GOODYEAR TIRE & RUBBER CO (GT) Stock Fundamental Analysis
USA - NASDAQ:GT - US3825501014 - Common Stock
7.635 USD
+0.15 (+2.07%)
We assign a fundamental rating of 2 out of 10 to GT. GT was compared to 81 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
GT had positive earnings in the past year.
In the past year GT had a positive cash flow from operations.
In multiple years GT reported negative net income over the last 5 years.
GT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GT (1.85%) is worse than 67.90% of its industry peers.
GT has a worse Return On Equity (8.03%) than 61.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.05%, GT is doing worse than 76.54% 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
With a Profit Margin value of 2.22%, GT is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of GT has declined.
Looking at the Operating Margin, with a value of 3.14%, GT is doing worse than 76.54% of the companies in the same industry.
In the last couple of years the Operating Margin of GT has declined.
Looking at the Gross Margin, with a value of 18.56%, GT is doing worse than 76.54% of the companies in the same industry.
GT's Gross Margin has declined in the last couple of years.
| 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.
GT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GT has been increased compared to 5 years ago.
GT has a worse debt/assets ratio than last year.
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.
GT has a Altman-Z score of 1.40. This is amonst the worse of the industry: GT underperforms 83.95% of its industry peers.
GT has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.38, GT is not doing good in the industry: 87.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.4 |
ROIC/WACC0.4
WACC7.56%
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 90.12% 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.
GT has a worse Quick ratio (0.63) than 91.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for GT have decreased strongly by -50.89% in the last year.
GT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.56% yearly.
GT shows a decrease in Revenue. In the last year, the revenue decreased by -4.52%.
The Revenue has been growing slightly by 5.07% on average over the past years.
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.
GT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.83% yearly.
EPS Next Y-31.81%
EPS Next 2Y17.62%
EPS Next 3Y15.84%
EPS Next 5Y22.13%
Revenue Next Year-2.73%
Revenue Next 2Y-1.12%
Revenue Next 3Y-0.41%
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.
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
The Price/Earnings ratio is 13.88, which indicates a correct valuation of GT.
Based on the Price/Earnings ratio, GT is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of GT to the average of the S&P500 Index (27.76), we can say GT is valued rather cheaply.
GT is valuated cheaply with a Price/Forward Earnings ratio of 5.26.
87.65% of the companies in the same industry are more expensive than GT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.18. GT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 5.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GT is valued a bit cheaper than 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.34 |
4.3 Compensation for Growth
GT's earnings are expected to grow with 15.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.62%
EPS Next 3Y15.84%
5. Dividend
5.1 Amount
No dividends for GT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:GT (10/1/2025, 12:04:03 PM)
7.635
+0.15 (+2.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change8.12%
Ins Owners3.8%
Ins Owner Change7.65%
Market Cap2.18B
Analysts78
Price Target11.22 (46.95%)
Short Float %7.78%
Short Ratio2.6
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)1.66%
PT rev (3m)-16.69%
EPS NQ rev (1m)-0.75%
EPS NQ rev (3m)-59.67%
EPS NY rev (1m)12.5%
EPS NY rev (3m)-49.5%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 5.26 | ||
| P/S | 0.12 | ||
| P/FCF | N/A | ||
| P/OCF | 4.39 | ||
| P/B | 0.43 | ||
| P/tB | 0.59 | ||
| EV/EBITDA | 5.34 |
EPS(TTM)0.55
EY7.2%
EPS(NY)1.45
Fwd EY19.02%
FCF(TTM)-1.82
FCFYN/A
OCF(TTM)1.74
OCFY22.8%
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 | 1.4 |
F-Score7
WACC7.56%
ROIC/WACC0.4
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-31.81%
EPS Next 2Y17.62%
EPS Next 3Y15.84%
EPS Next 5Y22.13%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y2.6%
Revenue growth 5Y5.07%
Sales Q2Q%-2.3%
Revenue Next Year-2.73%
Revenue Next 2Y-1.12%
Revenue Next 3Y-0.41%
Revenue Next 5Y1.83%
EBIT growth 1Y-22.53%
EBIT growth 3Y-12.17%
EBIT growth 5Y-1.19%
EBIT Next Year71.67%
EBIT Next 3Y26.56%
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%