TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - NYSE:TM - US8923313071 - ADR
201.015 USD
-3.07 (-1.5%)
Overall TM gets a fundamental rating of 5 out of 10. We evaluated TM against 36 industry peers in the Automobiles industry. TM scores excellent on profitability, but there are some minor concerns on its financial health. TM is valued correctly, but it does not seem to be growing.
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.
TM had positive earnings in each of the past 5 years.
TM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TM (4.75%) is better than 94.44% of its industry peers.
TM has a better Return On Equity (12.35%) than 94.44% of its industry peers.
TM has a Return On Invested Capital of 4.81%. This is amongst the best in the industry. TM outperforms 88.89% of its industry peers.
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 5.83%.
| 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
With an excellent Profit Margin value of 9.38%, TM belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
In the last couple of years the Profit Margin of TM has grown nicely.
The Operating Margin of TM (8.78%) is better than 94.44% of its industry peers.
TM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 17.97%, TM is in the better half of the industry, outperforming 72.22% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TM is creating some value.
Compared to 1 year ago, TM has less shares outstanding
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
Based on the Altman-Z score of 1.69, we must say that TM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TM (1.69) is better than 72.22% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that TM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.63, TM is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.69 |
ROIC/WACC1.49
WACC3.22%
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 in line with its industry peers.
A Quick Ratio of 1.10 indicates that TM should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.10, TM is doing good in the industry, outperforming 72.22% 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 slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.74%.
TM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.57% yearly.
The Revenue has been growing slightly by 6.44% in the past year.
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)-1.74%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%66.53%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%8.15%
3.2 Future
The Earnings Per Share is expected to decrease by -2.71% on average over the next years.
Based on estimates for the next years, TM will show a small growth in Revenue. The Revenue will grow by 3.14% on average per year.
EPS Next Y-27.48%
EPS Next 2Y-7.35%
EPS Next 3Y-2.71%
EPS Next 5YN/A
Revenue Next Year4.38%
Revenue Next 2Y3.39%
Revenue Next 3Y3.14%
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
A Price/Earnings ratio of 8.60 indicates a reasonable valuation of TM.
TM's Price/Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 91.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of TM to the average of the S&P500 Index (25.89), we can say TM is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.02, the valuation of TM can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TM indicates a rather cheap valuation: TM is cheaper than 80.56% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TM to the average of the S&P500 Index (34.59), we can say TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 10.02 |
4.2 Price Multiples
86.11% 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 | 8.35 |
4.3 Compensation for Growth
TM has an outstanding profitability rating, which may justify a higher PE ratio.
TM's earnings are expected to decrease with -2.71% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y-7.35%
EPS Next 3Y-2.71%
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 2.97%.
TM's Dividend Yield is rather good when compared to the industry average which is at 3.32. TM pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, TM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
On average, the dividend of TM grows each year by 14.07%, which is quite nice.
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
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-7.35%
EPS Next 3Y-2.71%
NYSE:TM (11/17/2025, 9:48:58 AM)
201.015
-3.07 (-1.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners25.8%
Inst Owner Change2.41%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap262.00B
Revenue(TTM)49.39T
Net Income(TTM)4.63T
Analysts76.92
Price Target206.64 (2.8%)
Short Float %0.09%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend5.55
Dividend Growth(5Y)14.07%
DP25.44%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.07%
Min Revenue beat(2)-0.47%
Max Revenue beat(2)0.61%
Revenue beat(4)3
Avg Revenue beat(4)1.01%
Min Revenue beat(4)-0.47%
Max Revenue beat(4)2.33%
Revenue beat(8)5
Avg Revenue beat(8)1.95%
Revenue beat(12)9
Avg Revenue beat(12)3.04%
Revenue beat(16)13
Avg Revenue beat(16)3.09%
PT rev (1m)1.59%
PT rev (3m)9.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.7%
EPS NY rev (1m)3.7%
EPS NY rev (3m)-19.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.59%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 10.02 | ||
| P/S | 0.82 | ||
| P/FCF | N/A | ||
| P/OCF | 8.36 | ||
| P/B | 1.08 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 8.35 |
EPS(TTM)23.37
EY11.63%
EPS(NY)20.06
Fwd EY9.98%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)24.06
OCFY11.97%
SpS246.25
BVpS186.95
TBVpS180.13
PEG (NY)N/A
PEG (5Y)0.44
Graham Number313.53
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 | 1.69 |
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)-1.74%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%66.53%
EPS Next Y-27.48%
EPS Next 2Y-7.35%
EPS Next 3Y-2.71%
EPS Next 5YN/A
Revenue 1Y (TTM)6.44%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%8.15%
Revenue Next Year4.38%
Revenue Next 2Y3.39%
Revenue Next 3Y3.14%
Revenue Next 5YN/A
EBIT growth 1Y-17.51%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year17908.9%
EBIT Next 3Y493.53%
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 5 / 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 8.6 and the Price/Book (PB) ratio is 1.08.
How financially healthy is TOYOTA MOTOR CORP -SPON ADR?
The financial health rating of TOYOTA MOTOR CORP -SPON ADR (TM) is 4 / 10.