Bridgestone (5108) AI Stock Analysis

• Market Cap: ¥4.76T
• Dividend Yield: 3.07%
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.83
• Revenue Growth: 0.24%
• EPS Growth: -23.93%
• Country: JP
• Employees: 121,464
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 94.63
• Shares Outstanding: 1,334,037,000
• 10 Day Avg. Volume: 2,716,380
• 30 Day Avg. Volume: 2,014,386
• PEG Ratio: 0.78
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 1.06
• P/FCF Ratio: 11.42
• 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: ¥3,859.24
• Price Target Upside: 1.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 299.03
• Revenue Forecast (FY): ¥4.54T

• Rating: 72 Outperform
• Price Target: ¥3,962.00 ▲(4.37% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid financial performance (stable margins, conservative leverage, and strong recent operating/free cash flow), partially offset by only moderate technical setup and a valuation profile where a decent dividend yield is balanced by a relatively higher P/E.

Positive Factors

Conservative leverage and strong balance sheet

Bridgestone's low debt-to-equity (~0.20–0.31 since 2021) provides durable financial flexibility to fund capex, absorb auto-cycle downturns, and pursue strategic investments or dividends without stressing liquidity. This conservatism supports long-term resilience through industry cycles and M&A optionality.

Stable revenue base and mid-cycle margins

A persistent revenue floor above JPY 4.1T and steady mid-30% gross margins with ~10–12% operating margins indicate an entrenched competitive position and pricing power in both OEM and replacement channels. Margin stability underpins predictable earnings and supports investment in premium products and services.

Strong absolute cash generation with improving FCF

Consistently high operating cash flow and a notable free-cash-flow improvement in 2025 strengthen Bridgestone's capacity to fund R&D, service the business, pay dividends, and invest in fleet/telematics offerings. Reliable cash generation supports strategic initiatives and long-term shareholder returns.

Negative Factors

Modest revenue growth and weak momentum

Recent top-line stagnation and negative revenue growth signal limited near-term demand expansion and constrain organic earnings leverage. With automotive production and replacement cycles key drivers, sluggish growth reduces scope for margin expansion and heightens reliance on cost pass-through or non-tyre solutions to drive future EPS gains.

Variable cash conversion and working-capital volatility

While absolute cash flow is strong, inconsistent free-cash-flow conversion versus net income reflects working-capital swings and investment timing. This variability can constrain steady capital returns, complicate long-range planning, and raise sensitivity to operational shocks or commodity-driven inventory and receivables movements.

Divestiture reduces vertical manufacturing exposure

Selling the MXCB carbon facility is a structural change that reduces Bridgestone's direct control over a key tire input (carbon black). That can raise long-term exposure to supplier pricing and reliability, potentially increasing input-cost pass-through needs and reducing vertical integration benefits unless offset by supply agreements.

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, 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 Money

Bridgestone 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 Financial Statement Overview

Summary

Overall fundamentals are solid: revenue has stayed above ~JPY 4.1T since 2022 with stable mid-cycle margins (gross margin mid-30s; operating margin ~10–12%). Leverage is conservative (debt-to-equity mostly ~0.20–0.31 since 2021), supporting resilience. Main constraints are modest recent growth and somewhat variable cash flow conversion despite strong absolute operating/free cash flow.

Income Statement

Revenue recovered strongly from 2020 and has remained above JPY 4.1T since 2022, with 2025 showing flat-to-slight growth versus 2024. Profitability is solid and relatively stable for the industry: gross margin has held in the mid-30% range and operating margin around ~10–12% across 2021–2025, supporting consistent earnings (2020 was the clear outlier loss year). The main weakness is growth momentum—recent revenue growth is low and profits can be somewhat cyclical, evidenced by the 2024 net income dip versus 2023.

Balance Sheet

The balance sheet looks conservatively levered with debt generally well below equity (debt-to-equity mostly ~0.20–0.31 since 2021), providing flexibility for an auto-parts cycle. Equity has trended higher versus 2020, and asset levels have been steady-to-growing, indicating improving financial footing post-pandemic. A watch item is the uptick in total debt in 2025 versus 2024, but leverage remains manageable overall.

Cash Flow

Cash generation is strong in absolute terms in recent years, with operating cash flow around JPY 0.55–0.66T in 2023–2025 and free cash flow improving meaningfully in 2025 versus 2024. However, conversion is not consistently tight: free cash flow has run at only roughly half to two-thirds of net income in 2023–2025 and was especially weak in 2022, pointing to working-capital or investment-driven volatility. Overall cash flow quality is good, but variability keeps it from scoring higher.

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	718.16B	724.60B	518.90B	787.54B
Total Debt	1.10T	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	318.50B	13.76B	96.55B
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

• Technical Analysis Sentiment: Positive
• Last Price: 3796.00
• 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:5108, the sentiment is Positive. The current price of 3796 is above the 20-day moving average (MA) of 3680.80, above the 50-day MA of 3578.19, and above the 200-day MA of 3311.58, indicating a bullish trend. The MACD of 44.32 indicates Negative momentum. The RSI at 62.87 is Neutral, neither overbought nor oversold. The STOCH value of 74.90 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5105	81 Outperform	¥702.42B	11.68	15.27%	2.93%	2.81%	2.78%
7282	75 Outperform	¥577.78B	13.50	8.26%	2.62%	1.44%	-0.92%
5108	72 Outperform	¥4.76T	15.43	6.59%	3.07%	0.24%	-23.93%
5110	70 Outperform	¥676.54B	14.52	4.89%	2.59%	-0.26%	129.15%
5101	69 Neutral	¥1.18T	11.79	9.11%	1.60%	10.53%	-2.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%