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Bridgestone Corporation (JP:5108)
:5108
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Bridgestone
(5108)
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Rating:69Neutral
Price Target:
¥7,373.00
▲(2.09% Upside)
Bridgestone's overall stock score reflects its financial stability and operational efficiency, supported by a strong equity position and healthy margins. The earnings call provided a balanced view with both positive growth prospects and challenges. Technical indicators suggest short-term bearish momentum, but the valuation remains reasonable with a solid dividend yield.
Positive Factors
Strong Market Position
As a global leader, Bridgestone benefits from a strong brand and extensive market reach, which supports long-term competitive advantages and customer loyalty.
Operational Efficiency
Sustained operational efficiency through healthy margins indicates effective cost management and profitability, which are crucial for long-term financial health.
North American Market Success
Success in the North American market, particularly in premium segments, enhances revenue stability and growth potential, supporting long-term business strength.
Negative Factors
Revenue Growth Challenges
Negative revenue growth suggests difficulties in expanding sales, which could impact future profitability and market share if not addressed.
Rising Raw Material Costs
Increased raw material costs can erode profit margins, requiring strategic adjustments to maintain profitability over the long term.
Brazilian Market Challenges
Ongoing losses in the Brazilian market highlight regional challenges that could affect overall profitability and require strategic focus to mitigate.
Bridgestone (5108) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$4.60T
Dividend Yield3.05%
Average Volume (3M)2.01M
Price to Earnings (P/E)23.3
Beta (1Y)0.78
Revenue Growth0.24%
EPS Growth-23.93%
CountryJP
Employees121,464
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)132.53
Shares Outstanding713,698,240
10 Day Avg. Volume2,716,380
30 Day Avg. Volume2,014,386
Financial Highlights & Ratios
PEG Ratio-1.00
Price to Book (P/B)0.98
Price to Sales (P/S)0.83
P/FCF Ratio14.65
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit2.44
Enterprise Value/Ebitda5.90
Forecast
1Y Price Target
$7,487.10Price Target Upside3.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Bridgestone Business Overview & Revenue Model
Company DescriptionBridgestone 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, construction and mining vehicles, industrial machinery, agricultural machinery, aircraft, motorcycles, scooters, etc.; automotive parts; retreading materials and services; automotive maintenance and repair services; tire raw materials; and other tire-related products. It also provides vehicle parts, polyurethane foam and related products, electronic precision parts, industrial materials-related products, civil engineering and construction materials and equipment, and others; commercial roofing materials and other materials; golf balls, golf clubs, and other sporting goods; bicycles, bicycle-related goods, and others, as well as finance and other services. In addition, the company offers maintenance, IT/sensing technology, and other solutions for the mining, fleet, and agricultural sectors. It has operations in Japan, the United States, China, the Asia Pacific, Europe, Russia, the Middle East, Africa, Oceania, and internationally. The company was founded in 1931 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyBridgestone generates revenue primarily through the sale of tires, which constitutes the largest portion of its earnings. The company operates in various segments, including passenger car tires, truck and bus tires, and specialty tires for agriculture and construction. In addition to tire sales, Bridgestone earns revenue from diversified products, including industrial rubber products and environmental solutions. Strategic partnerships with automotive manufacturers and distribution channels enhance their market reach and customer base. The company also invests in research and development to innovate and improve product performance, which helps maintain a competitive edge and fosters customer loyalty. Overall, Bridgestone's revenue model is supported by a combination of direct sales, partnerships, and a commitment to sustainability.
Bridgestone Earnings Call Summary
Earnings Call Date:Aug 08, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 13, 2026
Earnings Call Sentiment Neutral
The earnings call presented both positive and negative aspects. While the company reported strong revenue and profit growth, especially in North America and the solutions business, challenges persist in the Brazilian market, diversified products, and due to rising raw material costs. Overall, the highlights and lowlights seem balanced.Q2-2025 Updates
Positive Updates
Revenue and Profit Growth
Bridgestone reported a revenue of over JPY2.1 trillion and an adjusted operating profit of approximately JPY235 billion, with an adjusted operating margin of 11.1% in H1 2025, representing an increase compared to the prior year.
North American Market Success
The North American business achieved a profit increase across the entire premium tire segment, with the commercial truck and bus replacement market continuing to expand sales and improve profitability.
Cost Reduction Achievements
Global business cost reductions exceeded the plan, contributing approximately JPY35 billion in profits during Q1.
Asia Pacific, India, and China Performance
The business achieved a solid operating profit margin of 12% and reported an increase in operating profit compared to the prior year.
Solutions Business Profitability
The solutions business achieved a 145% increase in adjusted operating profit over the previous year, with a notable 149% YoY increase in the commercial B2B Solutions segment.
Negative Updates
Challenges in the Brazilian Market
The business in Brazil continues to face significant losses exceeding expectations, although there is a slight reduction in loss margin compared to Q1.
Diversified Products Business Struggles
The diversified products business maintained profitability but continues to face significant challenges, requiring urgent business rebuilding efforts.
Impact of Rising Raw Material Prices
Rising raw material prices and the time lag in price adjustments linked to raw materials have negatively impacted profits, particularly for agricultural machinery tires.
