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GoodYear Tire
(NASDAQ:GT)
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Rating:46Neutral
Price Target:
$7.00
▼(-4.89% Downside)
Action:Reiterated
Date:08/07/26
GT scores low primarily due to weak financial performance (large TTM loss, higher leverage, and deeply negative free cash flow). The earnings call adds only modest support because operational initiatives and liquidity actions are offset by ongoing volume/margin headwinds and expected FY2026 cash burn. Technicals are neutral-to-mixed and valuation lacks support given negative earnings and no dividend yield provided.
Positive Factors
Recurring Replacement Demand & Scale
Goodyear’s core business is replacement tires, which creates steady, recurring demand independent of new-vehicle cycles. That durable revenue base across consumer and commercial end markets supports steady production utilization, long-term dealer relationships and recurring aftermarket cash flows.
Negative Factors
Elevated Leverage
Significantly higher leverage reduces financial flexibility and raises interest and refinancing exposure. With debt rising versus equity, the company has less buffer to absorb shocks, constraining capital allocation and increasing default risk if operating cash flow weakens or cash burn persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Replacement Demand & Scale
Goodyear’s core business is replacement tires, which creates steady, recurring demand independent of new-vehicle cycles. That durable revenue base across consumer and commercial end markets supports steady production utilization, long-term dealer relationships and recurring aftermarket cash flows.
Read all positive factors
GoodYear Tire Key Performance Indicators (KPIs)
Any
Operating Income by Geography
Reveals profitability across different regions, highlighting where GoodYear Tire excels and where it might face challenges or opportunities due to regional market dynamics.
Reveals profitability across different regions, highlighting where GoodYear Tire excels and where it might face challenges or opportunities due to regional market dynamics.
Data provided by:
The Fly
The FlyGoodYear Tire (GT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.00B
Dividend YieldN/A
Average Volume (3M)10.94M
Price to Earnings (P/E)―
Beta (1Y)0.87
Revenue Growth-3.69%
EPS Growth-958.22%
CountryUS
Employees63,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-8.83
Shares Outstanding287,438,630
10 Day Avg. Volume8,940,223
30 Day Avg. Volume10,941,613
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.78
Price to Sales (P/S)0.14
P/FCF Ratio-84.10
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$7.93Price Target Upside7.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.34
Revenue Forecast (FY)$17.69B
GoodYear Tire Business Overview & Revenue Model
Company Description
The Goodyear Tire & Rubber Company, along with its subsidiaries, functions as a global leader in the development, production, marketing, and sale of tires, alongside a suite of related products and services. Its diverse tire lineup caters to an ex...
How the Company Makes Money
Goodyear primarily makes money by selling tires and related services. Its core revenue stream is tire sales across multiple end markets: (1) original equipment (OE) tires sold to vehicle manufacturers for factory-installed fitment, and (2) replace...
GoodYear Tire Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational progress against persistent financial and market headwinds. Positives include strong Asia Pacific performance, OE market-share gains across regions, improved premium product mix (+4pp company-wide 18-inch+), meaningful price/mix benefits, and continued Goodyear Forward savings with strengthening liquidity (net debt down >$700M, $1B notes issuance). Offsetting these are declines in sales and volumes (global unit volumes -4%; Americas -9%), regional operating losses, a non-GAAP EPS loss of $0.61, margin pressure from lower absorption and inflation/tariffs, anticipated raw-material cost pass-throughs, expected cash burn for FY2026 ($200–$300M) and restructuring cash costs tied to the Fayetteville closure. Overall, the company framed the quarter as stabilization with a path to improved second-half SOI driven by mix and savings, but material near-term earnings and cash challenges remain.Positive Updates
Asia Pacific Outperformance
Asia Pacific unit volume increased 5.3% year-over-year, driven by improved OE and replacement consumer volumes (notably in Japan and China). Segment operating income rose to $63 million (12.7% of sales), expanding 330 basis points vs. prior year. Premium (>18-inch) consumer mix in Asia Pacific grew 500 basis points year-over-year.
Negative Updates
Revenue and Volume Declines
Second quarter sales were $4.3 billion, down about 5% year-over-year (organic sales down ~1% excluding prior-year divestitures). Global unit volume declined 4% year-over-year, with the Americas down 9% and EMEA down 2%.
Read all updates
Q2-2026 Updates
Positive
Negative
Asia Pacific Outperformance
Asia Pacific unit volume increased 5.3% year-over-year, driven by improved OE and replacement consumer volumes (notably in Japan and China). Segment operating income rose to $63 million (12.7% of sales), expanding 330 basis points vs. prior year. Premium (>18-inch) consumer mix in Asia Pacific grew 500 basis points year-over-year.
