GT - Yokohama Rubber: Industry-Leading Revenue Growth Record Earnings And A Shareholder-Friendly Plan To Increase ROE

2024-05-21 08:00:00 ET

Summary

• Despite significant growth over the past year, Yokohama Rubber's equities have a lower P/E ratio than comparable companies.
• Yokohama's 2023 sales grew faster than those of any other Top 10 Tire company. The first quarter of 2024 delivered record earnings and revenues.
• The company has superior growth opportunities compared to its competitors, particularly in Asia and in the Commercial Vehicle tire market.
• Yokohama Rubber Inc. is halfway through a strategic plan to increase ROE, and there is still low-hanging fruit to pick.

Most retail investors will likely be underweight the shares of The Yokohama Rubber Co., Ltd. ( YORUY ) and if they think about the company at all, it is probably because they are fans of the Boston Celtics or the San Antonio Spurs, both of which Yokohama sponsors. Football / Soccer fans may also recognize the name because up until recently, Yokohama also sponsored Chelsea Football Club.

Over the past year, the company’s equities TYO :5101 are up 35% in JPY Terms, outperforming both the Nikkei 225 ( NIK:IND ) and the Topix, both up by 25%....

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