TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
NYSE:TM - New York Stock Exchange, Inc. - US8923313071 - ADR - Currency: USD
Overall TM gets a fundamental rating of 6 out of 10. We evaluated TM against 40 industry peers in the Automobiles industry. While TM belongs to the best of the industry regarding profitability, there are concerns on its financial health. TM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TM was profitable.
In the past year TM had a positive cash flow from operations.
Each year in the past 5 years TM has been profitable.
Each year in the past 5 years TM had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.38%, TM belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.20%, TM belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
TM has a Return On Invested Capital of 5.17%. This is in the better half of the industry: TM outperforms 78.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TM is below the industry average of 9.10%.
The 3 year average ROIC (4.46%) for TM is below the current ROIC(5.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 14.2% | ||
| ROIC | 5.17% |
ROA(3y)4.33%
ROA(5y)4.08%
ROE(3y)11.32%
ROE(5y)10.69%
ROIC(3y)4.46%
ROIC(5y)4.18%
1.3 Margins
With an excellent Profit Margin value of 10.91%, TM belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
In the last couple of years the Profit Margin of TM has grown nicely.
TM's Operating Margin of 10.25% is amongst the best of the industry. TM outperforms 92.11% of its industry peers.
In the last couple of years the Operating Margin of TM has grown nicely.
TM's Gross Margin of 20.31% is fine compared to the rest of the industry. TM outperforms 76.32% of its industry peers.
In the last couple of years the Gross Margin of TM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.25% | ||
| PM (TTM) | 10.91% | ||
| GM | 20.31% |
OM growth 3Y13.7%
OM growth 5Y7.77%
PM growth 3Y9.95%
PM growth 5Y12.15%
GM growth 3Y5.37%
GM growth 5Y2.9%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TM is destroying value.
The number of shares outstanding for TM has been reduced compared to 1 year ago.
Compared to 5 years ago, TM has less shares outstanding
Compared to 1 year ago, TM has a worse debt to assets ratio.
2.2 Solvency
TM has an Altman-Z score of 1.62. This is a bad value and indicates that TM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.62, TM is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
TM has a Debt/Equity ratio of 0.65. This is a neutral value indicating TM is somewhat dependend on debt financing.
TM has a Debt to Equity ratio (0.65) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.62 |
ROIC/WACC0.67
WACC7.72%
2.3 Liquidity
TM has a Current Ratio of 1.21. This is a normal value and indicates that TM is financially healthy and should not expect problems in meeting its short term obligations.
TM's Current ratio of 1.21 is in line compared to the rest of the industry. TM outperforms 47.37% of its industry peers.
TM has a Quick Ratio of 1.06. This is a normal value and indicates that TM is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.06, TM perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
TM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 423.13%, which is quite impressive.
The Earnings Per Share has been growing by 22.98% on average over the past years. This is a very strong growth
Looking at the last year, TM shows a small growth in Revenue. The Revenue has grown by 6.94% in the last year.
Measured over the past years, TM shows a quite strong growth in Revenue. The Revenue has been growing by 8.33% on average per year.
EPS 1Y (TTM)423.13%
EPS 3Y31.58%
EPS 5Y22.98%
EPS Q2Q%1414.26%
Revenue 1Y (TTM)6.94%
Revenue growth 3Y18.33%
Revenue growth 5Y8.33%
Sales Q2Q%3.13%
3.2 Future
The Earnings Per Share is expected to decrease by -2.94% on average over the next years.
TM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.37% yearly.
EPS Next Y-17.2%
EPS Next 2Y-6.13%
EPS Next 3Y-2.94%
EPS Next 5YN/A
Revenue Next Year5.83%
Revenue Next 2Y4.78%
Revenue Next 3Y4.37%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 1.52 indicates a rather cheap valuation of TM.
TM's Price/Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. TM is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.23, which indicates a very decent valuation of TM.
Based on the Price/Forward Earnings ratio, TM is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. TM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.52 | ||
| Fwd PE | 8.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TM is valued cheaply inside the industry as 86.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.91 |
4.3 Compensation for Growth
TM has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TM's earnings are expected to decrease with -2.94% in the coming years.
PEG (NY)N/A
PEG (5Y)0.07
EPS Next 2Y-6.13%
EPS Next 3Y-2.94%
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 3.19%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.93, TM pays a better dividend. On top of this TM pays more dividend than 92.11% of the companies listed in the same industry.
TM's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
5.2 History
The dividend of TM is nicely growing with an annual growth rate of 7.71%!
