Goodyear Tire & Rubber Co., headquartered in Akron, Ohio, employs 71,000 and manufactures tires and rubber-related chemicals across 55 facilities in 22 countries. The company operates 950 retail outlets and offers various tire brands.
Based on our analysis, Goodyear Tire & Rubber Company is rated as undervalued with a score of 5 out of 5 stars. This rating is supported by several key financial ratios that highlight the company's strong performance relative to its industry peers.
The Price-to-Earnings (PE) Ratio for Goodyear stands at 12.23, significantly lower than the sector average of 15.61. A lower PE ratio may indicate that the stock is undervalued, suggesting that investors are not fully recognizing the company’s earnings potential.
Additionally, Goodyear’s Price-to-Book (PB) Ratio is 0.54 compared to the sector average of 1.97. This low PB ratio indicates that the stock is trading for less than its book value, which may suggest that the market undervalues the company’s assets.
Goodyear also boasts a net profit margin of 0.37, far exceeding the sector average of 0.09. A higher net profit margin indicates that Goodyear is more efficient at converting revenue into actual profit, reflecting effective cost management and operational efficiency.
The company’s Return on Equity (ROE) is 1.47, above the sector average of 1.09. This ratio shows that Goodyear is generating a good return on shareholders' equity, indicating strong financial performance.
Finally, Goodyear's Return on Assets (ROA) is 0.33, while the sector average is -0.10, demonstrating the company's ability to efficiently utilize its assets to generate profits.
This combination of favorable financial ratios suggests that Goodyear Tire & Rubber Company is undervalued relative to its peers.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary
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