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Bridgestone Corp (ADR) (BRDCY)
:BRDCY
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Bridgestone
(OTC:BRDCY)
Rating:77Outperform
Price Target:
$25.00
▲(9.65% Upside)
Bridgestone (BRDCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.01B
Dividend Yield1.97%
Average Volume (3M)7.93K
Price to Earnings (P/E)23.2
Beta (1Y)0.39
Revenue Growth-0.78%
EPS Growth-41.37%
CountryUS
Employees121,464
SectorConsumer Cyclical
Sector Strength79
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.20
Shares Outstanding1,427,396,500
10 Day Avg. Volume8,722
30 Day Avg. Volume7,928
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.02
Enterprise Value/Ebitda0.03
Forecast
1Y Price Target
$25.00Price Target Upside9.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Bridgestone Business Overview & Revenue Model
Company DescriptionBridgestone Corporation, together with its subsidiaries, manufactures and sells tires and rubber products. It operates through two segments, Tires and Diversified Products. The company offers tires and tire tubes for passenger cars, trucks, buses, construction and mining vehicles, industrial machinery, agricultural machinery, aircraft, motorcycles, scooters, etc.; automotive parts; retreading materials and services; automotive maintenance and repair services; tire raw materials; and other tire-related products. It also provides vehicle parts, polyurethane foam and related products, electronic precision parts, industrial materials-related products, civil engineering and construction materials and equipment, and others; commercial roofing materials and other materials; golf balls, golf clubs, and other sporting goods; bicycles, bicycle-related goods, and others, as well as finance and other services. In addition, the company offers maintenance, IT/sensing technology, and other solutions for the mining, fleet, and agricultural sectors. It has operations in Japan, the United States, China, the Asia Pacific, Europe, Russia, the Middle East, Africa, Oceania, and internationally. The company was founded in 1931 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyBridgestone generates revenue primarily through the sale of tires, which constitutes the largest segment of its business. The company produces tires for various vehicle types, including passenger cars, commercial vehicles, motorcycles, and heavy machinery. Key revenue streams include original equipment manufacturing (OEM) sales to automotive manufacturers and aftermarket sales to retailers and consumers. In addition to tire sales, Bridgestone earns income from its rubber and diversified products segment, which includes industrial and specialty rubber products. The company also benefits from strategic partnerships and collaborations with automotive manufacturers, enhancing its market reach and product offerings. Factors contributing to its earnings include global market demand for tires, innovations in tire technology, and an expanding presence in emerging markets.
Bridgestone Earnings Call Summary
Earnings Call Date:Aug 08, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with several strong areas of performance, especially in North America and Europe, as well as successful cost reduction initiatives. However, these positives were counterbalanced by significant challenges, particularly in Brazil and the diversified products business, alongside impacts from rising raw material prices.Q2-2025 Updates
Positive Updates
Strong Performance in North America
The North American business achieved profit increases across the premium tire segment, with continued expansion in the commercial truck and bus replacement market, improving profitability.
Improvements in Europe
The European business achieved year-over-year profit growth for the second consecutive quarter, with optimized production facilities and narrowed loss margins in the retail business.
Positive Results in Asia Pacific and India
The Asia Pacific and India business reported an increase in operating profit, with a solid operating margin of 12%, and expanded market share in India's premium segment.
Successful Cost Reductions
Global business cost reductions exceeded expectations, contributing approximately JPY35 billion in profits during Q1.
Growth in B2B Solutions
B2B solutions, particularly in mining and aviation, saw robust sales, maintaining a high profit structure with an adjusted operating margin of 20%.
Negative Updates
Challenges in Brazil
The business in Brazil continues to face significant losses exceeding expectations despite a slight reduction in the loss margin in Q2 compared to Q1.
Decline in Diversified Products
The diversified products business maintained profitability but continues to face significant challenges, with urgent priorities to strengthen and accelerate business rebuilding efforts.
Impact of Rising Raw Material Prices
Rising raw material prices have affected performance, with a time lag in price adjustments linked to raw materials and exchange rate indices for mining tires.
Decreased Profits in Japan
The Japan segment saw decreased profits due to reduced profits in the chemical and industrial products business, sports and cycle business, and the effects of the strong yen.
