8.72 USD
+0.05 (+0.58%)
8.71 USD
-0.01 (-0.11%)
GT gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 82 industry peers in the Automobile Components industry. Both the profitability and financial health of GT have multiple concerns. GT is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
GT had positive earnings in the past year.
GT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: GT reported negative net income in multiple years.
In the past 5 years GT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GT (-8.65%) is worse than 84.15% of its industry peers.
Looking at the Return On Equity, with a value of -58.24%, GT is doing worse than 86.59% of the companies in the same industry.
With a Return On Invested Capital value of 2.45%, GT is not doing good in the industry: 76.83% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for GT is significantly below the industry average of 8.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.65% | ||
| ROE | -58.24% | ||
| ROIC | 2.45% |
ROA(3y)-0.65%
ROA(5y)-1.2%
ROE(3y)-3.16%
ROE(5y)-6.99%
ROIC(3y)3.48%
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of GT has declined.
With a Operating Margin value of 2.32%, GT is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of GT has declined.
GT has a worse Gross Margin (18.20%) than 76.83% of its industry peers.
In the last couple of years the Gross Margin of GT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.32% | ||
| PM (TTM) | N/A | ||
| GM | 18.2% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GT is destroying value.
GT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, GT has more shares outstanding
Compared to 1 year ago, GT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that GT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.40, GT is not doing good in the industry: 84.15% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.61 is on the high side and indicates that GT has dependencies on debt financing.
The Debt to Equity ratio of GT (2.61) is worse than 89.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.61 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.4 |
ROIC/WACC0.31
WACC7.83%
2.3 Liquidity
A Current Ratio of 1.27 indicates that GT should not have too much problems paying its short term obligations.
The Current ratio of GT (1.27) is worse than 87.80% of its industry peers.
A Quick Ratio of 0.71 indicates that GT may have some problems paying its short term obligations.
With a Quick ratio value of 0.71, GT is not doing good in the industry: 87.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
GT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -59.29%.
The Earnings Per Share has been decreasing by -0.56% on average over the past years.
GT shows a decrease in Revenue. In the last year, the revenue decreased by -3.87%.
GT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.07% yearly.
EPS 1Y (TTM)-59.29%
EPS 3Y-19.86%
EPS 5Y-0.56%
EPS Q2Q%-24.32%
Revenue 1Y (TTM)-3.87%
Revenue growth 3Y2.6%
Revenue growth 5Y5.07%
Sales Q2Q%-3.71%
3.2 Future
The Earnings Per Share is expected to grow by 12.66% on average over the next years. This is quite good.
Based on estimates for the next years, GT will show a small growth in Revenue. The Revenue will grow by 1.83% on average per year.
EPS Next Y-34.19%
EPS Next 2Y13.52%
EPS Next 3Y15.22%
EPS Next 5Y12.66%
Revenue Next Year-2.85%
Revenue Next 2Y-1.13%
Revenue Next 3Y-0.21%
Revenue Next 5Y1.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GT is valuated rather expensively with a Price/Earnings ratio of 18.96.
GT's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.15. GT is valued slightly cheaper when compared to this.
GT is valuated cheaply with a Price/Forward Earnings ratio of 6.44.
