GT - Embedded Expectations Analysis - 2018 03 16
The Goodyear Tire & Rubber Company (GT:USA) currently trades near recent lows relative to UAFRS-based (Uniform) Earnings, with a 16.4x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about margins, operating income, and growthSpecifically, management may lack confidence in the sustainability of improvements in consumer tire margins, and may have concerns about their ability to successfully capture the larger rim size segments of the market. Additionally, they may lack confidence in their segment operating income guidance, and may be exaggerating the strength in U.S. SAAR. Furthermore, they may be downplaying concerns about growth in Latin America, and may lack confidence in their product portfolio. Also, they may be exaggerating their focus on investing in distribution capabilities, and may have concerns about their growth plans in Asia Pacific
Goodyear Tire & Rubber develops, manufactures, distributes and sells tires and related products and services worldwide. The company manufactures and markets various lines of rubber tires for: automobiles, trucks, buses, aircraft, motorcycles, earthmoving and mining equipment, farm implements, industrial equipment, and various other applications. The company manufactures and sells tires under the Goodyear, Dunlop, Kelly, Debica, Sava and Fulda brands and various other Goodyear owned house brands, and the private-label brands of certain customers. The company operates its business through three operating segments representing its regional tire businesses: Americas; Europe, Middle East and Africa; and Asia Pacific.
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