GT Stock Overview
The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services worldwide.
Goodyear Tire & Rubber Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$11.15|
|52 Week High||US$24.89|
|52 Week Low||US$10.33|
|1 Month Change||-23.00%|
|3 Month Change||4.11%|
|1 Year Change||-37.74%|
|3 Year Change||-19.32%|
|5 Year Change||-66.58%|
|Change since IPO||-50.85%|
Recent News & Updates
The Goodyear Tire & Rubber Is Bouncing Strong In The EV Industry
Summary Goodyear most likely will not have its best year this FY22; however, the company remains fundamentally strong thanks to its improving product portfolio. It benefits from increased EV investment and relaxed Covid-19 restrictions in China, which boosts GT's demand environment. Despite today's challenging environment, GT has reported growth in its top line. This is induced by successful price/mix and volume growth. It remains liquid and is trading below its average 5-year book value per share. The Goodyear Tire & Rubber (GT) is one of the leading companies that manufactures and sells tires globally. It has been in business for more than a century and has 57 manufacturing plants in 23 countries worldwide. In recent quarters, the company has faced numerous operational challenges. This pushed its stock price lower, and it has lost more than half of its market capitalization since last year's highs. As of this writing, GT has reached an all-time revenue of $20.1 billion, thanks to its recent acquisition and continued growth in demand. However, the overall bearish sentiment from the global economy remains a key risk for the company, especially considering its riskier capital structure than its peers. While this may cause further downward momentum over the next few trading weeks, the resulting panic should provide a good buy-the-dip opportunity. Company Overview Goodyear is one of the most successful tire producers in the market. In fact, the company has been in business for over a century. Despite the company's declining market cap over time, one of its exciting catalysts is its continued market share gains. In fact, its recent acquisition of Cooper Tires changed its competitive environment, as they now control more than 25% of the replacement tire market. Some may argue that the company's most recent purchase dilutes its shareholders' value; however, looking at its long-term prospects, GT is well positioned to grow internationally and solidify its leadership in the US market. Additionally, this set them to increase their capacity to produce innovative tire solutions, which is in line with today's digitalization. As one of the pioneers in the field of intelligent tires, I believe there is much growth ahead, especially in times of the most awaited global economic recovery. In fact, there is news in China that they are already reducing their restrictions, which may encourage demand recovery in GT's Asia business. With the company's enhanced operation in China, thanks to its Cooper acquisition, I believe the market currently ignores GT's long-term prospects. As mentioned before, the company lost so much market cap and dropped below its $17.95 5-year book value per share average; this makes GT undervalued and attractive at today's price. Lastly, I believe fear of further value dilution and slowing automotive production is already priced in, especially considering the fact that the Biden administration is encouraging investments in electric cars and that China is relaxing its restrictions on Covid-19. Enjoys A Stable Demand Outlook Contrary to today's bearish global economy, automobile companies such as Ford (NYSE:F) are very optimistic about ramping up their EV production. In fact, despite the current shortage issues, EV sales are expected to hit an all-time record in 2022. Furthermore, as stated below, management sees a stable demand environment in retail and commercial areas. …we are seeing a pretty stable demand environment. And we are watching and doing a lot of analytics, trying to figure out if we are - if we were to start to see any lead indicators. But so far, the demand - end-user demand is remaining pretty good, good in consumer, good in commercial. And that is notwithstanding the macroeconomic situation, notwithstanding price increases from us and other members of the industry. So, I think overall, that's feeling pretty good. Source: Q2 Earnings Call Transcript GT enjoys an enhanced portfolio in the mobility industry with its leading commercial fleet services, making the company well positioned for ongoing digitalization, as quoted below. ...More to come on this technology, but note that our focus and investment will not be deterred as we navigate tumultuous economy. The future remains brighter than ever and Goodyear