Goodyear Tire and Rubber Company
GT
$6.11
-1.13%
Goodyear Tire & Rubber Co manufactures and sells a diverse range of rubber tires under the Goodyear brand, serving automobiles, trucks, buses, aircraft, motorcycles, mining, farm, and industrial equipment. The company operates through three regional segments—Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific—with the Americas being the largest revenue contributor. As one of the world's leading tire manufacturers, Goodyear is currently navigating a challenging environment marked by declining revenue, a recent quarterly loss, and significant stock price volatility, while investors debate its turnaround potential amid cost pressures and cyclical demand fluctuations.…
GT
Goodyear Tire and Rubber Company
$6.11
Related headlines
Investment Opinion: Should I buy GT Today?
Based on the analysis, I rate Goodyear as a Hold. The stock offers a potential 22% upside to the average analyst target of $7.46, but the fundamental challenges of declining revenue and negative earnings make it a risky investment. The consensus recommendation is 'hold', reflecting the mixed sentiment among analysts.
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GT 12-Month Price Forecast
The AI assessment is neutral with medium confidence. The stock's extremely low valuation is offset by deteriorating fundamentals and high debt. The key factor is whether the company can stabilize revenue and achieve profitability. If revenue growth turns positive and margins improve, the stance would upgrade to bullish. Conversely, if losses widen and debt increases, it would downgrade to bearish.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Goodyear Tire and Rubber Company's 12-month outlook, with a consensus price target around $7.46 and implied upside of +22.1% versus the current price.
Average Target
$7.46
0 analysts
Implied Upside
+22.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$6 - $10
Analyst target range
The target price range spans from a low of $6.00 to a high of $10.00, indicating a wide spread of 66.7% from low to high, which signals high uncertainty about the company's future. The high target of $10.00 assumes a successful turnaround with margin expansion and revenue stabilization, while the low target of $6.00 prices in continued operational challenges and potential further deterioration. Recent rating actions show a mix: Deutsche Bank downgraded from Buy to Hold in May 2026, while JP Morgan maintained Overweight, and Citigroup remained Neutral, suggesting a lack of strong conviction among analysts.
Bulls vs Bears: GT Investment Factors
Goodyear presents a classic value trap versus turnaround debate. The bull case rests on an extremely low valuation (PS 0.138, PB 0.78) and potential upside to analyst targets, while the bear case is driven by accelerating revenue declines, negative earnings, and high debt. Currently, the bearish evidence is stronger given the deteriorating fundamentals and negative cash flow, but the stock's low valuation and potential cost tailwinds from lower oil prices provide a glimmer of hope. The most critical tension is whether the company can stabilize revenue and return to profitability, as this determines whether the low valuation is a bargain or a trap.
Bullish
- Extremely low valuation: PS ratio of 0.138 and PB ratio of 0.78 indicate the market prices the stock at a deep discount to sales and book value, potentially offering a margin of safety if the turnaround succeeds. EV/EBITDA of 6.62 is also modest, suggesting the market is not pricing in much earnings power.
- Analyst upside potential: The average analyst target of $7.46 implies about 22% upside from the current price of $6.11, while the high target of $10.00 suggests a 64% upside if the turnaround exceeds expectations. This indicates some analysts see meaningful recovery potential.
- Cost reduction and premium focus: Management's focus on cost reduction and premium tires is reflected in the Q4 2025 operating margin of 6.6%, up from 6.0% in Q4 2024. This strategy could improve profitability if volumes stabilize, as seen in the sequential revenue growth from Q2 to Q4 2025.
- Low oil prices benefit margins: Recent news highlights that lower oil prices directly reduce production costs and can stimulate tire replacement demand. Since oil is a major input, this could provide a tailwind to margins and volumes in the coming quarters.
Bearish
- Revenue decline accelerating: Q1 2026 revenue fell 8.75% YoY to $3.881 billion, the steepest decline in recent quarters, indicating worsening demand. This follows a trend of mixed results, with Q4 2025 revenue down 0.6% YoY and Q3 2025 down 3.7% YoY.
- Negative earnings and cash flow: Trailing EPS is -$0.68, and free cash flow is -$126 million, indicating the company is burning cash. The Q1 2026 net loss of $249 million and negative operating income of $25 million highlight ongoing profitability challenges.
- High debt burden: Debt-to-equity ratio of 2.24 is elevated, and interest expense of $95 million in Q1 2026 consumes a significant portion of operating income. This leverage increases financial risk and limits flexibility for investment or debt reduction.
- Weak relative performance: The stock has underperformed the S&P 500 dramatically, with a 1-year relative strength of -48.7% and a 6-month relative strength of -49.1%. This persistent underperformance suggests ongoing negative sentiment and potential further downside.
GT Technical Analysis
Goodyear's stock is in a pronounced downtrend over the past year, with a 1-year price change of -28.37%. The current price of $6.11 sits near the lower end of its 52-week range, at approximately 57.5% of the range (calculated from the 52-week low of $5.43 and high of $10.62). This positioning near the lows suggests bearish sentiment and potential value opportunity, but also carries the risk of a falling knife as the stock has consistently made lower lows over the past year.
Beta
1.12
1.12x market volatility
Max Drawdown
-51.6%
Largest decline past year
52-Week Range
$5-$11
Price range past year
Annual Return
-28.4%
Cumulative gain past year
| Period | GT Return | S&P 500 |
|---|---|---|
| 1m | -9.3% | +4.5% |
| 3m | +8.3% | +5.1% |
| 6m | -35.3% | +13.7% |
| 1y | -28.4% | +20.6% |
| ytd | -31.5% | +13.8% |
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GT Fundamental Analysis
Goodyear's revenue has been declining, with the most recent quarter (Q1 2026) reporting revenue of $3.881 billion, a year-over-year decrease of 8.75%. This follows a trend of mixed results: Q4 2025 revenue was $4.917 billion, Q3 2025 was $4.645 billion, and Q2 2025 was $4.465 billion, showing sequential growth but overall a downward trajectory from the $4.947 billion in Q4 2024. The revenue decline is broad-based, with the Americas segment facing headwinds, while the company's focus on cost reduction and premium tires has not fully offset volume declines.
Quarterly Revenue
$3.9B
2026-03
Revenue YoY Growth
-8.8%
YoY Comparison
Gross Margin
17.9%
Latest Quarter
Free Cash Flow
$-126000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is GT Overvalued?
Given that Goodyear's trailing twelve-month net income is negative (EPS of -$0.68), the price-to-sales (PS) ratio is the primary valuation metric. The current PS ratio is 0.138, which is extremely low, indicating the market is valuing the company at a significant discount to its sales. The forward PE ratio of 11.17 suggests that analysts expect a return to profitability, but the negative trailing earnings make the PS ratio more relevant for comparison.
PE
-1.5x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 3x~16x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
6.6x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are substantial. Goodyear's high debt-to-equity ratio of 2.24 and interest expense of $95 million in Q1 2026 strain profitability, especially with operating income of only $25 million. The company's negative free cash flow of -$126 million and trailing EPS of -$0.68 indicate it is not generating sufficient cash to cover its obligations, increasing refinancing risk. Additionally, revenue concentration in the Americas segment, which is facing headwinds, makes the company vulnerable to regional economic downturns.