Based on the Price/Forward Earnings ratio, GT is valued cheaper than 82.93% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.22, GT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 6.44 |
4.2 Price Multiples
GT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GT is cheaper than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.17 |
4.3 Compensation for Growth
A more expensive valuation may be justified as GT's earnings are expected to grow with 15.22% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.52%
EPS Next 3Y15.22%
5. Dividend
5.1 Amount
No dividends for GT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.72
+0.05 (+0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change1.79%
Ins Owners3.8%
Ins Owner Change3.44%
Market Cap2.50B
Revenue(TTM)18.31B
Net Income(TTM)-1.75B
Analysts76.36
Price Target10.07 (15.48%)
Short Float %8.83%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-138.23%
Min EPS beat(2)-345.83%
Max EPS beat(2)69.37%
EPS beat(4)2
Avg EPS beat(4)-67.5%
Min EPS beat(4)-345.83%
Max EPS beat(4)69.37%
EPS beat(8)6
Avg EPS beat(8)206.37%
EPS beat(12)9
Avg EPS beat(12)120.57%
EPS beat(16)12
Avg EPS beat(16)98.99%
Revenue beat(2)0
Avg Revenue beat(2)-2.67%
Min Revenue beat(2)-3.45%
Max Revenue beat(2)-1.89%
Revenue beat(4)0
Avg Revenue beat(4)-3.18%
Min Revenue beat(4)-5.89%
Max Revenue beat(4)-1.47%
Revenue beat(8)0
Avg Revenue beat(8)-5.18%
Revenue beat(12)1
Avg Revenue beat(12)-4.89%
Revenue beat(16)3
Avg Revenue beat(16)-3.65%
PT rev (1m)-4.36%
PT rev (3m)-8.74%
EPS NQ rev (1m)5.62%
EPS NQ rev (3m)-8.01%
EPS NY rev (1m)0%
EPS NY rev (3m)8.58%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 6.44 | ||
| P/S | 0.14 | ||
| P/FCF | N/A | ||
| P/OCF | 4.35 | ||
| P/B | 0.83 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 6.17 |
EPS(TTM)0.46
EY5.28%
EPS(NY)1.35
Fwd EY15.52%
FCF(TTM)-1.23
FCFYN/A
OCF(TTM)2
OCFY22.96%
SpS63.99
BVpS10.5
TBVpS8.01
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.65% | ||
| ROE | -58.24% | ||
| ROCE | 3.23% | ||
| ROIC | 2.45% | ||
| ROICexc | 2.6% | ||
| ROICexgc | 2.75% | ||
| OM | 2.32% | ||
| PM (TTM) | N/A | ||
| GM | 18.2% | ||
| FCFM | N/A |
ROA(3y)-0.65%
ROA(5y)-1.2%
ROE(3y)-3.16%
ROE(5y)-6.99%
ROIC(3y)3.48%
ROIC(5y)N/A
ROICexc(3y)3.73%
ROICexc(5y)N/A
ROICexgc(3y)4.28%
ROICexgc(5y)N/A
ROCE(3y)4.54%
ROCE(5y)N/A
ROICexgc growth 3Y-11.56%
ROICexgc 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-Score5
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.61 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.27 | ||
| Cap/Depr | 87.1% | ||
| Cap/Sales | 5.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 38.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.4 |
F-Score5
WACC7.83%
ROIC/WACC0.31
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)-59.29%
EPS 3Y-19.86%
EPS 5Y-0.56%
EPS Q2Q%-24.32%
EPS Next Y-34.19%
EPS Next 2Y13.52%
EPS Next 3Y15.22%
EPS Next 5Y12.66%
Revenue 1Y (TTM)-3.87%
Revenue growth 3Y2.6%
Revenue growth 5Y5.07%
Sales Q2Q%-3.71%
Revenue Next Year-2.85%
Revenue Next 2Y-1.13%
Revenue Next 3Y-0.21%
Revenue Next 5Y1.83%
EBIT growth 1Y-42.23%
EBIT growth 3Y-12.17%
EBIT growth 5Y-1.19%
EBIT Next Year71.67%
EBIT Next 3Y26.56%
EBIT Next 5Y16.9%
FCF growth 1Y-121.38%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-39.3%
OCF growth 3Y-13.06%
OCF growth 5Y-10.37%
GOODYEAR TIRE & RUBBER CO / GT FAQ
What is the fundamental rating for GT stock?
ChartMill assigns a fundamental rating of 2 / 10 to GT.
Can you provide the valuation status for GOODYEAR TIRE & RUBBER CO?
ChartMill assigns a valuation rating of 4 / 10 to GOODYEAR TIRE & RUBBER CO (GT). This can be considered as Fairly Valued.
Can you provide the profitability details for GOODYEAR TIRE & RUBBER CO?
GOODYEAR TIRE & RUBBER CO (GT) has a profitability rating of 2 / 10.
What is the earnings growth outlook for GOODYEAR TIRE & RUBBER CO?
The Earnings per Share (EPS) of GOODYEAR TIRE & RUBBER CO (GT) is expected to decline by -34.19% in the next year.
How sustainable is the dividend of GOODYEAR TIRE & RUBBER CO (GT) stock?
The dividend rating of GOODYEAR TIRE & RUBBER CO (GT) is 0 / 10 and the dividend payout ratio is 0%.