Yokohama Rubber Co (5101) AI Stock Analysis

• Market Cap: ¥648.43B
• Dividend Yield: 2.33%
• Average Volume (3M): 688.70K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.17
• Revenue Growth: 8.13%
• EPS Growth: -17.49%
• Country: JP
• Employees: 34,198
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 53.74
• Shares Outstanding: 166,396,380
• 10 Day Avg. Volume: 1,066,080
• 30 Day Avg. Volume: 688,700
• PEG Ratio: -0.24
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -21.07
• 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: ¥4,237.78
• Price Target Upside: 1.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: ¥4,326.00 ▲(3.37%Upside)

Yokohama Rubber Co's overall stock score of 72 reflects strong financial performance with robust revenue growth and a solid balance sheet. Technical analysis presents a concern due to overbought signals that could lead to a market correction. The valuation suggests the stock might be undervalued, offering a reasonable entry point for investors.

Yokohama Rubber Co Business Overview & Revenue Model

Company Description

Yokohama Rubber Co., Ltd. is a leading Japanese manufacturer in the rubber and tire industry, established in 1917. The company operates primarily in two main sectors: the Tire Group and the Multiple Business Group. The Tire Group focuses on developing, manufacturing, and selling a wide range of tires for passenger cars, trucks, buses, construction and industrial vehicles, and motorcycles. The Multiple Business Group engages in the production of high-pressure hoses, sealants, adhesives, and aircraft components, among other industrial products. Yokohama Rubber is recognized globally for its commitment to innovation, quality, and sustainability in its products and operations.

How the Company Makes Money

Yokohama Rubber Co. generates revenue through the sale of its extensive range of tire products and industrial goods. The Tire Group is a major contributor to its earnings, with sales from original equipment manufacturers (OEMs) as well as the replacement tire market for various vehicles. The company has established significant partnerships with automotive manufacturers worldwide, ensuring a steady demand for its OEM tire products. In addition, the Multiple Business Group diversifies the company's revenue streams through the sale of industrial products such as high-pressure hoses and aircraft components. Yokohama Rubber's focus on innovation and advanced technology helps maintain its competitive edge and market position, contributing to its overall profitability.

Yokohama Rubber Co Financial Statement Overview

Summary

Yokohama Rubber Co shows strong revenue growth and stable gross margins. However, the net profit margin and operating cash flow efficiency have declined, indicating a need for better management of non-operational costs and cash flow efficiency. The balance sheet is solid with balanced leverage and a strong equity base.

Income Statement

Yokohama Rubber Co demonstrated robust revenue growth with a 13.4% increase in total revenue from 2023 to 2024 and a further 2.1% increase in TTM. The gross profit margin remained stable around 35% over recent periods, indicating consistent cost management. However, the net profit margin decreased from 6.8% in 2024 to 5.7% in TTM, suggesting potential increases in non-operational expenses or taxes.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.69 in TTM, indicating balanced leverage use. The return on equity decreased slightly from 8.38% in 2024 to 7.5% in TTM, reflecting moderate efficiency in generating profits from equity. The equity ratio improved to 46.9% in TTM, showcasing a solid asset base funded by shareholder equity.

Cash Flow

Operating cash flow decreased from 94.5 billion yen in 2024 to 83.98 billion yen in TTM, indicating a potential decline in cash generation efficiency. The free cash flow to net income ratio dropped to 0.1 in TTM from 0.23 in 2024, suggesting less cash is available after capital expenditures. This could point to increased capital investments or operational cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12T	1.09T	985.33B	860.48B	670.81B	570.57B
Gross Profit	394.80B	389.75B	325.89B	287.67B	223.63B	180.16B
EBITDA	188.29B	186.93B	172.61B	119.13B	109.23B	80.31B
Net Income	63.65B	74.92B	67.23B	45.92B	65.50B	26.31B
Balance Sheet
Total Assets	1.81T	1.74T	1.60T	1.15T	984.99B	860.37B
Cash, Cash Equivalents and Short-Term Investments	89.36B	145.27B	97.61B	79.17B	47.51B	33.45B
Total Debt	584.90B	438.02B	469.36B	238.70B	177.24B	207.82B
Total Liabilities	949.87B	831.53B	851.66B	527.96B	452.03B	437.51B
Stockholders Equity	848.38B	893.97B	739.57B	614.42B	525.31B	415.55B
Cash Flow
Free Cash Flow	6.35B	17.53B	101.02B	-15.66B	32.00B	47.01B
Operating Cash Flow	83.98B	94.50B	159.74B	39.23B	68.30B	78.29B
Investing Cash Flow	-155.37B	-1.39B	-344.01B	-46.36B	-4.48B	-27.86B
Financing Cash Flow	67.18B	-63.21B	205.76B	35.17B	-55.20B	-46.55B

