Goodyear Tire & Rubber Co. (GT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Dorman Products, Inc.

XPEL, Inc.

Standard Motor Products, Inc.

LKQ Corp.

Goodyear Tire & Rubber Co.

Why is Goodyear Tire & Rubber Co. ?

OPERATING CASH FLOW(Y) Lowest at USD 498 MM
INTEREST COVERAGE RATIO(Q) Lowest at 267.19
RAW MATERIAL COST(Y) Grown by 18.39% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -16.88%, its profits have risen by 1699.7%

Below par performance in long term as well as near term

Along with generating -16.88% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Goodyear Tire & Rubber Co. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Goodyear Tire & Rubber Co.

-21.14%

-0.54

54.07%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.78%

EBIT Growth (5y)

83.57%

EBIT to Interest (avg)

1.53

Debt to EBITDA (avg)

4.18

Net Debt to Equity (avg)

1.47

Sales to Capital Employed (avg)

1.46

Tax Ratio

30.18%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

6.20%

ROE (avg)

6.26%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.71

EV to EBIT

12.17

EV to EBITDA

5.61

EV to Capital Employed

0.88

EV to Sales

0.58

PEG Ratio

Dividend Yield

ROCE (Latest)

7.25%

ROE (Latest)

9.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

23What is working for the Company

ROCE(HY)

Highest at 8.37%

DEBT-EQUITY RATIO (HY)

Lowest at 157.86 %

PRE-TAX PROFIT(Q)

Highest at USD 456 MM

NET PROFIT(Q)

Highest at USD 393.12 MM

EPS(Q)

Highest at USD 0.88

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 498 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 267.19

RAW MATERIAL COST(Y)

Grown by 18.39% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.1 times

OPERATING PROFIT(Q)

Lowest at USD 342 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.66 %

Here's what is working for Goodyear Tire & Rubber Co.

Pre-Tax Profit

At USD 456 MM has Grown at 228.06%

over average net sales of the previous four periods of USD 139 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 393.12 MM has Grown at 244.89%

over average net sales of the previous four periods of USD 113.98 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Pre-Tax Profit

Highest at USD 456 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 393.12 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.88

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 157.86 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at USD 274 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Goodyear Tire & Rubber Co.

Interest Coverage Ratio

Lowest at 267.19

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at USD 498 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit

Lowest at USD 342 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 7.66 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 6.1 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 18.39% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales