Bridgestone (BRDCY) AI Stock Analysis

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Bridgestone

(OTC:BRDCY)

Rating:74Outperform

Price Target:

$23.00

▲(12.20%Upside)

Bridgestone's strong financial performance is the most significant factor in its overall score, demonstrating solid revenue growth, profitability, and cash management. The technical analysis presents mixed signals with short-term bearishness but longer-term support. The valuation indicates the stock is fairly valued, offering a reasonable P/E ratio and a modest dividend yield.

Bridgestone (BRDCY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$29.13B

Dividend Yield1.98%

Average Volume (3M)1.62K

Price to Earnings (P/E)16.0

Beta (1Y)0.41

Revenue Growth-3.22%

EPS Growth-20.57%

CountryUS

Employees121,464

SectorConsumer Cyclical

Sector Strength57

IndustryAuto - Parts

Share Statistics

EPS (TTM)0.38

Shares Outstanding1,427,396,500

10 Day Avg. Volume0

30 Day Avg. Volume1,616

Financial Highlights & Ratios

PEG Ratio-1.47

Price to Book (P/B)0.54

Price to Sales (P/S)0.00

P/FCF Ratio116.74

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, 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 makes money primarily through the manufacturing and sale of tires, which represent the largest portion of its revenue. The company serves both original equipment manufacturers (OEMs) and the replacement market, ensuring a broad customer base. Key revenue streams include sales of tires for passenger vehicles, commercial trucks, and specialty tires for construction and mining equipment. Additionally, Bridgestone generates income from its diversified products segment, which includes industrial rubber products, sporting goods, and bicycles. Strategic partnerships and joint ventures with automotive manufacturers and other industrial partners also play a significant role in Bridgestone's business model, enhancing its market reach and innovation capabilities.

Bridgestone Earnings Call Summary

Earnings Call Date:May 15, 2025

(Q4-2024)

% Change Since: -1.06%|

Next Earnings Date:Aug 08, 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.

Q4-2024 Updates

Positive Updates

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.

Negative Updates

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.

Bridgestone Financial Statement Overview

Summary

Bridgestone exhibits solid financial health with 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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Very Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
522.67B	443.32B	481.77B	441.30B	376.80B	64.11B
	EBITDA
852.63B	819.30B	828.30B	736.66B	645.30B	446.72B
	Net Income Common Stockholders
347.74B	284.99B	331.31B	300.31B	314.36B	-19.73B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
658.50B	718.16B	735.39B	534.01B	799.31B	817.82B
	Total Assets
5.87T	5.72T	5.43T	4.96T	4.57T	4.19T
	Total Debt
751.66B	727.72B	830.16B	767.17B	811.14B	1.01T
	Net Debt
102.52B	20.99B	105.56B	248.26B	23.60B	195.65B
	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

Technical Analysis Sentiment

Negative

Last Price20.50

Price Trends

50DMA

20.72

Negative

100DMA

20.07

Positive

200DMA

19.03

Positive

Market Momentum

MACD

-0.04

Positive

RSI

44.00

Neutral

STOCH

53.45

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 20.5 is below the 20-day moving average (MA) of 20.90, below the 50-day MA of 20.72, and above the 200-day MA of 19.03, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 53.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRDCY.

Bridgestone Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWA	76 Outperform	$7.32B	26.77	5.38%	1.32%	-8.22%	-52.61%
ALV	75 Outperform	$8.53B	12.71	28.71%	2.54%	-2.29%	35.00%
BRDCY	74 Outperform	$29.13B	16.00	7.60%	1.98%	-3.22%	-20.57%
LKQ	70 Outperform	$9.52B	13.78	11.37%	3.25%	-0.74%	-13.75%
Sector *	62 Neutral	$6.76B	11.07	2.80%	6.34%	2.68%	-24.87%
MBLY	61 Neutral	$12.42B	―	-22.18%	―	-0.38%	-1681.25%
GT	60 Neutral	$3.00B	12.21	5.06%	―	-5.43%	―

* Consumer Cyclical Sector Average

Performance Comparison

BRDCY

Bridgestone

20.50

0.57

2.86%

ALV

Autoliv

109.20

2.04

1.90%

BWA

BorgWarner

32.80

-0.35

-1.06%

GoodYear Tire

10.24

-1.00

-8.90%

LKQ

37.13

-3.61

-8.86%

MBLY

Mobileye Global, Inc. Class A

14.72

-12.01

-44.93%

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.