Yokohama Rubber Co (5101) AI Stock Analysis

• Market Cap: $880.78B
• Dividend Yield: 1.69%
• Average Volume (3M): 546.57K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 1.25
• Revenue Growth: 10.53%
• EPS Growth: -2.52%
• Country: JP
• Employees: 34,198
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 194.22
• Shares Outstanding: 166,396,380
• 10 Day Avg. Volume: 618,990
• 30 Day Avg. Volume: 546,566
• PEG Ratio: 0.64
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 31.06
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 2.79
• Enterprise Value/Ebitda: 5.93
• 1Y Price Target: $6,587.96
• Price Target Upside: 11.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥6,079.00 ▲(3.03% Upside)

Yokohama Rubber Co's stock score is primarily driven by solid financial performance and positive technical indicators. The company's operational efficiency and revenue growth are strong, but increased debt levels and lower net profit margins are concerns. Technical analysis shows short-term bullish momentum, supporting a positive outlook. The valuation is reasonable, though the dividend yield is modest.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Operational Efficiency

High gross profit margins reflect effective cost control and pricing strategies, supporting sustainable profitability over time.

Free Cash Flow Growth

Robust free cash flow growth enhances financial flexibility, enabling strategic investments and debt reduction, supporting long-term growth.

Negative Factors

Increased Debt Levels

Higher debt levels can increase financial risk and interest obligations, potentially limiting future investment opportunities and flexibility.

Decreased Net Profit Margin

A declining net profit margin suggests rising costs or inefficiencies, which could pressure future profitability if not addressed.

Low Cash Generation Relative to Net Income

Lower cash generation relative to net income may indicate issues in converting earnings to cash, affecting liquidity and operational flexibility.

Yokohama Rubber Co Business Overview & Revenue Model

Company Description

Yokohama Rubber Co., Ltd. is a Japanese multinational corporation primarily engaged in the manufacture and sale of tires and rubber products. Founded in 1917, the company operates through various segments, including tires for passenger cars, trucks, and buses, as well as industrial products such as conveyor belts, marine hoses, and high-performance rubber parts for the aerospace and automotive industries. Yokohama is recognized for its commitment to innovation and sustainability, producing a range of products that cater to both consumer and industrial markets worldwide.

How the Company Makes Money

Yokohama Rubber Co. generates revenue primarily through the sale of its tires, which constitute a significant portion of its earnings. The company offers a diverse range of tires, including those for passenger vehicles, trucks, and specialty applications, which allows it to cater to various market segments. Additionally, Yokohama earns revenue from its industrial products segment, including conveyor belts, marine hoses, and other rubber goods. Key revenue streams are bolstered by strategic partnerships with automotive manufacturers and distributors, as well as the adoption of advanced technologies in tire production that enhance performance and safety. The company also benefits from global market presence and brand loyalty, contributing to steady sales growth across different regions.

Yokohama Rubber Co Financial Statement Overview

Summary

Yokohama Rubber Co shows solid revenue growth and operational efficiency, with strong gross profit and EBITDA margins. However, increased debt levels and a lower net profit margin highlight potential financial pressures. Cash flow generation is positive, but reliance on debt financing and lower free cash flow relative to net income could pose risks if not addressed.

Income Statement

Yokohama Rubber Co has demonstrated consistent revenue growth, with a TTM revenue growth rate of 2.79%. The gross profit margin is strong at 35.33%, indicating efficient cost management. However, the net profit margin has decreased to 5.70% in the TTM, suggesting increased expenses or other financial pressures. The EBIT and EBITDA margins remain healthy, reflecting solid operational performance.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.69 in the TTM, indicating a higher reliance on debt financing, which could pose a risk if not managed carefully. The return on equity is moderate at 7.38%, showing decent profitability relative to shareholder equity. The equity ratio is stable, suggesting a balanced capital structure.

