Yokohama Rubber Co (5101) AI Stock Analysis

• Market Cap: ¥1.24T
• Dividend Yield: 1.6%
• Average Volume (3M): 546.57K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.27
• Revenue Growth: 10.53%
• EPS Growth: -2.52%
• Country: JP
• Employees: 34,198
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 249.47
• Shares Outstanding: 166,396,380
• 10 Day Avg. Volume: 618,990
• 30 Day Avg. Volume: 546,566
• PEG Ratio: 0.21
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 39.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥7,318.98
• Price Target Upside: -7.14% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 693.95
• Revenue Forecast (FY): ¥1.29T

• Rating: 69 Neutral
• Price Target: ¥8,388.00 ▲(6.42% Upside)
• Action: Downgraded Date: 02/20/26
• Date: Action: Downgraded 02/20/26

The score is led by solid financial performance (growth and improved profitability) and supportive valuation (low P/E). Technicals are constructive due to a strong uptrend, but overbought momentum indicators and the company’s uneven cash conversion and rising debt reduce the overall rating.

Positive Factors

Revenue and profitability trends

Sustained revenue expansion and rising net margins through 2025 reflect durable demand, improved product mix and operating leverage. Over a 2–6 month horizon this supports earnings resilience, the ability to absorb cost shocks and continued reinvestment in growth and product development.

Stronger equity base and healthy ROE

A materially larger equity base and healthy ROE indicate productive capital allocation and provide financial flexibility. This durable strength supports capacity to fund investments, withstand cyclical downturns and pursue strategic initiatives without immediate reliance on external financing.

Diversified product and channel exposure

Broad exposure across OEM, replacement and industrial rubber products reduces dependence on any single end market. Structural diversification smooths revenue volatility, enables cross-selling, and supports more predictable mid-term cash flows driven by vehicle parc and industrial demand.

Negative Factors

Rising absolute debt and higher leverage

Higher absolute debt and a drift up in leverage reduce balance-sheet cushion and financial flexibility. In a medium-term downturn this could constrain capital allocation, increase interest burden and limit the company's ability to fund investments or buy back shares without raising external financing.

Uneven cash conversion and volatile FCF

Volatile free cash flow and working-capital swings undermine the reliability of earnings to fund capex, dividends and debt reduction. Over the next several months this variability complicates forecasting, may limit discretionary spending and increases sensitivity to operational disruptions.

Margins not fully recovered; growth moderating

Although profitability improved, margins remain below prior peaks and growth is slowing. This suggests limited near-term margin expansion and exposes earnings to raw material or mix pressures, reducing upside potential and making margin recovery less certain over the medium term.

Yokohama Rubber Co Business Overview & Revenue Model

Company Description

The Yokohama Rubber Co., Ltd. manufactures and sells tires in Japan, the United States, India, China, the Philippines, and internationally. It operates through Tires, Multiple Business (MB), and Alliance Tire Group (ATG) segments. The Tires segment offers tires for passenger cars and light trucks, trucks and buses, construction and mining equipment, and motorsports, as well as tire tubes, aluminum alloy wheels, and other peripheral products under the ADVAN, BluEarth, iceGUARD, GEOLANDAR, YOKOHAMA, ALLIANCE, GALAXY, PRIMEX, and AICHI brand names. The MB segment provides conveyor belts, rubber plates, various hoses, marine fenders, oil spill containment booms, marine hoses, rubber molded products, air springs, highway joints, rubber support, anti-seismic laminated rubber sheets for buildings, sound- and vibration-proof materials, and aerospace products comprise aircraft fixtures and components. It also offers adhesives and sealants under the Hamatite brand. The ATG segment provides tires for agricultural, industrial, construction, and forestry machinery. It also markets golf equipment and services under the PRGR brand. The Yokohama Rubber Co., Ltd. was incorporated in 1917 and is headquartered in Tokyo, Japan.

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

Strong revenue growth (2020–2025) and improved profitability into 2024–2025 support the score, but rising debt and uneven cash conversion (free cash flow lagging earnings and volatility vs. 2023) meaningfully temper overall fundamental strength.

