Home Sectors Consumer Cyclical Present Valuation: The Goodyear Tire And Rubber Company (NASDAQ: GT)

Present Valuation: The Goodyear Tire And Rubber Company (NASDAQ: GT)

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The Goodyear Tire And Rubber Company trades as part of the consumer cyclical sector and is part of the autos industry. The company CEO is Richard J. Kramer. Goodyear Tire and Rubber Co is engaged in manufacturing of tires for various applications. The company’s products are used in automobiles, trucks, buses, and others. It also manufactures and markets rubber-related chemicals for various applications.

Previous Intraday Trading Performance:

The GT stock showed a previous change of -9.05% with an open at 19.83 and a close of 18.69. It reached an intraday high of 20.18 and a low of 18.49.

SeekingAlpha:  Goodyear Tire & Rubber Co. (GT) CEO Richard Kramer on Q4 2018 Results – Earnings Call Transcript

Liquidity:

The stock has a market cap of $4.4b with 233.0m shares outstanding, of which the float is 230.8m shares. Trading volume reached 14,085,673 shares compared to its average volume of 5,546,673 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, The Goodyear Tire And Rubber Company shares returned -11.00% and in the past 30 trading days it returned -6.91%. Over three months, it changed -9.82%. In one year it has changed -45.97% and within that year its 52-week high was 30.73 and its 52-week low was 18.49. GT stock is 1.08% above its 52 Week Low.

Our calculations show a 200 day moving average of 22.66 and a 50 day moving average of 20.98. Currently GT stock is trading -17.52% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

CNBC:  Stocks making the biggest moves midday: Goodyear Tire, Skechers & more

Earnings:

The last annual fiscal EPS for the company was reported at 1.37 that ended on 31st of December 2017, which according to the previous close, that is a PE of 13.64. Based on 5 analyst estimates, the consensus EPS for the next quarter is 0.60. The TTM EPS is 2.31, which comes to a TTM PE of 8.09. Historically, the PE high was 34.30 and the PE low was 2.70. If the stock reached its PE low, that would represent a price of 6.24, which is a decrease of -66.63%.

The following are the last four quarter reported earnings per share:
12-31-2018:  0.51
09-30-2018:  0.68
06-30-2018:  0.62
03-31-2018:  0.50

The dividend per share is currently 0.64, which is a dividend yield of 3.42%. Also, the payout ratio is 27.71%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 25.73, which means it is possibly undervalued and has a margin of safety of 27.37%

Indicators to Watch:

Based on the latest filings, there is 121.90% of institutional ownership. Short-interest is 0, which is 0.00% of shares outstanding. The short-interest ratio or days-to-cover ratio is 0.00.

The current calculated beta is 1.56

SeekingAlpha:  Goodyear Tire & Rubber Co. 2018 Q4 – Results – Earnings Call Slides

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 10.11%, return on assets is 2.76%, profit margin is 5.16%, price-to-sales is 0.41 and price-to-book is 0.91.

Company Scores:

All scores are out of six:
 4  :Valuation Score
 2  :Past Performance Score
 3  :Financial Strength Score
 0  :Future Growth Score
 3  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.