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Goodyear Tire & Rubber Company (GT)
NASDAQ:GT
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GoodYear Tire (GT) AI Stock Analysis

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GT

GoodYear Tire

(NASDAQ:GT)

Rating:53Neutral
Price Target:
$8.50
▲(1.31% Upside)
GoodYear Tire's overall stock score reflects significant financial and operational challenges, with bearish technical indicators and industry headwinds. While the stock appears undervalued, the lack of dividend yield and immediate operational risks weigh on its attractiveness. Strategic initiatives and financial flexibility offer some long-term potential, but near-term risks remain prominent.
Positive Factors
Cost Savings
Conversations with the company have given further confidence that it has the necessary traction to achieve its targeted $1.5bn in cost savings and margin improvement by the end of 2026.
Operational Focus
Under new leadership, the company is operating with greater urgency and confidence, enhancing its execution of the Goodyear Forward strategy.
Negative Factors
Earnings Performance
Earnings were significantly below expectations due to a combination of falling volumes and negative price vs raw material costs.
Pricing Power
Analysts are concerned that Goodyear lacks the pricing power to achieve and maintain substantially higher margins.

GoodYear Tire (GT) vs. SPDR S&P 500 ETF (SPY)

GoodYear Tire Business Overview & Revenue Model

Company DescriptionGoodyear Tire & Rubber Company is a leading global tire manufacturer headquartered in Akron, Ohio. Established in 1898, Goodyear operates in multiple sectors, including passenger car tires, commercial truck tires, and specialty tires for aviation, agriculture, and industrial applications. The company is known for its innovation in tire technology and its commitment to sustainability, producing a wide range of products designed for performance, safety, and durability.
How the Company Makes MoneyGoodyear generates revenue primarily through the sale of tires and related products, which account for the majority of its income. The company operates in several key revenue streams, including the sale of consumer tires, commercial tires for trucks and buses, and specialty tires for various industries. Goodyear also earns money from providing tire-related services, such as maintenance and repair, through its extensive network of retail locations and partnerships with dealerships. Significant partnerships with automotive manufacturers for original equipment (OE) tire supply, as well as collaborations with technology firms for advancements in tire performance, further contribute to its earnings. Additionally, Goodyear benefits from a global distribution network that enhances its market reach and operational efficiency.

GoodYear Tire Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Negative
The earnings call reflected a challenging quarter for Goodyear, with significant disruptions impacting volumes and margins. However, the company is actively managing costs, implementing pricing actions, and focusing on premium segments to navigate through the turbulent environment. While there are strategic initiatives in place, the current industry headwinds present notable challenges.
Q2-2025 Updates
Positive Updates
Pricing Actions and Product Development
Implemented broad-based price increases in the U.S. and Canada and launched new products like Eagle F1 Asymmetric 6 and Assurance MaxLife 2 to drive premium segment growth.
SG&A Cost Reductions
Achieved a reduction in SG&A costs, contributing to overall cost management efforts.
Strong Balance Sheet and Divestitures
On track to deliver a strong balance sheet by year-end, supported by three divestitures committed under Goodyear Forward.
Goodyear Forward Benefits
Goodyear Forward contributed $195 million of benefit during the quarter, with a focus on cost savings and asset sales.
Negative Updates
Industry Disruption and Volume Decline
Unprecedented industry disruption led to lower-than-expected results, with a 5% decline in unit volume due to global trade disruptions.
Commercial Business Weakness
Commercial business faced significant challenges with a decline in truck tire volume and a 30% decrease in U.S. OE industry volume.
Tariff and Import Challenges
Faced increased competition and challenges due to tariffs and imports, with U.S. nonmember imports rising and impacting volumes.
Lower Gross Margin
Gross margin declined by 360 basis points, impacted by lower volumes and increased raw material costs.
Company Guidance
During Goodyear's second quarter 2025 earnings call, the company provided guidance reflecting a challenging market environment. Key metrics discussed included a 2% decline in sales to $4.5 billion and a 5% drop in unit volume, attributed to global trade disruptions. The company's segment operating income (SOI) was $159 million, with a loss per share of $0.17 after adjustments. Goodyear's net income increased to $254 million, driven by a gain on the sale of the Dunlop brand. Despite headwinds, the company remains focused on its Goodyear Forward initiatives, which contributed $195 million in benefits during the quarter. They also highlighted price/mix benefits of $91 million from recent pricing actions, while raw material costs were a headwind of $174 million. The company anticipates continued market headwinds in the near term but expects benefits from raw material costs in the fourth quarter and aims to strengthen its balance sheet, supported by asset sales and strategic initiatives.

