TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TM • US8923313071
226.86 USD
-0.21 (-0.09%)
At close: Jan 30, 2026
226.86 USD
0 (0%)
After Hours: 1/30/2026, 8:21:28 PM
We assign a fundamental rating of 6 out of 10 to TM. TM was compared to 35 industry peers in the Automobiles industry. TM has an excellent profitability rating, but there are some minor concerns on its financial health. TM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- TM had positive earnings in the past year.
- TM had a positive operating cash flow in the past year.
- TM had positive earnings in each of the past 5 years.
- Each year in the past 5 years TM had a positive operating cash flow.
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.
- With an excellent Return On Invested Capital value of 4.81%, TM belongs to the best of the industry, outperforming 91.43% 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 5.26%.
| 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.
- With an excellent Operating Margin value of 8.78%, TM belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
- In the last couple of years the Operating Margin of TM has grown nicely.
- With a decent Gross Margin value of 17.97%, TM is doing good in the industry, outperforming 77.14% of the companies in the same industry.
- TM's Gross Margin has improved in the last couple of years.
| 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.
- The number of shares outstanding for TM has been reduced compared to 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 1.73, we must say that TM is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of TM (1.73) is better than 80.00% of its industry peers.
- A Debt/Equity ratio of 0.63 indicates that TM is somewhat dependend on debt financing.
- The Debt to Equity ratio of TM (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.73 |
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 of 1.25. This is comparable to the rest of the industry: TM outperforms 54.29% of its industry peers.
- 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 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.
- Measured over the past years, TM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.57% on average per year.
- The Revenue has been growing slightly by 6.44% in the past 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
- Based on estimates for the next years, TM will show a small growth in Earnings Per Share. The EPS will grow by 0.19% 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-23.94%
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
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
- A Price/Earnings ratio of 9.84 indicates a reasonable 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.
- TM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
- With a Price/Forward Earnings ratio of 10.55, 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 82.86% 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 (25.57), we can say TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 10.55 |
4.2 Price Multiples
- 88.57% 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 | 9.03 |
4.3 Compensation for Growth
- TM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
5. Dividend
5.1 Amount
- TM has a Yearly Dividend Yield of 2.65%. Purely for dividend investing, there may be better candidates out there.
- 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
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
- 25.44% of the earnings are spent on dividend by TM. This is a low number and sustainable payout ratio.
- The dividend of TM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.44%
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
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 9.84 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 -23.94% in the next year.