will be leading it. Source: Q2 Earnings Call Transcript Lastly, with the ongoing aging car problem in the US, I believe GT's growing top line will be sustainable despite the proposed growth recession by the US government. Q2 Performance GT ended its Q2 with outstanding top-line growth of $5,212 million, up from $3,979 million recorded in the same period last year. According to management, this is due to its compelling price/mix and increasing tire volume while increasing revenue per tire, as stated below. Our consumer tire volume globally grew 6% and commercial grew nearly 2%, excluding Cooper and we achieved this volume growth while increasing revenue per tire by 14% compared to last year. Source: Q2 Earnings Call Transcript Despite this, GT was unable to translate this into growing operating margins. The company's gross margin declined this quarter to 20%, down from 22.6% year over year. While its merger-adjusted total segment operating margin declined to $7.1% from 8.8% year over year, this is due to a mixture of inflationary pressures and ongoing cost restructuring. The management sees another $100 million in restructuring costs in FY2022, which aims to improve operational efficiency in the long run. In addition, management anticipates a $250 million run-rate synergetic savings in FY2023. This strategy includes reducing repetitive tasks to improve sales and general administrative expenditure. Considering its non-core operation and adjusted earnings per share, GT has an improving figure of $0.46, up from $0.32 year over year, which I believe is a good figure considering today's inflationary environment. While management doesn't see any sign of full recovery today, its rising input cost, as shown in the image below, and the looming global recession make GT's profitability uncertain. GT: 2022 Outlook (Source: Q2 2022 Earnings Call Presentation) Another risk to mention is its growing fixed interest expense outlook of $450 to $475 million, up from $387 million recorded last year. This is because of its growing debt, which makes its capital structure weaker than its peers. GT: Higher Debt-to-Equity Level Than Peers (Source: Data from SeekingAlpha and Yahoo!Finance. Prepared by InvestOhTrader)
Is Now An Opportune Moment To Examine The Goodyear Tire & Rubber Company (NASDAQ:GT)?
The Goodyear Tire & Rubber Company ( NASDAQ:GT ), is not the largest company out there, but it led the NASDAQGS gainers...
|GT||US Auto Components||US Market|
Return vs Industry: GT matched the US Auto Components industry which returned -38.3% over the past year.
Return vs Market: GT underperformed the US Market which returned -22.1% over the past year.
|GT Average Weekly Movement||6.9%|
|Auto Components Industry Average Movement||7.3%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: GT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: GT's weekly volatility (7%) has been stable over the past year.
About the Company
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 tires for automobiles, trucks, buses, aircraft, motorcycles, earthmoving equipment, and mining and industrial equipment under the Goodyear, Cooper, Dunlop, Kelly, Debica, Sava, Fulda, Mastercraft, Roadmaster, and various other house brands, as well as under the private-label brands. The company 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.
Goodyear Tire & Rubber Fundamentals Summary
|GT fundamental statistics|
Is GT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|GT income statement (TTM)|
|Cost of Revenue||US$16.00b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||3.35|
|Net Profit Margin||4.71%|
How did GT perform over the long term?See historical performance and comparison
Is GT undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for GT?
Other financial metrics that can be useful for relative valuation.
|What is GT's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does GT's PE Ratio compare to its peers?
|GT PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
DORM Dorman Products
FOXF Fox Factory Holding
GT Goodyear Tire & Rubber
Price-To-Earnings vs Peers: GT is good value based on its Price-To-Earnings Ratio (3.3x) compared to the peer average (20.4x).
Price to Earnings Ratio vs Industry
How does GT's PE Ratio compare vs other companies in the US Auto Components Industry?
Price-To-Earnings vs Industry: GT is good value based on its Price-To-Earnings Ratio (3.3x) compared to the US Auto Components industry average (18.1x)
Price to Earnings Ratio vs Fair Ratio
What is GT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||3.3x|
|Fair PE Ratio||15.1x|
Price-To-Earnings vs Fair Ratio: GT is good value based on its Price-To-Earnings Ratio (3.3x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).
