Company DescriptionThe Yokohama Rubber Co., Ltd. manufactures and sells tires in Japan, the United States, India, China, the Philippines, and internationally. It operates through Tires, Multiple Business (MB), and Alliance Tire Group (ATG) segments. The Tires segment offers tires for passenger cars and light trucks, trucks and buses, construction and mining equipment, and motorsports, as well as tire tubes, aluminum alloy wheels, and other peripheral products under the ADVAN, BluEarth, iceGUARD, GEOLANDAR, YOKOHAMA, ALLIANCE, GALAXY, PRIMEX, and AICHI brand names. The MB segment provides conveyor belts, rubber plates, various hoses, marine fenders, oil spill containment booms, marine hoses, rubber molded products, air springs, highway joints, rubber support, anti-seismic laminated rubber sheets for buildings, sound- and vibration-proof materials, and aerospace products comprise aircraft fixtures and components. It also offers adhesives and sealants under the Hamatite brand. The ATG segment provides tires for agricultural, industrial, construction, and forestry machinery. It also markets golf equipment and services under the PRGR brand. The Yokohama Rubber Co., Ltd. was incorporated in 1917 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Yokohama Rubber Co Financial Statement Overview

Summary

Yokohama Rubber Co shows strong revenue growth and stable gross margins. However, the net profit margin and operating cash flow efficiency have declined, indicating a need for better management of non-operational costs and cash flow efficiency. The balance sheet is solid with balanced leverage and a strong equity base.

Income Statement

Very Positive

Yokohama Rubber Co demonstrated robust revenue growth with a 13.4% increase in total revenue from 2023 to 2024 and a further 2.1% increase in TTM. The gross profit margin remained stable around 35% over recent periods, indicating consistent cost management. However, the net profit margin decreased from 6.8% in 2024 to 5.7% in TTM, suggesting potential increases in non-operational expenses or taxes.

Balance Sheet

Positive

The company maintains a reasonable debt-to-equity ratio of 0.69 in TTM, indicating balanced leverage use. The return on equity decreased slightly from 8.38% in 2024 to 7.5% in TTM, reflecting moderate efficiency in generating profits from equity. The equity ratio improved to 46.9% in TTM, showcasing a solid asset base funded by shareholder equity.

Cash Flow

Positive

Operating cash flow decreased from 94.5 billion yen in 2024 to 83.98 billion yen in TTM, indicating a potential decline in cash generation efficiency. The free cash flow to net income ratio dropped to 0.1 in TTM from 0.23 in 2024, suggesting less cash is available after capital expenditures. This could point to increased capital investments or operational cash flow challenges.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.12T	1.09T	985.33B	860.48B	670.81B	570.57B
	Gross Profit
394.80B	389.75B	325.89B	287.67B	223.63B	180.16B
	EBIT
116.68B	119.16B	99.13B	68.85B	83.64B	36.41B
	EBITDA
188.29B	186.93B	172.61B	119.13B	109.23B	80.31B
	Net Income Common Stockholders
63.65B	74.92B	67.23B	45.92B	65.50B	26.31B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
89.36B	145.27B	97.61B	79.17B	47.51B	33.45B
	Total Assets
1.81T	1.74T	1.60T	1.15T	984.99B	860.37B
	Total Debt
584.90B	438.02B	469.36B	238.70B	177.24B	207.82B
	Net Debt
495.54B	301.81B	371.74B	163.13B	134.71B	177.06B
	Total Liabilities
949.87B	831.53B	851.66B	527.96B	452.03B	437.51B
	Stockholders Equity
848.38B	893.97B	739.57B	614.42B	525.31B	415.55B
Cash Flow		Free Cash Flow
6.35B	17.53B	101.02B	-15.66B	32.00B	47.01B
	Operating Cash Flow
83.98B	94.50B	159.74B	39.23B	68.30B	78.29B
	Investing Cash Flow
-155.37B	-1.39B	-344.01B	-46.36B	-4.48B	-27.86B
	Financing Cash Flow
67.18B	-63.21B	205.76B	35.17B	-55.20B	-46.55B

Yokohama Rubber Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YORUF		$3.82B	9.38	7.48%	2.61%	―	―
Sector *	62 Neutral	$6.88B	11.32	2.90%	3.87%	2.70%	-24.57%
BRDCF		$28.71B	15.74	7.60%	3.31%	―	―
SMTUF		$2.99B	52.12	-1.90%	3.30%	―	―
TOTTF		$3.20B	5.90	14.57%	4.76%	―	―
5189	79 Outperform	¥3.66B	8.39		3.52%	-8.73%	-41.93%
5161	69 Neutral	¥97.87B	24.12		4.23%	2.32%	-21.60%

* Consumer Cyclical Sector Average

Performance Comparison

YORUF

Yokohama Rubber Co

24.10

0.77

3.30%

BRDCF

Bridgestone

41.18

0.78

1.93%

SMTUF

Sumitomo Rubber Industries

11.40

0.84

7.95%

TOTTF

Toyo Tire

16.38

-0.57

-3.36%

JP:5161

Nishikawa Rubber Co., Ltd.

2,472.00

1,546.99

167.24%

JP:5189

Sakura Rubber Co., Ltd.

1,848.00

-188.91

-9.27%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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