The Goodyear Tire & Rubber Company
The Goodyear Tire & Rubber Company (NASDAQ: GT) manufactures and sells a variety of rubber tires under the Goodyear brand name. Automobiles, trucks, buses, aeroplanes, motorbikes, mining equipment, farm equipment, and industrial equipment use the company's tires.
Key Highlights:
- The company had posted a decrease in cash balance to USD 1.09 billion as of December 31, 2021, against USD 1.54 billion as of December 31, 2020.
- The company reported a 41.86% rise in net sales to USD 17.48 billion in FY21 (ended December 31, 2021) compared to USD 12.32 billion in FY20.
- The company reported a sharp uptick in the bottom line to USD 780 million in FY21 vs. a loss of USD 1.25 billion in FY20.
- As of FY21, it has a debt-to-equity ratio of 1.48x, indicating a higher risk to lenders and investors.
- Inflationary pressures have recently caused stock prices to tumble. Furthermore, the company stated that this pressure might continue in the coming quarters.
- Stock is currently trading far below its crucial long-term as well as short-term 50-day and 200-day SMA support levels, indicating a bearish trend.
- Stock is currently leaning towards the lower-band of the 52-week range of USD 13.45 to USD 24.89.
Stock Recommendation:
Based on the company’s financial performance, decline in cash position, inflation risk in the tire industry, and unfavourable technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 16.02, up 1.55% as of February 14, 2022.
Three-Year Technical Price Chart (as of February 14, 2022). Analysis by Kalkine Group
*The reference data in this report has been partly sourced from REFINITIV
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