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Bridgestone Corp (ADR) (BRDCY)
:BRDCY
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Bridgestone
(OTC:BRDCY)
76Outperform
Bridgestone (BRDCY) vs. S&P 500 (SPY)
Market Cap
$27.96B
Dividend Yield2.36%
Average Volume (3M)103.89K
Price to Earnings (P/E)14.6
Beta (1Y)0.40
Revenue Growth-6.42%
EPS Growth-23.26%
CountryUS
Employees129,262
SectorConsumer Cyclical
Sector Strength49
IndustryVehicles
Share Statistics
EPS (TTM)1.37
Shares Outstanding1,427,396,500
10 Day Avg. Volume62,537
30 Day Avg. Volume103,886
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.91
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Bridgestone Business Overview & Revenue Model
Company DescriptionBridgestone Corporation (BRDCY) is a leading global manufacturer of tires and rubber products, headquartered in Tokyo, Japan. The company operates in multiple sectors including tire manufacturing, diversified products, and industrial products. Bridgestone's core offerings encompass a wide range of tires for passenger vehicles, trucks, buses, aircraft, motorcycles, and heavy-duty equipment. In addition to tires, the company also produces a variety of rubber-based products and solutions, such as automotive components, industrial rubber products, and sporting goods.
How the Company Makes MoneyBridgestone primarily generates revenue through the sale of its tire products, which account for the majority of its income. The company's extensive product lineup caters to various market segments including original equipment manufacturers (OEMs), replacement markets, and specialty markets like motorsports. Bridgestone also earns income from its diversified products segment, which includes industrial rubber products, chemical products, and other rubber-related goods. Furthermore, the company benefits from its global network of distribution and retail outlets, as well as strategic partnerships and collaborations with automotive manufacturers and other industry players, which help to bolster its market presence and sales.
Bridgestone Financial Statement Overview
Summary
Bridgestone exhibits strong financial performance with consistent revenue growth and improved profitability margins. The balance sheet is stable with a strong equity ratio and low leverage. Cash flow generation is robust with a significant increase in free cash flow.Income Statement
Bridgestone has demonstrated a strong financial performance with consistent revenue growth, achieving a 4.95% increase from 2022 to 2023. The gross profit margin improved to 38.31%, showing efficient cost management. The net profit margin also increased to 7.68%, indicating enhanced profitability. EBIT and EBITDA margins were robust at 11.17% and 19.21%, respectively, showcasing strong operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a solid financial position with an equity ratio of 61.78%, indicating a strong capital structure. The debt-to-equity ratio is relatively low at 0.25, suggesting manageable leverage. Return on equity improved to 9.88%, reflecting effective utilization of equity capital. Overall, the balance sheet shows stability with a strong equity base, though the increase in total debt warrants monitoring.78
Positive
Cash Flow
Bridgestone's cash flow statement highlights a significant increase in free cash flow, which grew by 1315% from 2022 to 2023. The operating cash flow to net income ratio stands at 1.99, indicating strong cash generation capabilities. The free cash flow to net income ratio of 0.96 showcases efficient conversion of income into cash flow. Overall, the cash flow metrics reflect robust liquidity and cash management.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.39T | 4.31T | 4.11T | 3.25T | 2.99T | 3.53T | Gross Profit |
| 1.64T | 1.65T | 1.59T | 1.32T | 1.09T | 1.32T | EBIT |
| 522.67B | 481.77B | 441.30B | 376.80B | 64.11B | 326.10B | EBITDA |
| 852.63B | 828.30B | 736.66B | 645.30B | 446.72B | 557.12B | Net Income Common Stockholders |
| 347.74B | 331.31B | 300.31B | 314.36B | -19.73B | 240.11B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 594.23B | 735.39B | 534.01B | 799.31B | 817.82B | 577.30B | Total Assets |
| 3.86T | 5.43T | 4.96T | 4.57T | 4.19T | 3.95T | Total Debt |
| 408.49B | 830.16B | 767.17B | 811.14B | 1.01T | 597.46B | Net Debt |
| -31.89B | 105.56B | 248.26B | 23.60B | 195.65B | 156.20B | Total Liabilities |
| 1.43T | 2.02T | 1.95T | 1.90T | 1.99T | 1.60T | Stockholders Equity |
| 2.38T | 3.35T | 2.97T | 2.63T | 2.15T | 2.29T |
| Cash Flow | Free Cash Flow | ||||
| 280.50B | 318.50B | 13.76B | 96.55B | 308.83B | 184.53B | Operating Cash Flow |
| 636.57B | 661.43B | 268.48B | 281.54B | 526.95B | 464.46B | Investing Cash Flow |
| -271.85B | -297.72B | -338.00B | 131.70B | -155.38B | -266.91B | Financing Cash Flow |
| -359.15B | -183.66B | -364.11B | -379.32B | 18.08B | -198.60B |
Bridgestone Technical Analysis
Positive
19.99
Price Trends
18.34
Positive
17.99
Positive
18.88
Positive
Market Momentum
0.54
Positive
66.34
Neutral
67.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRDCY, the sentiment is Positive. The current price of 19.99 is above the 20-day moving average (MA) of 19.76, above the 50-day MA of 18.34, and above the 200-day MA of 18.88, indicating a bullish trend. The MACD of 0.54 indicates Positive momentum. The RSI at 66.34 is Neutral, neither overbought nor oversold. The STOCH value of 67.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRDCY.
