TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TM - US8923313071 - ADR
226.28 USD
-0.76 (-0.33%)
226.28 USD
0 (0%)
TM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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's Return On Assets of 4.75% is amongst the best of the industry. TM outperforms 97.22% of its industry peers.
- The Return On Equity of TM (12.35%) is better than 94.44% of its industry peers.
- The Return On Invested Capital of TM (4.81%) is better than 91.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- Looking at the Profit Margin, with a value of 9.38%, TM belongs to the top 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.
- TM has a Gross Margin of 17.97%. This is amongst the best in the industry. TM outperforms 80.56% 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
- TM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for TM has been reduced compared to 1 year ago.
- Compared to 5 years ago, TM has less shares outstanding
- The debt/assets ratio for TM is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.75, we must say that TM is in the distress zone and has some risk of bankruptcy.
- TM has a better Altman-Z score (1.75) than 80.56% 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 (0.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.75 |
ROIC/WACC1.49
WACC3.23%
2.3 Liquidity
- A Current Ratio of 1.25 indicates that TM should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.25, TM is in line with its industry, outperforming 55.56% of the companies in the same industry.
- A Quick Ratio of 1.10 indicates that TM should not have too much problems paying its short term obligations.
- TM has a better Quick ratio (1.10) than 66.67% of its industry peers.
| 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.
- 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
- The Earnings Per Share is expected to grow by 0.19% on average over the next years.
- TM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.09% yearly.
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
- The Price/Earnings ratio is 10.12, which indicates a very decent valuation of TM.
- Based on the Price/Earnings ratio, TM is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of TM to the average of the S&P500 Index (27.21), we can say TM is valued rather cheaply.
- A Price/Forward Earnings ratio of 10.86 indicates a reasonable valuation of TM.
- 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.
- TM is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 10.86 |
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 | 9.22 |
4.3 Compensation for Growth
- TM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
5. Dividend
5.1 Amount
- TM has a Yearly Dividend Yield of 2.65%.
- TM's Dividend Yield is rather good when compared to the industry average which is at 0.84. TM pays more dividend than 86.11% of the companies in the same industry.
- TM's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| 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 paid a dividend for at least 10 years, which is 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.
- TM's earnings are growing slower than its dividend. 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 9 / 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 10.12 and the Price/Book (PB) ratio is 1.24.
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.