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Bridgestone
(OTC:BRDCY)
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Rating:76Outperform
Price Target:
$14.50
▲(27.75% Upside)
Action:Reiterated
Date:08/18/26
BRDCY scores well primarily on improving financial performance (stronger margins, conservative leverage, rising ROE) and constructive technical momentum (price above key moving averages with positive MACD). Valuation is reasonable with a supportive dividend. The score is tempered by moderate cash-conversion consistency and earnings-call risks including tariff headwinds, higher costs, and notable one-off adjustment losses.
Positive Factors
Improving profitability and FY26 growth guidance
Higher margins and planned profit growth indicate that pricing, mix and cost actions are improving earnings quality. If sustained, this creates a stronger base for returns despite the cyclical nature of tire demand.
Negative Factors
Tariffs and inflation threaten margin sustainability
These pressures raise the cost base and could offset pricing, mix and productivity gains. Persistent trade barriers or inflation would make forecast margin expansion harder and could reduce earnings resilience across regions.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and FY26 growth guidance
Higher margins and planned profit growth indicate that pricing, mix and cost actions are improving earnings quality. If sustained, this creates a stronger base for returns despite the cyclical nature of tire demand.
Read all positive factors
Bridgestone (BRDCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.84B
Dividend Yield2.29%
Average Volume (3M)19.44K
Price to Earnings (P/E)12.6
Beta (1Y)0.38
Revenue Growth2.80%
EPS Growth114.04%
CountryUS
Employees115,716
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)166.20
Shares Outstanding2,668,074,000
10 Day Avg. Volume0
30 Day Avg. Volume19,442
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)1.28
Price to Sales (P/S)1.06
P/FCF Ratio10.90
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.89
Revenue Forecast (FY)$29.24B
Bridgestone Business Overview & Revenue Model
Company Description
Bridgestone Corporation, along with its global affiliates, specializes in the production and sale of a comprehensive range of tires and various rubber-based items. The company's operations are distinctly divided into two core segments: Tires and D...
How the Company Makes Money
Bridgestone makes money primarily by selling tires to original equipment manufacturers (OEMs) and to the replacement market. A major revenue stream is replacement tires, sold through wholesalers, dealers, and company-affiliated retail/service loca...
Bridgestone Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Neutral
Balanced/neutral. The company reported modest top-line growth and stronger profit growth in FY25 (notably a 15% increase in profit attributable), delivered meaningful cash generation and completed major business-rebuilding steps while announcing FY26 guidance that shows continued revenue and profit increases. However, the outlook is tempered by material headwinds — notably U.S. tariffs (JPY ~55 billion impact in FY26), inflation-driven cost pressure, sizable one-time adjustment losses (JPY 112.5 billion) and regional demand challenges (North & Latin America, parts of Asia). Management is investing for growth (product launches, higher R&D/CapEx and organizational changes) which supports a constructive medium-term view, but near-term risks and missed MBP midterm targets keep the tone cautious.Positive Updates
Consolidated FY25 financial performance
Revenue JPY 4,429.5 billion (+2% YoY), adjusted operating profit JPY 493.7 billion (+2% YoY, ≈JPY 10.4 billion), profit attributable to owners JPY 327.3 billion (+15% YoY, ≈JPY 42 billion). Adjusted operating margin improved to 11.1% (+0.4 percentage points) and ROIC improved to 8.3% (+0.2 points).
Negative Updates
U.S. tariffs are a material headwind
Tariffs reduced FY25 profit by approximately JPY 25 billion and are projected to reduce FY26 profit by approximately JPY 55 billion; management expects to partially offset via supply-chain optimization and cost reductions but impact is significant.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated FY25 financial performance
Revenue JPY 4,429.5 billion (+2% YoY), adjusted operating profit JPY 493.7 billion (+2% YoY, ≈JPY 10.4 billion), profit attributable to owners JPY 327.3 billion (+15% YoY, ≈JPY 42 billion). Adjusted operating margin improved to 11.1% (+0.4 percentage points) and ROIC improved to 8.3% (+0.2 points).
