Analyst Report on Bridgestone Tyres Essay Example | Topics and Well Written Essays - 1500 words

Analyst Report on Bridgestone Tyres - Essay Example The net income Bridgestone Corp performed extraordinarily In Europe where sales increased by 17% followed by Americans where sales increased by 1%. However, the net sales in Japan remain unchanged compared to 2011. The total assets of the company increased by 14% to 3,038.3 billion in 2012; this increase in the assets by financed by a 12% increase in the total liabilities and 3% increased in the total equity. The company returns showed a strong growth as well. The return on stockholders’ equity increased by 4.6 percentage points to 13.7% and return on assets increased by 2.2 percentage points to 6.0% in 2012. The company promises significant returns as well as strong value addition in future. Company Profile Ticker symbol: 5108.T Mission Statement: Serving Society with Superior Quality Corporate headquarters: Tokyo, Japan Date of Incorporation: March 1st, 1931 Public Auditor: Deloitte Touche Tohmatsu Limited Name of CEO: Masaaki Tsuya Name of CFO: Koki Takahashi Stock classifi cations: Common Stock Authorized: 1,450,000,000 shares Issued: 813,102,321 shares Exchange: Tokyo Stock Exchange Dividends: 21.9 billion Industry Profile Market Sector The company belongs to the Consumer Discretionary Sector. It is a sector of the economy that comprises businesses that sell non-essential products or services. Leaders Toyota Motor Corp Comcast Corp Amazon.com Inc Industry The company belongs to the Auto Components Industry. The industry comprise companies that supply low value to high value component to auto makers around the world. Stock Comparison with Competitors Bridgestone Corporation’s stock has shown a remarkable growth since January 2012 as compared to Pirelli’s and Goodyear’s stock as shown in the figure. The graph notes some of the major events – dividends, earnings and news. The news article states that the company has invested billions of yen into the research and development to produce tyres with maximized durability and value . The company, currently, has invested millions of yen into a new North American desert plant to extract a new form of natural rubber for tyre manufacturing. This stresses that the company continues to strive hard fpr excellence. The graph shows that company has continued to announce dividends and interim dividends at year ends and half year ends respectively. This has strengthened the belief of the investors in the stock value. Likewise, the company announced promising earnings which has allowed the company to maintain number one position in the global tyre market. Both the dividends and earnings have an impact on the stock price – in this case, the company’s stock price has risen par the competitors’ value after continuously posting strong earninsg and dividends. Market Capitalization Company Market Capitalization Bridgestone Corp 20.24B Goodyear 3.9B Continental 27B Michelin 14.4B Market capitalization is basically the market value of the company’s out standing shares. It determines the size of the company which allows for conclusion on asset allocation and risk factor. The analysis shows Bridgestone Corp has the largest capitalization compared to its three giant competitors – Goodyear, Continental AG and Michelin. With the capitalization of â‚ ¬20.24 billion, it falls in the ‘large cap’ pool of companies with a strong asset allocation and less risk. Global Presence Bridgestone Corpo