Decline in Sports and Cycle Business
Reduced sales in the United States significantly impacted the sports and cycle business, resulting in a decrease in revenue and profit.
Company Guidance
During the earnings call, Bridgestone Corporation provided guidance for fiscal year 2025, emphasizing its focus on emergency and crisis management amid global uncertainties such as US tariffs. The company reported Q1 2025 revenue exceeding JPY2.1 trillion, with an adjusted operating profit of approximately JPY235 billion and an operating margin of 11.1%. Despite challenges, strong sales in premium tires and effective cost reductions contributed JPY35 billion in profits, setting a positive tone for the year. The company maintained its fiscal guidance with an adjusted operating profit target of JPY505 billion and a profit from continuing operations of JPY253 billion, reaffirming a dividend forecast of JPY230 per share. Bridgestone aims to counter a revised JPY25 billion impact from US tariffs through strategic measures, including local production enhancements and leveraging its Bridgestone and Firestone brands for sales growth. The company is also focusing on business rebuilding in regions like Europe and Brazil and pursuing global cost reductions, projecting a cumulative effect of JPY136 billion by the end of 2025. Looking ahead, Bridgestone plans to continue enhancing its market presence and product offerings, particularly in North America and India, while aligning its strategies with changing market structures.Bridgestone Financial Statement Overview
Summary
Bridgestone demonstrates financial stability with strong equity and operational efficiency. While revenue growth has faced challenges, the company maintains healthy margins and cash flow generation. Continued focus on revenue growth and cash conversion will be key to sustaining financial health.Income Statement
Bridgestone's income statement shows a stable gross profit margin and a slight decline in net profit margin over the TTM (Trailing-Twelve-Months). Revenue growth has been negative recently, indicating potential challenges in sales. However, the company maintains healthy EBIT and EBITDA margins, suggesting operational efficiency.75
Positive
Balance Sheet
The balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating financial stability. Return on equity is moderate, showing decent profitability relative to shareholder investment. The equity ratio is robust, highlighting a solid asset base funded by equity.80
Positive
Cash Flow
Cash flow analysis reveals positive free cash flow growth and a reasonable operating cash flow to net income ratio, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio suggests room for improvement in converting earnings to cash.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.37T | 4.43T | 4.31T | 4.11T | 3.25T | 2.70T |
| Gross Profit | 1.68T | 1.60T | 1.54T | 1.50T | 1.23T | 927.06B |
| EBITDA | 697.79B | 810.06B | 775.59B | 719.59B | 628.59B | 294.76B |
| Net Income | 201.43B | 284.99B | 327.93B | 298.93B | 161.56B | -23.30B |
Balance Sheet | ||||||
| Total Assets | 5.48T | 5.72T | 5.43T | 4.96T | 4.57T | 4.19T |
| Cash, Cash Equivalents and Short-Term Investments | 690.87B | 718.16B | 724.60B | 518.90B | 787.54B | 810.55B |
| Total Debt | 795.45B | 727.72B | 830.16B | 767.17B | 811.14B | 1.01T |
| Total Liabilities | 1.94T | 1.94T | 2.02T | 1.95T | 1.90T | 1.99T |
| Stockholders Equity | 3.49T | 3.73T | 3.35T | 2.97T | 2.63T | 2.15T |
Cash Flow | ||||||
| Free Cash Flow | 341.94B | 249.55B | 318.50B | 13.76B | 96.55B | 308.83B |
| Operating Cash Flow | 616.43B | 548.84B | 661.43B | 268.48B | 281.54B | 526.95B |
| Investing Cash Flow | -273.30B | -255.06B | -297.72B | -338.00B | 131.70B | -155.38B |
| Financing Cash Flow | -242.38B | -343.26B | -183.66B | -364.11B | -379.32B | 18.08B |
Bridgestone Technical Analysis
Positive
7222.00
Price Trends
6917.36
Positive
6631.13
Positive
6215.28
Positive
Market Momentum
105.15
Negative
62.03
Neutral
62.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5108, the sentiment is Positive. The current price of 7222 is above the 20-day moving average (MA) of 6978.65, above the 50-day MA of 6917.36, and above the 200-day MA of 6215.28, indicating a bullish trend. The MACD of 105.15 indicates Negative momentum. The RSI at 62.03 is Neutral, neither overbought nor oversold. The STOCH value of 62.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $642.70B | 8.85 | 15.27% | 3.11% | 2.81% | 2.78% | |
74 Outperform | $1.32T | 13.79 | 13.69% | 2.81% | 6.53% | 11.14% | |
71 Outperform | ¥106.14B | 31.31 | ― | 6.01% | -4.26% | 17.85% | |
70 Outperform | $880.78B | 13.90 | 9.11% | 1.69% | 10.53% | -2.52% | |
69 Neutral | $4.60T | 23.34 | 6.59% | 3.05% | 0.24% | -23.93% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $482.57B | -33.33 | 4.89% | 2.99% | -0.26% | 129.15% |
* Consumer Cyclical Sector Average
JP:5108
Bridgestone
7,222.00
2,130.94
41.86%
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4,172.00
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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.