GoodYear Tire (GT) AI Stock Analysis

• Market Cap: $2.43B
• Dividend Yield: N/A
• Average Volume (3M): 8.70M
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.91
• Revenue Growth: -4.52%
• EPS Growth: N/A
• Country: US
• Employees: 68,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.17
• Shares Outstanding: 286,046,450
• 10 Day Avg. Volume: 7,579,328
• 30 Day Avg. Volume: 8,703,167
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.64
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: 5.47
• 1Y Price Target: $11.00
• Price Target Upside: 31.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 53 Neutral
• 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

Strategic Initiatives

The Goodyear Forward initiative is driving significant cost savings and asset sales, enhancing long-term financial health and operational efficiency.

Product Development

New product launches in premium segments can boost market position and revenue growth, reflecting ongoing innovation and competitive advantage.

Leadership Change

Leadership changes can bring fresh perspectives and strategies, potentially improving operational effectiveness and regional performance.

Negative Factors

Revenue Decline

Declining sales and unit volumes indicate challenges in demand and market conditions, potentially impacting long-term revenue growth.

High Leverage

High debt levels and negative cash flow can strain financial flexibility, limiting the ability to invest in growth and manage economic downturns.

Industry Headwinds

Weakness in the commercial segment due to industry disruptions can hinder revenue and profitability, affecting long-term growth prospects.

GoodYear Tire Business Overview & Revenue Model

Company Description

Goodyear 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 Money

Goodyear 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.49B	18.88B	20.07B	20.80B	17.48B	12.32B
Gross Profit	3.43B	3.70B	3.51B	3.85B	3.79B	1.98B
EBITDA	2.06B	1.73B	856.00M	1.81B	1.78B	43.00M
Net Income	411.00M	70.00M	-689.00M	202.00M	764.00M	-1.25B
Balance Sheet
Total Assets	22.26B	20.96B	21.58B	22.43B	21.40B	16.51B
Cash, Cash Equivalents and Short-Term Investments	785.00M	810.00M	902.00M	1.23B	1.09B	1.54B
Total Debt	8.98B	8.79B	8.65B	8.91B	8.42B	6.87B
Total Liabilities	16.96B	16.06B	16.75B	16.96B	16.22B	13.25B
Stockholders Equity	5.29B	4.76B	4.67B	5.30B	5.00B	3.08B
Cash Flow
Free Cash Flow	-547.00M	-490.00M	-18.00M	-540.00M	81.00M	468.00M
Operating Cash Flow	521.00M	698.00M	1.03B	521.00M	1.06B	1.11B
Investing Cash Flow	319.00M	-1.00B	-1.03B	-914.00M	-2.79B	-667.00M
Financing Cash Flow	-777.00M	225.00M	-333.00M	575.00M	1.31B	203.00M

GoodYear Tire Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 8.50, below the 50-day MA of 9.30, and below the 200-day MA of 9.75, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 37.43 is Neutral, neither overbought nor oversold. The STOCH value of 36.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GT.

GoodYear Tire Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEA	76 Outperform	5.48B	12.30	9.24%	2.99%	-3.12%	-8.23%
DORM	76 Outperform	4.78B	21.30	16.14%	―	6.76%	34.97%
ALSN	68 Neutral	7.39B	10.02	43.47%	1.20%	2.70%	15.17%
BWA	67 Neutral	9.42B	47.21	3.55%	1.15%	-2.12%	-69.42%
DAN	61 Neutral	2.64B	-121.73	-1.99%	1.99%	-14.46%	-2170.83%
GT	53 Neutral	$2.43B	5.98	8.37%	―	-4.52%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

GoodYear Tire Corporate Events

Goodyear Announces Leadership Change in Americas

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.

Goodyear Announces Closure of South Africa Facility

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.

Goodyear Tire Announces $500 Million Senior Notes Pricing

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.

Goodyear Announces Redemption of $400M Senior Notes

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.