TM has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TM decreased recently.
Dividend Growth(5Y)7.71%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TM pays out 22.21% of its income as dividend. This is a sustainable payout ratio.
DP22.21%
EPS Next 2Y-6.13%
EPS Next 3Y-2.94%
177.11
-3.57 (-1.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners24.94%
Inst Owner Change-0.59%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap231.94B
Analysts77.93
Price Target192.3 (8.58%)
Short Float %0.1%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend65.1
Dividend Growth(5Y)7.71%
DP22.21%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)731.9%
Min EPS beat(2)-41.93%
Max EPS beat(2)1505.72%
EPS beat(4)3
Avg EPS beat(4)371.96%
Min EPS beat(4)-41.93%
Max EPS beat(4)1505.72%
EPS beat(8)6
Avg EPS beat(8)200.95%
EPS beat(12)9
Avg EPS beat(12)133.05%
EPS beat(16)13
Avg EPS beat(16)106.84%
Revenue beat(2)1
Avg Revenue beat(2)0.94%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)2.55%
Revenue beat(4)2
Avg Revenue beat(4)2.3%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)7.45%
Revenue beat(8)6
Avg Revenue beat(8)3.83%
Revenue beat(12)10
Avg Revenue beat(12)3.84%
Revenue beat(16)14
Avg Revenue beat(16)3.8%
PT rev (1m)4.16%
PT rev (3m)6.64%
EPS NQ rev (1m)19.76%
EPS NQ rev (3m)-15.31%
EPS NY rev (1m)-9.09%
EPS NY rev (3m)-8.83%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-3%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.52 | ||
| Fwd PE | 8.23 | ||
| P/S | 0.74 | ||
| P/FCF | N/A | ||
| P/OCF | 8.2 | ||
| P/B | 0.97 | ||
| P/tB | 1.01 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)116.16
EY65.59%
EPS(NY)21.53
Fwd EY12.16%
FCF(TTM)-8.96
FCFYN/A
OCF(TTM)21.61
OCFY12.2%
SpS238.04
BVpS182.86
TBVpS176.17
PEG (NY)N/A
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.38% | ||
| ROE | 14.2% | ||
| ROCE | 7.35% | ||
| ROIC | 5.17% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 6.74% | ||
| OM | 10.25% | ||
| PM (TTM) | 10.91% | ||
| GM | 20.31% | ||
| FCFM | N/A |
ROA(3y)4.33%
ROA(5y)4.08%
ROE(3y)11.32%
ROE(5y)10.69%
ROIC(3y)4.46%
ROIC(5y)4.18%
ROICexc(3y)5.5%
ROICexc(5y)5.13%
ROICexgc(3y)13.43%
ROICexgc(5y)16.85%
ROCE(3y)6.91%
ROCE(5y)6.56%
ROICexcg growth 3Y-42.54%
ROICexcg growth 5Y7.18%
ROICexc growth 3Y18.6%
ROICexc growth 5Y6.62%
OM growth 3Y13.7%
OM growth 5Y7.77%
PM growth 3Y9.95%
PM growth 5Y12.15%
GM growth 3Y5.37%
GM growth 5Y2.9%
F-Score6
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.35 | ||
| Cap/Depr | 268.28% | ||
| Cap/Sales | 12.84% | ||
| Interest Coverage | 3.14 | ||
| Cash Conversion | 60.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.62 |
F-Score6
WACC7.72%
ROIC/WACC0.67
Cap/Depr(3y)211.26%
Cap/Depr(5y)219.56%
Cap/Sales(3y)11.13%
Cap/Sales(5y)11.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)423.13%
EPS 3Y31.58%
EPS 5Y22.98%
EPS Q2Q%1414.26%
EPS Next Y-17.2%
EPS Next 2Y-6.13%
EPS Next 3Y-2.94%
EPS Next 5YN/A
Revenue 1Y (TTM)6.94%
Revenue growth 3Y18.33%
Revenue growth 5Y8.33%
Sales Q2Q%3.13%
Revenue Next Year5.83%
Revenue Next 2Y4.78%
Revenue Next 3Y4.37%
Revenue Next 5YN/A
EBIT growth 1Y-1.54%
EBIT growth 3Y34.55%
EBIT growth 5Y16.75%
EBIT Next Year18805.5%
EBIT Next 3Y480.31%
EBIT Next 5YN/A
FCF growth 1Y-134.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y45.99%
OCF growth 3Y15.54%
OCF growth 5Y2.23%