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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GT was profitable.
GT had a positive operating cash flow in the past year.
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 worse Return On Assets (1.11%) than 71.60% of its industry peers.
GT has a Return On Equity of 4.91%. This is in the lower half of the industry: GT underperforms 67.90% of its industry peers.
GT has a Return On Invested Capital of 3.72%. This is amonst the worse of the industry: GT underperforms 80.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GT 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 worse Operating Margin (3.87%) than 76.54% of its industry peers.
GT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 19.47%, GT is not doing good in the industry: 72.84% of the companies in the same industry are doing better.
GT's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, GT has more shares outstanding
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 1.50, 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.
A Debt/Equity ratio of 1.57 is on the high side and indicates that GT has dependencies on debt financing.
GT's Debt to Equity ratio of 1.57 is on the low side compared to the rest of the industry. GT is outperformed by 90.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.5 |
ROIC/WACC0.44
WACC8.42%
2.3 Liquidity
A Current Ratio of 1.22 indicates that GT should not have too much problems paying its short term obligations.
GT's Current ratio of 1.22 is on the low side compared to the rest of the industry. GT is outperformed by 90.12% of its industry peers.
A Quick Ratio of 0.64 indicates that GT may have some problems paying its short term obligations.
GT has a Quick ratio of 0.64. This is amonst the worse of the industry: GT underperforms 93.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
GT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.24%, which is quite impressive.
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 -5.43%.
The Revenue has been growing slightly by 5.07% on average over the past years.
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.
GT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.83% yearly.
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.
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
The Price/Earnings ratio is 12.03, which indicates a correct valuation of GT.
The rest of the industry has a similar Price/Earnings ratio as GT.
Compared to an average S&P500 Price/Earnings ratio of 25.82, GT is valued rather cheaply.
GT is valuated cheaply with a Price/Forward Earnings ratio of 5.48.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GT indicates a rather cheap valuation: GT is cheaper than 85.19% 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 5.48 |
4.2 Price Multiples
GT's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.63 |
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.
A more expensive valuation may be justified as GT's earnings are expected to grow with 27.85% in the coming years.
PEG (NY)0.33
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 |
10.95
-0.18 (-1.62%)
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 Change7.74%
Market Cap3.12B
Analysts78.95
Price Target12.66 (15.62%)
Short Float %8.74%
Short Ratio3.5
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)-3.93%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 5.48 | ||
| P/S | 0.17 | ||
| P/FCF | N/A | ||
| P/OCF | 5.11 | ||
| P/B | 0.63 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 5.63 |
EPS(TTM)0.91
EY8.31%
EPS(NY)2
Fwd EY18.24%
FCF(TTM)-1.82
FCFYN/A
OCF(TTM)2.14
OCFY19.57%
SpS65.22
BVpS17.29
TBVpS12.23
PEG (NY)0.33
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
WACC8.42%
ROIC/WACC0.44
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 Year103.21%
EBIT Next 3Y29.91%
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%