TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TM - US8923313071 - ADR
215.57 USD
-0.87 (-0.4%)
TM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 35 industry peers in the Automobiles industry. TM has an excellent profitability rating, but there are some minor concerns on its financial health. TM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TM had positive earnings in the past year.
In the past year TM had a positive cash flow from operations.
In the past 5 years TM has always been profitable.
Each year in the past 5 years TM had a positive operating cash flow.
1.2 Ratios
TM has a Return On Assets of 4.75%. This is amongst the best in the industry. TM outperforms 94.29% of its industry peers.
TM has a better Return On Equity (12.35%) than 94.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.81%, TM belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
TM had an Average Return On Invested Capital over the past 3 years of 4.89%. This is in line with the industry average of 5.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 12.35% | ||
| ROIC | 4.81% |
ROA(3y)4.63%
ROA(5y)4.34%
ROE(3y)12.12%
ROE(5y)11.36%
ROIC(3y)4.89%
ROIC(5y)4.54%
1.3 Margins
TM's Profit Margin of 9.38% is amongst the best of the industry. TM outperforms 94.29% of its industry peers.
In the last couple of years the Profit Margin of TM has grown nicely.
TM's Operating Margin of 8.78% is amongst the best of the industry. TM outperforms 94.29% of its industry peers.
In the last couple of years the Operating Margin of TM has grown nicely.
Looking at the Gross Margin, with a value of 17.97%, TM is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
In the last couple of years the Gross Margin of TM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.78% | ||
| PM (TTM) | 9.38% | ||
| GM | 17.97% |
OM growth 3Y1.5%
OM growth 5Y4.44%
PM growth 3Y2.98%
PM growth 5Y7.79%
GM growth 3Y1.57%
GM growth 5Y2.05%
2. Health
2.1 Basic Checks
TM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TM has less shares outstanding than it did 1 year ago.
TM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TM is higher compared to a year ago.
2.2 Solvency
TM has an Altman-Z score of 1.72. This is a bad value and indicates that TM is not financially healthy and even has some risk of bankruptcy.
TM's Altman-Z score of 1.72 is fine compared to the rest of the industry. TM outperforms 77.14% of its industry peers.
TM has a Debt/Equity ratio of 0.63. This is a neutral value indicating TM is somewhat dependend on debt financing.
TM has a Debt to Equity ratio of 0.63. This is comparable to the rest of the industry: TM outperforms 54.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.72 |
ROIC/WACC1.49
WACC3.22%
2.3 Liquidity
A Current Ratio of 1.25 indicates that TM should not have too much problems paying its short term obligations.
The Current ratio of TM (1.25) is comparable to the rest of the industry.
TM has a Quick Ratio of 1.10. 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 decent Quick ratio value of 1.10, TM is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
TM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.57%, which is quite good.
The Earnings Per Share has been growing by 19.57% on average over the past years. This is quite good.
TM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.44%.
Measured over the past years, TM shows a quite strong growth in Revenue. The Revenue has been growing by 9.97% on average per year.
EPS 1Y (TTM)11.57%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%65.7%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%-2.18%
3.2 Future
Based on estimates for the next years, TM will show a decrease in Earnings Per Share. The EPS will decrease by -1.10% on average per year.
Based on estimates for the next years, TM will show a small growth in Revenue. The Revenue will grow by 4.09% on average per year.
EPS Next Y-25.55%
EPS Next 2Y-5.11%
EPS Next 3Y-1.1%
EPS Next 5YN/A
Revenue Next Year5.5%
Revenue Next 2Y4.42%
Revenue Next 3Y4.09%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.53, which indicates a very decent valuation of TM.
TM's Price/Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 91.43% of the companies in the same industry.
TM is valuated cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.41, the valuation of TM can be described as reasonable.
TM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TM is cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.40. TM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.53 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
85.71% of the companies in the same industry are more expensive than TM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.84 |
4.3 Compensation for Growth
TM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-5.11%
EPS Next 3Y-1.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.82%, TM has a reasonable but not impressive dividend return.
TM's Dividend Yield is rather good when compared to the industry average which is at 0.84. TM pays more dividend than 85.71% of the companies in the same industry.
TM's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
The dividend of TM is nicely growing with an annual growth rate of 14.07%!
TM has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TM decreased in the last 3 years.
Dividend Growth(5Y)14.07%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TM pays out 25.44% of its income as dividend. This is a sustainable payout ratio.
