GOODYEAR TIRE & RUBBER CO (GT) Stock Fundamental Analysis
USA - NASDAQ:GT - US3825501014 - Common Stock
7.43 USD
+0.54 (+7.84%)
7.4496 USD
+0.02 (+0.26%)
We assign a fundamental rating of 2 out of 10 to GT. GT was compared to 82 industry peers in the Automobile Components industry. GT has a bad profitability rating. Also its financial health evaluation is rather negative. 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's Return On Assets of 1.85% is on the low side compared to the rest of the industry. GT is outperformed by 68.29% of its industry peers.
The Return On Equity of GT (8.03%) is comparable to the rest of the industry.
GT has a Return On Invested Capital of 3.05%. This is in the lower half of the industry: GT underperforms 75.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GT is significantly below the industry average of 8.52%.
| 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
GT's Profit Margin of 2.22% is on the low side compared to the rest of the industry. GT is outperformed by 64.63% of its industry peers.
In the last couple of years the Profit Margin of GT has declined.
With a Operating Margin value of 3.14%, GT is not doing good in the industry: 75.61% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of GT has declined.
The Gross Margin of GT (18.56%) is worse than 75.61% of its industry peers.
In the last couple of years the Gross Margin of GT has declined.
| 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
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.
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 1.39. This is a bad value and indicates that GT is not financially healthy and even has some risk of bankruptcy.
GT's Altman-Z score of 1.39 is on the low side compared to the rest of the industry. GT is outperformed by 84.15% 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.
The Debt to Equity ratio of GT (1.38) is worse than 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACC0.4
WACC7.54%
2.3 Liquidity
A Current Ratio of 1.15 indicates that GT should not have too much problems paying its short term obligations.
The Current ratio of GT (1.15) is worse than 89.02% of its industry peers.
GT has a Quick Ratio of 1.15. 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 0.63, GT is doing worse than 90.24% of the companies in the same industry.
| 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 -59.29% in the last 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.
GT shows a decrease in Revenue. In the last year, the revenue decreased by -5.92%.
Measured over the past years, GT shows a small growth in Revenue. The Revenue has been growing by 5.07% on average per year.
EPS 1Y (TTM)-59.29%
EPS 3Y-19.86%
EPS 5Y-0.56%
EPS Q2Q%-24.32%
Revenue 1Y (TTM)-5.92%
Revenue growth 3Y2.6%
Revenue growth 5Y5.07%
Sales Q2Q%-3.71%
3.2 Future
GT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.13% yearly.
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-34.19%
EPS Next 2Y13.52%
EPS Next 3Y15.22%
EPS Next 5Y22.13%
Revenue Next Year-2.85%
Revenue Next 2Y-1.13%
Revenue Next 3Y-0.21%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.15, the valuation of GT can be described as correct.
GT's Price/Earnings ratio is in line with the industry average.
GT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 5.49, the valuation of GT can be described as very cheap.
Based on the Price/Forward Earnings ratio, GT is valued cheaper than 90.24% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, GT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 5.49 |
4.2 Price Multiples
GT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GT is cheaper than 71.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.24 |
4.3 Compensation for Growth
GT's earnings are expected to grow with 15.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.52%
EPS Next 3Y15.22%
5. Dividend
5.1 Amount
No dividends for GT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.43
+0.54 (+7.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change2.11%
Ins Owners3.8%
Ins Owner Change7.56%
Market Cap2.13B
Revenue(TTM)18.88B
Net Income(TTM)411.00M
Analysts76.36
Price Target10.53 (41.72%)
Short Float %10.32%
Short Ratio3.44
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)-6.14%
PT rev (3m)-24.28%
EPS NQ rev (1m)-14.3%
EPS NQ rev (3m)-64.9%
EPS NY rev (1m)-3.48%
EPS NY rev (3m)-50.92%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-2.47%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 5.49 | ||
| P/S | 0.11 | ||
| P/FCF | N/A | ||
| P/OCF | 4.27 | ||
| P/B | 0.42 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 5.24 |
EPS(TTM)0.46
EY6.19%
EPS(NY)1.35
Fwd EY18.21%
FCF(TTM)-1.82
FCFYN/A
OCF(TTM)1.74
OCFY23.43%
SpS64.64
BVpS17.88
TBVpS13.02
PEG (NY)N/A
PEG (5Y)N/A
Graham Number13.61
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
ROICexgc growth 3Y-11.56%
ROICexgc 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 | 1.39 |
F-Score7
WACC7.54%
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)-59.29%
EPS 3Y-19.86%
EPS 5Y-0.56%
EPS Q2Q%-24.32%
EPS Next Y-34.19%
EPS Next 2Y13.52%
EPS Next 3Y15.22%
EPS Next 5Y22.13%
Revenue 1Y (TTM)-5.92%
Revenue growth 3Y2.6%
Revenue growth 5Y5.07%
Sales Q2Q%-3.71%
Revenue Next Year-2.85%
Revenue Next 2Y-1.13%
Revenue Next 3Y-0.21%
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%
GOODYEAR TIRE & RUBBER CO / GT FAQ
What is the fundamental rating for GT stock?
ChartMill assigns a fundamental rating of 2 / 10 to GT.
Can you provide the valuation status for GOODYEAR TIRE & RUBBER CO?
ChartMill assigns a valuation rating of 4 / 10 to GOODYEAR TIRE & RUBBER CO (GT). This can be considered as Fairly Valued.
Can you provide the profitability details for GOODYEAR TIRE & RUBBER CO?
GOODYEAR TIRE & RUBBER CO (GT) has a profitability rating of 2 / 10.
What is the earnings growth outlook for GOODYEAR TIRE & RUBBER CO?
The Earnings per Share (EPS) of GOODYEAR TIRE & RUBBER CO (GT) is expected to decline by -34.19% in the next year.
How sustainable is the dividend of GOODYEAR TIRE & RUBBER CO (GT) stock?
The dividend rating of GOODYEAR TIRE & RUBBER CO (GT) is 0 / 10 and the dividend payout ratio is 0%.