GOODYEAR TIRE & RUBBER CO (1GT.MI) Stock Fundamental Analysis
BIT:1GT - Euronext Milan - US3825501014 - Common Stock - Currency: EUR
1GT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 29 industry peers in the Automobile Components industry. 1GT has a bad profitability rating. Also its financial health evaluation is rather negative. 1GT is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1GT had positive earnings in the past year.
In the past year 1GT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 1GT reported negative net income in multiple years.
Each year in the past 5 years 1GT had a positive operating cash flow.
1.2 Ratios
1GT has a Return On Assets (1.11%) which is comparable to the rest of the industry.
With a Return On Equity value of 4.91%, 1GT perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.53%, 1GT is doing worse than 63.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1GT is below the industry average of 6.47%.
The last Return On Invested Capital (3.53%) for 1GT is above the 3 year average (3.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.11% | ||
| ROE | 4.91% | ||
| ROIC | 3.53% |
ROA(3y)-0.65%
ROA(5y)-1.2%
ROE(3y)-3.16%
ROE(5y)-6.99%
ROIC(3y)3.3%
ROIC(5y)N/A
1.3 Margins
1GT has a Profit Margin (1.30%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of 1GT has declined.
With a Operating Margin value of 3.87%, 1GT is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
1GT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 19.47%, 1GT is doing worse than 70.00% of the companies in the same industry.
1GT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.87% | ||
| PM (TTM) | 1.3% | ||
| GM | 19.47% |
OM growth 3Y-14.4%
OM growth 5Y-5.96%
PM growth 3Y-56.06%
PM growth 5YN/A
GM growth 3Y-4.35%
GM growth 5Y-2.32%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1GT is destroying value.
1GT has more shares outstanding than it did 1 year ago.
1GT has more shares outstanding than it did 5 years ago.
1GT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that 1GT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.49, 1GT perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
1GT has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.57, 1GT is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.49 |
ROIC/WACC0.46
WACC7.7%
2.3 Liquidity
1GT has a Current Ratio of 1.22. This is a normal value and indicates that 1GT is financially healthy and should not expect problems in meeting its short term obligations.
1GT has a Current ratio (1.22) which is in line with its industry peers.
A Quick Ratio of 0.64 indicates that 1GT may have some problems paying its short term obligations.
1GT's Quick ratio of 0.64 is on the low side compared to the rest of the industry. 1GT is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
1GT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.24%, which is quite impressive.
Measured over the past years, 1GT shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.56% on average per year.
Looking at the last year, 1GT shows a decrease in Revenue. The Revenue has decreased by -5.43% in the last year.
1GT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.07% yearly.
EPS 1Y (TTM)54.24%
EPS 3Y-19.86%
EPS 5Y-0.56%
EPS Q2Q%-140%
Revenue 1Y (TTM)-5.43%
Revenue growth 3Y2.6%
Revenue growth 5Y5.07%
Sales Q2Q%-6.26%
3.2 Future
Based on estimates for the next years, 1GT will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.65% on average per year.
Based on estimates for the next years, 1GT will show a decrease in Revenue. The Revenue will decrease by -0.01% on average per year.
EPS Next Y35.02%
EPS Next 2Y38.89%
EPS Next 3Y27.57%
EPS Next 5Y18.65%
Revenue Next Year-2.39%
Revenue Next 2Y-0.54%
Revenue Next 3Y-0.68%
Revenue Next 5Y-0.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.40, the valuation of 1GT can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of 1GT is on the same level as its industry peers.
1GT is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.10, the valuation of 1GT can be described as very cheap.
80.00% of the companies in the same industry are more expensive than 1GT, based on the Price/Forward Earnings ratio.
