GOODYEAR TIRE & RUBBER CO (GT) Stock Fundamental Analysis
NASDAQ:GT - Nasdaq - US3825501014 - Common Stock - Currency: USD
Overall GT gets a fundamental rating of 2 out of 10. We evaluated GT against 81 industry peers in the Automobile Components industry. GT may be in some trouble as it scores bad on both profitability and health. GT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GT was profitable.
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
GT has a Return On Assets of 1.11%. This is in the lower half of the industry: GT underperforms 70.37% of its industry peers.
Looking at the Return On Equity, with a value of 4.91%, GT is doing worse than 67.90% of the companies in the same industry.
GT's Return On Invested Capital of 3.72% is on the low side compared to the rest of the industry. GT is outperformed by 80.25% of its industry peers.
GT had an Average Return On Invested Capital over the past 3 years of 3.48%. This is significantly below the industry average of 9.04%.
The last Return On Invested Capital (3.72%) for GT is above the 3 year average (3.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.11% | ||
| ROE | 4.91% | ||
| ROIC | 3.72% |
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
GT's Profit Margin of 1.30% is on the low side compared to the rest of the industry. GT is outperformed by 70.37% of its industry peers.
GT's Profit Margin has declined in the last couple of years.
GT has a Operating Margin of 3.87%. This is in the lower half of the industry: GT underperforms 76.54% of its industry peers.
GT's Operating Margin has declined in the last couple of years.
The Gross Margin of GT (19.47%) is worse than 72.84% of its industry peers.
In the last couple of years the Gross Margin of GT has declined.
| 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 GT is destroying value.
GT has more shares outstanding than it did 1 year ago.
GT has more shares outstanding than it did 5 years ago.
GT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.50, we must say that GT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.50, GT is doing worse than 83.95% of the companies in the same industry.
GT has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GT (1.57) is worse than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.5 |
ROIC/WACC0.45
WACC8.32%
2.3 Liquidity
GT has a Current Ratio of 1.22. 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 1.22, GT is doing worse than 90.12% of the companies in the same industry.
GT has a Quick Ratio of 1.22. This is a bad value and indicates that GT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.64, GT is not doing good in the industry: 92.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.24% over the past year.
Measured over the past years, GT shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.56% on average per year.
Looking at the last year, GT shows a decrease in Revenue. The Revenue has decreased by -5.43% in the last year.
GT 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, 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 Y36.27%
EPS Next 2Y37.92%
EPS Next 3Y27.85%
EPS Next 5Y22.13%
Revenue Next Year-2.57%
Revenue Next 2Y-0.73%
Revenue Next 3Y-0.46%
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 11.69, which indicates a very decent valuation of GT.
GT's Price/Earnings ratio is in line with the industry average.
GT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.52.
A Price/Forward Earnings ratio of 5.33 indicates a rather cheap valuation of GT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GT indicates a rather cheap valuation: GT is cheaper than 86.42% of the companies listed in the same industry.
GT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.25.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 5.33 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.57 |
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.
GT's earnings are expected to grow with 27.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y37.92%
EPS Next 3Y27.85%
5. Dividend
5.1 Amount
GT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.64
-0.12 (-1.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners86.54%
Inst Owner Change2.81%
Ins Owners9.02%
Ins Owner Change14.61%
Market Cap3.04B
Analysts78.95
Price Target12.66 (18.98%)
Short Float %8.8%
Short Ratio3.48
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)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)-6.2%
Revenue beat(12)2
Avg Revenue beat(12)-4.55%
Revenue beat(16)5
Avg Revenue beat(16)-3.24%
PT rev (1m)0%
PT rev (3m)8.58%
EPS NQ rev (1m)-60.13%
EPS NQ rev (3m)-84.42%
EPS NY rev (1m)-4.48%
EPS NY rev (3m)-3.26%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 5.33 | ||
| P/S | 0.16 | ||
| P/FCF | N/A | ||
| P/OCF | 4.98 | ||
| P/B | 0.62 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 5.57 |
EPS(TTM)0.91
EY8.55%
EPS(NY)2
Fwd EY18.77%
FCF(TTM)-1.81
FCFYN/A
OCF(TTM)2.14
OCFY20.1%
SpS65.08
BVpS17.26
TBVpS12.21
PEG (NY)0.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.11% | ||
| ROE | 4.91% | ||
| ROCE | 4.85% | ||
| ROIC | 3.72% | ||
| ROICexc | 3.95% | ||
| ROICexgc | 4.39% | ||
| 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)3.48%
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-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 | 1.5 |
F-Score8
WACC8.32%
ROIC/WACC0.45
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 Y36.27%
EPS Next 2Y37.92%
EPS Next 3Y27.85%
EPS Next 5Y22.13%
Revenue 1Y (TTM)-5.43%
Revenue growth 3Y2.6%
Revenue growth 5Y5.07%
Sales Q2Q%-6.26%
Revenue Next Year-2.57%
Revenue Next 2Y-0.73%
Revenue Next 3Y-0.46%
Revenue Next 5Y1.83%
EBIT growth 1Y37.67%
EBIT growth 3Y-12.17%
EBIT growth 5Y-1.19%
EBIT Next Year98.87%
EBIT Next 3Y31.15%
EBIT Next 5Y18.95%
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%