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Yokohama Rubber Co Ltd (JP:5101)
:5101
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Yokohama Rubber Co (5101) AI Stock Analysis

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JP:5101

Yokohama Rubber Co

(5101)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
¥8,232.00
▲(12.08% Upside)
Action:Upgraded
Date:05/16/26
Overall score is driven by attractive valuation (low P/E and a modest dividend) and generally solid profitability/leverage trends, offset by a significant cash-flow concern (FCF near breakeven and uneven cash conversion). Technicals are mildly supportive but not strong enough to overcome the cash-flow risk.
Positive Factors
Recurring Aftermarket Revenue
A large replacement (aftermarket) business provides durable, predictable demand because tires require routine replacement across vehicle fleets and consumers. This recurring revenue base stabilizes cash inflows and supports long-cycle planning, pricing power, and channel relationships over multiple quarters.
Negative Factors
Weak Free Cash Flow
Free cash flow near breakeven reduces internal funding for capex, working capital cushions, dividends, or debt reduction. Over multiple quarters this constrains strategic flexibility and increases reliance on external financing if cyclical pressures or one-off needs emerge.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Aftermarket Revenue
A large replacement (aftermarket) business provides durable, predictable demand because tires require routine replacement across vehicle fleets and consumers. This recurring revenue base stabilizes cash inflows and supports long-cycle planning, pricing power, and channel relationships over multiple quarters.
Read all positive factors

Yokohama Rubber Co (5101) vs. iShares MSCI Japan ETF (EWJ)

Yokohama Rubber Co Business Overview & Revenue Model

Company Description
Established in 1917 and based in Tokyo, Japan, The Yokohama Rubber Co., Ltd. is an international manufacturer and distributor of tires and various rubber products. Its global operations encompass sales in Japan, the United States, India, China, th...
How the Company Makes Money
Yokohama Rubber makes money mainly by selling tires and related rubber products through a mix of replacement (aftermarket) and original equipment (OE) channels, complemented by sales of industrial rubber products. 1) Tire sales (primary revenue d...

Yokohama Rubber Co Financial Statement Overview

Summary
Income statement is solid (revenue expansion over multiple years and improved profitability; TTM net margin ~8.5%), and leverage looks manageable (debt-to-equity ~0.52 with improving ROE ~11.5%). However, cash flow quality is a major weakness: free cash flow has deteriorated to near breakeven in TTM and cash conversion is uneven, reducing confidence in earnings quality.
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
45
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.26T1.23T1.09T985.33B860.48B670.81B
Gross Profit473.60B446.81B389.75B325.89B287.67B223.63B
EBITDA256.49B244.17B186.93B172.61B125.38B133.24B
Net Income111.59B105.40B74.92B67.23B45.92B65.50B
Balance Sheet
Total Assets2.05T2.00T1.74T1.60T1.15T984.99B
Cash, Cash Equivalents and Short-Term Investments93.59B107.39B136.22B97.61B75.57B42.52B
Total Debt602.57B535.77B474.33B506.03B271.18B209.43B
Total Liabilities993.58B958.13B831.53B851.66B527.95B452.03B
Stockholders Equity1.04T1.03T893.97B739.56B614.42B525.31B
Cash Flow
Free Cash Flow2.17B24.00B17.53B101.49B-15.15B32.37B
Operating Cash Flow125.39B135.63B94.50B159.74B39.23B68.30B
Investing Cash Flow-115.63B-241.30B-1.39B-344.01B-46.36B-4.48B
Financing Cash Flow-18.47B68.32B-63.21B205.76B35.17B-55.20B

Yokohama Rubber Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥554.49B9.7512.94%3.38%3.55%-9.71%
78
Outperform
¥604.46B9.5610.96%2.75%12.73%81.53%
75
Outperform
¥5.30T13.339.60%3.16%6.06%120.85%
72
Outperform
¥653.81B10.258.07%3.93%4.82%
70
Outperform
¥1.23T10.5711.53%1.96%13.08%78.00%
69
Neutral
¥125.18B12.085.78%3.24%236.26%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5101
Yokohama Rubber Co
7,484.00
2,986.23
66.39%
JP:5108
Bridgestone
4,320.00
1,153.65
36.43%
JP:5110
Sumitomo Rubber Industries
2,411.50
742.45
44.48%
JP:7282
Toyoda Gosei Co
5,184.00
1,811.56
53.72%
JP:5105
Toyo Tire
3,780.00
371.09
10.89%
JP:5161
Nishikawa Rubber Co., Ltd.
3,545.00
710.23
25.05%

Yokohama Rubber Co Corporate Events

Yokohama Rubber Lifts 2026 Profit Outlook After Record First-Half Results
Aug 10, 2026
Yokohama Rubber reported that its first-half 2026 results significantly outpaced earlier guidance, with record earnings driven by lower-than-expected raw material costs in its off-highway tire business, favorable currency effects and expanded sale...
Yokohama Rubber Links FY2026 Results to New YX2029 Medium‑Term Plan
Aug 10, 2026
Yokohama Rubber has presented its financial results for the first half of fiscal 2026 together with a status update on its current medium‑term plan, YX2026. The briefing outlined key initiatives executed in the first half, progress against t...
Yokohama Rubber Doubles Profit and Hikes Dividend on Strong First-Half Results
Aug 10, 2026
Yokohama Rubber reported strong consolidated results for the six months ended June 30, 2026, with sales revenue rising 10.4% year-on-year to ¥639.4 billion and business profit surging 54.3% to ¥95.8 billion. Operating profit doubled to &...
Yokohama Rubber Completes Treasury Stock Disposal for Executive Restricted Stock Plan
May 22, 2026
Yokohama Rubber Co., Ltd. has completed the payment procedures for the disposal of its treasury stock used as restricted stock compensation, following a resolution approved by its Board of Directors on April 27, 2026. The move is part of an equity...
Yokohama Rubber Lifts FY2026 Profit Outlook on Asset Sale Gain and Cost Controls
May 15, 2026
Yokohama Rubber has sharply raised its first-half and full-year FY2026 profit forecasts while keeping sales revenue and business profit unchanged, reflecting a stronger-than-expected boost from non-operating items. The company now projects first-h...
Yokohama Rubber Outlines FY2026 First-Quarter Results and Strategy Progress
May 15, 2026
Yokohama Rubber released an outline of its financial communication for the first quarter of fiscal 2026, covering results for January to March and their executive summary. The update indicates management is closely monitoring changes in the extern...
Yokohama Rubber Lifts 2026 Outlook After Strong First-Quarter Profit Surge
May 15, 2026
Yokohama Rubber reported strong consolidated results for the three months ended March 31, 2026, with sales revenue rising 10.4% year on year to ¥303.8 billion and business profit surging 84.6%. Operating profit climbed 34.5%, profit attributa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 16, 2026