Income Statement

Revenue has expanded strongly from 2020–2025, with 2025 showing continued growth, and profitability has improved versus the mid-cycle (net margin rising from ~5% in 2020 to ~8.5% in 2025). Operating profitability also strengthened into 2024–2025 (higher operating and EBITDA margins), indicating better cost/mix and scale benefits. Offsetting this, margins have not fully recovered to the 2021 peak, and growth is moderating in the latest year compared with the earlier post-2020 rebound.

Balance Sheet

The company has built equity materially over time, which supports a larger asset base and improves financial flexibility. Leverage is moderate overall, but debt has increased in absolute terms in recent years and the debt-to-equity level has drifted higher versus 2021–2022, which reduces balance-sheet cushion if the cycle weakens. Returns on equity were healthy in 2023–2024 (high-single to low-double digits), supporting the view that capital is being used productively.

Cash Flow

Cash generation is positive but uneven. Operating cash flow improved in 2024–2025 versus 2022, and free cash flow turned positive again; however, free cash flow remains relatively low versus reported earnings in 2024–2025, suggesting working-capital swings or higher ongoing investment needs. The sharp contrast to 2023 (very strong free cash flow) highlights volatility and reduces confidence in steady cash conversion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.23T	1.09T	985.33B	860.48B	670.81B
Gross Profit	446.81B	389.75B	325.89B	287.67B	223.63B
EBITDA	240.20B	186.93B	172.61B	125.38B	133.24B
Net Income	105.40B	74.92B	67.23B	45.92B	65.50B
Balance Sheet
Total Assets	2.00T	1.74T	1.60T	1.15T	984.99B
Cash, Cash Equivalents and Short-Term Investments	107.39B	145.27B	97.61B	75.57B	42.52B
Total Debt	535.77B	438.02B	469.36B	238.70B	177.24B
Total Liabilities	958.13B	831.53B	851.66B	527.96B	452.03B
Stockholders Equity	1.03T	893.97B	739.57B	614.42B	525.31B
Cash Flow
Free Cash Flow	24.00B	17.53B	101.02B	-15.66B	32.00B
Operating Cash Flow	135.63B	94.50B	159.74B	39.23B	68.30B
Investing Cash Flow	-241.30B	-1.39B	-344.01B	-46.36B	-4.48B
Financing Cash Flow	68.32B	-63.21B	205.76B	35.17B	-55.20B

Yokohama Rubber Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7882.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 7882 is above the 20-day moving average (MA) of 7045.20, above the 50-day MA of 6552.90, and above the 200-day MA of 5309.95, indicating a bullish trend. The MACD of 420.09 indicates Negative momentum. The RSI at 73.88 is Negative, neither overbought nor oversold. The STOCH value of 86.76 is Negative, 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	¥743.06B	11.68	15.27%	2.93%	2.81%	2.78%
7282	75 Outperform	¥595.80B	13.50	8.26%	2.62%	1.44%	-0.92%
5110	73 Outperform	¥731.08B	14.52	4.89%	2.59%	-0.26%	129.15%
5161	73 Outperform	¥166.35B	23.86	―	5.78%	-4.26%	17.85%
5108	72 Outperform	¥4.89T	15.43	6.59%	3.07%	0.24%	-23.93%
5101	69 Neutral	¥1.24T	11.79	9.11%	1.60%	10.53%	-2.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Yokohama Rubber Co Corporate Events

Yokohama Rubber Lifts 2026 Profit Targets on Strong Tire Business Performance

Yokohama Rubber has raised the financial targets in its medium-term management plan, Yokohama Transformation 2026, for the fiscal year 2026 on the back of stronger-than-expected earnings and a reshaped profit structure. The company now targets sales revenue of ¥1.3 trillion and business profit of ¥188 billion, implying a 14.5% business profit margin while maintaining an equity ratio target of 50% and ROE above 10%.

Management attributes the upgrade to the full earnings contribution from the mining and construction machinery tire business acquired from Goodyear, robust growth in consumer tire sales and an improved mix toward high-value-added products. Additional drivers include rising market share for off-highway tires in agricultural machinery and cost reductions from technological and production transformation, supported by ongoing reinforcement of the global production system and structural reforms.

