GOODYEAR TIRE & RUBBER CO (GT)
US3825501014 - Common Stock
Overall GT gets a fundamental rating of 2 out of 10. We evaluated GT against 42 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
In the past year GT was profitable.
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.
In the past 5 years GT always reported a positive cash flow from operatings.
1.2 Ratios
GT has a worse Return On Assets (-3.19%) than 69.05% of its industry peers.
The Return On Equity of GT (-14.76%) is worse than 73.81% of its industry peers.
The Return On Invested Capital of GT (2.63%) is worse than 66.67% of its industry peers.
GT had an Average Return On Invested Capital over the past 3 years of 3.92%. This is significantly below the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.19% | ||
| ROE | -14.76% | ||
| ROIC | 2.63% |
ROA(3y)0.43%
ROA(5y)-1.63%
ROE(3y)1.44%
ROE(5y)-8.71%
ROIC(3y)3.92%
ROIC(5y)N/A
1.3 Margins
GT's Operating Margin of 2.45% is on the low side compared to the rest of the industry. GT is outperformed by 61.90% of its industry peers.
GT's Operating Margin has declined in the last couple of years.
GT has a Gross Margin (17.49%) which is in line with its industry peers.
GT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.45% | ||
| PM (TTM) | N/A | ||
| GM | 17.49% |
OM growth 3YN/A
OM growth 5Y-22%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.79%
GM growth 5Y-5.09%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GT is destroying value.
The number of shares outstanding for GT has been increased compared to 1 year ago.
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
GT has an Altman-Z score of 1.48. This is a bad value and indicates that GT is not financially healthy and even has some risk of bankruptcy.
GT has a Altman-Z score of 1.48. This is in the lower half of the industry: GT underperforms 69.05% of its industry peers.
GT has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
GT's Debt to Equity ratio of 1.54 is on the low side compared to the rest of the industry. GT is outperformed by 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.48 |
ROIC/WACC0.31
WACC8.52%
2.3 Liquidity
A Current Ratio of 1.07 indicates that GT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.07, GT is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
GT has a Quick Ratio of 1.07. This is a bad value and indicates that GT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.55, GT is doing worse than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The earnings per share for GT have decreased strongly by -84.62% in the last year.
GT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -38.70% yearly.
GT shows a decrease in Revenue. In the last year, the revenue decreased by -3.55%.
Measured over the past years, GT shows a small growth in Revenue. The Revenue has been growing by 5.33% on average per year.
EPS 1Y (TTM)-84.62%
EPS 3YN/A
EPS 5Y-38.7%
EPS growth Q2Q571.43%
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y17.65%
Revenue growth 5Y5.33%
Revenue growth Q2Q-4.8%
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 123.58% on average per year.
The Revenue is expected to decrease by -0.52% on average over the next years.
EPS Next Y554.42%
EPS Next 2Y212.8%
EPS Next 3Y123.58%
EPS Next 5YN/A
Revenue Next Year-2.28%
Revenue Next 2Y-0.64%
Revenue Next 3Y-0.52%
Revenue Next 5YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 59.42, GT can be considered very expensive at the moment.
GT's Price/Earnings ratio is in line with the industry average.
GT is valuated expensively when we compare the Price/Earnings ratio to 24.80, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.08 indicates a reasonable valuation of GT.
GT's Price/Forward Earnings ratio is rather cheap when compared to the industry. GT is cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.27. GT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.43 | ||
| Fwd PE | 9.08 |
4.2 Price Multiples
GT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GT is cheaper than 69.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.5 |
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 123.58% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y212.8%
EPS Next 3Y123.58%
5. Dividend
5.1 Amount
GT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GOODYEAR TIRE & RUBBER CO
NASDAQ:GT (4/19/2024, 2:58:08 PM)
11.885
+0.17 (+1.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.43 | ||
| Fwd PE | 9.08 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.19% | ||
| ROE | -14.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.45% | ||
| PM (TTM) | N/A | ||
| GM | 17.49% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-84.62%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y554.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y17.65%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y