NasdaqGS:GT

Stock Analysis Report

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Executive Summary

The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services worldwide. More Details


Snowflake Analysis

Moderate growth potential and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-16.6%

GT

-2.9%

US Auto Components

-1.5%

US Market


1 Year Return

-41.0%

GT

-1.7%

US Auto Components

12.9%

US Market

Return vs Industry: GT underperformed the US Auto Components industry which returned -1.7% over the past year.

Return vs Market: GT underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

GTIndustryMarket
7 Day-16.6%-2.9%-1.5%
30 Day-15.1%-0.3%-1.8%
90 Day-5.9%8.3%6.6%
1 Year-39.7%-41.0%-0.8%-1.7%15.4%12.9%
3 Year-73.8%-75.7%-19.2%-28.1%39.6%30.2%
5 Year-68.8%-71.7%25.7%5.8%93.4%71.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Goodyear Tire & Rubber undervalued compared to its fair value and its price relative to the market?

0.66x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GT ($8.02) is trading above our estimate of fair value ($5.86)

Significantly Below Fair Value: GT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GT is unprofitable, so we can't compare its PE Ratio to the US Auto Components industry average.

PE vs Market: GT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GT is good value based on its PB Ratio (0.7x) compared to the US Auto Components industry average (1.8x).


Next Steps

Future Growth

How is Goodyear Tire & Rubber forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

82.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: GT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GT's is expected to become profitable in the next 3 years.

Revenue vs Market: GT's revenue (5.2% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: GT's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GT's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

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

-54.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GT is currently unprofitable.

Growing Profit Margin: GT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GT is unprofitable, and losses have increased over the past 5 years at a rate of 54.3% per year.

Accelerating Growth: Unable to compare GT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GT is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-18.5%).


Return on Equity

High ROE: GT has a negative Return on Equity (-54.07%), as it is currently unprofitable.


Next Steps

Financial Health

How is Goodyear Tire & Rubber's financial position?


Financial Position Analysis

Short Term Liabilities: GT's short term assets ($5.4B) exceed its short term liabilities ($4.6B).

Long Term Liabilities: GT's short term assets ($5.4B) do not cover its long term liabilities ($8.2B).


Debt to Equity History and Analysis

Debt Level: GT's debt to equity ratio (223.5%) is considered high.

Reducing Debt: GT's debt to equity ratio has increased from 127.9% to 223.5% over the past 5 years.

Debt Coverage: GT's debt is not well covered by operating cash flow (10.1%).

Interest Coverage: Insufficient data to determine if GT's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

1.99%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GT is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Rich Kramer (56 yo)

10.42yrs

Tenure

US$16,970,655

Compensation

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 E ...


CEO Compensation Analysis

Compensation vs Market: Rich's total compensation ($USD16.97M) is above average for companies of similar size in the US market ($USD4.57M).

Compensation vs Earnings: Rich's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Kramer
Chairman of the Board10.42yrsUS$16.97m0.20%
$ 3.7m
Darren Wells
Executive VP & CFO2yrsUS$7.40m0.0054%
$ 100.4k
Stephen McClellan
President of Americas4.67yrsUS$5.81m0.039%
$ 734.6k
Ryan Patterson
President of Asia Pacificno dataUS$2.98m0.0017%
$ 32.5k
Christopher Delaney
President of Europe3yrsUS$3.76m0.0082%
$ 153.1k
Jonathan Bellissimo
Senior Vice President of Global Operations & Technology1.67yrsno data0.0022%
$ 42.0k
Christopher Helsel
Senior VP & CTO3yrsno data0.00026%
$ 4.9k
Christina Zamarro
Treasurer and VP of Finance6yrsno datano data
David Phillips
Senior VP & General Counsel1.25yrsno data0.00065%
$ 12.1k
Laura Duda
Senior VP & Chief Communications Officer1.67yrsno data0.0022%
$ 41.9k
Mike Dwyer
Chief Marketing Officer3yrsno datano data
Gary VanderLind
Senior VP & Chief Human Resources Officer1.58yrsno data0.0027%
$ 51.2k

3.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: GT's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Kramer
Chairman of the Board10.42yrsUS$16.97m0.20%
$ 3.7m
James Firestone
Independent Director12.75yrsUS$343.99kno data
Roderick Palmore
Independent Director8.08yrsUS$315.62kno data
W. McCollough
Independent Director13.42yrsUS$357.22kno data
Stephanie Streeter
Independent Director11.92yrsUS$324.95kno data
Peter Hellman
Independent Director9.92yrsUS$331.98kno data
Laurette Koellner
Lead Independent Director1.25yrsUS$327.06kno data
Werner Geissler
Independent Director9.58yrsUS$325.36k0.021%
$ 401.0k
John McGlade
Independent Director7.75yrsUS$318.64kno data
Thomas Williams
Independent Director1.58yrsUS$200.77kno data
Michael Wessel
Director14.75yrsUS$335.22kno data
Hera Siu
Independent Director0.75yrUS$9.89kno data

9.8yrs

Average Tenure

65yo

Average Age

Experienced Board: GT's board of directors are considered experienced (9.8 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

The Goodyear Tire & Rubber Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Goodyear Tire & Rubber Company
  • Ticker: GT
  • Exchange: NasdaqGS
  • Founded: 1898
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: US$1.869b
  • Shares outstanding: 233.01m
  • Website: https://www.goodyear.com

Number of Employees


Location

  • The Goodyear Tire & Rubber Company
  • 200 Innovation Way
  • Akron
  • Ohio
  • 44316-0001
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1968
GTSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
GTRDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
GTRXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
GT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
0QLLLSE (London Stock Exchange)YesCommon StockGBCHFJan 1968
GYTWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968

Biography

The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services worldwide. It offers various lines of rubber tires ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 05:58
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
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.