Bridgestone Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $454.98M | 2.81 | 11.18% | 9.47% | -11.02% | -51.66% | |
77 Outperform | $2.29B | 8.52 | 24.17% | ― | -2.23% | -42.94% | |
76 Outperform | $27.96B | 14.55 | 7.90% | 2.36% | -6.42% | -23.26% | |
75 Outperform | $3.88B | 20.39 | 15.44% | ― | 4.11% | 50.07% | |
62 Neutral | $6.39B | 19.45 | 6.46% | 1.54% | -11.10% | -46.32% | |
59 Neutral | $12.50B | 10.40 | 2.26% | 3.63% | 1.65% | -18.81% | |
49 Neutral | $2.67B | 38.54 | 1.49% | ― | -5.92% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
BRDCY
Bridgestone
20.30
-0.52
-2.50%
BWA
BorgWarner
27.78
-3.83
-12.12%
DORM
Dorman Products
125.29
34.89
38.60%
GT
GoodYear Tire
9.06
-3.33
-26.88%
TEN
Tsakos Energy Navigation
15.85
-7.25
-31.39%
VC
Visteon
80.77
-32.69
-28.81%
Bridgestone Earnings Call Summary
Earnings Call Date: Feb 17, 2025 | % Change Since: 13.45% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call conveyed a mixed sentiment. While there are positive aspects such as increased revenue, profit, and successful cost reduction initiatives, significant challenges remain, especially in Latin America and the diversified products segment. The company's focus on rebuilding and crisis management reflects these ongoing difficulties.Highlights
Revenue and Profit Increase
Bridgestone achieved a year-on-year increase in both revenue and adjusted operating profit, with revenue approximately JPY4.4 trillion and adjusted operating profit approximately JPY480 billion.
Cost Reduction Initiatives
Global business cost reduction initiatives yielded about JPY75 billion, supporting business performance.
Strong Performance in North America
North American business increased in both revenue and profit versus the prior year, with sales of ultra-high rim diameter tires at 112% of the prior year.
Premium Tire Business Success
The premium tire business secured an adjusted operating profit margin of 14%.
Specialty Tire Solutions Growth
Profit increased in Specialties Tire Solutions, including mining and aircraft tires, with a profit margin improvement to 22.3%.
Shareholder Returns
A share buyback of up to 75 million shares at the cost of JPY300 billion and an increased dividend payout ratio to 50% were announced.
Lowlights
Decline in Latin America Business
Latin America business decreased in revenue and profit versus prior year, landing in the red, with continued deficits in Brazil.
Weakness in Japan and Diversified Products
Profitability of Japan tire business and diversified products business weakened, causing the company to fall below fiscal year guidance.
Challenges in Europe and Latin America
Impairment losses and rebuilding-related expenses were recorded, especially in Europe, China, and South America.
Uncertainty in Tariffs
Potential impacts from additional tariffs under the Trump administration in North America create uncertainties.
Company Guidance
In the recent call presenting Bridgestone's financial results for 2024 and their business plan for 2025, several key metrics were discussed. The company reported a revenue of approximately JPY4.4 trillion and an adjusted operating profit of JPY480 billion, resulting in an adjusted operating profit margin of 10.9%. The net income from continuing operations was JPY295 billion, with a return on invested capital (ROIC) of 8.2% and a return on equity (ROE) of 8.1%. Despite facing challenges such as increased low-end imports and structural changes in the tire industry, Bridgestone achieved a year-on-year increase in both revenue and profit, aided by favorable foreign exchange rates. The company also implemented global business cost reduction initiatives, achieving savings of about JPY75 billion. Looking ahead to 2025, Bridgestone has positioned the year as one of "Emergency and Crisis Management," aiming to achieve an adjusted operating profit of JPY505 billion and an adjusted operating profit margin of 12%. The company plans to focus on strengthening its premium tire business, optimizing business operations, and reinforcing its defense strategies while laying the foundation for future growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.