Goodyear Tire & Rubber (GT)
NASDAQ:GT
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GoodYear Tire
(NASDAQ:GT)
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Rating:43Neutral
Price Target:
$5.50
▼(-22.10% Downside)
Action:Reiterated
Date:06/04/26
The score is driven primarily by weak financial performance (loss-making TTM margins, negative free cash flow, and high leverage) and bearish technicals (price below key moving averages with negative MACD). Earnings-call positives around cost savings and select regional strength are outweighed by heavy near-term headwinds (volume declines, large Q1 cash outflow, and higher raw-material/inflation pressures), while valuation metrics provide limited support due to negative earnings and no dividend yield provided.
Positive Factors
Goodyear Forward cost transformation
Sustained cost-transformation savings materially improve structural cost competitiveness and margin resilience. Predictable, repeatable run-rate savings reduce reliance on pricing to protect margins, support reinvestment or debt reduction, and help absorb cyclical demand troughs over multiple quarters.
Negative Factors
Negative profitability and shrinking revenue
Persistent net losses and multi-year revenue erosion weaken intrinsic earning power and the ability to self-fund investment. Structural profitability deficits limit free cash flow conversion, constrain discretionary spending and make recovery dependent on sustained demand improvement or further cost restructuring.
Read all positive and negative factors
Positive Factors
Negative Factors
Goodyear Forward cost transformation
Sustained cost-transformation savings materially improve structural cost competitiveness and margin resilience. Predictable, repeatable run-rate savings reduce reliance on pricing to protect margins, support reinvestment or debt reduction, and help absorb cyclical demand troughs over multiple quarters.
Read all positive factors
GoodYear Tire Key Performance Indicators (KPIs)
Any
Operating Income by Geography
Reveals profitability across different regions, highlighting where GoodYear Tire excels and where it might face challenges or opportunities due to regional market dynamics.
Reveals profitability across different regions, highlighting where GoodYear Tire excels and where it might face challenges or opportunities due to regional market dynamics.
Data provided by:
The Fly
The FlyGoodYear Tire (GT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.63B
Dividend YieldN/A
Average Volume (3M)8.84M
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth-3.69%
EPS Growth-958.22%
CountryUS
Employees68,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-7.24
Shares Outstanding287,438,630
10 Day Avg. Volume7,921,882
30 Day Avg. Volume8,835,591
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.78
Price to Sales (P/S)0.14
P/FCF Ratio-84.10
Enterprise Value/Market Cap5.57
Enterprise Value/Revenue0.51
Enterprise Value/Gross Profit2.73
Enterprise Value/Ebitda8.27
Forecast
1Y Price Target
$8.10Price Target Upside14.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.18
Revenue Forecast (FY)$17.51B
GoodYear Tire Business Overview & Revenue Model
Company Description
The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services worldwide. It offers various lines of tires for automobiles, trucks, buses, aircraft, motorc...
How the Company Makes Money
Goodyear primarily makes money by selling tires and related services. Its core revenue stream is tire sales across multiple end markets: (1) original equipment (OE) tires sold to vehicle manufacturers for factory-installed fitment, and (2) replace...
GoodYear Tire Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Negative
The call communicated clear operational strengths—notably Goodyear Forward savings, OE share gains and strong Asia Pacific margin expansion—but was dominated by significant near-term financial headwinds: double-digit volume declines, a Q1 non-GAAP EPS loss, a substantial free cash flow use, and material raw-material/inflation exposure tied to geopolitical uncertainty. Management emphasized disciplined price/mix and accelerated cost actions to manage through volatility, but the near-term outlook remains challenging.Positive Updates
Goodyear Forward Delivering Measurable Savings
Goodyear Forward contributed $107 million of segment operating income benefits in Q1 and is expected to deliver approximately $90 million of benefits in Q2, demonstrating continued cost transformation momentum.
Negative Updates
Revenue and Volume Declines
First-quarter sales were $3.9 billion, down about 9% year-over-year; unit volume declined 12%, driven principally by lower consumer replacement volumes in the Americas and EMEA.
Read all updates
Q1-2026 Updates
Positive
Negative
Goodyear Forward Delivering Measurable Savings
Goodyear Forward contributed $107 million of segment operating income benefits in Q1 and is expected to deliver approximately $90 million of benefits in Q2, demonstrating continued cost transformation momentum.
