Yokohama Rubber Co (5101) AI Stock Analysis

• Market Cap: ¥1.00T
• Dividend Yield: 1.57%
• Average Volume (3M): 546.57K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.28
• 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: ¥7,199.26
• Price Target Upside: 13.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥6,971.00 ▲(9.54% Upside)

Yokohama Rubber Co's stock is performing well, driven by strong technical indicators and a reasonable valuation. Financial performance is solid, but increased debt levels and lower net profit margins are areas of concern. The absence of earnings call and corporate events data did not impact the score.

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

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 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: 6364.00
• 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 6364 is above the 20-day moving average (MA) of 6168.95, above the 50-day MA of 5803.60, and above the 200-day MA of 4490.10, indicating a bullish trend. The MACD of 173.06 indicates Negative momentum. The RSI at 57.17 is Neutral, neither overbought nor oversold. The STOCH value of 63.28 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	¥677.49B	9.33	15.27%	2.95%	2.81%	2.78%
5101	76 Outperform	¥1.00T	12.55	9.11%	1.57%	10.53%	-2.52%
5108	73 Outperform	¥4.84T	20.76	6.59%	3.03%	0.24%	-23.93%
5189	72 Outperform	¥4.59B	7.13	―	2.59%	2.28%	41.72%
5161	71 Outperform	¥110.35B	18.82	―	5.97%	-4.26%	17.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5110	59 Neutral	$645.00B	20.27	4.89%	2.61%	-0.26%	129.15%

Yokohama Rubber Co Corporate Events

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.

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.