1GT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 5.1 |
4.2 Price Multiples
70.00% of the companies in the same industry are cheaper than 1GT, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.5 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as 1GT's earnings are expected to grow with 27.57% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y38.89%
EPS Next 3Y27.57%
5. Dividend
5.1 Amount
1GT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1GT (6/23/2025, 7:00:00 PM)
8.78
+8.78 (+Infinity%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners87.82%
Inst Owner ChangeN/A
Ins Owners9.05%
Ins Owner ChangeN/A
Market Cap2.51B
Analysts80
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.22%
Min EPS beat(2)-16.27%
Max EPS beat(2)22.71%
EPS beat(4)3
Avg EPS beat(4)31.1%
Min EPS beat(4)-16.27%
Max EPS beat(4)72.7%
EPS beat(8)6
Avg EPS beat(8)213.09%
EPS beat(12)9
Avg EPS beat(12)143.2%
EPS beat(16)13
Avg EPS beat(16)129.63%
Revenue beat(2)0
Avg Revenue beat(2)-3.68%
Min Revenue beat(2)-5.89%
Max Revenue beat(2)-1.47%
Revenue beat(4)0
Avg Revenue beat(4)-4.94%
Min Revenue beat(4)-7.17%
Max Revenue beat(4)-1.47%
Revenue beat(8)0
Avg Revenue beat(8)-6.38%
Revenue beat(12)2
Avg Revenue beat(12)-4.67%
Revenue beat(16)5
Avg Revenue beat(16)-3.33%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 5.1 | ||
| P/S | 0.16 | ||
| P/FCF | N/A | ||
| P/OCF | 4.83 | ||
| P/B | 0.6 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 5.5 |
EPS(TTM)0.77
EY8.77%
EPS(NY)1.72
Fwd EY19.61%
FCF(TTM)-1.54
FCFYN/A
OCF(TTM)1.82
OCFY20.7%
SpS55.31
BVpS14.66
TBVpS10.37
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.11% | ||
| ROE | 4.91% | ||
| ROCE | 4.85% | ||
| ROIC | 3.53% | ||
| ROICexc | 3.75% | ||
| ROICexgc | 4.17% | ||
| OM | 3.87% | ||
| PM (TTM) | 1.3% | ||
| GM | 19.47% | ||
| FCFM | N/A |
ROA(3y)-0.65%
ROA(5y)-1.2%
ROE(3y)-3.16%
ROE(5y)-6.99%
ROIC(3y)3.3%
ROIC(5y)N/A
ROICexc(3y)3.54%
ROICexc(5y)N/A
ROICexgc(3y)4.06%
ROICexgc(5y)N/A
ROCE(3y)4.54%
ROCE(5y)N/A
ROICexcg growth 3Y-11.56%
ROICexcg growth 5Y-3.25%
ROICexc growth 3Y-10.6%
ROICexc growth 5Y-4.41%
OM growth 3Y-14.4%
OM growth 5Y-5.96%
PM growth 3Y-56.06%
PM growth 5YN/A
GM growth 3Y-4.35%
GM growth 5Y-2.32%
F-Score8
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.41 | ||
| Cap/Depr | 109.08% | ||
| Cap/Sales | 6.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 34.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 1.49 |
F-Score8
WACC7.7%
ROIC/WACC0.46
Cap/Depr(3y)109.4%
Cap/Depr(5y)144.96%
Cap/Sales(3y)5.54%
Cap/Sales(5y)7.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)54.24%
EPS 3Y-19.86%
EPS 5Y-0.56%
EPS Q2Q%-140%
EPS Next Y35.02%
EPS Next 2Y38.89%
EPS Next 3Y27.57%
EPS Next 5Y18.65%
Revenue 1Y (TTM)-5.43%
Revenue growth 3Y2.6%
Revenue growth 5Y5.07%
Sales Q2Q%-6.26%
Revenue Next Year-2.39%
Revenue Next 2Y-0.54%
Revenue Next 3Y-0.68%
Revenue Next 5Y-0.01%
EBIT growth 1Y37.67%
EBIT growth 3Y-12.17%
EBIT growth 5Y-1.19%
EBIT Next Year98.87%
EBIT Next 3Y31.15%
EBIT Next 5Y21.45%
FCF growth 1Y16.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.7%
OCF growth 3Y-13.06%
OCF growth 5Y-10.37%