Overall GT gets a fundamental rating of 2 out of 10. We evaluated GT against 42 industry peers in the Automobile Components industry. GT may be in some trouble as it scores bad on both profitability and health. GT is valued correctly, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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

GT's Return On Assets of -8.65% is on the low side compared to the rest of the industry. GT is outperformed by 69.05% of its industry peers.
GT has a Return On Equity of -58.24%. This is in the lower half of the industry: GT underperforms 76.19% of its industry peers.
GT has a Return On Invested Capital (2.45%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GT is significantly below the industry average of 9.10%.

		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

GT's Profit Margin has declined in the last couple of years.
GT has a Operating Margin of 2.32%. This is comparable to the rest of the industry: GT outperforms 45.24% of its industry peers.
GT's Operating Margin has declined in the last couple of years.
GT has a Gross Margin (18.20%) which is comparable to the rest of the industry.
GT's Gross Margin has declined in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GT is destroying value.
Compared to 1 year ago, GT has more shares outstanding
Compared to 5 years ago, GT has more shares outstanding
GT has a worse debt/assets ratio than last year.

2.2 Solvency

GT has an Altman-Z score of 1.41. This is a bad value and indicates that GT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.41, GT is doing worse than 78.57% of the companies in the same industry.
GT has a Debt/Equity ratio of 2.61. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.61, GT is doing worse than 80.95% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	2.61
Debt/FCF	N/A
Altman-Z	1.41

ROIC/WACC0.3

WACC8.03%

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 78.57% of its industry peers.
GT has a Quick Ratio of 1.27. This is a bad value and indicates that GT is not financially healthy enough and could expect problems in meeting its short term obligations.
GT's Quick ratio of 0.71 is on the low side compared to the rest of the industry. GT is outperformed by 80.95% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.27
Quick Ratio	0.71

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WACC

Debt/Equity

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Altman-Z score

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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-40.07%

EPS Next 2Y6.45%

EPS Next 3Y13.64%

EPS Next 5Y12.66%

Revenue Next Year-3.14%

Revenue Next 2Y-1.16%

Revenue Next 3Y-0.26%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 20.54, the valuation of GT can be described as rather expensive.
GT's Price/Earnings is on the same level as the industry average.
GT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
The Price/Forward Earnings ratio is 7.94, which indicates a rather cheap valuation of GT.
92.86% of the companies in the same industry are more expensive than GT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GT to the average of the S&P500 Index (25.83), we can say GT is valued rather cheaply.

		Industry Rank	Sector Rank
PE	20.54
Fwd PE	7.94

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GT is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.