TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
NYSE:TM - New York Stock Exchange, Inc. - US8923313071 - ADR - Currency: USD
TM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 37 industry peers in the Automobiles industry. While TM belongs to the best of the industry regarding profitability, 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
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.
In the past 5 years TM always reported a positive cash flow from operatings.
1.2 Ratios
TM's Return On Assets of 5.09% is amongst the best of the industry. TM outperforms 94.59% of its industry peers.
With an excellent Return On Equity value of 13.26%, TM belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
TM has a better Return On Invested Capital (5.51%) than 86.49% 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 6.62%.
The last Return On Invested Capital (5.51%) for TM is above the 3 year average (5.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 13.26% | ||
| ROIC | 5.51% |
ROA(3y)4.63%
ROA(5y)4.34%
ROE(3y)12.12%
ROE(5y)11.36%
ROIC(3y)5.04%
ROIC(5y)4.62%
1.3 Margins
The Profit Margin of TM (9.92%) is better than 97.30% of its industry peers.
In the last couple of years the Profit Margin of TM has grown nicely.
Looking at the Operating Margin, with a value of 9.98%, TM belongs to the top of the industry, outperforming 97.30% of the companies in the same industry.
TM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 19.94%, TM belongs to the best of the industry, outperforming 81.08% 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 | 9.98% | ||
| PM (TTM) | 9.92% | ||
| GM | 19.94% |
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 1.65, we must say that TM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.65, TM is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that TM is somewhat dependend on debt financing.
TM has a Debt to Equity ratio of 0.64. This is comparable to the rest of the industry: TM outperforms 56.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.65 |
ROIC/WACC1.72
WACC3.21%
2.3 Liquidity
TM has a Current Ratio of 1.26. 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 Current ratio value of 1.26, TM perfoms like the industry average, outperforming 51.35% of the companies in the same industry.
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.
TM has a Quick ratio of 1.10. This is in the better half of the industry: TM outperforms 70.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| 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 6.52% 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%-30.32%
Revenue 1Y (TTM)6.52%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%11.66%
3.2 Future
TM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.15% yearly.
The Revenue is expected to grow by 2.63% on average over the next years.
EPS Next Y-10.2%
EPS Next 2Y-4.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.14%
Revenue Next 2Y3.38%
Revenue Next 3Y2.63%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 6.99, the valuation of TM can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of TM indicates a rather cheap valuation: TM is cheaper than 94.59% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. TM is valued rather cheaply when compared to this.
TM is valuated cheaply with a Price/Forward Earnings ratio of 7.79.
TM's Price/Forward Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 89.19% of the companies in the same industry.
TM is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 7.79 |
4.2 Price Multiples
89.19% 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 | 6.85 |
4.3 Compensation for Growth
The excellent profitability rating of TM may justify a higher PE ratio.
A cheap valuation may be justified as TM's earnings are expected to decrease with -4.15% in the coming years.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-4.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 2.49%.
Compared to an average industry Dividend Yield of 3.84, TM pays a better dividend. On top of this TM pays more dividend than 86.49% of the companies listed in the same industry.
TM's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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
23.76% of the earnings are spent on dividend by TM. This is a low number and sustainable payout ratio.
DP23.76%
EPS Next 2Y-4.15%
EPS Next 3YN/A
174.89
+2.88 (+1.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners24.68%
Inst Owner Change12.25%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap227.93B
Analysts75.33
Price Target182.59 (4.4%)
Short Float %0.09%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
Yearly Dividend5.92
Dividend Growth(5Y)14.07%
DP23.76%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)43.31%
Min EPS beat(2)11.86%
Max EPS beat(2)74.75%
EPS beat(4)3
Avg EPS beat(4)13.19%
Min EPS beat(4)-41.93%
Max EPS beat(4)74.75%
EPS beat(8)7
Avg EPS beat(8)23.68%
EPS beat(12)9
Avg EPS beat(12)13.4%
EPS beat(16)13
Avg EPS beat(16)15.65%
Revenue beat(2)2
Avg Revenue beat(2)1.94%
Min Revenue beat(2)1.55%
Max Revenue beat(2)2.33%
Revenue beat(4)2
Avg Revenue beat(4)0.77%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)2.33%
Revenue beat(8)6
Avg Revenue beat(8)3.37%
Revenue beat(12)10
Avg Revenue beat(12)3.6%
Revenue beat(16)14
Avg Revenue beat(16)3.76%
PT rev (1m)-8.27%
PT rev (3m)-3.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 7.79 | ||
| P/S | 0.68 | ||
| P/FCF | N/A | ||
| P/OCF | 8.89 | ||
| P/B | 0.91 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 6.85 |
EPS(TTM)25.01
EY14.3%
EPS(NY)22.45
Fwd EY12.84%
FCF(TTM)-8.31
FCFYN/A
OCF(TTM)19.68
OCFY11.25%
SpS255.69
BVpS191.22
TBVpS183.97
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 13.26% | ||
| ROCE | 7.47% | ||
| ROIC | 5.51% | ||
| ROICexc | 7.33% | ||
| ROICexgc | 7.54% | ||
| OM | 9.98% | ||
| PM (TTM) | 9.92% | ||
| GM | 19.94% | ||
| FCFM | N/A |
ROA(3y)4.63%
ROA(5y)4.34%
ROE(3y)12.12%
ROE(5y)11.36%
ROIC(3y)5.04%
ROIC(5y)4.62%
ROICexc(3y)6.42%
ROICexc(5y)5.83%
ROICexgc(3y)6.6%
ROICexgc(5y)18.11%
ROCE(3y)7.22%
ROCE(5y)6.72%
ROICexcg growth 3Y-36.84%
ROICexcg growth 5Y7.63%
ROICexc growth 3Y11.1%
ROICexc growth 5Y7.64%
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-Score5
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 233.56% | ||
| Cap/Sales | 10.95% | ||
| Interest Coverage | 2.98 | ||
| Cash Conversion | 52.46% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.65 |
F-Score5
WACC3.21%
ROIC/WACC1.72
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%-30.32%
EPS Next Y-10.2%
EPS Next 2Y-4.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.52%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%11.66%
Revenue Next Year3.14%
Revenue Next 2Y3.38%
Revenue Next 3Y2.63%
Revenue Next 5YN/A
EBIT growth 1Y-10.41%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year19197%
EBIT Next 3Y480.84%
EBIT Next 5YN/A
FCF growth 1Y-85.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.11%
OCF growth 3Y-0.23%
OCF growth 5Y9.04%