Bridgestone (BRDCY) AI Stock Analysis

• Market Cap: $30.67B
• Dividend Yield: 1.94%
• Average Volume (3M): 19.44K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.36
• Revenue Growth: 1.02%
• EPS Growth: -22.96%
• Country: US
• Employees: 121,464
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.43
• Shares Outstanding: 1,427,396,500
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 19,442
• PEG Ratio: -0.99
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 17.09
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $25.00 ▲(8.51% Upside)

Bridgestone's overall stock score of 65 reflects a stable financial position with low leverage and effective cash flow management, despite recent revenue challenges. Technical analysis indicates a neutral to slightly positive outlook, while valuation metrics suggest the stock is fairly priced. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Stable Profit Margins

Stable profit margins indicate effective cost management and pricing strategies, supporting long-term profitability despite revenue challenges.

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing resilience against economic fluctuations and enabling strategic investments.

Efficient Cash Generation

Efficient cash generation supports ongoing operations and investments, ensuring liquidity and the ability to fund growth initiatives.

Negative Factors

Revenue Decline

A significant revenue decline poses challenges to growth and market competitiveness, potentially impacting long-term financial performance.

Decline in Free Cash Flow Growth

A decline in free cash flow growth can limit the company's ability to invest in new opportunities and manage debt, affecting future financial flexibility.

Earnings Growth Challenges

Negative EPS growth reflects difficulties in increasing profitability, which may hinder the company's ability to deliver shareholder value over time.

Bridgestone Business Overview & Revenue Model

Company Description

Bridgestone Corporation is a global leader in tire manufacturing and rubber products, headquartered in Tokyo, Japan. The company operates in two main sectors: Tires and Diversified Products. Bridgestone's core offerings include a wide range of tires for passenger vehicles, trucks, buses, and specialty vehicles, alongside various rubber products such as industrial materials, automotive parts, and sports equipment. With a commitment to innovation and sustainability, Bridgestone focuses on enhancing mobility and providing solutions that improve the quality of life for consumers worldwide.

How the Company Makes Money

Bridgestone generates revenue primarily through the sale of tires, which account for a significant portion of its income. The company has a diverse product portfolio that includes tires for various vehicle categories, including passenger cars, light trucks, and commercial vehicles. In addition to tire sales, Bridgestone earns revenue from its diversified products segment, which includes industrial rubber products, construction materials, and other non-tire items. The company also benefits from partnerships with automotive manufacturers, providing original equipment tires for new vehicles. Furthermore, Bridgestone has established a strong presence in the replacement tire market, where it capitalizes on consumer demand for high-quality tires and related services. Factors contributing to its earnings include innovation in tire technology, sustainability initiatives, and a robust distribution network, which enhances its market reach and customer engagement.

Bridgestone Financial Statement Overview

Summary

Bridgestone's financial statements present a mixed picture. The income statement shows a recent decline in revenue, but profitability margins remain stable. The balance sheet is strong with low leverage and a solid equity base, indicating financial stability. Cash flow management is generally effective, although recent declines in free cash flow growth are concerning. Overall, Bridgestone demonstrates financial resilience but faces challenges in sustaining revenue growth.

Income Statement

Bridgestone's income statement shows a mixed performance. The TTM data indicates a significant revenue decline of 24.83%, which is concerning. However, the company maintains a reasonable gross profit margin of 38.36% and a net profit margin of 5.36%. The EBIT and EBITDA margins are also stable at 8.58% and 16.59%, respectively. The annual data shows a positive revenue growth trend until 2024, but the recent decline in TTM suggests potential challenges in maintaining growth.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.23 in the TTM period, indicating low leverage. The return on equity is modest at 6.62%, showing moderate profitability. The equity ratio stands at 63.48%, suggesting a strong equity base relative to total assets. Overall, the balance sheet indicates financial stability with low risk from leverage.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 12.66% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is healthy at 0.58, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.59, suggesting good cash flow management. Despite the recent decline, the company has shown resilience in cash flow generation over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.28T	4.43T	4.31T	4.11T	3.25T	2.99T
Gross Profit	1.26T	1.73T	1.65T	1.59T	1.32T	1.09T
EBITDA	528.29B	819.30B	828.30B	736.66B	645.30B	446.72B
Net Income	148.38B	284.99B	331.31B	300.31B	394.04B	-23.30B
Balance Sheet
Total Assets	37.16B	5.72T	5.43T	4.96T	4.57T	4.19T
Cash, Cash Equivalents and Short-Term Investments	3.77B	718.16B	735.39B	534.01B	799.31B	817.82B
Total Debt	5.43B	727.72B	830.16B	767.17B	811.14B	1.01T
Total Liabilities	13.20B	1.94T	2.02T	1.95T	1.90T	1.99T
Stockholders Equity	23.60B	3.73T	3.35T	2.97T	2.63T	2.15T
Cash Flow
Free Cash Flow	298.65B	211.55B	318.50B	13.76B	96.55B	308.83B
Operating Cash Flow	508.46B	548.84B	661.43B	268.48B	281.54B	526.95B
Investing Cash Flow	-159.74B	-255.06B	-297.72B	-338.00B	131.70B	-155.38B
Financing Cash Flow	-202.66B	-343.26B	-183.66B	-364.11B	-379.32B	18.08B

Bridgestone Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRDCY, the sentiment is Neutral. The current price of 23.04 is below the 20-day moving average (MA) of 23.15, above the 50-day MA of 22.70, and above the 200-day MA of 21.64, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 51.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BRDCY.

Bridgestone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALV	78 Outperform	$9.09B	12.35	31.09%	2.60%	0.84%	26.17%
LEA	75 Outperform	$6.04B	14.27	8.96%	2.63%	-1.90%	-13.86%
BRDCY	65 Neutral	$30.67B	19.64	6.59%	1.94%	1.02%	-22.96%
BWA	65 Neutral	$9.55B	71.56	2.24%	1.25%	0.08%	-83.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	58 Neutral	$2.67B	51.65	-4.82%	1.69%	-18.23%	―
GT	51 Neutral	$2.54B	-1.48	-45.16%	―	-3.87%	-482.29%

Bridgestone Corporate Events

Bridgestone’s Earnings Call: Mixed Results and Optimistic Guidance

Bridgestone Corp’s recent earnings call painted a mixed picture, highlighting strong performances in North America and Europe, alongside successful cost reduction initiatives. However, these positives were tempered by challenges in Brazil and the diversified products sector, as well as the impact of rising raw material prices.