TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - NYSE:TM - US8923313071 - ADR
203.26 USD
-4.03 (-1.94%)
203.99 USD
+0.73 (+0.36%)
Taking everything into account, TM scores 5 out of 10 in our fundamental rating. TM was compared to 36 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TM was profitable.
TM had a positive operating cash flow in the past year.
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
TM has a Return On Assets of 4.75%. This is amongst the best in the industry. TM outperforms 94.44% of its industry peers.
TM has a Return On Equity of 12.35%. This is amongst the best in the industry. TM outperforms 94.44% of its industry peers.
TM's Return On Invested Capital of 4.81% is amongst the best of the industry. TM outperforms 88.89% 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 5.83%.
| 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.
TM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 8.78%, 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 Operating Margin of TM has grown nicely.
With a decent Gross Margin value of 17.97%, TM is doing good in the industry, outperforming 72.22% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TM is still creating some value.
TM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TM has been reduced compared to 5 years ago.
TM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that TM is in the distress zone and has some risk of bankruptcy.
TM's Altman-Z score of 1.70 is fine compared to the rest of the industry. TM outperforms 69.44% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that TM is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.63, TM is doing good in 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 | 1.7 |
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.
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.
TM's Quick ratio of 1.10 is fine compared to the rest of the industry. TM outperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for TM have decreased by -1.74% in the last year.
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.
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)-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
Based on estimates for the next years, TM will show a decrease in Earnings Per Share. The EPS will decrease by -2.71% on average per year.
The Revenue is expected to grow by 3.14% on average over the next years.
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
With a Price/Earnings ratio of 8.75, the valuation of TM can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TM indicates a rather cheap valuation: TM is cheaper than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, TM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.19, the valuation of TM can be described as reasonable.
Based on the Price/Forward Earnings ratio, TM is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TM to the average of the S&P500 Index (34.57), we can say TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 10.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TM is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.49 |
4.3 Compensation for Growth
The excellent profitability rating of TM 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)0.45
EPS Next 2Y-7.35%
EPS Next 3Y-2.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.03%, TM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.34, TM pays a better dividend. On top of this TM pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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-7.35%
EPS Next 3Y-2.71%
203.26
-4.03 (-1.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners25.8%
Inst Owner Change0.07%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap264.93B
Revenue(TTM)49.39T
Net Income(TTM)4.63T
Analysts76.92
Price Target206.64 (1.66%)
Short Float %0.09%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend5.58
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)5.7%
EPS NQ rev (3m)-20.7%
EPS NY rev (1m)3.7%
EPS NY rev (3m)-19.44%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-4.59%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 10.19 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 8.5 | ||
| P/B | 1.09 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 8.49 |
EPS(TTM)23.23
EY11.43%
EPS(NY)19.94
Fwd EY9.81%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)23.91
OCFY11.76%
SpS244.77
BVpS185.83
TBVpS179.05
PEG (NY)N/A
PEG (5Y)0.45
Graham Number311.65
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 | 1.7 |
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 Year18017.8%
EBIT Next 3Y494.72%
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 8.75 and the Price/Book (PB) ratio is 1.09.
How financially healthy is TOYOTA MOTOR CORP -SPON ADR?
The financial health rating of TOYOTA MOTOR CORP -SPON ADR (TM) is 4 / 10.