT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 2.82 3.48 2.05 4.00
2019-12-31 2.12 2.14 2.10 2.00
WBAG:GYT Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.92
2018-09-30 2.04
2018-06-30 1.09
2018-03-31 1.04
2017-12-31 1.39
2017-09-30 3.96
2017-06-30 4.65
2017-03-31 4.81
2016-12-31 4.81
2016-09-30 1.22
2016-06-30 1.04
2016-03-31 1.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Goodyear Tire & Rubber is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Goodyear Tire & Rubber's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Goodyear Tire & Rubber has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Goodyear Tire & Rubber performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Goodyear Tire & Rubber's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Goodyear Tire & Rubber's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Goodyear Tire & Rubber's 1-year earnings growth exceeds its 5-year average (100.3% vs -17.6%)
  • Goodyear Tire & Rubber's earnings growth has exceeded the Europe Auto Components industry average in the past year (100.3% vs -0.9%).
Earnings and Revenue History
Goodyear Tire & Rubber's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Goodyear Tire & Rubber Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:GYT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 15,475.00 693.00 2,424.00
2018-09-30 15,670.00 487.00 2,381.00
2018-06-30 15,663.00 265.00 2,326.00
2018-03-31 15,508.00 255.00 2,317.00
2017-12-31 15,377.00 346.00 2,341.00
2017-09-30 15,047.00 1,003.00 2,345.00
2017-06-30 14,973.00 1,191.00 2,354.00
2017-03-31 15,166.00 1,246.00 2,368.00
2016-12-31 15,158.00 1,264.00 2,444.00
2016-09-30 15,480.00 323.00 2,532.00
2016-06-30 15,817.00 277.00 2,566.00
2016-03-31 16,110.00 267.00 2,621.00
2015-12-31 16,443.00 307.00 2,614.00
2015-09-30 16,736.00 2,816.00 2,591.00
2015-06-30 17,209.00 2,706.00 2,611.00
2015-03-31 17,693.00 2,727.00 2,661.00
2014-12-31 18,138.00 2,445.00 2,720.00
2014-09-30 18,573.00 544.00 2,754.00
2014-06-30 18,918.00 549.00 2,787.00
2014-03-31 19,156.00 516.00 2,780.00
2013-12-31 19,540.00 600.00 2,758.00
2013-09-30 19,794.00 372.00 2,729.00
2013-06-30 20,056.00 316.00 2,695.00
2013-03-31 20,312.00 220.00 2,701.00
2012-12-31 20,992.00 183.00 2,718.00
2012-09-30 21,630.00 201.00 2,735.00
2012-06-30 22,428.00 251.00 2,760.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Goodyear Tire & Rubber has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Goodyear Tire & Rubber used its assets more efficiently than the Europe Auto Components industry average last year based on Return on Assets.
  • Goodyear Tire & Rubber's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Goodyear Tire & Rubber's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Goodyear Tire & Rubber has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Goodyear Tire & Rubber's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Goodyear Tire & Rubber's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Goodyear Tire & Rubber is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Goodyear Tire & Rubber's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Goodyear Tire & Rubber's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Goodyear Tire & Rubber Company Filings, last reported 3 months ago.

WBAG:GYT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 5,070.00 5,763.00 801.00
2018-09-30 5,000.00 6,520.00 896.00
2018-06-30 4,844.00 6,347.00 975.00
2018-03-31 4,962.00 6,259.00 837.00
2017-12-31 4,850.00 5,729.00 1,043.00
2017-09-30 5,121.00 6,391.00 822.00
2017-06-30 5,145.00 6,076.00 903.00
2017-03-31 4,960.00 5,933.00 961.00
2016-12-31 4,725.00 5,479.00 1,132.00
2016-09-30 4,704.00 6,028.00 975.00
2016-06-30 4,408.00 6,236.00 1,138.00
2016-03-31 4,332.00 6,075.00 1,079.00
2015-12-31 4,142.00 5,708.00 1,476.00
2015-09-30 4,952.00 6,000.00 1,690.00
2015-06-30 4,765.00 6,103.00 1,638.00
2015-03-31 4,558.00 6,226.00 1,613.00
2014-12-31 4,427.00 6,394.00 2,161.00
2014-09-30 2,698.00 6,855.00 1,744.00
2014-06-30 2,682.00 6,762.00 1,637.00
2014-03-31 2,437.00 7,120.00 1,853.00
2013-12-31 2,445.00 6,249.00 2,996.00
2013-09-30 1,743.00 6,542.00 2,500.00
2013-06-30 1,478.00 6,529.00 2,564.00
2013-03-31 1,302.00 6,581.00 2,386.00
2012-12-31 1,159.00 5,086.00 2,281.00
2012-09-30 2,126.00 5,981.00 2,257.00
2012-06-30 1,812.00 5,670.00 2,156.00
  • Goodyear Tire & Rubber's level of debt (113.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (256% vs 113.7% today).
  • Debt is not well covered by operating cash flow (15.9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).
X
Financial health checks
We assess Goodyear Tire & Rubber's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Goodyear Tire & Rubber has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Goodyear Tire & Rubber's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.12%
Current annual income from Goodyear Tire & Rubber dividends. Estimated to be 3.32% next year.
If you bought €2,000 of Goodyear Tire & Rubber shares you are expected to receive €62 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Goodyear Tire & Rubber's pays a higher dividend yield than the bottom 25% of dividend payers in Austria (1.44%).
  • Goodyear Tire & Rubber's dividend is below the markets top 25% of dividend payers in Austria (4.62%).
Upcoming dividend payment

