(GT) Goodyear Tire & Rubber - Overview
Sector: Consumer Cyclical | Industry: Auto Parts | Exchange: NASDAQ (USA) | Market Cap: 1.687m USD | Total Return: -48.3% in 12m
Avg Turnover: 54.5M
Qual. Beats: 0
Rev. Trend: -99.0%
Qual. Beats: 0
Warnings
High Debt/EBITDA (7.6) with thin interest coverage (0.2)
High Debt while negative Cash Flow
Interest Coverage Ratio 0.2 is critical
Altman Z'' 0.67 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
The Goodyear Tire & Rubber Company is a global manufacturer and distributor of tires and related rubber products, operating across the Americas, EMEA, and Asia Pacific regions. Its portfolio includes primary brands such as Goodyear, Cooper, and Kelly, catering to diverse vehicle segments ranging from consumer automobiles and motorcycles to commercial aircraft and agricultural equipment. Beyond manufacturing, the company maintains a vertically integrated service model through approximately 750 retail outlets and a digital sales platform for consumer and fleet maintenance.
The tire industry is characterized by high capital intensity and significant sensitivity to raw material costs, particularly natural and synthetic rubber. Goodyear’s business model balances original equipment (OE) sales to vehicle manufacturers with a robust replacement tire segment, which typically offers more stable margins throughout economic cycles. Examining historical valuation trends on ValueRay can provide further context on the companys market positioning.
Goodyear also provides specialized services for trucking fleets, including retreading, preventive maintenance, and roadside assistance. Headquartered in Akron, Ohio, since 1898, the company distributes its products through a multi-channel network of independent dealers, regional distributors, and company-owned retail locations.
- Raw material price volatility impacts manufacturing margins and bottom line profitability
- Global vehicle miles driven determines replacement tire demand and revenue growth
- High debt levels and interest rates affect capital allocation for restructuring
- Integration of Cooper Tire acquisition drives operational synergies and market share
- Shift toward electric vehicle specific tires influences premium segment sales volume
| Net Income: -2.08b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA 1.70 > 1.0 |
| NWC/Revenue: 1.62% < 20% (prev 8.14%; Δ -6.51% < -1%) |
| CFO/TA 0.03 > 3% & CFO 616.0m > Net Income -2.08b |
| Net Debt (8.36b) to EBITDA (1.10b): 7.62 < 3 |
| Current Ratio: 1.04 > 1.5 & < 3 |
| Outstanding Shares: last quarter (288.0m) vs 12m ago -0.35% < -2% |
| Gross Margin: 18.56% > 18% (prev 0.19%; Δ 1.84k% > 0.5%) |
| Asset Turnover: 89.14% > 50% (prev 85.64%; Δ 3.50% > 0%) |
| Interest Coverage Ratio: 0.19 > 6 (EBITDA TTM 1.10b / Interest Expense TTM 425.0m) |
| A: 0.02 (Total Current Assets 7.65b - Total Current Liabilities 7.36b) / Total Assets 18.5b |
| B: 0.17 (Retained Earnings 3.11b / Total Assets 18.5b) |
| C: 0.00 (EBIT TTM 82.0m / Avg Total Assets 20.1b) |
| D: -0.01 (Book Value of Equity -171.0m / Total Liabilities 15.3b) |
| Altman-Z'' = 0.67 = B |
| DSRI: 0.92 (Receivables 2.60b/2.94b, Revenue 17.9b/18.6b) |
| GMI: 1.05 (GM 18.56% / 19.44%) |
| AQI: 0.59 (AQ_t 0.12 / AQ_t-1 0.20) |
| SGI: 0.96 (Revenue 17.9b / 18.6b) |
| TATA: -0.15 (NI -2.08b - CFO 616.0m) / TA 18.5b) |
| Beneish M = -3.47 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 5.89 with a total of 5,158,091 shares traded.
Over the past week, the price has changed by +4.43%,
over one month by -16.57%,
over three months by -32.99% and
over the past year by -48.29%.