Yokohama Rubber Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4185.00
• 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 4185 is above the 20-day moving average (MA) of 3660.98, above the 50-day MA of 3458.90, and above the 200-day MA of 3240.10, indicating a bullish trend. The MACD of 202.11 indicates Negative momentum. The RSI at 75.02 is Negative, neither overbought nor oversold. The STOCH value of 93.58 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	¥467.98B	7.17	14.57%	3.95%	4.01%	-22.73%
5161	78 Outperform	¥101.99B	25.61		6.91%	2.32%	-21.60%
5189	77 Outperform	¥3.70B	8.48		3.21%	-8.73%	-41.93%
5108	77 Outperform	$4.18T	14.93	7.60%	3.80%	2.07%	-15.58%
5101	72 Outperform	¥648.43B	10.36	7.48%	2.33%	8.13%	-17.49%
Sector *	67 Neutral	¥253.76B	13.29	6.48%	2.73%	5.14%	-11.70%
5110	58 Neutral	¥435.65B	50.94	-1.90%	4.22%	1.37%	-119.72%

Yokohama Rubber Co Corporate Events

Yokohama Rubber Refinances Goodyear Off-the-Road Tire Business Acquisition

Yokohama Rubber Co., Ltd. has refinanced its acquisition of Goodyear’s Off-the-Road Tire business through a syndicated loan agreement and a separate loan agreement with the Japan Bank for International Cooperation. This move is aimed at converting the initial bridge loan into long-term, fixed-rate, low-interest loans, thereby reducing its cost of capital and supporting sustainable corporate growth. The refinancing is expected to have minimal impact on the company’s financial results for the fiscal year ending December 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.

Yokohama Rubber Completes Treasury Stock Disposal for Compensation

Yokohama Rubber Co., Ltd. has completed the payment process for the disposal of treasury stock as restricted stock compensation, following a resolution made by its Board of Directors. This move involves the disposal of 60,579 shares of common stock, valued at ¥3,112 per share, totaling ¥188,521,848, and is aimed at compensating members of the Board and company officers, potentially impacting the company’s financial structure and stakeholder interests.

The most recent analyst rating on (JP:5101) stock is a Buy with a Yen4300.00 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 Q1 2025 Financial Results with Revenue Growth but Profit Decline

Yokohama Rubber Co. reported its consolidated financial results for the first quarter of 2025, noting a 9% increase in sales revenue compared to the previous year. However, the company experienced a decline in operating profit by 27.7% and a decrease in profit attributable to owners by 56.9%. The company also provided forecasts for the fiscal year ending December 31, 2025, expecting a 11.4% increase in sales revenue and a modest growth in operating profit by 10.8%. These results and forecasts indicate challenges in maintaining profitability despite revenue growth, which may impact stakeholders’ expectations.

The most recent analyst rating on (JP:5101) stock is a Hold with a Yen4100.00 price target. To see the full list of analyst forecasts on Yokohama Rubber Co stock, see the JP:5101 Stock Forecast page.

Yokohama Rubber Implements Restricted Stock Compensation Plan

Yokohama Rubber Co., Ltd. has announced a disposal of treasury stock as part of a restricted stock compensation plan aimed at aligning the interests of its Board members and officers with those of shareholders. This move is intended to incentivize key personnel by linking their compensation to the company’s stock performance, thereby encouraging them to contribute to the company’s long-term growth and value. The plan involves the allocation of 60,579 shares with a 30-year transfer restriction period, reflecting a strategic effort to stabilize and enhance the company’s market positioning.

Yokohama Rubber Accelerates Treasury Stock Cancellation

Yokohama Rubber Co., Ltd. has announced the acceleration of its treasury stock cancellation, originally scheduled for September 2025, now moved to May 2025. This decision reflects the company’s efficient progress in repurchasing shares, potentially impacting its market positioning by reducing the number of shares outstanding, which may enhance shareholder value.

Yokohama Rubber Completes Treasury Stock Acquisition

Yokohama Rubber Co., Ltd. has completed the acquisition of 626,000 shares of its treasury stock, totaling approximately ¥1.82 billion, as part of a resolution made by its Board of Directors in February 2025. This move is part of a larger plan to repurchase up to 2.4 million shares, aiming to enhance shareholder value and optimize capital structure.