GOODYEAR TIRE & RUBBER CO (GT) Stock Fundamental Analysis
NASDAQ:GT - US3825501014 - Common Stock
8.48 USD
-0.04 (-0.47%)
8.4701 USD
-0.01 (-0.12%)
We assign a fundamental rating of 2 out of 10 to GT. GT was compared to 80 industry peers in the Automobile Components industry. Both the profitability and financial health of GT have multiple concerns. GT has a valuation in line with the averages, 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.
Each year in the past 5 years GT had a positive operating cash flow.
1.2 Ratios
GT's Return On Assets of 1.85% is on the low side compared to the rest of the industry. GT is outperformed by 68.75% of its industry peers.
Looking at the Return On Equity, with a value of 8.03%, GT is doing worse than 62.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.05%, GT is doing worse than 77.50% of the companies in the same industry.
GT had an Average Return On Invested Capital over the past 3 years of 3.48%. This is significantly below the industry average of 8.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 8.03% | ||
| ROIC | 3.05% |
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
Looking at the Profit Margin, with a value of 2.22%, GT is doing worse than 67.50% of the companies in the same industry.
GT's Profit Margin has declined in the last couple of years.
GT has a worse Operating Margin (3.14%) than 77.50% of its industry peers.
GT's Operating Margin has declined in the last couple of years.
GT's Gross Margin of 18.56% is on the low side compared to the rest of the industry. GT is outperformed by 77.50% of its industry peers.
In the last couple of years the Gross Margin of GT has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.14% | ||
| PM (TTM) | 2.22% | ||
| GM | 18.56% |
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
GT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GT has more shares outstanding
GT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that GT is in the distress zone and has some risk of bankruptcy.
GT has a worse Altman-Z score (1.41) than 86.25% of its industry peers.
A Debt/Equity ratio of 1.38 is on the high side and indicates that GT has dependencies on debt financing.
GT's Debt to Equity ratio of 1.38 is on the low side compared to the rest of the industry. GT is outperformed by 88.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.41 |
ROIC/WACC0.39
WACC7.81%
2.3 Liquidity
GT has a Current Ratio of 1.15. This is a normal value and indicates that GT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.15, GT is doing worse than 91.25% of the companies in the same industry.
A Quick Ratio of 0.63 indicates that GT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.63, GT is doing worse than 92.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
GT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.89%.
The Earnings Per Share has been decreasing by -0.56% on average over the past years.
The Revenue has decreased by -4.52% in the past year.
Measured over the past years, GT shows a small growth in Revenue. The Revenue has been growing by 5.07% on average per year.
EPS 1Y (TTM)-50.89%
EPS 3Y-19.86%
EPS 5Y-0.56%
EPS Q2Q%-189.47%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y2.6%
Revenue growth 5Y5.07%
Sales Q2Q%-2.3%
3.2 Future
Based on estimates for the next years, GT will show a very strong growth in Earnings Per Share. The EPS will grow by 22.13% on average per year.
The Revenue is expected to grow by 1.83% on average over the next years.
EPS Next Y-39.39%
EPS Next 2Y14.71%
EPS Next 3Y15.07%
EPS Next 5Y22.13%
Revenue Next Year-2.88%
Revenue Next 2Y-1.19%
Revenue Next 3Y-0.61%
Revenue Next 5Y1.83%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 15.42, GT is valued correctly.
GT's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.13, GT is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 6.14, the valuation of GT can be described as very cheap.
Based on the Price/Forward Earnings ratio, GT is valued a bit cheaper than the industry average as 78.75% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GT to the average of the S&P500 Index (22.76), we can say GT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 6.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GT is valued a bit cheaper than the industry average as 67.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.51 |
4.3 Compensation for Growth
A more expensive valuation may be justified as GT's earnings are expected to grow with 15.07% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.71%
EPS Next 3Y15.07%
5. Dividend
5.1 Amount
No dividends for GT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.48
-0.04 (-0.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners87.71%
Inst Owner Change8.12%
Ins Owners9.06%
Ins Owner Change11.24%
Market Cap2.43B
Analysts80
Price Target11.03 (30.07%)
Short Float %6.3%
Short Ratio2.3
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)0
Avg EPS beat(2)-181.05%
Min EPS beat(2)-345.83%
Max EPS beat(2)-16.27%
EPS beat(4)2
Avg EPS beat(4)-66.67%
Min EPS beat(4)-345.83%
Max EPS beat(4)72.7%
EPS beat(8)6
Avg EPS beat(8)207.65%
EPS beat(12)8
Avg EPS beat(12)112.47%
EPS beat(16)12
Avg EPS beat(16)103.56%
Revenue beat(2)0
Avg Revenue beat(2)-3.89%
Min Revenue beat(2)-5.89%
Max Revenue beat(2)-1.89%
Revenue beat(4)0
Avg Revenue beat(4)-3.62%
Min Revenue beat(4)-5.89%
Max Revenue beat(4)-1.47%
Revenue beat(8)0
Avg Revenue beat(8)-5.51%
Revenue beat(12)1
Avg Revenue beat(12)-4.84%
Revenue beat(16)4
Avg Revenue beat(16)-3.39%
PT rev (1m)-20.65%
PT rev (3m)-12.87%
EPS NQ rev (1m)-58.61%
EPS NQ rev (3m)-49.08%
EPS NY rev (1m)-54.8%
EPS NY rev (3m)-55.52%
Revenue NQ rev (1m)-2.62%
Revenue NQ rev (3m)-1.05%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.42 | ||
| Fwd PE | 6.14 | ||
| P/S | 0.13 | ||
| P/FCF | N/A | ||
| P/OCF | 4.87 | ||
| P/B | 0.47 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 5.51 |
EPS(TTM)0.55
EY6.49%
EPS(NY)1.38
Fwd EY16.29%
FCF(TTM)-1.82
FCFYN/A
OCF(TTM)1.74
OCFY20.53%
SpS64.64
BVpS17.88
TBVpS13.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 8.03% | ||
| ROCE | 3.99% | ||
| ROIC | 3.05% | ||
| ROICexc | 3.22% | ||
| ROICexgc | 3.56% | ||
| OM | 3.14% | ||
| PM (TTM) | 2.22% | ||
| GM | 18.56% | ||
| 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
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-Score7
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 97.42% | ||
| Cap/Sales | 5.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 30.59% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.41 |
F-Score7
WACC7.81%
ROIC/WACC0.39
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)-50.89%
EPS 3Y-19.86%
EPS 5Y-0.56%
EPS Q2Q%-189.47%
EPS Next Y-39.39%
EPS Next 2Y14.71%
EPS Next 3Y15.07%
EPS Next 5Y22.13%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y2.6%
Revenue growth 5Y5.07%
Sales Q2Q%-2.3%
Revenue Next Year-2.88%
Revenue Next 2Y-1.19%
Revenue Next 3Y-0.61%
Revenue Next 5Y1.83%
EBIT growth 1Y-22.53%
EBIT growth 3Y-12.17%
EBIT growth 5Y-1.19%
EBIT Next Year100.28%
EBIT Next 3Y30.95%
EBIT Next 5Y17.69%
FCF growth 1Y-12.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-19.68%
OCF growth 3Y-13.06%
OCF growth 5Y-10.37%