Goodyear Tire & Rubber has received a consensus analysts rating of 3.89. Therefore, it is recommended to buy GT.
- StrongBuy: 4
- Buy: 0
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 7.5 | 26.7% |
P/E Forward = 8.15
P/S = 0.0942
P/B = 0.5617
P/EG = 0.4335
Revenue TTM = 17.9b USD
EBIT TTM = 82.0m USD
EBITDA TTM = 1.10b USD
Long Term Debt = 5.28b USD (from longTermDebt, last quarter)
Short Term Debt = 1.91b USD (from shortTermDebt, last quarter)
Debt = 9.08b USD (from shortLongTermDebtTotal, last quarter) + Leases 1.05b
Net Debt = 8.36b USD (calculated: Debt 9.08b - CCE 723.0m)
Enterprise Value = 10.0b USD (1.69b + Debt 9.08b - CCE 723.0m)
Interest Coverage Ratio = 0.19 (Ebit TTM 82.0m / Interest Expense TTM 425.0m)
EV/FCF = -79.71x (Enterprise Value 10.0b / FCF TTM -126.0m)
FCF Yield = -1.25% (FCF TTM -126.0m / Enterprise Value 10.0b)
FCF Margin = -0.70% (FCF TTM -126.0m / Revenue TTM 17.9b)
Net Margin = -11.64% (Net Income TTM -2.08b / Revenue TTM 17.9b)
Gross Margin = 18.56% ((Revenue TTM 17.9b - Cost of Revenue TTM 14.6b) / Revenue TTM)
Gross Margin QoQ = 17.86% (prev 20.89%)
Tobins Q-Ratio = 0.54 (Enterprise Value 10.0b / Total Assets 18.5b)
Interest Expense / Debt = 4.68% (Interest Expense 425.0m / Debt 9.08b)
Taxrate = 21.0% (US default 21%)
NOPAT = 64.8m (EBIT 82.0m * (1 - 21.00%))
Current Ratio = 1.04 (Total Current Assets 7.65b / Total Current Liabilities 7.36b)
Debt / Equity = 3.02 (Debt 9.08b / totalStockholderEquity, last quarter 3.00b)
Debt / EBITDA = 7.62 (Net Debt 8.36b / EBITDA 1.10b)
Debt / FCF = -66.32 (negative FCF - burning cash) (Net Debt 8.36b / FCF TTM -126.0m)
Total Stockholder Equity = 3.59b (last 4 quarters mean from totalStockholderEquity)
RoA = -10.38% (Net Income -2.08b / Total Assets 18.5b)
RoE = -58.09% (Net Income TTM -2.08b / Total Stockholder Equity 3.59b)
RoCE = 0.92% (EBIT 82.0m / Capital Employed (Equity 3.59b + L.T.Debt 5.28b))
RoIC = 0.50% (NOPAT 64.8m / Invested Capital 13.0b)
WACC = 4.83% (E(1.69b)/V(10.8b) * Re(10.94%) + D(9.08b)/V(10.8b) * Rd(4.68%) * (1-Tc(0.21)))
Discount Rate = 10.94% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 62.87 | Cagr: 0.47%
[DCF] Fair Price = unknown (Cash Flow -126.0m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.25 | # QB: 0
Revenue Correlation: -98.99 | Revenue CAGR: -4.80% | SUE: 0.51 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.53 | Chg30d=-584.61% | Revisions=-60% | Analysts=7
EPS next Quarter (2026-09-30): EPS=0.07 | Chg30d=-80.30% | Revisions=-56% | Analysts=7
EPS current Year (2026-12-31): EPS=-0.39 | Chg30d=-175.08% | Revisions=-60% | GrowthEPS=-183.6% | GrowthRev=-4.2%
EPS next Year (2027-12-31): EPS=0.87 | Chg30d=-19.92% | Revisions=-27% | GrowthEPS=+321.8% | GrowthRev=+2.7%
[Analyst] Revisions Ratio: -60%