Share Price vs Fair Value
What is the Fair Price of GT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: GT ($11.15) is trading below our estimate of fair value ($80.08)
Significantly Below Fair Value: GT is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is Goodyear Tire & Rubber forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GT's forecast earnings growth (2.7% per year) is above the savings rate (1.9%).
Earnings vs Market: GT's earnings (2.7% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: GT's earnings are forecast to grow, but not significantly.
Revenue vs Market: GT's revenue (2% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: GT's revenue (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 (14.6%).
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How has Goodyear Tire & Rubber performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GT has high quality earnings.
Growing Profit Margin: GT's current net profit margins (4.7%) are higher than last year (1%).
Past Earnings Growth Analysis
Earnings Trend: GT's earnings have declined by 19.5% per year over the past 5 years.
Accelerating Growth: GT's earnings growth over the past year (576.4%) exceeds its 5-year average (-19.5% per year).
Earnings vs Industry: GT earnings growth over the past year (576.4%) exceeded the Auto Components industry -17.5%.
Return on Equity
High ROE: GT's Return on Equity (17.9%) is considered low.
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How is Goodyear Tire & Rubber's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: GT's short term assets ($9.2B) exceed its short term liabilities ($7.1B).
Long Term Liabilities: GT's short term assets ($9.2B) do not cover its long term liabilities ($10.4B).
Debt to Equity History and Analysis
Debt Level: GT's net debt to equity ratio (129%) is considered high.
Reducing Debt: GT's debt to equity ratio has increased from 118.2% to 152.4% over the past 5 years.
Debt Coverage: GT's debt is not well covered by operating cash flow (7.4%).
Interest Coverage: GT's interest payments on its debt are not well covered by EBIT (2.5x coverage).
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What is Goodyear Tire & Rubber current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Forecast Dividend Yield
Dividend Yield vs Market
|Goodyear Tire & Rubber Dividend Yield vs Market|
|Company (Goodyear Tire & Rubber)||0%|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.6%|
|Industry Average (Auto Components)||2.7%|
|Analyst forecast in 3 Years (Goodyear Tire & Rubber)||0.4%|
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.
Earnings Payout to Shareholders
Earnings Coverage: GT is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as GT has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Rich Kramer (58 yo)
Mr. Richard J. Kramer, also known as Rich, serves as the Member of Executive Advisory Board at TuSimple Holdings Inc. since April 2021. He has been Chairman, Chief Executive Officer and President of The Go...
CEO Compensation Analysis
|Rich Kramer's Compensation vs Goodyear Tire & Rubber Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$21m||US$1m|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$16m||US$1m|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$17m||US$1m|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$6m||US$1m|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$11m||US$1m|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$20m||US$1m|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$19m||US$1m|
Compensation vs Market: Rich's total compensation ($USD21.42M) is above average for companies of similar size in the US market ($USD6.87M).
Compensation vs Earnings: Rich's compensation has increased by more than 20% in the past year.
Experienced Management: GT's management team is considered experienced (4.5 years average tenure).
Experienced Board: GT's board of directors are considered experienced (9.8 years average tenure).
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
|08 Dec 21||SellUS$2,244,053||Richard Kramer||Individual||100,495||US$22.33|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
The Goodyear Tire & Rubber Company's employee growth, exchange listings and data sources
- Name: The Goodyear Tire & Rubber Company
- Ticker: GT
- Exchange: NasdaqGS
- Founded: 1898
- Industry: Tires and Rubber
- Sector: Automobiles
- Implied Market Cap: US$3.153b
- Shares outstanding: 282.80m
- Website: https://www.goodyear.com
Number of Employees
- The Goodyear Tire & Rubber Company
- 200 Innovation Way
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|GT||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Jan 1968|
|GT||SWX (SIX Swiss Exchange)||Yes||Common Stock||CH||CHF||Jan 1968|
|GTR||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|GTR||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Jan 1968|
|GT *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jan 1968|
|0QLL||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
|GYT||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Jan 1968|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/28 00:00|
|End of Day Share Price||2022/09/28 00:00|
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.