GOODYEAR TIRE & RUBBER CO (GT) Stock Fundamental Analysis
NASDAQ:GT - Nasdaq - US3825501014 - Common Stock - Currency: USD
Taking everything into account, GT scores 2 out of 10 in our fundamental rating. GT was compared to 83 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
GT had positive earnings in the past year.
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.
GT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GT has a Return On Assets of 0.33%. This is in the lower half of the industry: GT underperforms 74.70% of its industry peers.
Looking at the Return On Equity, with a value of 1.47%, GT is doing worse than 72.29% of the companies in the same industry.
The Return On Invested Capital of GT (4.20%) is worse than 78.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GT is significantly below the industry average of 9.58%.
The 3 year average ROIC (3.96%) for GT is below the current ROIC(4.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 1.47% | ||
| ROIC | 4.2% |
ROA(3y)-0.65%
ROA(5y)-1.2%
ROE(3y)-3.16%
ROE(5y)-6.99%
ROIC(3y)3.96%
ROIC(5y)N/A
1.3 Margins
GT has a worse Profit Margin (0.37%) than 74.70% of its industry peers.
In the last couple of years the Profit Margin of GT has declined.
GT has a worse Operating Margin (4.00%) than 74.70% of its industry peers.
GT's Operating Margin has been stable in the last couple of years.
The Gross Margin of GT (19.61%) is worse than 73.49% of its industry peers.
GT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4% | ||
| PM (TTM) | 0.37% | ||
| GM | 19.61% |
OM growth 3Y-4.03%
OM growth 5Y0.72%
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GT is destroying value.
GT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for GT has been increased compared to 5 years ago.
Compared to 1 year ago, GT has a worse debt to assets ratio.
2.2 Solvency
GT has an Altman-Z score of 1.49. 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 1.49. This is in the lower half of the industry: GT underperforms 78.31% of its industry peers.
GT has a Debt/Equity ratio of 1.46. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.46, GT is doing worse than 89.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.49 |
ROIC/WACC0.58
WACC7.2%
2.3 Liquidity
GT has a Current Ratio of 1.04. This is a normal value and indicates that GT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.04, GT is not doing good in the industry: 92.77% of the companies in the same industry are doing better.
GT has a Quick Ratio of 1.04. This is a bad value and indicates that GT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GT (0.55) is worse than 93.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
GT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 425.00%, 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.
Looking at the last year, GT shows a decrease in Revenue. The Revenue has decreased by -5.92% in the last year.
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
The Earnings Per Share is expected to grow by 21.31% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 0.85% on average over the next years.
EPS Next Y40.86%
EPS Next 2Y38.35%
EPS Next 3Y21.31%
EPS Next 5YN/A
Revenue Next Year-1.72%
Revenue Next 2Y-0.22%
Revenue Next 3Y0.85%
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.
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 9.50, which indicates a very decent valuation of GT.
GT's Price/Earnings ratio is a bit cheaper when compared to the industry. GT is cheaper than 72.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, GT is valued rather cheaply.
A Price/Forward Earnings ratio of 6.75 indicates a rather cheap valuation of GT.
GT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GT is cheaper than 75.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GT to the average of the S&P500 Index (22.68), we can say GT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 6.75 |
4.2 Price Multiples
62.65% of the companies in the same industry are more expensive than GT, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.22 |
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.
A more expensive valuation may be justified as GT's earnings are expected to grow with 21.31% in the coming years.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y38.35%
EPS Next 3Y21.31%
5. Dividend
5.1 Amount
GT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.98
-0.57 (-5.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners90.25%
Inst Owner Change-0.29%
Ins Owners0.24%
Ins Owner Change1.22%
Market Cap2.84B
Analysts75.56
Price Target11.66 (16.83%)
Short Float %7.38%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)-7.58%
PT rev (3m)-1.78%
EPS NQ rev (1m)5.49%
EPS NQ rev (3m)-23.24%
EPS NY rev (1m)0.28%
EPS NY rev (3m)4.17%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 6.75 | ||
| P/S | 0.15 | ||
| P/FCF | N/A | ||
| P/OCF | 4.07 | ||
| P/B | 0.6 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 5.22 |
EPS(TTM)1.05
EY10.52%
EPS(NY)1.48
Fwd EY14.82%
FCF(TTM)-1.72
FCFYN/A
OCF(TTM)2.45
OCFY24.55%
SpS66.26
BVpS16.69
TBVpS11.21
PEG (NY)0.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 1.47% | ||
| ROCE | 5.54% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.46% | ||
| ROICexgc | 5.05% | ||
| OM | 4% | ||
| 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)3.96%
ROIC(5y)N/A
ROICexc(3y)4.24%
ROICexc(5y)N/A
ROICexgc(3y)4.86%
ROICexgc(5y)N/A
ROCE(3y)5.17%
ROCE(5y)N/A
ROICexcg growth 3Y-0.84%
ROICexcg growth 5Y3.63%
ROICexc growth 3Y0.24%
ROICexc growth 5Y2.39%
OM growth 3Y-4.03%
OM growth 5Y0.72%
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 | 3.85 | ||
| Cap/Depr | 113.25% | ||
| Cap/Sales | 6.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 38.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 1.49 |
F-Score7
WACC7.2%
ROIC/WACC0.58
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 Y40.86%
EPS Next 2Y38.35%
EPS Next 3Y21.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.92%
Revenue growth 3Y2.6%
Revenue growth 5Y5.07%
Sales Q2Q%-3.3%
Revenue Next Year-1.72%
Revenue Next 2Y-0.22%
Revenue Next 3Y0.85%
Revenue Next 5YN/A
EBIT growth 1Y53.46%
EBIT growth 3Y-1.53%
EBIT growth 5Y5.83%
EBIT Next Year111.14%
EBIT Next 3Y29.95%
EBIT Next 5YN/A
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%