Read all positive updates
Company Guidance
Goodyear guided that Q2 volumes should remain down year‑over‑year but improve sequentially from Q1 (Q1 sales $3.9B, unit volume -12%, SOI $95M, non‑GAAP EPS -$0.39; free cash flow use $893M in Q1, net debt ~ $900M lower vs prior year), and management assumes Q2 consumer replacement industry demand of about -3% in North America and China and -2% in EMEA, with commercial industry assumptions of about -12% in North America and -3% to -4% in EMEA; company drivers for Q2 include roughly $90M of unabsorbed overhead headwind (also negative in Q3), price/mix positive and stepping up vs Q1, ~ $100M raw‑material benefit in Q2 (offset by ~ $200M raw‑material headwind in H2, ~ $300M vs prior forecast), ~ $90M of Goodyear Forward savings, and ~ $200M of inflation/tariffs/other headwinds in Q2 (≈$420M higher on the full year, a net ~$80M improvement vs February driven by an IEEPA adjustment of which $46M was recorded in Q1); 2026 capex was cut to $725M, the tax rate will remain unusually high, management targets a year‑end working‑capital inflow, and cash timing for the IEEPA receivable is uncertain.GoodYear Tire Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
40
Negative
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.91B | 18.28B | 18.88B | 20.07B | 20.80B | 17.48B |
| Gross Profit | 3.32B | 3.37B | 3.70B | 3.51B | 3.85B | 3.79B |
| EBITDA | 1.10B | 1.36B | 1.73B | 856.00M | 1.81B | 1.78B |
| Net Income | -2.08B | -1.72B | 70.00M | -689.00M | 202.00M | 764.00M |
Balance Sheet | ||||||
| Total Assets | 18.47B | 18.21B | 20.96B | 21.58B | 22.43B | 21.40B |
| Cash, Cash Equivalents and Short-Term Investments | 723.00M | 801.00M | 810.00M | 902.00M | 1.23B | 1.09B |
| Total Debt | 8.03B | 7.26B | 8.79B | 8.65B | 8.91B | 8.42B |
| Total Liabilities | 15.29B | 14.80B | 16.06B | 16.75B | 16.96B | 16.22B |
| Stockholders Equity | 3.00B | 3.23B | 4.76B | 4.67B | 5.30B | 5.00B |
Cash Flow | ||||||
| Free Cash Flow | -126.00M | -30.00M | -490.00M | -18.00M | -540.00M | 81.00M |
| Operating Cash Flow | 616.00M | 796.00M | 698.00M | 1.03B | 521.00M | 1.06B |
| Investing Cash Flow | 391.00M | 997.00M | -1.00B | -1.03B | -914.00M | -2.79B |
| Financing Cash Flow | -1.16B | -1.77B | 225.00M | -333.00M | 575.00M | 1.31B |
GoodYear Tire Technical Analysis
Negative
7.06
Price Trends
6.50
Negative
7.50
Negative
7.80
Negative
Market Momentum
-0.22
Negative
36.17
Neutral
18.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GT, the sentiment is Negative. The current price of 7.06 is above the 20-day moving average (MA) of 5.88, above the 50-day MA of 6.50, and below the 200-day MA of 7.80, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 36.17 is Neutral, neither overbought nor oversold. The STOCH value of 18.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GT.
GoodYear Tire Risk Analysis
GoodYear Tire disclosed 26 risk factors in its most recent earnings report. GoodYear Tire reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GoodYear Tire Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $7.21B | 13.67 | 10.41% | 2.63% | 2.86% | 17.30% | |
72 Outperform | $9.76B | 13.44 | 27.78% | 2.60% | 6.14% | 7.30% | |
71 Outperform | $15.80B | 41.19 | 6.34% | 1.24% | 2.36% | 34.03% | |
70 Outperform | $3.83B | 20.18 | 13.06% | ― | 5.04% | -10.80% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $15.43B | 40.18 | 3.90% | ― | 5.20% | -71.83% | |
43 Neutral | $1.63B | -0.79 | -58.09% | ― | -3.69% | -958.22% |
* Consumer Cyclical Sector Average
GT
GoodYear Tire
5.71
-4.93
-46.33%
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GoodYear Tire Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Goodyear Issues New Senior Notes to Refinance Debt
Positive
Jun 4, 2026
On June 1, 2026, Goodyear entered into an underwriting agreement to issue $1.05 billion of senior unsecured notes due 2032, bearing interest at 8.875% and guaranteed on an unsecured basis by key U.S. and Canadian subsidiaries, with closing expecte...
Executive/Board ChangesShareholder Meetings
Goodyear Shareholders Back Board, Pay and Auditor Choices
Positive
Apr 15, 2026
At Goodyear’s annual meeting of shareholders held on April 13, 2026, investors representing approximately 84% of outstanding common shares were present in person or by proxy, underscoring strong participation in the company’s governanc...
Business Operations and Strategy
Goodyear Launches EMEA Restructuring to Streamline Operations
Neutral
Mar 20, 2026
On March 16, 2026, Goodyear approved a rationalization plan for its Europe, Middle East and Africa operations designed to streamline its sales and distribution model and simplify business processes, resulting in a net reduction of about 400 positi...
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.