Company Guidance
During Bridgestone's earnings call, CEO Shuichi Ishibashi outlined the company's financial results for Q1 2025 and provided guidance for the full fiscal year. The company reported a revenue exceeding JPY2.1 trillion and an adjusted operating profit of approximately JPY235 billion with an operating margin of 11.1%. Despite facing challenges such as US tariffs, Bridgestone expects an adjusted operating profit of JPY505 billion and a profit from continuing operations of JPY253 billion for the full year. The company has seen a 145% increase in adjusted operating profit in its solutions business and strong performance in its North American truck and bus replacement market. Additionally, Bridgestone anticipates achieving JPY61 billion in global business cost reductions for the year and aims to maintain a dividend of JPY230 per share. The guidance assumes a decrease in the impact of US tariffs from an initially estimated JPY45 billion to JPY25 billion, thanks to strategic adjustments and market adaptations.Bridgestone Financial Statement Overview
Summary
Bridgestone exhibits solid financial health across income, balance sheet, and cash flow metrics. The company shows consistent revenue growth, strong profitability, and efficient cash management. It maintains a stable financial structure with low leverage, positioning itself well for future growth and resilience in the auto parts industry.Income Statement
Bridgestone has shown a strong revenue growth rate with a consistent increase in total revenue over recent years. The gross profit margin is robust, and the company maintains a healthy net profit margin. While EBIT margin has slightly fluctuated, the EBITDA margin remains strong, indicating good operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet reflects strong equity with a low debt-to-equity ratio, suggesting financial stability. The return on equity has been positive, indicating effective use of equity to generate profits. The equity ratio is also favorable, showing a solid capital structure.78
Positive
Cash Flow
Bridgestone demonstrates strong operating cash flow, consistently covering net income and indicating strong cash generation capability. The free cash flow growth rate is positive, although it has experienced some fluctuations. Overall, the company maintains a healthy cash flow position.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.39T | 4.43T | 4.31T | 4.11T | 3.25T | 2.99T |
| Gross Profit | 1.64T | 1.73T | 1.65T | 1.59T | 1.32T | 1.09T |
| EBITDA | 852.63B | 819.30B | 828.30B | 736.66B | 645.30B | 446.72B |
| Net Income | 347.74B | 284.99B | 331.31B | 300.31B | 314.36B | -19.73B |
Balance Sheet | ||||||
| Total Assets | 5.87T | 5.72T | 5.43T | 4.96T | 4.57T | 4.19T |
| Cash, Cash Equivalents and Short-Term Investments | 658.50B | 718.16B | 735.39B | 534.01B | 799.31B | 817.82B |
| Total Debt | 751.66B | 727.72B | 830.16B | 767.17B | 811.14B | 1.01T |
| Total Liabilities | 2.01T | 1.94T | 2.02T | 1.95T | 1.90T | 1.99T |
| Stockholders Equity | 3.80T | 3.73T | 3.35T | 2.97T | 2.63T | 2.15T |
Cash Flow | ||||||
| Free Cash Flow | 280.50B | 211.55B | 318.50B | 13.76B | 96.55B | 308.83B |
| Operating Cash Flow | 636.57B | 548.84B | 661.43B | 268.48B | 281.54B | 526.95B |
| Investing Cash Flow | -271.85B | -255.06B | -297.72B | -338.00B | 131.70B | -155.38B |
| Financing Cash Flow | -359.15B | -343.26B | -183.66B | -364.11B | -379.32B | 18.08B |
Bridgestone Technical Analysis
Positive
22.80
Price Trends
21.20
Positive
20.91
Positive
19.62
Positive
Market Momentum
0.49
Negative
63.55
Neutral
57.46
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 22.8 is above the 20-day moving average (MA) of 22.16, above the 50-day MA of 21.20, and above the 200-day MA of 19.62, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 63.55 is Neutral, neither overbought nor oversold. The STOCH value of 57.46 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.63B | 13.59 | 29.99% | 2.24% | -0.98% | 21.64% | |
77 Outperform | $32.01B | 23.20 | 5.62% | 1.97% | -0.78% | -41.37% | |
76 Outperform | $5.84B | 12.81 | 9.51% | 2.81% | -3.12% | -8.23% | |
67 Neutral | $9.43B | 46.51 | 3.66% | 1.01% | -2.12% | -69.42% | |
61 Neutral | $17.78B | 13.97 | -5.49% | 3.03% | 1.50% | -15.71% | |
53 Neutral | $2.43B | 5.98 | 8.37% | ― | -4.52% | ― | |
48 Neutral | $2.67B | ― | -5.00% | 1.97% | -14.46% | -2170.83% |
* Consumer Cyclical Sector Average
Performance Comparison
BRDCY
Bridgestone
22.80
3.37
17.34%
ALV
Autoliv
124.22
25.88
26.32%
BWA
BorgWarner
42.91
9.47
28.32%
DAN
Dana Incorporated
20.35
9.51
87.73%
GT
GoodYear Tire
8.52
-0.16
-1.84%
LEA
Lear
109.63
-2.69
-2.39%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.