The most recent analyst rating on (JP:5101) stock is a Hold with a Yen6600.00 price target. To see the full list of analyst forecasts on Yokohama Rubber Co stock, see the JP:5101 Stock Forecast page.

Yokohama Rubber Lifts 2025 Dividend and Targets Higher Payout Ratio for 2026

Yokohama Rubber has approved a substantial increase in its year-end dividend for fiscal 2025, setting it at 86 yen per share, up 34 yen from the previous forecast, with a record date of December 31, 2025 and total dividends of 13,562 million yen, subject to approval at the March 27, 2026 shareholders’ meeting. Management cited stronger-than-expected 2025 financial results, successful execution of its “Best Alternative Strategy” under the YX2026 plan, and expectations of higher free cash flow in 2026 as key drivers, and plans to lift the dividend payout ratio from 20% to 30%, with a forecast total annual dividend of 172 yen per share for fiscal 2026, signaling a clear shift toward enhanced shareholder returns.

The most recent analyst rating on (JP:5101) stock is a Hold with a Yen6600.00 price target. To see the full list of analyst forecasts on Yokohama Rubber Co stock, see the JP:5101 Stock Forecast page.

Yokohama Rubber Outlines Fiscal 2025 Results and YX2026 Roadmap

Yokohama Rubber has released materials for its fiscal 2025 financial results briefing, led by Chairman and CEO Masataka Yamaishi, outlining recent performance and progress under its YX2026 medium-term plan. The disclosure frames how fiscal 2025 results tie into ongoing initiatives, financial strategy, governance, and updated financial targets for fiscal 2026, signaling management’s priorities and roadmap for the next phase of the YX2026 program.

The company highlights YX2026 progress and lays out 2026 initiatives intended to support its medium-term objectives and strengthen overall corporate value. By setting out financial strategy, governance measures, and specific YX2026 financial targets for fiscal 2026, Yokohama Rubber provides stakeholders with clarity on its strategic direction and expected trajectory, positioning the briefing as a key touchpoint in its multi-year transformation plan.

The most recent analyst rating on (JP:5101) stock is a Hold with a Yen6600.00 price target. To see the full list of analyst forecasts on Yokohama Rubber Co stock, see the JP:5101 Stock Forecast page.

Yokohama Rubber Posts Strong 2025 Earnings, Lifts Dividend But Guides Lower Profit for 2026

Yokohama Rubber reported strong results for the fiscal year ended Dec. 31, 2025, with sales revenue up 12.8% to ¥1.23 trillion and profit attributable to owners of the parent jumping 40.7% to ¥105.4 billion, lifting ROE to 11.0%. Equity attributable to owners rose to ¥1.03 trillion, while the equity ratio held above 51%, though cash and cash equivalents declined as heavy investing outflows exceeded operating cash inflows.

The company continued to return more cash to shareholders, raising the 2025 annual dividend to ¥134 per share from ¥98 and planning a further increase to ¥172 in 2026, alongside a reduced share count as treasury shares were cut. For 2026, Yokohama Rubber forecasts sales growth of 5.3% and higher business profit, but expects profit attributable to owners to decline by 14.6% to ¥90 billion, even as it consolidates three new group companies to expand operations.

The most recent analyst rating on (JP:5101) stock is a Hold with a Yen6600.00 price target. To see the full list of analyst forecasts on Yokohama Rubber Co stock, see the JP:5101 Stock Forecast page.

Yokohama Rubber Books ¥14 Billion Extraordinary Gain From Retirement Benefit Trust Asset Return

Yokohama Rubber has booked an extraordinary gain after receiving a partial return of assets from its retirement benefit trust, which had been overfunded relative to its defined benefit obligations and is expected to remain so. The company recovered ¥21.5 billion from the trust, recognizing about ¥14 billion as extraordinary income in its non-consolidated results for the fiscal year ending December 31, 2025, while confirming that the transaction will have no impact on its consolidated financial statements prepared under IFRS.

The most recent analyst rating on (JP:5101) stock is a Buy with a Yen7200.00 price target. To see the full list of analyst forecasts on Yokohama Rubber Co stock, see the JP:5101 Stock Forecast page.