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GT

Goodyear Tire & Rubber NasdaqGS:GT Stock Report

Last Price

US$11.15

Market Cap

US$3.2b

7D

-7.4%

1Y

-37.7%

Updated

28 Sep, 2022

Data

Company Financials +
GT fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health1/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Goodyear Tire & Rubber
Historical stock prices
Current Share PriceUS$11.15
52 Week HighUS$24.89
52 Week LowUS$10.33
Beta1.8
1 Month Change-23.00%
3 Month Change4.11%
1 Year Change-37.74%
3 Year Change-19.32%
5 Year Change-66.58%
Change since IPO-50.85%

Recent News & Updates

Sep 27

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)

Sep 13
Is Now An Opportune Moment To Examine The Goodyear Tire & Rubber Company (NASDAQ:GT)?

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...

Shareholder Returns

GTUS Auto ComponentsUS Market
7D-7.4%-3.7%-2.0%
1Y-37.7%-35.9%-20.3%

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.

Price Volatility

Is GT's price volatile compared to industry and market?
GT volatility
GT Average Weekly Movement6.9%
Auto Components Industry Average Movement7.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
189872,000Rich Kramerhttps://www.goodyear.com

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

How do Goodyear Tire & Rubber's earnings and revenue compare to its market cap?
GT fundamental statistics
Market CapUS$3.15b
Earnings (TTM)US$947.00m
Revenue (TTM)US$20.11b

3.3x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GT income statement (TTM)
RevenueUS$20.11b
Cost of RevenueUS$16.00b
Gross ProfitUS$4.11b
Other ExpensesUS$3.16b
EarningsUS$947.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.35
Gross Margin20.43%
Net Profit Margin4.71%
Debt/Equity Ratio152.4%

How did GT perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is GT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

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

  • Analyst Forecast

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.

GT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA5.5x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does GT's PE Ratio compare to its peers?

GT PE Ratio vs Peers
The above table shows the PE ratio for GT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.4x
VC Visteon
39.6x35.6%US$3.2b
DORM Dorman Products
18.9xn/aUS$2.7b
FOXF Fox Factory Holding
19.4x16.6%US$3.6b
ADNT Adient
3.7x40.1%US$3.0b
GT Goodyear Tire & Rubber
3.3x2.7%US$3.2b

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.

GT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.3x
Fair PE Ratio15.1x

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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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.7%

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%).


Discover growth companies

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-19.5%

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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Financial Health

How is Goodyear Tire & Rubber's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.45%

Forecast Dividend Yield

Dividend Yield vs Market

Goodyear Tire & Rubber Dividend Yield vs Market
How does Goodyear Tire & Rubber dividend yield compare to the market?
SegmentDividend Yield
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.


Discover strong dividend paying companies

Management

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

4.5yrs

Average management tenure


CEO

Rich Kramer (58 yo)

12.58yrs

Tenure

US$21,415,578

Compensation

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
How has Rich Kramer's remuneration changed compared to Goodyear Tire & Rubber's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$947m

Mar 31 2022n/an/a

US$848m

Dec 31 2021US$21mUS$1m

US$764m

Sep 30 2021n/an/a

US$274m

Jun 30 2021n/an/a

US$140m

Mar 31 2021n/an/a

-US$623m

Dec 31 2020US$16mUS$1m

-US$1b

Sep 30 2020n/an/a

-US$2b

Jun 30 2020n/an/a

-US$2b

Mar 31 2020n/an/a

-US$869m

Dec 31 2019US$17mUS$1m

-US$311m

Sep 30 2019n/an/a

US$191m

Jun 30 2019n/an/a

US$454m

Mar 31 2019n/an/a

US$557m

Dec 31 2018US$6mUS$1m

US$693m

Sep 30 2018n/an/a

US$487m

Jun 30 2018n/an/a

US$265m

Mar 31 2018n/an/a

US$255m

Dec 31 2017US$11mUS$1m

US$346m

Sep 30 2017n/an/a

US$1b

Jun 30 2017n/an/a

US$1b

Mar 31 2017n/an/a

US$1b

Dec 31 2016US$20mUS$1m

US$1b

Sep 30 2016n/an/a

US$323m

Jun 30 2016n/an/a

US$277m

Mar 31 2016n/an/a

US$267m

Dec 31 2015US$19mUS$1m

US$307m

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.


Leadership Team

Experienced Management: GT's management team is considered experienced (4.5 years average tenure).


Board Members

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

NasdaqGS:GT Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
08 Dec 21SellUS$2,244,053Richard KramerIndividual100,495US$22.33

Ownership Breakdown

What is the ownership structure of GT?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders1,243,8780.4%
General Public47,623,54416.8%
Institutions233,935,42382.7%

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


Top Shareholders

Top 25 shareholders own 62.16% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
12.45%
BlackRock, Inc.
35,214,145$392.6m-1.55%0.01%
9.95%
The Vanguard Group, Inc.
28,148,866$313.9m-0.71%0.01%
7.32%
AllianceBernstein L.P.
20,691,481$230.7m-1.27%0.1%
4.89%
Dimensional Fund Advisors LP
13,818,484$154.1m12.7%0.04%
3.37%
LSV Asset Management
9,536,892$106.3m0.64%0.22%
3.29%
State Street Global Advisors, Inc.
9,311,203$103.8m0.12%0.01%
1.82%
Geode Capital Management, LLC
5,145,827$57.4m1.23%0.01%
1.62%
Jacobs Levy Equity Management Inc
4,584,294$51.1m1.82%0.41%
1.43%
Hotchkis and Wiley Capital Management, LLC
4,041,202$45.1m-17.81%0.18%
1.42%
Morgan Stanley, Investment Banking and Brokerage Investments
4,027,977$44.9m14.62%0.01%
1.33%
Northern Trust Global Investments
3,747,851$41.8m-0.47%0.01%
1.24%
Newport Trust Company, Asset Management Arm
3,516,561$39.2m0.97%0.22%
1.16%
Citadel Advisors LLC
3,282,070$36.6m25.81%0.06%
1.13%
ClearBridge Investments, LLC
3,207,386$35.8m5.61%0.03%
1.12%
AQR Capital Management, LLC
3,179,418$35.5m81.91%0.08%
1.1%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
3,110,678$34.7m0.71%0.01%
1.06%
BNY Mellon Asset Management
2,984,930$33.3m-4.4%0.01%
1.05%
Charles Schwab Investment Management, Inc.
2,967,188$33.1m-1.19%0.01%
0.98%
Norges Bank Investment Management
2,772,853$30.9m0%no data
0.94%
Russell Investment Management, LLC
2,656,995$29.6m-59.16%0.05%
0.75%
Eaton Vance Management
2,110,756$23.5m7.03%0.01%
0.72%
Goldman Sachs Group, Investment Banking and Securities Investments
2,024,862$22.6m47.75%0.01%
0.71%
Masters Capital Management, L.L.C.
2,000,000$22.3m33.33%4.76%
0.66%
Victory Capital Management Inc.
1,867,433$20.8m34.68%0.02%
0.65%
IPG Investment Advisors, LLC
1,842,185$20.5m17.67%5.42%

Company Information

The Goodyear Tire & Rubber Company's 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
  • Implied Market Cap: US$3.153b
  • Shares outstanding: 282.80m
  • 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 StockGBUSDJan 1968
GYTWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.