DP25.44%
EPS Next 2Y-5.11%
EPS Next 3Y-1.1%
NYSE:TM (12/30/2025, 2:46:23 PM)
215.57
-0.87 (-0.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners26.29%
Inst Owner Change2.53%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap280.96B
Revenue(TTM)49.39T
Net Income(TTM)4.63T
Analysts76.92
Price Target223.87 (3.85%)
Short Float %0.09%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
Yearly Dividend5.47
Dividend Growth(5Y)14.07%
DP25.44%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.99%
Min EPS beat(2)7.7%
Max EPS beat(2)24.28%
EPS beat(4)4
Avg EPS beat(4)29.65%
Min EPS beat(4)7.7%
Max EPS beat(4)74.75%
EPS beat(8)7
Avg EPS beat(8)15.35%
EPS beat(12)10
Avg EPS beat(12)18.99%
EPS beat(16)13
Avg EPS beat(16)14.27%
Revenue beat(2)0
Avg Revenue beat(2)-4.74%
Min Revenue beat(2)-9%
Max Revenue beat(2)-0.47%
Revenue beat(4)2
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-9%
Max Revenue beat(4)2.33%
Revenue beat(8)4
Avg Revenue beat(8)0.75%
Revenue beat(12)8
Avg Revenue beat(12)2.23%
Revenue beat(16)12
Avg Revenue beat(16)2.49%
PT rev (1m)7.17%
PT rev (3m)10.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)61.15%
EPS NY rev (1m)2.67%
EPS NY rev (3m)6.47%
Revenue NQ rev (1m)1.45%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.53 | ||
| Fwd PE | 10.41 | ||
| P/S | 0.89 | ||
| P/FCF | N/A | ||
| P/OCF | 9.11 | ||
| P/B | 1.17 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 8.84 |
EPS(TTM)22.61
EY10.49%
EPS(NY)20.71
Fwd EY9.6%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)23.67
OCFY10.98%
SpS242.34
BVpS183.98
TBVpS177.27
PEG (NY)N/A
PEG (5Y)0.49
Graham Number305.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 12.35% | ||
| ROCE | 6.52% | ||
| ROIC | 4.81% | ||
| ROICexc | 6.44% | ||
| ROICexgc | 6.63% | ||
| OM | 8.78% | ||
| PM (TTM) | 9.38% | ||
| GM | 17.97% | ||
| FCFM | N/A |
ROA(3y)4.63%
ROA(5y)4.34%
ROE(3y)12.12%
ROE(5y)11.36%
ROIC(3y)4.89%
ROIC(5y)4.54%
ROICexc(3y)6.18%
ROICexc(5y)5.68%
ROICexgc(3y)6.34%
ROICexgc(5y)17.96%
ROCE(3y)7.22%
ROCE(5y)6.72%
ROICexgc growth 3Y-39.12%
ROICexgc growth 5Y5.29%
ROICexc growth 3Y7.2%
ROICexc growth 5Y5.36%
OM growth 3Y1.5%
OM growth 5Y4.44%
PM growth 3Y2.98%
PM growth 5Y7.79%
GM growth 3Y1.57%
GM growth 5Y2.05%
F-Score6
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.58 | ||
| Cap/Depr | 214.68% | ||
| Cap/Sales | 9.8% | ||
| Interest Coverage | 2.6 | ||
| Cash Conversion | 73.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.72 |
F-Score6
WACC3.22%
ROIC/WACC1.49
Cap/Depr(3y)219.04%
Cap/Depr(5y)219.3%
Cap/Sales(3y)10.7%
Cap/Sales(5y)11.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.57%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%65.7%
EPS Next Y-25.55%
EPS Next 2Y-5.11%
EPS Next 3Y-1.1%
EPS Next 5YN/A
Revenue 1Y (TTM)6.44%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%-2.18%
Revenue Next Year5.5%
Revenue Next 2Y4.42%
Revenue Next 3Y4.09%
Revenue Next 5YN/A
EBIT growth 1Y-17.51%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year18916.5%
EBIT Next 3Y507.44%
EBIT Next 5YN/A
FCF growth 1Y97.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y34.97%
OCF growth 3Y-0.23%
OCF growth 5Y9.04%
TOYOTA MOTOR CORP -SPON ADR / TM FAQ
What is the ChartMill fundamental rating of TOYOTA MOTOR CORP -SPON ADR (TM) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TM.
What is the valuation status for TM stock?
ChartMill assigns a valuation rating of 6 / 10 to TOYOTA MOTOR CORP -SPON ADR (TM). This can be considered as Fairly Valued.
How profitable is TOYOTA MOTOR CORP -SPON ADR (TM) stock?
TOYOTA MOTOR CORP -SPON ADR (TM) has a profitability rating of 8 / 10.
What is the valuation of TOYOTA MOTOR CORP -SPON ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TOYOTA MOTOR CORP -SPON ADR (TM) is 9.53 and the Price/Book (PB) ratio is 1.17.
How financially healthy is TOYOTA MOTOR CORP -SPON ADR?
The financial health rating of TOYOTA MOTOR CORP -SPON ADR (TM) is 4 / 10.