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Bridgestone Corporation (JP:5108)
:5108
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Bridgestone
(OTC:5108)
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Rating:79Outperform
Price Target:
¥7,657.00
▲(8.75% Upside)
Bridgestone's strong technical indicators and solid financial performance are the primary drivers of its stock score. The company's ability to maintain profitability and manage costs effectively, despite revenue challenges and external risks, supports a positive outlook. Valuation metrics suggest the stock is fairly valued, while the earnings call provides a balanced view of opportunities and challenges.
Positive Factors
Negative Factors
Bridgestone (5108) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$4.79T
Dividend Yield3.06%
Average Volume (3M)1.71M
Price to Earnings (P/E)24.3
Beta (1Y)0.77
Revenue Growth-0.44%
EPS Growth-41.28%
CountryJP
Employees121,464
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)59.06
Shares Outstanding713,698,240
10 Day Avg. Volume2,039,900
30 Day Avg. Volume1,709,866
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 Cap0.86
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit2.44
Enterprise Value/Ebitda5.90
Forecast
1Y Price Target
$7,400.46Price Target Upside5.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Bridgestone Business Overview & Revenue Model
Company DescriptionBridgestone Corporation, headquartered in Tokyo, Japan, is a leading global manufacturer of tires and rubber products. The company operates across multiple sectors, including automotive, industrial, and construction, producing a wide range of products such as tires for passenger cars, trucks, buses, aircraft, motorcycles, and agricultural machinery. Bridgestone also offers diversified products like industrial rubber and chemical products, sporting goods, and bicycles, making it a versatile player in the rubber industry.
How the Company Makes MoneyBridgestone primarily generates revenue through the sale of its wide range of tire products, which constitute the majority of its earnings. The company serves various markets, including original equipment manufacturers (OEM) and the replacement tire market, catering to both individual consumers and businesses. Additionally, Bridgestone earns income from its diversified product offerings, such as industrial rubber and chemical products, which are used in construction and manufacturing. The company also benefits from strategic partnerships and collaborations with automotive manufacturers and other industries, enhancing its market reach and distribution networks. Furthermore, Bridgestone invests in research and development to innovate and improve product performance, sustainability, and safety, ensuring a competitive edge in the global market.
Bridgestone Earnings Call Summary
Earnings Call Date:Aug 08, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
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. Despite challenges in revenue growth, the company maintains healthy margins and cash flow generation.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
7041.00
Price Trends
6720.22
Positive
6340.31
Positive
5960.87
Positive
Market Momentum
75.83
Positive
59.86
Neutral
78.52
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 7041 is above the 20-day moving average (MA) of 6967.75, above the 50-day MA of 6720.22, and above the 200-day MA of 5960.87, indicating a bullish trend. The MACD of 75.83 indicates Positive momentum. The RSI at 59.86 is Neutral, neither overbought nor oversold. The STOCH value of 78.52 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $632.23B | 9.56 | 14.46% | 3.11% | 2.57% | -22.34% | |
79 Outperform | $4.79T | 24.28 | 5.62% | 3.06% | -0.44% | -41.28% | |
78 Outperform | ¥1.17T | 13.20 | 13.54% | 3.01% | 4.03% | 3.94% | |
78 Outperform | ¥114.06B | 31.10 | ― | 6.31% | -1.11% | -33.77% | |
72 Outperform | $876.68B | 13.84 | 7.41% | 1.82% | 7.61% | -25.17% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $474.82B | 50.94 | -2.19% | 3.60% | -0.52% | -121.44% |
* Consumer Cyclical Sector Average
JP:5108
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31.05%
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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.