Bridgestone Corporation (JP:5108)
:5108
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Bridgestone
(5108)
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Rating:68Neutral
Price Target:
¥3,643.00
▲(9.01% Upside)
Action:DowngradedDate:03/26/26
The score is driven primarily by solid financial strength (stable margins, manageable leverage, and strong operating cash flow). This is partially offset by weak technical momentum (below key moving averages with negative MACD and low RSI/Stoch). Valuation is supportive (P/E ~14.3 and ~3.44% yield), while earnings-call takeaways are balanced: modest FY2026 improvement and shareholder returns, but meaningful tariff and cost headwinds.
Positive Factors
Conservative balance sheet
Bridgestone’s low leverage and equity growth provide durable financial flexibility across the auto cycle. Manageable debt levels support sustained capex, R&D and buybacks without forcing asset sales, improving resilience to cyclical downturns and external shocks over the next 2–6 months.
Negative Factors
Rising U.S. tariff exposure
Material tariff-driven profit erosion is a structural headwind that reduces net margins and constrains reinvestment capacity. Persistent or escalating trade duties force either price increases that hurt competitiveness or margin absorption, impairing North American profitability over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Bridgestone’s low leverage and equity growth provide durable financial flexibility across the auto cycle. Manageable debt levels support sustained capex, R&D and buybacks without forcing asset sales, improving resilience to cyclical downturns and external shocks over the next 2–6 months.
Read all positive factors
Bridgestone (5108) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.28T
Dividend Yield3.07%
Average Volume (3M)2.01M
Price to Earnings (P/E)14.3
Beta (1Y)0.83
Revenue Growth0.24%
EPS Growth-23.93%
CountryJP
Employees121,464
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)94.63
Shares Outstanding1,334,037,000
10 Day Avg. Volume2,716,380
30 Day Avg. Volume2,014,386
Financial Highlights & Ratios
PEG Ratio0.78
Price to Book (P/B)1.28
Price to Sales (P/S)1.06
P/FCF Ratio11.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,733.65Price Target Upside11.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)287.78
Revenue Forecast (FY)¥4.55T
Bridgestone Business Overview & Revenue Model
Company Description
Bridgestone Corporation, together with its subsidiaries, manufactures and sells tires and rubber products. It operates through two segments, Tires and Diversified Products. The company offers tires and tire tubes for passenger cars, trucks, buses,...
How the Company Makes Money
Bridgestone primarily makes money by selling tires to both original equipment manufacturers (OEMs) and the replacement market. In the OEM channel, it supplies tires that are fitted on new vehicles produced by automakers; revenue is driven by produ...
Bridgestone Earnings Call Summary
Earnings Call Date:Feb 16, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 18, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: management reported modest revenue and profit growth, margin and cash-flow improvements, completion of major business-rebuilding work and clear strategic steps (product launches, higher R&D/CapEx, executive restructuring) aimed at restoring long-term competitiveness. However, material near-term headwinds remain — notably rising U.S. tariff costs, one-time rebuilding expenses, regional weaknesses (Latin America), some product-segment setbacks and planned operating expense increases — and the company acknowledged it did not meet certain mid-term MBP targets. Management’s tone is cautiously constructive: they emphasize disciplined investment and cost reduction while accepting ongoing risks. Overall, positives (profit improvement, margin recovery, cash flow and clear growth plans) are roughly balanced by significant challenges and costs that will pressure near-term results.Positive Updates
Full-year revenue and profit growth (FY2025)
Consolidated revenue JPY 4,429.5 billion; adjusted operating profit JPY 493.7 billion (adjusted OP up ~2% YoY, approx. JPY 10.4 billion); profit attributable to owners JPY 327.3 billion (up ~15% YoY, approx. JPY 42 billion).
Negative Updates
Rising U.S. tariff headwind
U.S. tariffs reduced profit by ~JPY 25 billion in FY2025 and are projected to reduce profit by ~JPY 55 billion in FY2026 (full-year impact), creating a meaningful negative earnings headwind.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-year revenue and profit growth (FY2025)
Consolidated revenue JPY 4,429.5 billion; adjusted operating profit JPY 493.7 billion (adjusted OP up ~2% YoY, approx. JPY 10.4 billion); profit attributable to owners JPY 327.3 billion (up ~15% YoY, approx. JPY 42 billion).
