GoodYear Tire (GT) AI Stock Analysis

• Market Cap: $2.52B
• Dividend Yield: N/A
• Average Volume (3M): 7.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -3.87%
• EPS Growth: -482.29%
• Country: US
• Employees: 68,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.28
• Shares Outstanding: 286,160,920
• 10 Day Avg. Volume: 5,548,111
• 30 Day Avg. Volume: 7,577,258
• PEG Ratio: -0.34
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -5.27
• Enterprise Value/Market Cap: 4.19
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 3.17
• Enterprise Value/Ebitda: 8.01
• 1Y Price Target: $9.86
• Price Target Upside: 30.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $8.50 ▲(12.29% Upside)

GoodYear Tire's overall stock score reflects significant financial challenges, with declining revenues and high leverage posing risks. Technical indicators show some positive momentum, but valuation concerns and mixed earnings call results highlight ongoing headwinds. Strategic initiatives offer potential, but near-term challenges remain substantial.

Positive Factors

Strategic Initiatives

The Goodyear Forward initiatives demonstrate effective cost control and efficiency improvements, which are crucial for long-term profitability and competitiveness.

Product Innovation

New product launches in premium segments enhance Goodyear's competitive position and can drive future revenue growth through increased market share.

Market Share Gains

Significant market share gains in EMEA indicate strong brand positioning and potential for sustained revenue growth in key regions.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase vulnerability to economic downturns, impacting long-term financial stability.

Declining Revenue

A declining revenue trend suggests challenges in maintaining market demand and could hinder future growth prospects if not addressed.

Tariff and Inflation Challenges

Ongoing tariff and inflation pressures increase operational costs, potentially squeezing margins and affecting long-term profitability.

GoodYear Tire Business Overview & Revenue Model

Company Description

Goodyear Tire & Rubber Company, commonly known as Goodyear, is a leading global tire manufacturer headquartered in Akron, Ohio. Founded in 1898, Goodyear operates in the automotive and transportation sectors, producing a wide range of tires for various vehicles including passenger cars, trucks, buses, and specialty vehicles. The company also offers tire-related products and services, including retreading and maintenance programs, and is known for its innovative technologies in tire design and performance.

How the Company Makes Money

Goodyear generates revenue primarily through the sale of tires across different market segments: consumer tires, commercial tires, and specialty tires. The consumer tire segment includes tires for passenger cars and light trucks, while the commercial segment covers tires for heavy-duty trucks, buses, and off-the-road vehicles. Goodyear also earns revenue from its retreading services, which extend the lifecycle of tires and offer cost savings to customers. Key revenue streams include direct sales to original equipment manufacturers (OEMs) and replacement tire sales through various retail channels. The company has established significant partnerships with automotive manufacturers and distributors, ensuring a steady demand for its products. Additionally, Goodyear invests in research and development to innovate and improve tire technology, which helps maintain its competitive edge and drive sales.

GoodYear Tire Financial Statement Overview

Summary

GoodYear Tire is facing significant financial challenges across its income statement, balance sheet, and cash flow. The company has experienced declining revenues, negative profitability, and high leverage, raising concerns about its financial stability. While there are some positive aspects in cash flow management, the overall financial health of the company appears weak, necessitating strategic improvements to enhance profitability and reduce financial risks.

Income Statement

GoodYear Tire's income statement reveals significant challenges. The company has experienced a declining revenue trend, with a notable revenue drop in the TTM period. Gross profit margins have decreased over time, and the net profit margin is negative, indicating losses. The EBIT and EBITDA margins have also shown volatility, reflecting operational inefficiencies. Overall, the income statement suggests financial instability and declining profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, which has increased in the TTM period, indicating a heavy reliance on debt financing. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio has decreased, suggesting a weakening financial position. These factors highlight potential risks related to leverage and financial stability.

Cash Flow

Cash flow analysis indicates mixed results. Operating cash flow has decreased, and free cash flow is negative, showing cash flow challenges. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is low, indicating inefficiencies in converting income to cash. However, the company has managed to maintain some level of operating cash flow, which is a positive aspect.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.31B	18.88B	20.07B	20.80B	17.48B	12.32B
Gross Profit	3.33B	3.70B	3.51B	3.85B	3.79B	1.98B
EBITDA	1.32B	1.73B	856.00M	1.81B	1.78B	43.00M
Net Income	-1.75B	70.00M	-689.00M	202.00M	764.00M	-1.25B
Balance Sheet
Total Assets	20.22B	20.96B	21.58B	22.43B	21.40B	16.51B
Cash, Cash Equivalents and Short-Term Investments	810.00M	810.00M	902.00M	1.23B	1.09B	1.54B
Total Debt	9.17B	8.79B	8.65B	8.91B	8.42B	6.87B
Total Liabilities	17.04B	16.06B	16.75B	16.96B	16.22B	13.25B
Stockholders Equity	3.00B	4.76B	4.67B	5.30B	5.00B	3.08B
Cash Flow
Free Cash Flow	-352.00M	-490.00M	-18.00M	-540.00M	81.00M	468.00M
Operating Cash Flow	573.00M	698.00M	1.03B	521.00M	1.06B	1.11B
Investing Cash Flow	417.00M	-1.00B	-1.03B	-914.00M	-2.79B	-667.00M
Financing Cash Flow	-998.00M	225.00M	-333.00M	575.00M	1.31B	203.00M

GoodYear Tire Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.57
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 7.57 is below the 20-day moving average (MA) of 8.48, below the 50-day MA of 7.72, and below the 200-day MA of 9.29, indicating a neutral trend. The MACD of 0.31 indicates Negative momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 75.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GT.

GoodYear Tire Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALV	78 Outperform	$9.14B	12.43	31.09%	2.59%	0.84%	26.17%
DORM	75 Outperform	$3.87B	15.77	18.19%	―	7.94%	34.84%
LEA	75 Outperform	$5.99B	14.14	8.96%	2.67%	-1.90%	-13.86%
APTV	70 Outperform	$16.73B	61.47	3.25%	―	2.16%	-85.91%
BWA	65 Neutral	$9.52B	71.33	2.24%	1.26%	0.08%	-83.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GT	51 Neutral	$2.52B	-1.45	-45.16%	―	-3.87%	-482.29%

GoodYear Tire Corporate Events

Goodyear Completes Sale of Polymer Chemical Business

On October 31, 2025, Goodyear completed the sale of its polymer chemical business to G-3 Chickadee Purchaser, LLC for $650 million, receiving $580 million in cash after adjustments. This sale is part of Goodyear’s strategic divestitures, which also included the Off-the-Road tire business and the Dunlop brand earlier in the year, aimed at reducing the company’s debt. The transaction involves the sale of chemical plants in Texas and a research facility in Ohio, along with several commercial agreements ensuring continued supply and intellectual property licensing. Despite a challenging global trade environment, Goodyear reported a third-quarter net sales of $4.6 billion, with a net loss of $2.2 billion due to significant non-cash charges. However, the Goodyear Forward initiative contributed $185 million in benefits, and the company expects further earnings acceleration.