Cash Flow

Operating cash flow remains positive, but the operating cash flow to net income ratio has decreased to 0.17, indicating less cash generation relative to net income. Free cash flow growth is strong at 26.96% in the TTM, but the free cash flow to net income ratio is low at 0.08, suggesting limited free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.15T	1.09T	985.33B	860.48B	670.81B	551.09B
Gross Profit	405.73B	389.75B	325.89B	287.67B	223.63B	180.16B
EBITDA	190.47B	186.93B	172.61B	125.38B	133.24B	81.13B
Net Income	63.88B	74.92B	67.23B	45.92B	65.50B	26.31B
Balance Sheet
Total Assets	1.84T	1.74T	1.60T	1.15T	984.99B	860.37B
Cash, Cash Equivalents and Short-Term Investments	96.01B	145.27B	97.61B	75.57B	42.52B	30.76B
Total Debt	589.54B	438.02B	469.36B	238.70B	177.24B	207.82B
Total Liabilities	965.27B	831.53B	851.66B	527.96B	452.03B	437.51B
Stockholders Equity	870.23B	893.97B	739.57B	614.42B	525.31B	415.55B
Cash Flow
Free Cash Flow	8.06B	17.53B	101.02B	-15.66B	32.00B	47.01B
Operating Cash Flow	98.01B	94.50B	159.74B	39.23B	68.30B	78.29B
Investing Cash Flow	-211.16B	-1.39B	-344.01B	-46.36B	-4.48B	-27.86B
Financing Cash Flow	110.29B	-63.21B	205.76B	35.17B	-55.20B	-46.55B

Yokohama Rubber Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5900.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5101, the sentiment is Positive. The current price of 5900 is above the 20-day moving average (MA) of 5660.75, above the 50-day MA of 5623.00, and above the 200-day MA of 4252.55, indicating a bullish trend. The MACD of 81.07 indicates Negative momentum. The RSI at 60.63 is Neutral, neither overbought nor oversold. The STOCH value of 45.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5101.

Yokohama Rubber Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5105	81 Outperform	$642.70B	8.85	15.27%	3.11%	2.81%	2.78%
5189	72 Outperform	¥4.60B	9.90	―	2.59%	2.28%	41.72%
5161	71 Outperform	¥106.14B	31.31	―	6.01%	-4.26%	17.85%
5101	70 Outperform	$880.78B	13.90	9.11%	1.69%	10.53%	-2.52%
5108	69 Neutral	$4.60T	23.34	6.59%	3.05%	0.24%	-23.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5110	59 Neutral	$482.57B	-33.33	4.89%	2.99%	-0.26%	129.15%

Yokohama Rubber Co Corporate Events

Yokohama Rubber Co. Reports Mixed Earnings for 2025

Yokohama Rubber Co., Ltd., a prominent player in the tire and rubber industry, is known for its innovative tire solutions and diversified product offerings, including tires for various vehicles and industrial equipment. The company recently released its earnings report for the first half of 2025, showcasing a mixed financial performance.

Yokohama Rubber Revises 2025 Earnings Forecast Upwards After Strong First-Half Performance

Yokohama Rubber Co., Ltd. announced a notable difference between its initial earnings forecast and actual results for the first half of 2025, with significant increases in sales revenue and profits. The company has revised its full-year earnings and year-end dividend forecasts upwards, driven by strong performance in its tire and industrial products segments, particularly in Japan and Europe. This reflects the company’s strategic focus on achieving substantial growth under its medium-term management plan, YX2026.

The most recent analyst rating on (JP:5101) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on Yokohama Rubber Co stock, see the JP:5101 Stock Forecast page.

Yokohama Rubber Reports Record Q2 Sales and Profit, Revises Full-Year Plan Upwards

Yokohama Rubber Co., Ltd. reported record second-quarter sales revenue and business profit for FY2025, with significant growth in sales across Japan, Europe, and Asia. The company revised its full-year financial plan upwards, despite a ¥14.0 billion negative impact from U.S. tariffs, which it plans to offset through price adjustments, increased sales volume, and internal improvements.

The most recent analyst rating on (JP:5101) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on Yokohama Rubber Co stock, see the JP:5101 Stock Forecast page.

Yokohama Rubber Co. Reports Mixed Financial Results for H1 2025

Yokohama Rubber Co. reported its consolidated financial results for the first half of 2025, showing a 10.3% increase in sales revenue compared to the previous year. However, the company experienced a decline in operating profit by 2.5% and a significant drop in profit attributable to owners of the parent by 23.7%. The company also announced an increase in dividends per share, reflecting a positive outlook for the fiscal year ending December 31, 2025.

The most recent analyst rating on (JP:5101) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on Yokohama Rubber Co stock, see the JP:5101 Stock Forecast page.