Fact based stock research
Bridgestone (TSE:5108)

JP3830800003

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Bridgestone stock research in summary

bridgestone.co.jp

ANALYSIS: With an Obermatt Combined Rank of 45 (worse than 55% compared with investment alternatives), Bridgestone (Tires & Rubber, Japan) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Bridgestone are a good value (attractively priced) with a consolidated Value Rank of 51 (better than 51% of alternatives), are safely financed (Safety Rank of 59, which means low debt burdens), but show below-average growth (Growth Rank of 41). ...read more

RECOMMENDATION: A Combined Rank of 45, is a hold recommendation based on Bridgestone's financial characteristics. As the company Bridgestone's key financial metrics exhibit good value (Obermatt Value Rank of 51) but low growth (Obermatt Growth Rank of 41) while being safely financed (Obermatt Safety Rank of 59), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 51% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	51
Growth Rank	41
Safety Rank	59
Combined Rank	45

Country	Japan
Industry	Tires & Rubber
Index	TOPIX 100, Low Emissions, Energy Efficient, Human Rights, Nikkei 225
Size class	XX-Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Bridgestone

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	90	59	43	51
GROWTH
GROWTH	76	85	17	41
SAFETY
SAFETY	87	43	67	59
SENTIMENT
SENTIMENT	n/a	7	10	^new
360° VIEW
360° VIEW	n/a	41	20	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Bridgestone is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	90	59	43	51
GROWTH
GROWTH	76	85	17	41
SAFETY
SAFETY	87	43	67	59
COMBINED
COMBINED	97	71	31	45

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Bridgestone the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 51 (better than 51% compared with alternatives), Bridgestone shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Bridgestone. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 56 which means that the stock price compared with what market professionals expect for future profits is lower than for 56% of comparable companies, indicating a good value concerning Bridgestone's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 51, and for Dividend Yield with a Dividend Yield Rank of 67. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 63% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 37). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 51, is a buy recommendation based on Bridgestone's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Bridgestone has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Bridgestone shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	65	42	36	37
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	98	54	57	56
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	73	47	44	51
DIVIDEND YIELD
DIVIDEND YIELD	84	63	70	67
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	90	59	43	51

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Bridgestone; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 41 (better than 41% compared with alternatives), Bridgestone shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Bridgestone. Only Capital Growth has a good rank of 96, which means that currently professionals expect the company to grow its invested capital more than 42% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 19 which means that currently professionals expect the company to grow less than 81% of its competitors. Profit Growth with a rank of 42 and Stock Returns with a rank of 37 are also low (below 63% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 41, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Bridgestone is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	26	30	22	19
PROFIT GROWTH
PROFIT GROWTH	10	94	37	42
CAPITAL GROWTH
CAPITAL GROWTH	n/a	45	46	96
STOCK RETURNS
STOCK RETURNS	88	83	55	37
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	76	85	17	41

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Bridgestone.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 59 (better than 59% compared with alternatives), the company Bridgestone has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Bridgestone is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Bridgestone. Leverage is at a rank of 62, meaning the company has a below-average debt-to-equity ratio. It has less debt than 62% of its competitors. Liquidity is also good at a rank of 65, meaning the company generates more profit to service its debt than 65% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 47, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 53% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 59 (better than 59% compared with alternatives), Bridgestone has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Bridgestone. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Bridgestone and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	59	46	68	62
REFINANCING
REFINANCING	73	51	45	47
LIQUIDITY
LIQUIDITY	100	43	65	65
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	87	43	67	59

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Bridgestone and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	29	36	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	16	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	37	69	^new
MARKET PULSE
MARKET PULSE	n/a	14	12	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	7	10	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Bridgestone.
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