GoodYear Tire Financial Statement Overview

Summary
GoodYear Tire's financial health presents a mixed picture. While operating margins and cash flow generation show some strengths, declining revenues, high leverage, and negative free cash flow pose significant challenges. The company needs to address revenue growth and manage debt levels to improve its financial standing.
Income Statement
65
Positive
GoodYear Tire shows moderate performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 19.5%, indicating reasonable cost control. However, the net profit margin is about 1.3%, reflecting slim profitability. Revenue has been declining from 2023 to the TTM period, which is a concern. The EBIT margin at 4.8% and EBITDA margin at 10% suggest stable operational profitability, though pressures exist due to recent revenue contractions.
Balance Sheet
58
Neutral
The company's balance sheet reveals a debt-to-equity ratio of 1.78, indicating a high leverage level, which could pose risks in economic downturns. The return on equity (ROE) is about 4.8%, showing modest returns to shareholders. The equity ratio stands at 23.4%, suggesting financial stability concerns due to high liabilities. This combination reflects a balance sheet that is under pressure from high debt levels.
Cash Flow
50
Neutral
Cash flow analysis shows challenges with negative free cash flow growth and a negative free cash flow, indicating potential issues in covering capital expenditures. The operating cash flow to net income ratio is 2.53, which is positive, demonstrating effective cash generation relative to earnings. However, the negative free cash flow to net income ratio highlights difficulties in maintaining liquidity.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.49B18.88B20.07B20.80B17.48B12.32B
Gross Profit3.43B3.70B3.51B3.85B3.79B1.98B
EBITDA2.06B1.73B856.00M1.81B1.78B43.00M
Net Income411.00M70.00M-689.00M202.00M764.00M-1.25B
Balance Sheet
Total Assets22.26B20.96B21.58B22.43B21.40B16.51B
Cash, Cash Equivalents and Short-Term Investments785.00M810.00M902.00M1.23B1.09B1.54B
Total Debt8.98B8.79B8.65B8.91B8.42B6.87B
Total Liabilities16.96B16.06B16.75B16.96B16.22B13.25B
Stockholders Equity5.29B4.76B4.67B5.30B5.00B3.08B
Cash Flow
Free Cash Flow-547.00M-490.00M-18.00M-540.00M81.00M468.00M
Operating Cash Flow521.00M698.00M1.03B521.00M1.06B1.11B
Investing Cash Flow319.00M-1.00B-1.03B-914.00M-2.79B-667.00M
Financing Cash Flow-777.00M225.00M-333.00M575.00M1.31B203.00M

GoodYear Tire Technical Analysis

Technical Analysis Sentiment
Negative
Last Price8.39
Price Trends
50DMA
9.92
Negative
100DMA
10.35
Negative
200DMA
9.83
Negative
Market Momentum
MACD
-0.44
Negative
RSI
36.01
Neutral
STOCH
54.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GT, the sentiment is Negative. The current price of 8.39 is below the 20-day moving average (MA) of 8.61, below the 50-day MA of 9.92, and below the 200-day MA of 9.83, indicating a bearish trend. The MACD of -0.44 indicates Negative momentum. The RSI at 36.01 is Neutral, neither overbought nor oversold. The STOCH value of 54.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GT.

GoodYear Tire Risk Analysis

GoodYear Tire disclosed 27 risk factors in its most recent earnings report. GoodYear Tire reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

GoodYear Tire Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$5.85B12.859.51%2.80%-3.12%-8.23%
76
Outperform
$4.94B21.8517.38%6.76%34.97%
70
Neutral
$7.30B9.9147.08%1.21%2.70%15.17%
67
Neutral
$9.25B45.653.66%1.17%-2.12%-69.42%
61
Neutral
$17.87B13.25-4.88%3.05%1.25%-14.67%
53
Neutral
$2.43B5.918.37%-4.52%
48
Neutral
$2.64B-5.00%1.98%-14.46%-2170.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GT
GoodYear Tire
8.40
0.26
3.19%
ALSN
Allison Transmission Holdings
88.00
0.28
0.32%
BWA
BorgWarner
42.99
10.39
31.87%
DAN
Dana Incorporated
20.30
10.04
97.86%
DORM
Dorman Products
160.55
50.89
46.41%
LEA
Lear
110.02
-0.96
-0.87%

GoodYear Tire Corporate Events

Executive/Board Changes
Goodyear Announces Leadership Change in Americas
Neutral
Aug 25, 2025

On August 25, 2025, Goodyear Tire & Rubber Company announced the departure of Ryan Waldron, President of the Americas. Marcelo Toscani, who currently serves as President of Latin America, will temporarily oversee the Americas business unit, indicating a strategic interim leadership shift within the company.

Business Operations and Strategy
Goodyear Announces Closure of South Africa Facility
Negative
Jun 5, 2025

On June 2, 2025, Goodyear Tire & Rubber Company announced a plan to close its manufacturing facility in Kariega, South Africa, affecting approximately 900 jobs. This decision, part of the EMEA business unit, is expected to incur charges between $100 million and $110 million, with anticipated improvements in operating income by $10 million annually from 2026.

Private Placements and FinancingBusiness Operations and Strategy
Goodyear Tire Announces $500 Million Senior Notes Pricing
Neutral
Jun 3, 2025

On May 29, 2025, Goodyear Tire & Rubber Company announced the pricing of its $500 million senior notes, which are due in 2030 and bear an interest rate of 6.625%. The proceeds from this offering, along with existing cash reserves, will be used to redeem the company’s remaining $500 million 5% Senior Notes due 2026, with the redemption set for July 3, 2025. This financial maneuver is part of Goodyear’s strategic efforts to manage its debt obligations effectively, potentially impacting its financial stability and market positioning.

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Goodyear Announces Redemption of $400M Senior Notes
Neutral
May 29, 2025

On May 29, 2025, Goodyear announced the redemption of $400 million of its 5% Senior Notes due 2026, set for June 30, 2025. This financial move is part of Goodyear’s broader strategy following the sale of its off-the-road (OTR) tire business to The Yokohama Rubber Company for approximately $905 million, completed on February 3, 2025. The divestiture, which included entities in Japan and Australia, allows Goodyear to focus on its core operations while maintaining a product supply agreement with Yokohama for certain OTR tires. This strategic shift is expected to impact Goodyear’s financial operations, as reflected in the pro forma financial statements, although these are not indicative of future performance.

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.Date of analysis: Aug 19, 2025