TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TM - US8923313071 - ADR
221.52 USD
+6.79 (+3.16%)
221.52 USD
0 (0%)
Overall TM gets a fundamental rating of 6 out of 10. We evaluated TM against 35 industry peers in the Automobiles industry. While TM has a great profitability rating, there are some minor concerns on its financial health. TM has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years TM has been profitable.
In the past 5 years TM always reported a positive cash flow from operatings.
1.2 Ratios
TM has a better Return On Assets (4.75%) than 97.14% of its industry peers.
The Return On Equity of TM (12.35%) is better than 94.29% of its industry peers.
TM has a Return On Invested Capital of 4.81%. This is amongst the best in the industry. TM outperforms 91.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TM is in line with the industry average of 5.56%.
| 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 has a better Profit Margin (9.38%) than 94.29% of its industry peers.
TM's Profit Margin has improved in the last couple of years.
TM has a better Operating Margin (8.78%) than 94.29% of its industry peers.
TM's Operating Margin has improved in the last couple of years.
TM has a Gross Margin of 17.97%. This is in the better half of the industry: TM outperforms 80.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TM is creating some value.
The number of shares outstanding for TM has been reduced compared to 1 year ago.
TM has less shares outstanding than it did 5 years ago.
TM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that TM is in the distress zone and has some risk of bankruptcy.
TM has a Altman-Z score of 1.74. This is in the better half of the industry: TM outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that 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 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.74 |
ROIC/WACC1.49
WACC3.23%
2.3 Liquidity
TM has a Current Ratio of 1.25. This is a normal value and indicates that TM is financially healthy and should not expect problems in meeting its short term obligations.
TM has a Current ratio (1.25) which is comparable to the rest of the industry.
A Quick Ratio of 1.10 indicates that TM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.10, TM is in the better half of the industry, outperforming 65.71% 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.
TM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.57% yearly.
Looking at the last year, TM shows a small growth in Revenue. The Revenue has grown by 6.44% in the last year.
TM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.97% yearly.
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
TM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.10% yearly.
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 9.88, which indicates a very decent valuation of TM.
Compared to the rest of the industry, the Price/Earnings ratio of TM indicates a rather cheap valuation: TM is cheaper than 94.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, TM is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.79, the valuation of TM can be described as very reasonable.
80.00% of the companies in the same industry are more expensive than TM, based on the Price/Forward Earnings ratio.
TM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TM is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.05 |
4.3 Compensation for Growth
The excellent profitability rating of TM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-5.11%
EPS Next 3Y-1.1%
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 2.88%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.92, TM pays a better dividend. On top of this TM pays more dividend than 85.71% of the companies listed in the same industry.
TM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
The dividend of TM is nicely growing with an annual growth rate of 14.07%!
TM has paid a dividend for at least 10 years, which is a reliable track record.
TM has decreased its dividend in the last 3 years.
Dividend Growth(5Y)14.07%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
25.44% of the earnings are spent on dividend by TM. This is a low number and sustainable payout ratio.
DP25.44%
EPS Next 2Y-5.11%
EPS Next 3Y-1.1%
221.52
+6.79 (+3.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners24.9%
Inst Owner Change0.07%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap288.72B
Revenue(TTM)49.39T
Net Income(TTM)4.63T
Analysts76.92
Price Target223.87 (1.06%)
Short Float %0.09%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Yearly Dividend5.42
Dividend Growth(5Y)14.07%
DP25.44%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)61.16%
EPS NY rev (1m)1.22%
EPS NY rev (3m)6.47%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 10.79 | ||
| P/S | 0.92 | ||
| P/FCF | N/A | ||
| P/OCF | 9.43 | ||
| P/B | 1.21 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 9.05 |
EPS(TTM)22.42
EY10.12%
EPS(NY)20.54
Fwd EY9.27%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)23.48
OCFY10.6%
SpS240.37
BVpS182.48
TBVpS175.83
PEG (NY)N/A
PEG (5Y)0.5
Graham Number303.4
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 | 1.74 |
F-Score6
WACC3.23%
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 Year19072%
EBIT Next 3Y509.1%
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.
Can you provide the valuation status for TOYOTA MOTOR CORP -SPON ADR?
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.
Can you provide the PE and PB ratios for TM stock?
The Price/Earnings (PE) ratio for TOYOTA MOTOR CORP -SPON ADR (TM) is 9.88 and the Price/Book (PB) ratio is 1.21.
What is the expected EPS growth for TOYOTA MOTOR CORP -SPON ADR (TM) stock?
The Earnings per Share (EPS) of TOYOTA MOTOR CORP -SPON ADR (TM) is expected to decline by -25.55% in the next year.