Bridgestone (BRDCY) AI Stock Analysis

• Market Cap: $29.24B
• Dividend Yield: 2.05%
• Average Volume (3M): 29.16K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.38
• Revenue Growth: -0.78%
• EPS Growth: -41.37%
• Country: US
• Employees: 121,464
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.20
• Shares Outstanding: 1,427,396,500
• 10 Day Avg. Volume: 58,327
• 30 Day Avg. Volume: 29,163
• 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: 0.98
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.02
• Enterprise Value/Ebitda: 0.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: $24.00 ▲(9.74% Upside)

Bridgestone's overall stock score reflects a stable financial position and positive earnings call highlights, particularly in North America and Europe. However, technical indicators suggest short-term weakness, and valuation metrics indicate the stock is fairly priced. Challenges in Brazil and rising raw material costs are notable risks.

Bridgestone Business Overview & Revenue Model

Company Description

Bridgestone 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 Money

Bridgestone 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 Financial Statement Overview

Summary

Bridgestone demonstrates a stable financial position with strong equity and cash flow growth. However, challenges remain in revenue growth and net profitability, which could impact future performance. The company is well-positioned to leverage its low debt levels and strong cash flow to address these challenges and pursue growth opportunities.

Income Statement

Bridgestone's income statement shows a mixed performance. The TTM data reveals a slight decline in revenue growth, but the company maintains a healthy gross profit margin of 38.56%. The net profit margin is relatively low at 4.61%, indicating room for improvement in profitability. EBIT and EBITDA margins are stable, suggesting efficient operational management despite the revenue dip.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.23, indicating low leverage and financial stability. Return on equity is modest at 5.66%, suggesting moderate profitability from shareholders' investments. The equity ratio of 63.60% underscores a solid capital structure, providing a buffer against potential financial risks.

Cash Flow

Cash flow analysis shows positive trends with a 15.61% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.55 suggests effective cash conversion, though the free cash flow to net income ratio of 0.55 indicates potential constraints in free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.37T	4.43T	4.31T	4.11T	3.25T	2.99T
Gross Profit	1.68T	1.73T	1.65T	1.59T	1.32T	1.09T
EBITDA	712.05B	819.30B	828.30B	736.66B	645.30B	446.72B
Net Income	201.43B	284.99B	331.31B	300.31B	394.04B	-23.30B
Balance Sheet
Total Assets	5.48T	5.72T	5.43T	4.96T	4.57T	4.19T
Cash, Cash Equivalents and Short-Term Investments	690.87B	718.16B	735.39B	534.01B	799.31B	817.82B
Total Debt	795.45B	727.72B	830.16B	767.17B	811.14B	1.01T
Total Liabilities	1.94T	1.94T	2.02T	1.95T	1.90T	1.99T
Stockholders Equity	3.49T	3.73T	3.35T	2.97T	2.63T	2.15T
Cash Flow
Free Cash Flow	341.94B	211.55B	318.50B	13.76B	96.55B	308.83B
Operating Cash Flow	616.43B	548.84B	661.43B	268.48B	281.54B	526.95B
Investing Cash Flow	-273.30B	-255.06B	-297.72B	-338.00B	131.70B	-155.38B
Financing Cash Flow	-242.38B	-343.26B	-183.66B	-364.11B	-379.32B	18.08B

Bridgestone Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.87
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 21.87 is below the 20-day moving average (MA) of 22.36, below the 50-day MA of 22.94, and above the 200-day MA of 20.87, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 39.06 is Neutral, neither overbought nor oversold. The STOCH value of 46.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRDCY.

Bridgestone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALV	―	$8.84B	12.00	31.09%	2.54%	0.84%	26.17%
LEA	―	$5.54B	12.05	9.51%	2.98%	-3.12%	-8.23%
BWA	―	$9.55B	45.73	3.66%	1.13%	-2.12%	-69.42%
BRDCY	―	$29.24B	22.42	5.62%	2.05%	-0.78%	-41.37%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GT	―	$1.98B	4.87	8.37%	―	-4.52%	―
DAN	―	$2.83B	―	-4.82%	2.03%	-18.23%	―

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.