# Goodyear Tire & Rubber (GT.US)

Canonical: https://gigainvestors.com/s/GT

Analysis as of: 2026-10-15T06:34:37.288Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $4.42 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 4

- Operating margin variation: 0.62×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.09×

- FY2018: 0.08×

- FY2019: 0.06×

- FY2020: -0.02×

- FY2021: 0.06×

- FY2022: 0.05×

- FY2023: 0.03×

- FY2024: 0.05×

- FY2025: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 5.7%

- ROIC, second-lowest year: 4.7%

- Typical minus recent gross margin: 2.0 pp

- Typical gross margin (annual median): 20.5%

- Recent gross margin (lower of latest and 3-year median): 18.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.2%

- ROIC including acquisitions, ten-year median: 0.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 21.8%

- FY2017: 10.6%

- FY2018: 9.1%

- FY2019: 5.7%

- FY2020: -2.1%

- FY2021: 9.6%

- FY2022: 5.7%

- FY2023: 4.7%

- FY2024: 5.0%

- FY2025: 5.3%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$1.3B

- Net income, five-year total: -$1.4B

- Return on incremental invested capital: -92.1%

- Working capital / revenue, annual change: -0.2 pp

- Working capital / revenue, change between three-year averages: -1.9 pp

- Working capital / revenue, final three-year average: 10.7%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $764M

- FY2022: $202M

- FY2023: -$738M

- FY2024: -$69M

- FY2025: -$1.5B

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 10.6% vs 5.0%

- Per-share earnings: 1.37 to -2.42 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.5%

- Ordinary dilution, 5-year annual growth: 4.2%

- Market cap gain: -$5.3B

- Cumulative retained earnings: -$2.4B

- Diluted shares, 10-year annual growth: 0.5%

- Diluted shares, 5-year annual growth: 4.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$3.79

- Per-share value, starting three-year median: $1.37

- Per-share value, ending three-year median: -$2.42

- Buybacks concentrated in cheaper years (correlation): 0.67

- Average buyback yield: 2.1%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: $1.6B

- Cumulative net income, 10 years: -$636M

- ROIC, first three-year median: 10.6%

- ROIC, last three-year median: 5.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $4.75

- FY2017: $1.37

- FY2018: $2.90

- FY2019: -$1.33

- FY2020: -$5.36

- FY2021: $2.89

- FY2022: $0.71

- FY2023: -$2.42

- FY2024: $0.24

- FY2025: -$5.98

### accounting: pass

- Sloan accruals: -13.8%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 3.5%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.22×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.5%

- FY2017: -4.8%

- FY2018: -1.3%

- FY2019: -8.8%

- FY2020: -14.4%

- FY2021: -1.4%

- FY2022: -1.4%

- FY2023: -8.0%

- FY2024: -3.0%

- FY2025: -13.8%

## Holders

- [David Tepper](https://gigainvestors.com/AM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 79% since Dec 2021 · "Goodyear Q2 Earnings Miss Expectations on Volume Pressure" (finance.yahoo.com, Aug 2026) · sales -3.2%

Story as of 2026-10-16T09:58:50.979Z; price observation 2026-10-15.

- 2025-08-08: Goodyear signals persistent market headwinds and delays in margin targets amid global trade disruption ([seekingalpha.com](https://seekingalpha.com/news/4482855-goodyear-signals-persistent-market-headwinds-and-delays-in-margin-targets-amid-global-trade?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-05: Goodyear (GT) Soars 7.85 as Restructuring to Slash $2.2-Billion Debt ([finance.yahoo.com](https://finance.yahoo.com/news/goodyear-gt-soars-7-85-113943160.html))

- 2026-04-09: Why Goodyear (GT) Is Up 6.0% After Debt-Reducing Divestitures And Premium Tire Capacity Expansion ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/why-goodyear-gt-6-0-110952843.html))

- 2026-05-08: Goodyear swings to loss as volumes and costs weigh on first quarter ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/goodyear-swings-loss-volumes-costs-100019408.html))

- 2026-08-10: Goodyear Q2 Earnings Miss Expectations on Volume Pressure ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/goodyear-q2-earnings-miss-expectations-142200981.html))

### Sales · FY2024–2025

sales -3.2%; source https://www.sec.gov/Archives/edgar/data/42582/000162828026006708/gt-20251231.htm; observed 2026-02-10.

- FY2016: $15B 

- FY2017: $15B 

- FY2018: $15B 

- FY2019: $15B 

- FY2020: $12B 

- FY2021: $17B 

- FY2022: $21B 

- FY2023: $20B 

- FY2024: $19B 

- FY2025: $18B 

### Gross margin · FY2025

gross margin 18.4%; source https://www.sec.gov/Archives/edgar/data/42582/000162828026006708/gt-20251231.htm; observed 2026-02-10.