Read all positive updates
Company Guidance
Bridgestone’s FY2026 guidance targets sales of ¥4.5 trillion (+2% y/y), adjusted operating profit of ¥515 billion (+4% y/y) and net profit of ¥340 billion, implying an adjusted operating margin of 11.4% (+0.3 percentage points); management expects ~¥55 billion of U.S. tariff headwinds but plans to offset with price/mix, volume, business‑rebuilding returns and cost reductions. The company will increase R&D and CapEx (CapEx cited ~¥410 billion this year and overall R&D/CapEx to exceed the past two years), pursue segment recovery (Americas margin to the ~10% range, +0.6ppt; EMEA margin +~2ppt; APIC/India revenue and profit growth), and continue portfolio/brand initiatives. Key FY2025 reference metrics cited were revenue ¥4,429.5 billion, adjusted OP ¥493.7 billion, profit attributable ¥327.3 billion, adjusted OPM 11.1% (up 0.4ppt), ROIC 8.3% (up 0.2ppt), business‑rebuilding/cost‑reduction effects ~¥72 billion, adjustment items loss ¥112.5 billion, and free cash flow ¥435.5 billion. Capital allocation includes a ¥150 billion share buyback in FY26 (¥450 billion over FY24–26), dividend guidance of ¥125 per share post‑split (¥250 pre‑split) with an around‑50% payout ratio policy (FY26 implied ~46%), a midterm equity ratio target of ~55% and a cash reserve target of ~1.5 months of sales.Bridgestone Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.71T | 4.43T | 4.43T | 4.31T | 4.11T | 3.25T |
| Gross Profit | 1.84T | 1.66T | 1.73T | 1.65T | 1.59T | 1.32T |
| EBITDA | 912.27B | 875.92B | 819.30B | 828.30B | 736.66B | 645.30B |
| Net Income | 424.95B | 343.13B | 284.99B | 331.31B | 300.31B | 394.04B |
Balance Sheet | ||||||
| Total Assets | 5.90T | 5.75T | 5.72T | 5.43T | 4.96T | 4.57T |
| Cash, Cash Equivalents and Short-Term Investments | 801.62B | 727.32B | 718.16B | 735.39B | 534.01B | 799.31B |
| Total Debt | 899.81B | 827.01B | 727.72B | 830.16B | 767.17B | 811.14B |
| Total Liabilities | 2.06T | 2.03T | 1.94T | 2.02T | 1.95T | 1.90T |
| Stockholders Equity | 3.78T | 3.66T | 3.73T | 3.35T | 2.97T | 2.63T |
Cash Flow | ||||||
| Free Cash Flow | 479.53B | 429.20B | 211.55B | 318.50B | 13.76B | 96.55B |
| Operating Cash Flow | 744.20B | 692.46B | 548.84B | 661.43B | 268.48B | 281.54B |
| Investing Cash Flow | -229.65B | -235.87B | -255.06B | -297.72B | -338.00B | 131.70B |
| Financing Cash Flow | -459.47B | -450.74B | -343.26B | -183.66B | -364.11B | -379.32B |
Bridgestone Technical Analysis
Positive
11.35
Price Trends
11.64
Positive
11.09
Positive
11.27
Positive
Market Momentum
0.38
Positive
59.99
Neutral
13.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRDCY, the sentiment is Positive. The current price of 11.35 is below the 20-day moving average (MA) of 12.67, below the 50-day MA of 11.64, and above the 200-day MA of 11.27, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 13.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRDCY.
Bridgestone Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $31.84B | 12.61 | 11.45% | 2.60% | 2.80% | 114.04% | |
71 Outperform | $8.95B | 14.27 | 25.10% | 2.94% | 5.89% | -7.00% | |
68 Neutral | $13.49B | 32.40 | 7.37% | 1.06% | 2.17% | 111.19% | |
67 Neutral | $6.12B | 11.65 | 10.90% | 2.14% | 3.55% | 25.67% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $3.32B | -19.22 | -13.31% | 1.63% | -15.78% | -384.04% | |
46 Neutral | $1.72B | -0.66 | -84.20% | ― | -4.31% | -716.40% |
* Consumer Cyclical Sector Average
BRDCY
Bridgestone
12.88
1.47
12.93%
ALV
Autoliv
121.69
1.12
0.93%
BWA
BorgWarner
64.80
22.24
52.25%
DAN
Dana Incorporated
30.75
11.25
57.65%
GT
GoodYear Tire
5.84
-2.81
-32.49%
LEA
Lear
125.43
19.63
18.55%
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.