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Bridgestone
(5108)
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Rating:75Outperform
Price Target:
¥4,724.00
▲(27.13% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by solid financial performance (improving margins and low leverage), partially offset by uneven cash-flow conversion. Technicals are supportive but look overbought, while valuation is reasonable with a ~3% dividend yield. Earnings call takeaways are cautiously constructive, tempered by tariff headwinds and higher planned expenses.
Positive Factors
Improving profitability and margins
Sustained margin expansion reflects stronger pricing, mix towards higher‑margin products and operational gains. Higher gross and EBIT margins underpin durable cash generation and support reinvestment in R&D, brands and capex, improving the firm's ability to fund growth and returns over multiple cycles.
Negative Factors
Uneven cash-flow conversion
Earnings do not consistently convert to operating cash, creating structural volatility in available liquidity. This undermines the sustainability of investments and payouts during downturns, forcing reliance on balance sheet flexibility or asset sales when cash conversion weakens in adverse cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and margins
Sustained margin expansion reflects stronger pricing, mix towards higher‑margin products and operational gains. Higher gross and EBIT margins underpin durable cash generation and support reinvestment in R&D, brands and capex, improving the firm's ability to fund growth and returns over multiple cycles.
Read all positive factors
Bridgestone (5108) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.45T
Dividend Yield2.72%
Average Volume (3M)2.01M
Price to Earnings (P/E)13.3
Beta (1Y)0.84
Revenue Growth6.06%
EPS Growth120.85%
CountryJP
Employees115,716
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)324.19
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
¥3,701.43Price Target Upside-0.39% Downside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)280.53
Revenue Forecast (FY)¥4.65T
Bridgestone Business Overview & Revenue Model
Company Description
Bridgestone Corporation, along with its subsidiaries, operates as a global manufacturer and vendor of tires and diverse rubber products. The company's business activities are segmented into two core divisions: Tires and Diversified Products. Under...
How the Company Makes Money
Bridgestone primarily makes money by manufacturing and selling tires through two main channels: (1) original equipment (OE) supply to vehicle manufacturers for factory-installed tires and (2) replacement (aftermarket) sales to consumers and commer...
Bridgestone Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but controlled picture: Bridgestone reported modest year‑on‑year revenue and profit improvement, strong cash generation and meaningful cost-reduction gains, and signaled a disciplined shift from rebuilding to ‘growth with quality’ supported by product launches, higher R&D/CapEx and an executive restructure to strengthen technology and manufacturing. However, material headwinds remain — notably U.S. tariffs (larger projected FY26 impact), missed midterm MBP targets, regional weaknesses (Latin America, sales decline in North America), a prior cyber incident and sizable one-time rebuilding/adjustment losses — and the company plans higher operating spend to fund growth. On balance, positive operational and financial improvements are roughly offset by persistent external and structural challenges, leaving overall momentum cautious but constructive.Positive Updates
Consolidated Revenue and Profit Growth (FY2025)
Consolidated revenue JPY 4,429.5 billion and adjusted operating profit JPY 493.7 billion; consolidated revenue/profit improved year-on-year (overall ~+2% vs prior year reported) and adjusted operating margin improved to 11.1% (up 0.4ppt excluding FX).
Negative Updates
U.S. Tariffs: Significant Earnings Headwind
Impact of U.S. tariffs reduced FY25 profit by ~JPY 25 billion and is projected to reduce profits by ~JPY 55 billion in FY26 (longer-duration/full-year effect), requiring offset measures.
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Q1-2026 Updates
Positive
Negative
Consolidated Revenue and Profit Growth (FY2025)
Consolidated revenue JPY 4,429.5 billion and adjusted operating profit JPY 493.7 billion; consolidated revenue/profit improved year-on-year (overall ~+2% vs prior year reported) and adjusted operating margin improved to 11.1% (up 0.4ppt excluding FX).
Read all positive updates
Company Guidance
Bridgestone’s FY2026 guidance targets revenue of JPY 4.5 trillion (≈+2% YoY from JPY 4,429.5bn in FY2025), adjusted operating profit of JPY 515 billion (≈+4% YoY from JPY 493.7bn), profit attributable of JPY 340 billion and an adjusted OPM of 11.4% (vs. 11.1% in FY2025; FY25 ROIC 8.3%). Management expects U.S. tariffs to cut profits by ~JPY 55 billion in FY26 (vs. ~JPY 25 billion in FY25), plans CapEx of ~JPY 410 billion with R&D/CapEx above the prior two years, and assumes continued business cost reductions (FY25 benefit ≈JPY 72 billion) and productivity gains; FY25 free cash flow was JPY 435.5 billion. Capital policy: dividend guidance JPY 125 per share post‑split (JPY 250 pre‑split) for FY26 with a ~50% payout‑ratio target, a FY26 share buyback of JPY 150 billion (JPY 450 billion total FY24–26), a mid‑term equity ratio target ~55% and cash reserves ≈1.5 months of sales.Bridgestone Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.63T | 4.43T | 4.43T | 4.31T | 4.11T | 3.25T |
| Gross Profit | 1.81T | 1.58T | 1.60T | 1.54T | 1.50T | 1.23T |
| EBITDA | 862.64B | 729.19B | 810.06B | 775.59B | 719.59B | 628.59B |
| Net Income | 417.99B | 327.26B | 284.99B | 327.93B | 298.93B | 161.56B |
Balance Sheet | ||||||
| Total Assets | 5.90T | 5.75T | 5.72T | 5.43T | 4.96T | 4.57T |
| Cash, Cash Equivalents and Short-Term Investments | 791.73B | 713.81B | 706.73B | 724.60B | 518.90B | 787.54B |
| Total Debt | 899.81B | 827.01B | 727.72B | 830.16B | 767.17B | 811.14B |
| Total Liabilities | 2.06T | 2.03T | 1.94T | 2.02T | 1.95T | 1.90T |
| Stockholders Equity | 3.78T | 3.66T | 3.73T | 3.35T | 2.97T | 2.63T |
Cash Flow | ||||||
| Free Cash Flow | 465.15B | 409.35B | 249.55B | 378.98B | 47.19B | 120.50B |
| Operating Cash Flow | 723.14B | 660.44B | 548.84B | 661.43B | 268.48B | 281.54B |
| Investing Cash Flow | -224.41B | -224.97B | -255.06B | -297.72B | -338.00B | 131.70B |
| Financing Cash Flow | -451.69B | -429.90B | -343.26B | -183.66B | -364.11B | -379.32B |
Bridgestone Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥581.89B | 9.90 | 12.94% | 3.38% | 3.55% | -9.71% | |
78 Outperform | ¥606.69B | 9.56 | 10.96% | 2.75% | 12.73% | 81.53% | |
75 Outperform | ¥5.45T | 13.31 | 9.60% | 3.16% | 6.06% | 120.85% | |
72 Outperform | ¥633.83B | 10.25 | 8.07% | 3.93% | 4.82% | ― | |
70 Outperform | ¥1.18T | 10.57 | 11.53% | 1.96% | 12.75% | 124.90% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
JP:5108
Bridgestone
4,320.00
1,123.19
35.13%
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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.