DB:TYR

Stock Analysis Report

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Executive Summary

Toyo Tire Corporation manufactures and sells tires in Japan and internationally.


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Toyo Tire's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TYR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.6%

TYR

-0.9%

DE Auto Components

0.7%

DE Market


1 Year Return

-8.2%

TYR

-21.7%

DE Auto Components

3.9%

DE Market

Return vs Industry: TYR exceeded the German Auto Components industry which returned -22% over the past year.

Return vs Market: TYR underperformed the German Market which returned 3% over the past year.


Shareholder returns

TYRIndustryMarket
7 Day-2.6%-0.9%0.7%
30 Day-11.8%-5.8%1.4%
90 Day13.1%13.5%17.3%
1 Year-5.4%-8.2%-20.2%-21.7%6.2%3.9%
3 Year-32.3%-37.8%-49.7%-53.3%1.8%-6.2%
5 Year-35.1%-43.7%-53.2%-57.6%9.3%-5.4%

Price Volatility Vs. Market

How volatile is Toyo Tire's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Toyo Tire undervalued compared to its fair value and its price relative to the market?

48.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TYR (€11.2) is trading below our estimate of fair value (€21.64)

Significantly Below Fair Value: TYR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TYR is good value based on its PE Ratio (10.2x) compared to the DE Auto Components industry average (16.9x).

PE vs Market: TYR is good value based on its PE Ratio (10.2x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: TYR is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: TYR is overvalued based on its PB Ratio (1x) compared to the DE Auto Components industry average (0.7x).


Next Steps

Future Growth

How is Toyo Tire forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TYR's forecast earnings growth (17.3% per year) is above the savings rate (0.2%).

Earnings vs Market: TYR's earnings (17.3% per year) are forecast to grow slower than the German market (22.4% per year).

High Growth Earnings: TYR's earnings are forecast to grow, but not significantly.

Revenue vs Market: TYR's revenue (6.8% per year) is forecast to grow faster than the German market (6% per year).

High Growth Revenue: TYR's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TYR's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Toyo Tire performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TYR has high quality earnings.

Growing Profit Margin: TYR's current net profit margins (5.7%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: TYR's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: TYR's earnings growth over the past year (121.5%) exceeds its 5-year average (20.9% per year).

Earnings vs Industry: TYR earnings growth over the past year (121.5%) exceeded the Auto Components industry -50.2%.


Return on Equity

High ROE: TYR's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is Toyo Tire's financial position?


Financial Position Analysis

Short Term Liabilities: TYR's short term assets (¥184.2B) exceed its short term liabilities (¥127.9B).

Long Term Liabilities: TYR's short term assets (¥184.2B) exceed its long term liabilities (¥106.0B).


Debt to Equity History and Analysis

Debt Level: TYR's debt to equity ratio (57.5%) is considered high.

Reducing Debt: TYR's debt to equity ratio has reduced from 83% to 57.5% over the past 5 years.

Debt Coverage: TYR's debt is not well covered by operating cash flow (9.2%).

Interest Coverage: TYR's interest payments on its debt are well covered by EBIT (146.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Toyo Tire current dividend yield, its reliability and sustainability?

3.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TYR's dividend (3.25%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: TYR's dividend (3.25%) is low compared to the top 25% of dividend payers in the German market (3.85%).


Stability and Growth of Payments

Stable Dividend: TYR's dividend payments have been volatile in the past 10 years.

Growing Dividend: TYR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33%), TYR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Takashi Shimizu (59yo)

4.67yrs

Tenure

Mr. Takashi Shimizu has been the President at Toyo Tire & Rubber Co., Ltd., since November 12, 2015 and serves as its Chief Executive Officer and its Chief Risk Management Officer, Chief Compliance Managem ...


Leadership Team

NamePositionTenureCompensationOwnership
Takashi Shimizu
CEO, President4.67yrsno data0.0091% ¥160.5k
Masayuki Kanai
VP of R&D HQ1.33yrsno data0.0053% ¥92.8k
Tatsuo Mitsuhata
VP of Sales HQ1.33yrsno data0.0059% ¥104.2k
Tomoshige Mizutani
Senior Corporate Officer5yrsno datano data
Shinji Tanabe
Head of Overseeing Prod. HQ3.5yrsno datano data
Yoji Imura
VP of Production Headquarters1.33yrsno data0.0024% ¥43.2k
Takehiko Sasamori
VP of Corporate Headquarters1.33yrsno data0.00091% ¥16.0k
Yukio Takashima
President of Toyo Automotive Parts and President of New Pacific Industry4.92yrsno datano data
Yasunori Fujita
President of Toyo Chemical Industrial Products5yrsno datano data
Iori Suzuki
Corporate Officer & President of Toyo Tire Holdings for Americas Incno datano datano data

4.8yrs

Average Tenure

57yo

Average Age

Experienced Management: TYR's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Takashi Shimizu
CEO, President4.67yrsno data0.0091% ¥160.5k
Masayuki Kanai
VP of R&D HQ1.33yrsno data0.0053% ¥92.8k
Tatsuo Mitsuhata
VP of Sales HQ1.33yrsno data0.0059% ¥104.2k
Yoji Imura
VP of Production Headquarters1.33yrsno data0.0024% ¥43.2k
Takehiko Sasamori
VP of Corporate Headquarters1.33yrsno data0.00091% ¥16.0k
Atsushi Takeda
Independent Outside Director4.58yrsno datano data
Ken Morita
Independent Outside Director5.08yrsno datano data
Yasuhiro Yamada
Chairman1.33yrsno data0.00039% ¥6.9k
Masao Yano
Outside Standing Audit & Supervisory Board Member1.33yrsno datano data
Michio Yoneda
Independent Outside Director0.50yrno datano data

1.3yrs

Average Tenure

59yo

Average Age

Experienced Board: TYR's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Toyo Tire Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Toyo Tire Corporation
  • Ticker: TYR
  • Exchange: DB
  • Founded: 1945
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: JP¥213.029b
  • Listing Market Cap: JP¥1.764b
  • Shares outstanding: 153.92m
  • Website: https://www.toyotires.co.jp

Number of Employees


Location

  • Toyo Tire Corporation
  • 2-2-13 Fujinoki
  • Itami City
  • Hyogo
  • 664-0847
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TOTT.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
5105TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
TYRDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Toyo Tire Corporation manufactures and sells tires in Japan and internationally. The company provides tires for passenger vehicles, trucks and buses, construction machinery, and industrial trucks, as well as SUVs, CUVs, and pickup trucks under the Toyo Tires, Nitto, and Silverstone brands. It also offers automotive parts, including engine, motor, member, differential, strut, and exhaust mounts; bushes and couplings; and dynamic dampers; constant verlocity universal joint boots; and air suspensions. In addition, the company manufactures and sells radial tires for passenger vehicles and light trucks. The company was formerly known as Toyo Tire & Rubber Co., Ltd. and changed its name to Toyo Tire Corporation in January 2019. Toyo Tire Corporation was founded in 1945 and is headquartered in Itami City, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 21:08
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.