Purchase Goodyear Tire & Rubber before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
WBAG:GYT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Europe Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 3.2%
Austria Market Average Dividend Yield Market Cap Weighted Average of 49 Stocks 3.4%
Austria Minimum Threshold Dividend Yield 10th Percentile 1.1%
Austria Bottom 25% Dividend Yield 25th Percentile 1.4%
Austria Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

WBAG:GYT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.72 3.00
2020-12-31 0.69 9.00
2019-12-31 0.66 8.00
WBAG:GYT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-09 0.640 3.240
2019-01-15 0.640 3.352
2018-10-10 0.640 2.995
2018-07-16 0.560 2.398
2018-04-10 0.560 2.225
2018-01-16 0.560 1.876
2017-10-11 0.560 1.764
2017-07-13 0.400 1.245
2017-04-11 0.400 1.160
2017-01-13 0.400 1.166
2016-09-15 0.400 1.286
2016-07-13 0.280 0.974
2016-04-12 0.280 1.003
2016-01-15 0.280 0.924
2015-10-06 0.280 0.866
2015-07-15 0.240 0.800
2015-04-14 0.240 0.802
2015-01-15 0.240 0.921
2014-10-07 0.240 0.963
2014-07-15 0.240 0.961
2014-04-15 0.200 0.759
2014-01-15 0.200 0.782
2013-09-20 0.200 0.892

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Goodyear Tire & Rubber has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Goodyear Tire & Rubber only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Goodyear Tire & Rubber's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).
X
Income/ dividend checks
We assess Goodyear Tire & Rubber's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Goodyear Tire & Rubber afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Goodyear Tire & Rubber has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Goodyear Tire & Rubber's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rich Kramer
COMPENSATION $6,213,100
AGE 54
TENURE AS CEO 9 years
CEO Bio

Mr. Richard J. Kramer, also known as Rich, has been Chairman, Chief Executive Officer and President of The Goodyear Tire & Rubber Company since April 13, 2010. Mr. Kramer serves as the Chairman and Chief Executive Officer at Goodyear Canada Inc. He serves as Chief Executive Officer and President at Goodyear Malaysia Berhad. He serves as the Chairman of Goodyear's OTR Tires and Chief Executive Officer of Goodyear's OTR Tires at Nippon Giant Tire Co., Ltd. Mr. Kramer served as the Chief Operating Officer of The Goodyear Tire & Rubber Company from June 04, 2009 to April 2010 He served as President of North American Tire Business at The Goodyear Tire & Rubber Company from March 14, 2007 to February 2010. He specialized in providing audit and business advisory services to Fortune 100 multi-national companies in the manufacturing, technology, retail and entertainment industries. Mr. Kramer served as the Chief Financial Officer and Executive Vice President of The Goodyear Tire & Rubber Company from June 1, 2004 to August 7, 2007 and served as its Senior Vice President of Strategic Planning & Restructuring from August 28, 2003 to June 2004. He joined The Goodyear Tire & Rubber Company on March 6, 2000 and served as its Vice President for Corporate Finance for North American Tire, division of The Goodyear Tire & Rubber Company from August 6, 2002 to August 28, 2003. Mr. Kramer served as Vice President of Corporate Finance of The Goodyear Tire & Rubber Company from March 2000 to August 2002 and also served as its Principal Accounting Officer until August 6, 2002. He has been an Independent Director at The Sherwin-Williams Company since February 2012. Prior to joining Goodyear, Mr. Kramer served as Associate of PricewaterhouseCoopers LLP for 13 years, including two years as a Partner since 1998. He joined PricewaterhouseCoopers in 1986 in Cleveland. He has been Chairman of the Board at The Goodyear Tire & Rubber Company since October 01, 2010. He has been Director of The Goodyear Tire & Rubber Company since February 22, 2010. He serves as Director of John Carroll University. He is a Certified Public Accountant. Mr. Kramer holds a Bachelor of Science in Business Administration in 1986 from John Carroll University.

