Yokohama Rubber Co (5101) AI Stock Analysis

• Market Cap: ¥960.42B
• Dividend Yield: 1.6%
• Average Volume (3M): 546.57K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 1.33
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥6,949.86
• Price Target Upside: 14.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥7,073.00 ▲(16.14% Upside)

Yokohama Rubber Co's stock is supported by strong technical indicators and a solid valuation, reflecting a positive market sentiment and reasonable pricing. Financial performance is robust, with notable revenue growth and profitability, though attention to debt management and cash conversion efficiency is advised. The absence of recent earnings call data and corporate events does not detract from the overall positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business stability and potential for future expansion.

Cash Flow Generation

Significant improvement in cash flow generation enhances financial flexibility, allowing for reinvestment in growth initiatives and debt reduction.

Gross Profit Margin

A robust gross profit margin reflects effective cost management, contributing to sustained profitability and competitive positioning in the market.

Negative Factors

Rising Debt Levels

Increased reliance on debt financing can strain financial resources and limit strategic flexibility, posing risks if not managed effectively.

Net Profit Margin Decline

A decline in net profit margin suggests rising expenses or financial pressures, which could impact overall profitability and shareholder returns.

Cash Conversion Efficiency

Challenges in converting earnings into cash may constrain liquidity and limit the company's ability to fund operations and growth initiatives efficiently.

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

Yokohama Rubber Co exhibits strong revenue growth and profitability, with a robust gross profit margin and consistent revenue increases. The balance sheet is stable, though rising debt levels warrant attention. Cash flow generation has improved significantly, yet efficiency in cash conversion remains an area for development. The company is well-positioned for growth, but should focus on enhancing net profitability and managing leverage to mitigate potential risks.

Income Statement

Yokohama Rubber Co has demonstrated consistent revenue growth with a TTM revenue growth rate of 3.51%. The gross profit margin remains strong at 35.32%, indicating effective cost management. However, the net profit margin has slightly decreased to 5.56% in the TTM, suggesting increased expenses or other financial pressures. Overall, the company shows solid profitability and growth potential, though there is room for improvement in net profitability.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.68 in the TTM, indicating a higher reliance on debt financing. Return on equity is stable at 7.47%, reflecting moderate efficiency in generating profits from shareholders' equity. The equity ratio stands at 48.91%, suggesting a balanced capital structure. While the company maintains a healthy balance sheet, the rising debt levels could pose a risk if not managed carefully.

Cash Flow

Yokohama Rubber Co has shown impressive free cash flow growth of 147.68% in the TTM, highlighting improved cash generation capabilities. However, the operating cash flow to net income ratio is relatively low at 0.24, which may indicate challenges in converting earnings into cash. The free cash flow to net income ratio is also modest at 8.23%, suggesting potential constraints in cash flow relative to net income. Overall, while cash flow generation has improved, the company should focus on enhancing cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.19T	1.09T	985.33B	860.48B	670.81B	551.09B
Gross Profit	421.21B	389.75B	325.89B	287.67B	223.63B	180.16B
EBITDA	205.06B	186.93B	172.61B	125.38B	133.24B	81.13B
Net Income	80.20B	74.92B	67.23B	45.92B	65.50B	26.31B
Balance Sheet
Total Assets	1.89T	1.74T	1.60T	1.15T	984.99B	860.37B
Cash, Cash Equivalents and Short-Term Investments	89.50B	145.27B	97.61B	75.57B	42.52B	30.76B
Total Debt	581.73B	438.02B	469.36B	238.70B	177.24B	207.82B
Total Liabilities	959.16B	831.53B	851.66B	527.96B	452.03B	437.51B
Stockholders Equity	926.53B	893.97B	739.57B	614.42B	525.31B	415.55B
Cash Flow
Free Cash Flow	19.97B	17.53B	101.02B	-15.66B	32.00B	47.01B
Operating Cash Flow	117.97B	94.50B	159.74B	39.23B	68.30B	78.29B
Investing Cash Flow	-223.50B	-1.39B	-344.01B	-46.36B	-4.48B	-27.86B
Financing Cash Flow	90.59B	-63.21B	205.76B	35.17B	-55.20B	-46.55B

Yokohama Rubber Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6090.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5101, the sentiment is Neutral. The current price of 6090 is below the 20-day moving average (MA) of 6278.70, below the 50-day MA of 6178.81, and above the 200-day MA of 4885.87, indicating a neutral trend. The MACD of 4.68 indicates Positive momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 15.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥639.93B	8.76	15.27%	2.93%	2.81%	2.78%
5108	77 Outperform	$4.49T	19.77	6.59%	3.07%	0.24%	-23.93%
5101	76 Outperform	¥960.42B	12.00	9.11%	1.60%	10.53%	-2.52%
5161	73 Outperform	¥135.06B	23.07	―	5.78%	-4.26%	17.85%
5189	72 Outperform	¥5.03B	7.92	―	2.64%	2.28%	41.72%
5110	70 Outperform	¥654.46B	20.46	4.89%	2.59%	-0.26%	129.15%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Yokohama Rubber Co Corporate Events

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.

Yokohama Rubber Achieves Record High Sales and Profit in FY2025 Q3

Yokohama Rubber Co., Ltd. reported record high sales revenue and business profit for the third quarter and the first three quarters of FY2025, demonstrating significant year-over-year growth. Despite a ¥5.0 billion negative impact from tariffs in the third quarter, the company nearly offset this through sales price revisions, highlighting its strong operational performance and strategic pricing adjustments.

The most recent analyst rating on (JP:5101) stock is a Buy with a Yen6079.00 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 Strong Financial Growth in 2025

Yokohama Rubber Co. reported a significant increase in its consolidated financial results for the nine months ended September 30, 2025, with a 12.0% rise in sales revenue and a 20.8% increase in business profit compared to the previous year. The company also announced a forecast for the full fiscal year ending December 31, 2025, projecting a 12.8% increase in sales revenue and a 13.9% rise in business profit, indicating strong operational performance and positive future prospects.

The most recent analyst rating on (JP:5101) stock is a Buy with a Yen6079.00 price target. To see the full list of analyst forecasts on Yokohama Rubber Co stock, see the JP:5101 Stock Forecast page.