Read all positive updates
Company Guidance
Bridgestone guided FY2026 revenue of JPY 4.5 trillion, adjusted operating profit of JPY 515 billion and net profit of JPY 340 billion (adjusted OPM 11.4%, +0.3 pts vs FY2025), building on FY2025 results of revenue JPY 4,429.5 billion, adjusted OP JPY 493.7 billion, profit attributable JPY 327.3 billion, adj. OPM 11.1% and ROIC 8.3%; management expects U.S. tariffs to reduce profits by ~JPY 55 billion in FY26 (vs ~JPY 25 billion in FY25) and will offset headwinds via global supply‑chain optimization and business cost reductions (business cost reduction effects ~JPY 72 billion in FY25 and an additional benchmarked ~JPY 25 billion), while FY25 free cash flow was JPY 45.5 billion and operating cash flow improved by JPY 141.7 billion Y/Y. Capital allocation includes R&D and CapEx above the prior two years (CapEx cited ~JPY 410 billion), a 3‑year capital plan of ~JPY 2.4 trillion (FY24–26), a JPY 150 billion share buyback in FY26 (JPY 450 billion total FY24–26), target cash reserves ≈1.5 months of sales and a desired midterm equity ratio ~55%. Shareholder returns: dividend guidance of JPY 125 per share post‑split (JPY 250 pre‑split), up JPY 10 post‑split (JPY 20 pre‑split) year‑on‑year, with a target consolidated payout ratio around 50% (FY26 implied ~46%); segment/margin goals include Americas margin +0.6 pts to roughly the 10% range and a 2‑point margin improvement in EMEA, while product/portfolio targets cite tire business OPM just under 13%, Commercial B2B Solutions >11% margin and specialties profitability >20%.Bridgestone Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.43T | 4.43T | 4.31T | 4.11T | 3.25T |
| Gross Profit | 1.58T | 1.60T | 1.54T | 1.50T | 1.23T |
| EBITDA | 835.42B | 810.06B | 775.59B | 719.59B | 628.59B |
| Net Income | 327.26B | 284.99B | 327.93B | 298.93B | 161.56B |
Balance Sheet | |||||
| Total Assets | 5.75T | 5.72T | 5.43T | 4.96T | 4.57T |
| Cash, Cash Equivalents and Short-Term Investments | 713.81B | 706.73B | 724.60B | 518.90B | 787.54B |
| Total Debt | 827.01B | 727.72B | 830.16B | 767.17B | 811.14B |
| Total Liabilities | 2.03T | 1.94T | 2.02T | 1.95T | 1.90T |
| Stockholders Equity | 3.66T | 3.73T | 3.35T | 2.97T | 2.63T |
Cash Flow | |||||
| Free Cash Flow | 409.35B | 249.55B | 378.98B | 47.19B | 120.50B |
| Operating Cash Flow | 660.44B | 548.84B | 661.43B | 268.48B | 281.54B |
| Investing Cash Flow | -224.97B | -255.06B | -297.72B | -338.00B | 131.70B |
| Financing Cash Flow | -429.90B | -343.26B | -183.66B | -364.11B | -379.32B |
Bridgestone Technical Analysis
Neutral
3342.00
Price Trends
3533.90
Negative
3526.91
Negative
3353.13
Negative
Market Momentum
-84.75
Positive
42.16
Neutral
42.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5108, the sentiment is Neutral. The current price of 3342 is below the 20-day moving average (MA) of 3431.15, below the 50-day MA of 3533.90, and below the 200-day MA of 3353.13, indicating a bearish trend. The MACD of -84.75 indicates Positive momentum. The RSI at 42.16 is Neutral, neither overbought nor oversold. The STOCH value of 42.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5108.
Bridgestone Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥579.12B | 10.49 | 15.27% | 2.93% | 2.81% | 2.78% | |
75 Outperform | ¥496.21B | 7.76 | 8.58% | 2.62% | 1.44% | -0.92% | |
70 Outperform | ¥554.59B | 12.60 | 4.89% | 2.59% | -0.26% | 129.15% | |
68 Neutral | ¥4.28T | 14.28 | 6.59% | 3.07% | 0.24% | -23.93% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥987.86B | 9.00 | 9.11% | 1.60% | 10.53% | -2.52% |
* Consumer Cyclical Sector Average
JP:5108
Bridgestone
3,323.00
325.65
10.86%
JP:5110
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Toyo Tire
3,762.00
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38.81%
JP:5101
Yokohama Rubber Co
6,264.00
2,737.48
77.63%
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.