The Goodyear Tire & Rubber Company (GT) AI Stock Analysis
GT AI stock analysis summary
AI ResearchThe Goodyear Tire & Rubber Company (GT) is a global manufacturer and distributor of tires, retreading services, and related automotive products. The company has faced declining revenue, which dropped 3.2% in FY2025 to $18.28B alongside a net loss of -$1.72B. In addition, Goodyear carries a substantial debt load of $7.85B against $861.0M in cash and short-term investments.
- Market cap
- $1.24B
- Revenue (TTM)
- $17.69B
- P/E
- — fwd 7.6x
- 1Y return
- -37.2% S&P 500 16.8%
- Avg. target
- $7.03 63.8% vs last close
Bull case
- Analyst consensus sets a mean price target of $7.03, which is 63.8% above the stock's last close of $4.29.
- Analysts project an earnings turnaround next fiscal year with EPS estimated at $0.56, representing 184.7% growth.
- Goodyear's forward P/E of 7.6x and price-to-sales of 0.1x reflect steep discounts relative to US-listed Consumer Cyclical sector medians of 14.1x and 0.7x.
Bear case
- Goodyear carries $7.85B in total debt and $6.99B in net debt, leading to a high debt-to-equity ratio of 2.77.
- Free cash flow has remained negative in each of the past four fiscal years, including -$30.0M in FY2025.
- Full-year net losses widened significantly in FY2025 to -$1.72B, contributing to a trailing twelve-month profit margin of -14.4%.
What Goodyear Tire & Rubber does
The Goodyear Tire & Rubber Company develops, manufactures, distributes, and sells tires and related products and services globally. It produces tire lines for automobiles, trucks, buses, aircraft, motorcycles, and earthmoving and mining equipment. Products are sold under brand names including Goodyear, Cooper, Dunlop, Kelly, Debica, Sava, Fulda, Mastercraft, and Roadmaster, as well as private-label offerings. Goodyear also delivers retreading services, manufactures tread rubber, sells chemical and natural rubber products, and provides maintenance and repair services. Its distribution network spans independent dealers, regional distributors, and approximately 1,000 company-operated retail outlets worldwide.
Growth and profitability
Goodyear's revenue reached $20.80B in FY2022 before falling for three consecutive years to $18.28B in FY2025, when revenue declined 3.2%. Operating margin stood at 3.6% in FY2025, down from 6.2% in FY2021, while net margin worsened to -9.4% due to a net loss of -$1.72B. Over the trailing twelve months ending June 30, 2026, revenue was $17.69B with an operating margin of -1.0% and a profit margin of -14.4%. For the latest quarter ending June 30, 2026, quarterly revenue fell 4.8% year-over-year, while quarterly earnings grew 34.6%.
Balance sheet and cash flow
As of June 30, 2026, Goodyear held $861.0M in cash and short-term investments against total debt of $7.85B, resulting in net debt of $6.99B and a debt-to-equity ratio of 2.77. Total assets were $18.65B, shareholders' equity was $2.84B, and the current ratio stood at 1.09. In FY2025, operating cash flow was $796.0M, but capital expenditures of $826.0M led to free cash flow of -$30.0M. Share buybacks totaled $6.0M during FY2025.
Valuation and performance
Goodyear trades at a forward P/E of 7.6x, below the 14.1x median of its US-listed Consumer Cyclical peers. Its price-to-sales multiple is 0.1x compared to the peer median of 0.7x, while its EV-to-EBITDA stands at 18.5x versus the peer median of 11.1x. Over the past year, GT shares declined 37.2%, trailing the S&P 500 (SPY) gain of 16.8%. Over a 5-year period, the stock dropped 77.2% compared to an 83.0% gain for the benchmark.
What analysts expect
Wall Street analysts hold 2 Strong Buy, 1 Buy, 6 Hold, 0 Sell, and 1 Strong Sell ratings on GT. The mean price target is $7.03, representing a 63.8% premium over the last close of $4.29. For the current fiscal year ending December 31, 2026, consensus estimates project an EPS of -$0.67 on revenue of $17.48B. For the next fiscal year, 5 analysts project EPS to rebound to $0.56 on revenue of $17.91B. The company beat EPS estimates in 2 of the last 4 quarters, with its next earnings date scheduled for November 2, 2026.
Key risks and what to watch
- Short interest is elevated, with short percent of float standing at 23.3%.
- Total debt of $7.85B against $861.0M in cash leaves the balance sheet constrained given the current ratio of 1.09.
- Quarterly revenue dropped 4.8% year-over-year in the period ending June 30, 2026, marking ongoing top-line contraction.
- The stock has underperformed broader markets with a 1-year return of -37.2% and a 5-year return of -77.2%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this GT AI stock analysis
This page is an AI-written research summary of The Goodyear Tire & Rubber Company (GT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: GT income statement, GT balance sheet, GT key metrics, GT analyst forecast, GT chart. See the GT stock overview for the latest quote and news.
GT AI stock analysis FAQ
Does Goodyear pay a dividend?
Goodyear currently does not pay a dividend based on the latest financial disclosures.
What is Goodyear's debt level?
As of June 30, 2026, Goodyear had $7.85B in total debt and $861.0M in cash and short-term investments, which results in net debt of $6.99B and a debt-to-equity ratio of 2.77.
What are analysts forecasting for Goodyear's earnings?
For the fiscal year ending December 31, 2026, analysts estimate an EPS of -$0.67 on revenue of $17.48B. For the following fiscal year, analysts expect EPS to rise to $0.56 on revenue of $17.91B.
When is Goodyear's next earnings report?
Goodyear's next earnings release is scheduled for November 2, 2026.