NasdaqGS:GT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value average dividend payer.


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


Market Performance


7 Day Return

5.5%

GT

3.3%

US Auto Components

0.5%

US Market


1 Year Return

-25.3%

GT

-2.4%

US Auto Components

6.8%

US Market

Return vs Industry: GT underperformed the US Auto Components industry which returned -2.4% over the past year.

Return vs Market: GT underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

GTIndustryMarket
7 Day5.5%3.3%0.5%
30 Day9.6%2.7%-0.8%
90 Day2.4%1.1%-0.9%
1 Year-22.6%-25.3%-0.9%-2.4%9.2%6.8%
3 Year-48.7%-52.1%10.9%-0.5%45.6%36.2%
5 Year-20.7%-27.2%19.7%3.3%63.2%45.4%

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?

7.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GT ($15.15) is trading above our estimate of fair value ($10.83)

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


Price To Earnings Ratio

PE vs Industry: GT is good value based on its PE Ratio (7.8x) compared to the Auto Components industry average (16.5x).

PE vs Market: GT is good value based on its PE Ratio (7.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: GT is good value based on its PEG Ratio (0.4x)


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 (1.2x).


Next Steps

Future Growth

How is Goodyear Tire & Rubber forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GT's forecast earnings growth (22.1% per year) is above the savings rate (2.7%).

Earnings vs Market: GT's earnings (22.1% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GT's revenue (1.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: GT's revenue (1.5% 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%).


Next Steps

Past Performance

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

-27.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GT's earnings have declined by -27.8% per year over the past 5 years.

Accelerating Growth: GT's earnings growth over the past year (71.3%) exceeds its 5-year average (-27.8% per year).

Earnings vs Industry: GT earnings growth over the past year (71.3%) exceeded the Auto Components industry 8.1%.


Return on Equity

High ROE: GT's Return on Equity (9.4%) is considered low.


Return on Assets

ROA vs Industry: GT's Return on Assets is below or equal to the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: GT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Goodyear Tire & Rubber's financial position?


Financial Position Analysis

Short Term Liabilities: GT's short term assets ($6.8B) exceeds its short term liabilities ($5.1B)

Long Term Liabilities: GT's short term assets (6.8B) do not cover its long term liabilities (8.3B)


Debt to Equity History and Analysis

Debt Level: GT's debt to equity ratio (128.5%) is considered high

Reducing Debt: GT's debt to equity ratio has reduced from 252.1% to 128.5% over the past 5 years.

Debt Coverage: GT's debt is not well covered by operating cash flow (10.9%).

Interest Coverage: GT's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

Inventory Level: GT has a high level of physical assets or inventory.

Debt Coverage by Assets: GT's debt is covered by short term assets (assets are 1.044990x debt).


Next Steps

Dividend

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

4.22%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company4.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GT's dividend (4.22%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: GT's dividend (4.22%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: Whilst dividend payments have been stable, GT has been paying a dividend for less than 10 years.

Growing Dividend: GT's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.8%), GT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GT's dividends in 3 years are forecast to be well covered by earnings (30.3% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Rich Kramer (55yo)

9.5yrs

Tenure

US$6,213,100

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 ($USD6.21M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Rich's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: GT's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

9.0yrs

Average Tenure

65.5yo

Average Age

Experienced Board: GT's board of directors are considered experienced (9 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$652,62814 Feb 19
Werner Geissler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares35,000
Max PriceUS$18.65

Ownership Breakdown


Management Team

  • Rich Kramer (55yo)

    Chairman of the Board

    • Tenure: 9.5yrs
    • Compensation: US$6.21m
  • Darren Wells (53yo)

    Executive VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$2.75m
  • Steve McClellan (53yo)

    President of Americas

    • Tenure: 3.8yrs
    • Compensation: US$2.16m
  • Chris Delaney (58yo)

    President of Europe

    • Tenure: 2.1yrs
    • Compensation: US$1.72m
  • Christina Zamarro

    Vice President of Corporate Financial Planning & Analysis and Investor Relations

    • Tenure: 5.1yrs
  • Evan Scocos (48yo)

    Vice President

    • Tenure: 0yrs
  • Chris Helsel (54yo)

    Senior VP & Chief Technology Officer

    • Tenure: 2.1yrs
  • Jon Bellissimo (63yo)

    Senior Vice President of Global Operations & Technology

    • Tenure: 0.8yrs
  • Laura Duda (49yo)

    Senior VP of Global Communications

    • Tenure: 0.8yrs
  • Dave Phillips

    Senior VP & General Counsel

    • Tenure: 0.3yrs

Board Members

  • Jim Firestone (64yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$333.98k
  • Roderick Palmore (67yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$309.76k
  • Tom Weidemeyer (71yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$327.71k
  • W. McCollough (69yo)

    Independent Lead Director

    • Tenure: 0yrs
    • Compensation: US$372.99k
  • Peter Hellman (69yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$323.37k
  • Rich Kramer (55yo)

    Chairman of the Board

    • Tenure: 9.5yrs
    • Compensation: US$6.21m
  • Laurette Koellner (64yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$288.46k
  • Werner Geissler (66yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$318.29k
  • John McGlade (65yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$311.65k
  • Michael Wessel (59yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: US$322.57k

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$3.523b
  • Shares outstanding: 232.52m
  • Website: https://www.goodyear.com

Number of Employees


Location

  • The Goodyear Tire & Rubber Company
  • 200 Innovation Way
  • Akron
  • Ohio
  • 44316
  • 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
GT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 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. The company offers various lines of rub ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:36
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.