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. Both the profitability and financial health of GT have multiple concerns. GT has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years GT had a positive operating cash flow.
1.2 Ratios
GT has a Return On Assets of 0.33%. This is in the lower half of the industry: GT underperforms 72.84% of its industry peers.
GT has a worse Return On Equity (1.47%) than 71.60% of its industry peers.
GT's Return On Invested Capital of 4.19% is on the low side compared to the rest of the industry. GT is outperformed by 79.01% 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 8.98%.
The last Return On Invested Capital (4.19%) for GT is above the 3 year average (3.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 1.47% | ||
| ROIC | 4.19% |
ROA(3y)-0.65%
ROA(5y)-1.2%
ROE(3y)-3.16%
ROE(5y)-6.99%
ROIC(3y)3.71%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 0.37%, GT is not doing good in the industry: 72.84% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of GT has declined.
GT has a worse Operating Margin (3.99%) than 74.07% of its industry peers.
In the last couple of years the Operating Margin of GT has declined.
GT's Gross Margin of 19.61% is on the low side compared to the rest of the industry. GT is outperformed by 72.84% of its industry peers.
GT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.99% | ||
| PM (TTM) | 0.37% | ||
| GM | 19.61% |
OM growth 3Y-9.16%
OM growth 5Y-2.54%
PM growth 3Y-56.06%
PM growth 5YN/A
GM growth 3Y-3.26%
GM growth 5Y-1.65%
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
The number of shares outstanding for GT has been increased compared to 5 years ago.
The debt/assets ratio for GT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that GT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.49, GT is not doing good in the industry: 86.42% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.46 is on the high side and indicates that GT has dependencies on debt financing.
GT has a Debt to Equity ratio of 1.46. This is amonst the worse of the industry: GT underperforms 90.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.49 |
ROIC/WACC0.5
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.04 indicates that GT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.04, GT is doing worse than 92.59% of the companies in the same industry.
A Quick Ratio of 0.55 indicates that GT may have some problems paying its short term obligations.
GT has a Quick ratio of 0.55. This is amonst the worse of the industry: GT underperforms 93.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 425.00% over the past year.
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 -5.92%.
GT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.07% yearly.
EPS 1Y (TTM)425%
EPS 3Y-19.86%
EPS 5Y-0.56%
EPS Q2Q%-17.02%
Revenue 1Y (TTM)-5.92%
Revenue growth 3Y2.6%
Revenue growth 5Y5.07%
Sales Q2Q%-3.3%
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.
The Revenue is expected to grow by 1.83% on average over the next years.
EPS Next Y42.67%
EPS Next 2Y38.43%
EPS Next 3Y25.63%
EPS Next 5Y22.13%
Revenue Next Year-2.15%
Revenue Next 2Y0.12%
Revenue Next 3Y-0.25%
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
With a Price/Earnings ratio of 10.49, the valuation of GT can be described as very reasonable.
Based on the Price/Earnings ratio, GT is valued a bit cheaper than the industry average as 61.73% of the companies are valued more expensively.
GT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.22.
With a Price/Forward Earnings ratio of 7.35, the valuation of GT can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GT indicates a somewhat cheap valuation: GT is cheaper than 67.90% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GT to the average of the S&P500 Index (20.86), we can say GT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 7.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.26 |
4.3 Compensation for Growth
GT's 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 25.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y38.43%
EPS Next 3Y25.63%
5. Dividend
5.1 Amount
No dividends for GT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.01
+0.28 (+2.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners86.54%
Inst Owner Change0%
Ins Owners9.02%
Ins Owner Change7.74%
Market Cap3.14B
Analysts78.95
Price Target12.66 (14.99%)
Short Float %8.28%
Short Ratio3.14
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)2
Avg EPS beat(2)47.71%
Min EPS beat(2)22.71%
Max EPS beat(2)72.7%
EPS beat(4)4
Avg EPS beat(4)479.64%
Min EPS beat(4)22.71%
Max EPS beat(4)1777.9%
EPS beat(8)7
Avg EPS beat(8)215.79%
EPS beat(12)10
Avg EPS beat(12)150.53%
EPS beat(16)14
Avg EPS beat(16)152.07%
Revenue beat(2)0
Avg Revenue beat(2)-3.36%
Min Revenue beat(2)-5.24%
Max Revenue beat(2)-1.47%
Revenue beat(4)0
Avg Revenue beat(4)-5.6%
Min Revenue beat(4)-8.53%
Max Revenue beat(4)-1.47%
Revenue beat(8)0
Avg Revenue beat(8)-6.08%
Revenue beat(12)3
Avg Revenue beat(12)-3.84%
Revenue beat(16)6
Avg Revenue beat(16)-2.86%
PT rev (1m)2.18%
PT rev (3m)0.35%
EPS NQ rev (1m)-538.46%
EPS NQ rev (3m)-104.65%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-2.54%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-1.52%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 7.35 | ||
| P/S | 0.17 | ||
| P/FCF | N/A | ||
| P/OCF | 4.5 | ||
| P/B | 0.66 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 5.26 |
EPS(TTM)1.05
EY9.54%
EPS(NY)1.5
Fwd EY13.61%
FCF(TTM)-1.72
FCFYN/A
OCF(TTM)2.45
OCFY22.24%
SpS66.21
BVpS16.68
TBVpS11.21
PEG (NY)0.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 1.47% | ||
| ROCE | 5.53% | ||
| ROIC | 4.19% | ||
| ROICexc | 4.45% | ||
| ROICexgc | 5.04% | ||
| OM | 3.99% | ||
| PM (TTM) | 0.37% | ||
| GM | 19.61% | ||
| FCFM | N/A |
ROA(3y)-0.65%
ROA(5y)-1.2%
ROE(3y)-3.16%
ROE(5y)-6.99%
ROIC(3y)3.71%
ROIC(5y)N/A
ROICexc(3y)3.97%
ROICexc(5y)N/A
ROICexgc(3y)4.55%
ROICexgc(5y)N/A
ROCE(3y)4.84%
ROCE(5y)N/A
ROICexcg growth 3Y-6.14%
ROICexcg growth 5Y0.27%
ROICexc growth 3Y-5.12%
ROICexc growth 5Y-0.93%
OM growth 3Y-9.16%
OM growth 5Y-2.54%
PM growth 3Y-56.06%
PM growth 5YN/A
GM growth 3Y-3.26%
GM growth 5Y-1.65%
F-Score7
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.86 | ||
| Cap/Depr | 113.25% | ||
| Cap/Sales | 6.29% | ||
| Interest Coverage | 1.46 | ||
| Cash Conversion | 38.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 1.49 |
F-Score7
WACC8.37%
ROIC/WACC0.5
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)425%
EPS 3Y-19.86%
EPS 5Y-0.56%
EPS Q2Q%-17.02%
EPS Next Y42.67%
EPS Next 2Y38.43%
EPS Next 3Y25.63%
EPS Next 5Y22.13%
Revenue 1Y (TTM)-5.92%
Revenue growth 3Y2.6%
Revenue growth 5Y5.07%
Sales Q2Q%-3.3%
Revenue Next Year-2.15%
Revenue Next 2Y0.12%
Revenue Next 3Y-0.25%
Revenue Next 5Y1.83%
EBIT growth 1Y53.05%
EBIT growth 3Y-6.8%
EBIT growth 5Y2.39%
EBIT Next Year103.21%
EBIT Next 3Y29.91%
EBIT Next 5Y18.95%
FCF growth 1Y-2622.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-32.36%
OCF growth 3Y-13.06%
OCF growth 5Y-10.37%