- FY2016: 27.9% 

- FY2017: 24.0% 

- FY2018: 22.7% 

- FY2019: 21.3% 

- FY2020: 16.1% 

- FY2021: 21.7% 

- FY2022: 18.5% 

- FY2023: 17.5% 

- FY2024: 19.6% 

- FY2025: 18.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in auto parts; annual sales are USD 18.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/42582/000162828026006708/gt-20251231.htm (filed 2026-02-10); FY2025: revenue 18280000000; grossProfit 3371000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); GT.US: The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers various lines of rubber tires for automobiles, trucks, buses, aircraft, motorcycles, farm implements, and other applications under the Goodyear, Cooper, Kelly, Mastercraft, Roadmaster, Debica, Sava, Fulda, Mickey Thompson, Avon, and Remington brands, as well as various house brands and private-label brands. It also provides retread truck and aviation tires; miscellaneous other products and services; automotive maintenance and repair services under the Goodyear or Just Tires names; and new tires, retreads, mechanical service, preventive maintenance, and roadside assistance to trucking fleets, as well as manufactures and sells tread rubber and other tire retreading materials. In addition, the company operates approximately 750 retail outlets, which offer products for sale to consumer and commercial customers, as well as repair and other services. Further, it sells its products and installation services online through its websites, www.goodyear.com for consumer tires and www.goodyeartrucktires.com for commercial tires; and automotive repair and maintenance items, automotive equipment and accessories, and other items to dealers and consumers. The company sells its products through a network of independent dealers, regional distributors, retail outlets, and retailers. The Goodyear Tire & Rubber Company was incorporated in 1898 and is headquartered in Akron, Ohio.

### Why customers stay

Margins ranged from 17.5% to 19.6% during 2023–25; it earns 5.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2023: grossProfit / revenue = 17.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2024: grossProfit / revenue = 19.6%.

- Source: https://www.sec.gov/Archives/edgar/data/42582/000162828026006708/gt-20251231.htm (filed 2026-02-10); FY2025: grossProfit / revenue = 18.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); 10-year return on capital observations [[2016,0.2180550546940738],[2017,0.10601564297216472],[2018,0.09093190845391201],[2019,0.05665391156462585],[2020,-0.020532300387354742],[2021,0.09596539242517878],[2022,0.05723953546662211],[2023,0.047193570569021834],[2024,0.05024787832955214],[2025,0.053398299813394154]]; median 0.05694672351562398. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 6 of 10 years; bought back USD 6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2016: growth capex 0; upkeep 996000000; owner earnings 995000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2017: growth capex 93299638.53840327; upkeep 787700361.4615967; owner earnings 339299638.5384033. Growth capex / owner earnings = 0.27497712328934076.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2018: growth capex 33000000; upkeep 778000000; owner earnings 693000000. Growth capex / owner earnings = 0.047619047619047616.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2021: growth capex 98000000; upkeep 883000000; owner earnings 764000000. Growth capex / owner earnings = 0.12827225130890052.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); FY2022: growth capex 97000000; upkeep 964000000; owner earnings 202000000. Growth capex / owner earnings = 0.4801980198019802.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); Dividend observations: [[2016,82000000],[2017,110000000],[2018,138000000],[2019,148000000],[2020,37000000],[2021,0],[2022,0],[2023,10888000000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/42582/000162828026006708/gt-20251231.htm (filed 2026-02-10); FY2025: cash repurchases 6000000 USD.

### Are managers owners

Insiders own 4.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); GT.US SharesStats.PercentInsiders = 4.051 percentage points; cache date 2026-10-15.

### What the price says

The price is 0.1 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-10); Closing price 4.42 USD; reporting-to-trading FX 1; FY2025 annual sales per share 63.47222222222222; price multiple 0.069636761487965. FY2025 cash earnings/share -5.215277777777778. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $29.03 per share

