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Bridgestone (BRDCY) AI Stock Analysis
Bridgestone
(Other OTC:BRDCY)
Bridgestone earns a strong overall score, primarily driven by its robust financial performance, highlighted by excellent cash flow generation and a low-leverage balance sheet. The stock's highly attractive valuation (low P/E ratio and solid dividend yield) alongside its low-volatility profile makes it a compelling defensive value play. Technical indicators support a steady, ongoing uptrend despite minor short-term consolidations.
Bridgestone (BRDCY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $32.61B
- Dividend Yield
- 2.33%
- Average Volume (3M)
- 191.95K
- Price to Earnings (P/E)
- 12.3
- Beta (1Y)
- 0.39
- Revenue Growth
- 2.80%
- EPS Growth
- 114.04%
- Country
- US
- Employees
- 115,716
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Auto - Parts
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 Dive...
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 locatio...
Bridgestone Earnings Call Summary
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.
Q1-2026 Updates
Positive Updates
Negative 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
Bridgestone demonstrates a resilient financial profile characterized by consistent revenue growth, successful margin recoveries, and an exceptionally conservative low-leverage balance sheet. A formidable recent surge in free cash flow generation and excellent cash conversion further solidify the company's strong foundational stability.
Income Statement
82Very PositiveBalance Sheet
85Very PositiveCash Flow
88Very 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
Price Trends
Market Momentum
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 12.66 is above the 20-day moving average (MA) of 12.52, above the 50-day MA of 12.45, and above the 200-day MA of 11.47, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 55.68 is Neutral, neither overbought nor oversold. The STOCH value of 29.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRDCY.
Bridgestone Peers Comparison
Overall Rating
- BRDCY83Outperform
GPC51Neutral
MNRO49Neutral
LKQ47Neutral
CPS45Neutral
GT37Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| BRDCY | 83Outperform | $30.80B | 12.30 | 11.45% | 2.33% | 2.80% | 114.04% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| GPC | 51Neutral | $16.67B | 465.00 | 0.69% | 3.49% | 5.29% | -95.50% |
| MNRO | 49Neutral | $374.36M | -7966.67 | 0.14% | 9.37% | -4.43% | 99.33% |
| LKQ | 47Neutral | $4.68B | 18.56 | 3.96% | 6.47% | -3.24% | -62.39% |
| CPS | 45Neutral | $356.63M | -6.41 | 0.17% | ― | 2.08% | -288.55% |
| GT | 37Underperform | $1.24B | -0.48 | -84.20% | ― | -4.31% | -716.40% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| BRDCY | Bridgestone Corp (ADR) | 12.66 | 1.69 | 15.38% | |
| GPC | Genuine Parts | 120.90 | 1.62 | 1.36% | |
| GT | Goodyear Tire & Rubber | 4.29 | -2.60 | -37.74% | |
| LKQ | LKQ Corporation | 18.56 | -10.58 | -36.30% | |
| MNRO | Monro Muffler Brake | 11.95 | -2.12 | -15.06% | |
| CPS | Cooper-Standard Holdings | 20.07 | -9.64 | -32.45% |
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.
Date of analysis: Sep 07, 2026