CEO Compensation
  • Rich's compensation has been consistent with company performance over the past year.
  • Rich's remuneration is higher than average for companies of similar size in Austria.
Management Team Tenure

Average tenure and age of the Goodyear Tire & Rubber management team in years:

1.6
Average Tenure
53
Average Age
  • The average tenure for the Goodyear Tire & Rubber management team is less than 2 years, this suggests a new team.
Management Team

Rich Kramer

TITLE
Chairman of the Board
COMPENSATION
$6M
AGE
54
TENURE
9 yrs

Darren Wells

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
52
TENURE
0.6 yrs

Dave Bialosky

TITLE
Senior VP
COMPENSATION
$2M
AGE
60
TENURE
9.6 yrs

Steve McClellan

TITLE
President of Americas
COMPENSATION
$2M
AGE
52
TENURE
3.3 yrs

Chris Delaney

TITLE
President of Europe
COMPENSATION
$2M
AGE
57
TENURE
1.6 yrs

Jon Bellissimo

TITLE
Senior Vice President of Global Operations & Technology
AGE
62
TENURE
0.3 yrs

Evan Scocos

TITLE
Vice President
AGE
47

Chris Helsel

TITLE
Senior VP & Chief Technology Officer
AGE
53
TENURE
1.6 yrs

Christina Zamarro

TITLE
Vice President of Corporate Financial Planning & Analysis and Investor Relations
TENURE
4.6 yrs

Laura Duda

TITLE
Senior VP of Global Communications
AGE
48
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Goodyear Tire & Rubber board of directors in years:

8.5
Average Tenure
64.5
Average Age
  • The tenure for the Goodyear Tire & Rubber board of directors is about average.
Board of Directors

Rich Kramer

TITLE
Chairman of the Board
COMPENSATION
$6M
AGE
54
TENURE
8.5 yrs

W. McCollough

TITLE
Independent Lead Director
COMPENSATION
$373K
AGE
68

Jim Firestone

TITLE
Director
COMPENSATION
$334K
AGE
63
TENURE
11.3 yrs

Peter Hellman

TITLE
Director
COMPENSATION
$323K
AGE
68
TENURE
8.5 yrs

Werner Geissler

TITLE
Independent Director
COMPENSATION
$318K
AGE
65
TENURE
8.2 yrs

Roderick Palmore

TITLE
Director
COMPENSATION
$310K
AGE
66
TENURE
6.7 yrs

John McGlade

TITLE
Director
COMPENSATION
$312K
AGE
64
TENURE
6.3 yrs

Tom Weidemeyer

TITLE
Director
COMPENSATION
$328K
AGE
70
TENURE
14.3 yrs

Michael Wessel

TITLE
Director
COMPENSATION
$323K
AGE
58
TENURE
13.3 yrs

Stephanie Streeter

TITLE
Director
COMPENSATION
$315K
AGE
60
TENURE
10.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Goodyear Tire & Rubber insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
14. Feb 19 Buy Werner Geissler Individual 13. Feb 19 13. Feb 19 35,000 €16.52 €578,097
X
Management checks
We assess Goodyear Tire & Rubber's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Goodyear Tire & Rubber has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services worldwide. The company offers various lines of rubber tires for automobiles, trucks, buses, aircrafts, motorcycles, earthmoving and mining equipment, farm implements, industrial equipment, and various other applications under the Goodyear, Dunlop, Kelly, Debica, Sava, Fulda, and various other Goodyear owned house brands, as well as under the private-label brands. It also retreads truck, aviation, and off-the-road tires; manufactures and sells tread rubber and other tire retreading materials; sells chemical and natural rubber products; and provides automotive and commercial truck maintenance and repair services, and miscellaneous other products and services. It operates approximately 1,100 tire and auto-service center outlets, which offer products for retail sale, and provides automotive repair and other services. The company sells its products worldwide through a network of independent dealers, regional distributors, retail outlets, and retailers. The Goodyear Tire & Rubber Company was founded in 1898 and is headquartered in Akron, Ohio.

Details
Name: The Goodyear Tire & Rubber Company
GYT
Exchange: WBAG
Founded: 1898
$4,237,818,572
232,264,013
Website: http://www.goodyear.com
Address: The Goodyear Tire & Rubber Company
200 Innovation Way,
Akron,
Ohio, 44316,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS GT Common Stock Nasdaq Global Select US USD 02. Jan 1968
DB GTR Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0QLL Common Stock London Stock Exchange GB CHF 02. Jan 1968
SWX GT Common Stock SIX Swiss Exchange CH CHF 02. Jan 1968
WBAG GYT Common Stock Wiener Boerse AG AT EUR 02. Jan 1968
BMV GT * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
Number of employees
Current staff
Staff numbers
64,000
Goodyear Tire & Rubber employees.
Industry
Tires and Rubber
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 22:41
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/16
Last earnings filing: 2019/02/08
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.