- 2016-11: $30.69 per share

- 2016-12: $30.87 per share

- 2017-01: $32.39 per share

- 2017-02: $35.05 per share

- 2017-03: $36.00 per share

- 2017-04: $36.23 per share

- 2017-05: $32.22 per share

- 2017-06: $34.96 per share

- 2017-07: $31.51 per share

- 2017-08: $30.30 per share

- 2017-09: $33.25 per share

- 2017-10: $30.59 per share

- 2017-11: $32.37 per share

- 2017-12: $32.31 per share

- 2018-01: $34.82 per share

- 2018-02: $28.94 per share

- 2018-03: $26.58 per share

- 2018-04: $25.11 per share

- 2018-05: $24.43 per share

- 2018-06: $23.29 per share

- 2018-07: $24.21 per share

- 2018-08: $22.69 per share

- 2018-09: $23.39 per share

- 2018-10: $21.06 per share

- 2018-11: $23.16 per share

- 2018-12: $20.41 per share

- 2019-01: $21.19 per share

- 2019-02: $19.78 per share

- 2019-03: $18.15 per share

- 2019-04: $19.21 per share

- 2019-05: $13.41 per share

- 2019-06: $15.30 per share

- 2019-07: $13.73 per share

- 2019-08: $11.47 per share

- 2019-09: $14.41 per share

- 2019-10: $15.87 per share

- 2019-11: $15.99 per share

- 2019-12: $15.56 per share

- 2020-01: $13.13 per share

- 2020-02: $9.69 per share

- 2020-03: $5.82 per share

- 2020-04: $7.17 per share

- 2020-05: $7.61 per share

- 2020-06: $8.95 per share

- 2020-07: $9.01 per share

- 2020-08: $9.60 per share

- 2020-09: $7.67 per share

- 2020-10: $8.28 per share

- 2020-11: $10.42 per share

- 2020-12: $10.91 per share

- 2021-01: $10.55 per share

- 2021-02: $16.81 per share

- 2021-03: $17.57 per share

- 2021-04: $17.21 per share

- 2021-05: $19.83 per share

- 2021-06: $17.15 per share

- 2021-07: $15.71 per share

- 2021-08: $15.84 per share

- 2021-09: $17.70 per share

- 2021-10: $19.12 per share

- 2021-11: $20.11 per share

- 2021-12: $21.32 per share

- 2022-01: $20.73 per share

- 2022-02: $15.49 per share

- 2022-03: $14.29 per share

- 2022-04: $13.32 per share

- 2022-05: $12.92 per share

- 2022-06: $10.71 per share

- 2022-07: $12.28 per share

- 2022-08: $14.03 per share

- 2022-09: $10.09 per share

- 2022-10: $12.70 per share

- 2022-11: $11.22 per share

- 2022-12: $10.15 per share

- 2023-01: $11.25 per share

- 2023-02: $11.36 per share

- 2023-03: $11.02 per share

- 2023-04: $10.67 per share

- 2023-05: $13.73 per share

- 2023-06: $13.68 per share

- 2023-07: $16.08 per share

- 2023-08: $12.91 per share

- 2023-09: $12.43 per share

- 2023-10: $11.90 per share

- 2023-11: $13.89 per share

- 2023-12: $14.32 per share

- 2024-01: $13.94 per share

- 2024-02: $11.88 per share

- 2024-03: $13.73 per share

- 2024-04: $11.96 per share

- 2024-05: $12.31 per share

- 2024-06: $11.35 per share

- 2024-07: $11.70 per share

- 2024-08: $8.82 per share

- 2024-09: $8.85 per share

- 2024-10: $8.01 per share

- 2024-11: $10.74 per share

- 2024-12: $9.00 per share

- 2025-01: $8.87 per share

- 2025-02: $9.45 per share

- 2025-03: $9.24 per share

- 2025-04: $10.88 per share

- 2025-05: $11.41 per share

- 2025-06: $10.37 per share

- 2025-07: $10.28 per share

- 2025-08: $8.48 per share

- 2025-09: $7.48 per share

- 2025-10: $6.89 per share

- 2025-11: $8.66 per share

- 2025-12: $8.76 per share

- 2026-01: $9.41 per share

- 2026-02: $8.25 per share

- 2026-03: $6.63 per share

- 2026-04: $7.08 per share

- 2026-05: $6.10 per share

- 2026-06: $6.60 per share

- 2026-07: $6.95 per share

- 2026-08: $6.27 per share

- 2026-09: $4.97 per share

- 2026-10: $4.56 per share

## Annual estimated value (USD per share)

- FY2016: low $8.95 per share, central $9.75 per share, high $10.82 per share

- FY2017: low $17.57 per share, central $19.59 per share, high $22.28 per share

- FY2018: low $33.75 per share, central $38.12 per share, high $43.94 per share

- FY2019: low $17.89 per share, central $20.00 per share, high $22.80 per share

- FY2020: low $18.22 per share, central $19.97 per share, high $22.30 per share

- FY2021: low $18.76 per share, central $20.97 per share, high $23.90 per share

- FY2022: low $10.56 per share, central $11.62 per share, high $13.04 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/42582/000162828026006708/gt-20251231.htm); period 2025-12-31, filed 2026-02-10.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.