Stock Analysis · Goodyear Tire & Rubber Co (GT)
Overview
Goodyear Tire & Rubber Co (GT) is a global tire company that designs, manufactures, distributes, and sells tires for passenger cars, trucks, buses, aircraft, and off-the-road uses. Beyond selling tires, Goodyear also participates in parts of the “replacement” ecosystem (tires sold to drivers after the original tires wear out) and provides related services through its retail and service network. In practical terms, its business is tied to how much people drive, how much freight moves, and how healthy the automotive market is in regions where it operates.
In its SEC filings, Goodyear typically reports revenue across operating segments rather than “product lines.” The largest segment is generally the Americas, followed by Europe/Middle East/Africa (EMEA), and then Asia Pacific. The underlying revenue mix is primarily tire sales (replacement and original equipment), with additional contribution from services and other tire-related offerings. Exact percentages can change by year and are best read directly from the most recent annual report segment disclosures.
The simplified revenue picture is:
- Tire sales (replacement and original equipment) — the core driver of revenue
- Related services and other — retail/service, commercial services, and ancillary offerings (varies by region and period)
- Revenue by geographic operating segment — Americas (largest), EMEA, Asia Pacific (the exact split is disclosed in annual filings)
Over recent years, Goodyear’s revenue has been large (tens of billions of dollars), but profitability has moved around notably. Operating income and net income show meaningful swings, and interest expense is a visible, recurring cost—highlighting how financing costs can materially affect bottom-line results even when gross profit remains substantial.
Key Figures
| Metric | Value | Industry ⓘ |
|---|---|---|
| Date | Feb 08, 2026 | |
| Context | ||
| Sector | Consumer Cyclical | |
| Industry | Auto Parts | |
| Market Cap ⓘ | $3.02B | |
| Beta ⓘ | 1.10 | |
| Fundamental | ||
| P/E Ratio ⓘ | N/A | 25.56 |
| Profit Margin ⓘ | -9.44% | 3.38% |
| Revenue Growth ⓘ | -3.70% | 4.95% |
| Debt to Equity ⓘ | 305.26% | 66.87% |
| PEG ⓘ | 1.67 | |
| Free Cash Flow ⓘ | -$352.00M | |
Goodyear’s market capitalization is about $3.0B, and the stock’s beta of ~1.10 suggests it has historically moved somewhat more than the overall market. Recent profitability is a key weak point: the latest profit margin is about -9.4%, versus an industry median near +3.4%. Revenue growth year over year is also negative at about -3.7% compared with an industry median near +5.0%. Leverage stands out: debt-to-equity is roughly 305% versus an industry median near 67%. Free cash flow over the trailing twelve months is about -$352M, indicating the business has recently used more cash than it generated from operations after capital spending.
Growth (Low)
The tire industry is generally mature. Demand is supported by long-lived drivers such as miles driven, the size and age of the vehicle fleet, freight activity, and tire replacement cycles. That tends to create steady baseline demand over time, but it also means growth is often incremental rather than explosive. Industry dynamics can be heavily influenced by raw material costs, pricing competition, and the mix between higher-margin premium products and lower-priced commodity tires.
For Goodyear specifically, recent results point to a business still working through volatility rather than compounding steadily. The revenue trend has been soft on a year-over-year basis in several recent periods, and profitability has been inconsistent. A long-term growth narrative typically depends less on “market growth” and more on company execution—improving product mix, pricing discipline, cost structure, and the stability of cash generation across cycles.
The year-over-year revenue growth pattern shows a shift from strong growth earlier in the period to multiple quarters of contraction more recently, aligning with the view that the environment has been challenging and/or the company’s volume/mix has not been supportive in the near term.
Free cash flow has swung between positive and negative over time, including a negative trailing twelve months. For long-term business resilience, a key item to watch is whether Goodyear can produce more consistently positive free cash flow across a full cycle, since that cash can be used to reduce debt, reinvest in the business, or absorb downturns.
Risks (High)
This article is for informational purposes only and does not constitute financial advice. Some content is AI-generated. See Disclaimer
