📊 GT Key Takeaways
Is GT a Good Investment? Thesis Analysis
Goodyear is in severe financial distress with net losses of $1.7B, declining revenues (-3.2% YoY), and negative free cash flow while carrying $5.4B in debt. The company's inability to generate earnings combined with weak liquidity (quick ratio 0.54x), negative interest coverage, and high leverage (debt/equity 1.68x) creates significant refinancing risk and ongoing deterioration.
Fundamentals are deteriorated: recurring losses (−9.4% net margin) and negative operating income with −1.2x interest coverage point to an unsustainable earnings and capital structure profile. Liquidity is thin (quick ratio 0.54x) and free cash flow is slightly negative despite significant scale, limiting flexibility to invest or delever. Until margins turn positive and cash generation consistently improves, risk outweighs potential reward.
Why Buy GT? Key Strengths
- Positive operating cash flow of $796M despite unprofitability indicates underlying operational activity
- Established market position with $18.3B revenue base in essential tire sector
- Current ratio above 1.0x provides minimal short-term liquidity buffer
- Large revenue base (~$18.3B) provides scale
- Positive operating cash flow ($796M) despite a tough year
- Positive tangible equity ($3.23B) offers some buffer
GT Investment Risks to Consider
- Massive net losses of $1.7B with negative profitability metrics (net margin -9.4%, ROE -53.2%, ROA -9.5%)
- Negative free cash flow of -$30M unable to support capital expenditures or debt service
- Elevated leverage with debt-to-equity of 1.68x and negative interest coverage (-1.2x) creates refinancing risk
- Declining revenue trend (-3.2% YoY) combined with operating losses signals deteriorating business fundamentals
- Weak quick ratio of 0.54x indicates acute liquidity stress with insufficient liquid assets
- Sustained losses and negative margins pressure solvency
- High leverage with negative interest coverage (−1.2x)
- Weak liquidity (quick ratio 0.54x) and declining revenue (−3.2% YoY)
Key Metrics to Watch
- Path to operating profitability and margin improvement trajectory
- Revenue stabilization and market share performance in tire industry
- Free cash flow recovery and debt service sustainability
- Refinancing requirements and debt maturity schedule in 2026-2027
- Working capital management and cash conversion cycle efficiency
- Interest coverage trending to >1.5–2.0x
- Sustained positive free cash flow and FCF margin
GT Financial Metrics
💡 AI Analyst Insight
GOODYEAR TIRE & RUBBER CO /OH/ presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
GT Profitability Ratios
GT vs Default Sector
How GOODYEAR TIRE & RUBBER CO /OH/ compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GT Overvalued or Undervalued?
Based on fundamental analysis, GOODYEAR TIRE & RUBBER CO /OH/ shows some fundamental concerns relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
GT Balance Sheet & Liquidity
GT 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: GOODYEAR TIRE & RUBBER CO /OH/'s revenue has grown significantly by 15% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.56 indicates the company is currently unprofitable.
GT Growth Metrics (YoY)
GT Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $4.6B | -$27.0M | $-0.09 |
| Q2 2025 | $4.5B | $10.0M | $0.04 |
| Q1 2025 | $4.3B | -$57.0M | $-0.20 |
| Q3 2024 | $4.8B | -$6.0M | $-0.02 |
| Q2 2024 | $4.6B | $28.0M | $0.10 |
| Q1 2024 | $4.5B | -$57.0M | $-0.20 |
| Q3 2023 | $5.1B | $44.0M | $0.16 |
| Q2 2023 | $4.9B | $166.0M | $0.58 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GT Capital Allocation
GT SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for GOODYEAR TIRE & RUBBER CO /OH/ (CIK: 0000042582)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GT
What is the AI rating for GT?
GOODYEAR TIRE & RUBBER CO /OH/ (GT) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GT's key strengths?
Claude: Positive operating cash flow of $796M despite unprofitability indicates underlying operational activity. Established market position with $18.3B revenue base in essential tire sector. ChatGPT: Large revenue base (~$18.3B) provides scale. Positive operating cash flow ($796M) despite a tough year.
What are the risks of investing in GT?
Claude: Massive net losses of $1.7B with negative profitability metrics (net margin -9.4%, ROE -53.2%, ROA -9.5%). Negative free cash flow of -$30M unable to support capital expenditures or debt service. ChatGPT: Sustained losses and negative margins pressure solvency. High leverage with negative interest coverage (−1.2x).
What is GT's revenue and growth?
GOODYEAR TIRE & RUBBER CO /OH/ reported revenue of $18.3B.
Does GT pay dividends?
GOODYEAR TIRE & RUBBER CO /OH/ does not currently pay dividends.
Where can I find GT SEC filings?
Official SEC filings for GOODYEAR TIRE & RUBBER CO /OH/ (CIK: 0000042582) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GT's EPS?
GOODYEAR TIRE & RUBBER CO /OH/ has a diluted EPS of $-5.99.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, GOODYEAR TIRE & RUBBER CO /OH/ has a STRONG SELL rating with 84% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GT stock overvalued or undervalued?
Valuation metrics for GT: ROE of -53.2% (sector avg: 15%), net margin of -9.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy GT stock in 2026?
Our dual AI analysis gives GOODYEAR TIRE & RUBBER CO /OH/ a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GT's free cash flow?
GOODYEAR TIRE & RUBBER CO /OH/'s operating cash flow is $796.0M, with capital expenditures of $826.0M. FCF margin is -0.2%.
How does GT compare to other Default stocks?
Vs Default sector averages: Net margin -9.4% (avg: 12%), ROE -53.2% (avg: 15%), current ratio 1.06 (avg: 1.8).