Read all positive updates
Company Guidance
The company guided that third-quarter global unit volumes on the remaining business should be roughly flat year‑over‑year, with the non‑recurrence of divested businesses reducing segment operating income (SOI) by about $57 million; Q3 headwinds include roughly $70 million of higher unabsorbed fixed costs and ~$20 million of raw‑material cost pressure, while expected benefits are ~ $110 million from price & mix and ~ $70 million from Goodyear Forward; other Q3 items include general inflation (roughly 3%) adding ~ $60 million, transitory manufacturing/other operating costs ~ $15 million, tariffs ~ $10 million, other miscellaneous headwinds ~ $20 million, and elevated tax expense of ~ $50 million. For the full year management still assumes second‑half raw‑materials pressure (previously ~ $200 million) with price & mix contributing more than $200 million, Goodyear Forward largely offsetting inflation, but volumes and fixed‑cost absorption are the largest drag (reducing SOI by ~ $350 million), and full‑year tariff impact of ~ $50 million; cash flow is expected to be a use of about $200–300 million in fiscal 2026, net debt is down over $700 million year‑over‑year, the company issued ~ $1 billion of senior notes, and the announced Fayetteville closure will incur roughly $200 million of cash costs (about $40M in 2026, $100M in 2027, remainder in 2028) while improving Americas SOI by ~ $90 million in 2027 and ~ $270 million annually thereafter.GoodYear Tire Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
34
Negative
Cash Flow
27
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.69B | 18.28B | 18.88B | 20.07B | 20.80B | 17.48B |
| Gross Profit | 3.25B | 3.37B | 3.70B | 3.51B | 3.85B | 3.79B |
| EBITDA | 249.00M | 1.36B | 1.73B | 856.00M | 1.81B | 1.78B |
| Net Income | -2.54B | -1.72B | 70.00M | -689.00M | 202.00M | 764.00M |
Balance Sheet | ||||||
| Total Assets | 18.65B | 18.21B | 20.96B | 21.58B | 22.43B | 21.40B |
| Cash, Cash Equivalents and Short-Term Investments | 861.00M | 801.00M | 810.00M | 902.00M | 1.23B | 1.09B |
| Total Debt | 7.85B | 7.26B | 8.79B | 8.65B | 8.91B | 8.42B |
| Total Liabilities | 15.65B | 14.80B | 16.06B | 16.75B | 16.96B | 16.22B |
| Stockholders Equity | 2.84B | 3.23B | 4.76B | 4.67B | 5.30B | 5.00B |
Cash Flow | ||||||
| Free Cash Flow | -701.00M | -30.00M | -490.00M | -18.00M | -540.00M | 81.00M |
| Operating Cash Flow | 176.00M | 796.00M | 698.00M | 1.03B | 521.00M | 1.06B |
| Investing Cash Flow | -353.00M | 997.00M | -1.00B | -1.03B | -914.00M | -2.79B |
| Financing Cash Flow | 177.00M | -1.77B | 225.00M | -333.00M | 575.00M | 1.31B |
GoodYear Tire Technical Analysis
Negative
7.36
Price Trends
6.57
Positive
6.58
Positive
7.53
Negative
Market Momentum
0.10
Positive
46.47
Neutral
36.29
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 7.36 is above the 20-day moving average (MA) of 7.06, above the 50-day MA of 6.57, and below the 200-day MA of 7.53, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 36.29 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 26 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $9.02B | 14.44 | 25.10% | 2.94% | 5.89% | -7.00% | |
67 Neutral | $6.54B | 12.13 | 9.19% | 2.14% | 3.55% | 25.67% | |
66 Neutral | $3.98B | 21.34 | 14.76% | ― | 5.04% | -10.80% | |
64 Neutral | $13.07B | 37.06 | 7.37% | 1.06% | 2.36% | 34.03% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $11.95B | 33.61 | 2.41% | ― | 5.20% | -71.83% | |
46 Neutral | $2.00B | -0.96 | -83.08% | ― | -3.69% | -958.22% |
* Consumer Cyclical Sector Average
GT
GoodYear Tire
6.76
-3.50
-34.11%
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-16.93%
DORM
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137.58
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119.08
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27.26%
GoodYear Tire Corporate Events
Business Operations and StrategyFinancial Disclosures
Goodyear to Close Fayetteville Plant in Major Restructuring
Negative
Jul 21, 2026
On July 16, 2026, Goodyear approved a plan with the United Steelworkers to permanently close its Fayetteville, North Carolina manufacturing plant as part of a capacity rationalization effort in the Americas, eliminating about 1,750 jobs to lower p...
Executive/Board Changes
Goodyear Announces CFO Transition and Interim Appointment
Neutral
Jun 26, 2026
On June 22, 2026, Goodyear announced that Executive Vice President and Chief Financial Officer Christina L. Zamarro will step down from her role effective June 30 and leave the company on July 10 to pursue another opportunity. The company emphasiz...
Business Operations and StrategyPrivate Placements and Financing
Goodyear Issues New Senior Notes to Refinance Debt
Positive
Jun 4, 2026
On June 1, 2026, Goodyear entered into an underwriting agreement to issue $1.05 billion of senior unsecured notes due 2032, bearing interest at 8.875% and guaranteed on an unsecured basis by key U.S. and Canadian subsidiaries, with closing expecte...
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.