Goodyear Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:4em;'>GT</div>
GT -- USA Stock  

USD 7.42  0.04  0.54%

While some millenniums are indifferent towards consumer cyclical space, it makes sense to review The Goodyear Tire. What exactly are Goodyear Tire shareholders getting in August? Is the entity valuation sustainable? Here I will cover a perspective on valuation of Goodyear to give you a better outlook on taking a position in this stock.
Published over a month ago
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Will Goodyear Tire (NASDAQ:GT) price increase in August 2020?
Goodyear Tire reports 7.41 B of total liabilities with total debt to equity ratio (D/E) of 2.0, which is normal for its line of buisiness. The entity has a current ratio of 1.15, indicating that it is not liquid enough and may have problems paying out its debt commitments in time. We provide advice to complement the regular expert consensus on Goodyear Tire. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
We determine the current worth of The Goodyear Tire using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Goodyear Tire based exclusively on its fundamental and basic technical indicators. By analyzing Goodyear Tire's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Goodyear Tire's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Goodyear Tire. We calculate exposure to Goodyear Tire's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Goodyear Tire's related companies.

Goodyear Tire Investment Alerts

Goodyear investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring The Goodyear Tire performance across your portfolios.Please check all investment alerts for Goodyear

Goodyear Tire Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Goodyear value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Goodyear Tire competition to find correlations between indicators driving the intrinsic value of Goodyear.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Goodyear Tire, but it might be worth checking our own buy vs. sell analysis

What is driving Goodyear Tire Investor Appetite?

The firm generated the yearly revenue of 14.2 B. Annual Net Loss to common stockholders was (869 M) with gross profit of 3.15 B.
 2017 2018 2019 2020 (projected)
Interest Expense335 M321 M340 M387.16 M
Gross Profit3.7 B3.51 B3.14 B3.81 B

Margins Breakdown

Goodyear profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Goodyear Tire itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Goodyear Tire profit margins.
Operating Margin4.95
EBITDA Margin0.0995
Gross Margin0.23
Profit Margin(0.020526)


Goodyear Tire Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. Also, Goodyear Tire Average Assets is increasing over the last 8 years.

Goodyear Tire bad events are not so bad

Newest potential upside is at 10.97. As of the 31st of July, Goodyear Tire retains the Risk Adjusted Performance of 0.1571, market risk adjusted performance of 0.1994, and Downside Deviation of 5.27. Goodyear Tire technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Goodyear Tire, which can be compared to its competitors. Please check out Goodyear Tire variance, as well as the relationship between the value at risk and skewness to decide if Goodyear Tire is priced fairly, providing market reflects its last-minute price of 9.71 per share. Given that The Goodyear Tire has jensen alpha of 0.14, we strongly advise you to confirm Goodyear Tire's regular market performance to make sure the company can sustain itself at a future point.

Whereas other companies under the auto parts industry are still a bit expensive, Goodyear Tire may offer a potential longer-term growth to private investors. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of Goodyear as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Goodyear Tire.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of The Goodyear Tire. Please refer to our Terms of Use for any information regarding our disclosure principles.

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