Overview Key strengths Key risks Dominant market share in the niche tire distribution to car dealerships channel and is tightly integrated with original equipment manufacturers (OEMs) and dealers. Limited scale and scope of operations in the generally stable tire replacement industry. Modest but consistent free cash flow generation and adequate liquidity. Financial ratios will likely remain elevated due to financial sponsor ownership and debt-funded acquisition strategy. The company has demonstrated a consistent operating performance, increasing market share, and positive free cash generation over the past couple of years, with S&P Global Ratings-adjusted EBITDA margins of over 9% in both 2021 and 2022. Dealer Tire?s core business benefited from favorable demand trends, which supported its ability to increase its tire prices
