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 has a correct valuation and a medium 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.
Each year in the past 5 years GT had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.33%, GT is not doing good in the industry: 72.84% of the companies in the same industry are doing better.
With a Return On Equity value of 1.47%, GT is not doing good in the industry: 71.60% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 4.19%, GT is doing worse than 79.01% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GT is significantly below the industry average of 8.98%.
The 3 year average ROIC (3.71%) for GT is below the current ROIC(4.19%), indicating increased profibility in the last year.
| 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.
GT's Profit Margin has declined in the last couple of years.
GT's Operating Margin of 3.99% is on the low side compared to the rest of the industry. GT is outperformed by 74.07% of its industry peers.
In the last couple of years the Operating Margin of GT has declined.
The Gross Margin of GT (19.61%) is worse than 72.84% of its industry peers.
In the last couple of years the Gross Margin of GT has declined.
| 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
GT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GT is higher compared to a year ago.
2.2 Solvency
GT has an Altman-Z score of 1.50. This is a bad value and indicates that GT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.50, GT is not doing good in the industry: 85.19% 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 | 1.5 |
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.
GT has a worse Current ratio (1.04) than 92.59% of its industry peers.
A Quick Ratio of 0.55 indicates that GT may have some problems paying its short term obligations.
With a Quick ratio value of 0.55, GT is not doing good in the industry: 93.83% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been decreasing by -0.56% on average over the past years.
Looking at the last year, GT shows a decrease in Revenue. The Revenue has decreased by -5.92% in the last year.
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)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 22.13% on average over the next years. This is a very strong growth
Based on estimates for the next years, GT will show a small growth in Revenue. The Revenue will grow by 1.83% on average per year.
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
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.
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 10.54, the valuation of GT can be described as reasonable.
GT's Price/Earnings is on the same level as the industry average.
GT is valuated cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.39, the valuation of GT can be described as very cheap.
GT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GT is cheaper than 67.90% of the companies in the same industry.
GT is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 7.39 |
4.2 Price Multiples
GT's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.31 |
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 25.63% in the coming years.
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 |
11.07
+0.13 (+1.19%)
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 Cap3.16B
Analysts78.95
Price Target12.66 (14.36%)
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 | 10.54 | ||
| Fwd PE | 7.39 | ||
| P/S | 0.17 | ||
| P/FCF | N/A | ||
| P/OCF | 4.52 | ||
| P/B | 0.66 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 5.31 |
EPS(TTM)1.05
EY9.49%
EPS(NY)1.5
Fwd EY13.53%
FCF(TTM)-1.72
FCFYN/A
OCF(TTM)2.45
OCFY22.12%
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 | 1.5 |
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%