Goodyear Tire & Rubber Company Earns Average ‘Hold’ Rating from Six Research Firms
August 9, 2023
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It is a leader in the tire industry, boasting top-of-the-line products, innovative technology, and advanced research and development capabilities. As Goodyear continues to grow, its stock has become a popular investment option. Recently, six research firms have begun to cover the stock and have given it an average rating of “Hold”. This means that the firms are taking a relatively neutral stance on the stock, as they neither recommend buying nor selling shares. They recommend that investors remain on the sidelines until more information is available regarding the stock’s performance and outlook. The research firms cited Goodyear’s impressive portfolio of products, strong brand power, and long history of success in the industry as reasons for their moderate opinion.
However, they also noted potential risks such as foreign exchange rate fluctuations, rising raw material costs, and increasing competition, which could potentially impact the stock’s performance. Given these ratings, investors should take a cautiously optimistic approach when considering investing in Goodyear Tire & Rubber ($NASDAQ:GT) Company. It is important to assess the company’s financials and outlook before deciding whether to buy or sell shares. Investors may also want to consider other stocks in the same industry before making an investment decision.
Share Price
Goodyear Tire & Rubber Company, a leading tire manufacturer, earned an average ‘Hold’ rating from six research firms on Monday. The stock opened at $12.7 and closed at $12.5, down by 2.5% from the previous closing price of $12.8. Analysts noted that stock is attractively valued in the long-term but some short-term hiccups in the market should be taken into consideration. The company has been widely known for its quality products and superior customer service, which should help it maintain its current level of performance in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GT. More…
| Total Revenues | Net Income | Net Margin |
| 20.49k | -369 | -1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GT. More…
| Operations | Investing | Financing |
| 620 | -1.16k | 319 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for GT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 22.81k | 17.54k | 18.01 |
Key Ratios Snapshot
Some of the financial key ratios for GT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.2% | 8.7% | 1.0% |
| FCF Margin | ROE | ROA |
| -2.3% | 2.5% | 0.6% |
Analysis
At GoodWhale, we have performed an analysis of GOODYEAR TIRE & RUBBER’s wellbeing, using our proprietary Star Chart model. According to our analysis, GOODYEAR TIRE & RUBBER is strong in asset, medium in profitability and weak in dividend and growth. We have calculated an intermediate health score of 6/10, which indicates that GOODYEAR TIRE & RUBBER may be able to safely ride out any crisis without the risk of bankruptcy. Based on our analysis, we have also classified GOODYEAR TIRE & RUBBER as a ‘rhino’, meaning that it has achieved moderate revenue or earnings growth. Given the mixed performance of GOODYEAR TIRE & RUBBER, we believe that value investors may be interested in investing in this company. Such investors seek companies with undervalued share prices and strong long-term potential, both of which GOODYEAR TIRE & RUBBER appears to possess. More…
Peers
There is intense competition between Goodyear Tire & Rubber Co and its competitors Apollo Tyres Ltd, Sumitomo Rubber Industries Ltd, and PT Gajah Tunggal Tbk. All four companies are striving to gain market share in the global tire market. Goodyear is the largest tire manufacturer in the United States and also has a large presence in Europe. Apollo Tyres is based in India and has a strong presence in the Asian market. Sumitomo Rubber Industries is a Japanese company that has a significant share of the tire market in Japan and also exports to other countries. PT Gajah Tunggal Tbk is an Indonesian company that has a growing share of the tire market in Southeast Asia.
– Apollo Tyres Ltd ($BSE:500877)
Apollo Tyres Ltd is an Indian multinational tyre manufacturing company headquartered in Gurgaon, Haryana, India. It is the world’s 17th-largest tyre manufacturer by revenue. The company was founded in 1972 and has been publicly traded on the Bombay Stock Exchange and National Stock Exchange of India since 1987.
Apollo Tyres has a market cap of 178.97B as of 2022 and a Return on Equity of 7.3%. The company manufactures tyres for a variety of vehicles, including cars, trucks, buses, motorcycles, and other off-road vehicles.
– Sumitomo Rubber Industries Ltd ($TSE:5110)
Sumitomo Rubber Industries Ltd is a company that manufactures and sells rubber products. The company has a market cap of 326.11B as of 2022 and a Return on Equity of 5.4%. The company’s products include tires, automotive components, and industrial products. The company operates in Japan, North America, Europe, and Asia.
– PT Gajah Tunggal Tbk ($IDX:GJTL)
PT Gajah Tunggal Tbk is a leading tire manufacturer in Indonesia with a market capitalization of 2.14 trillion as of 2022. The company has a return on equity of 3.77%. PT Gajah Tunggal Tbk manufactures and markets a wide range of tires for passenger cars, motorcycles, commercial vehicles, and off-road vehicles. The company has a strong presence in the Indonesian market with a market share of around 40%.
Summary
Goodyear Tire & Rubber Company has been receiving an average rating of “Hold” from the six research firms currently monitoring its performance. This suggests that investors might want to maintain their current holdings in the company, but it is unlikely to be an attractive investment option for those looking for growth. Analysts have noted that the company has seen declining sales and profits in recent years, largely due to increased competition from other tire manufacturers and a shift in consumer preferences towards online shopping.
The company is also facing challenges from rising raw material costs and a difficult macroeconomic environment. Given these headwinds, investors should be cautious when considering an investment in Goodyear Tire & Rubber Company.
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