TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - NYSE:TM - US8923313071 - ADR
202.94 USD
+3.79 (+1.9%)
202.94 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TM. TM was compared to 36 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TM was profitable.
In the past year TM had a positive cash flow from operations.
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 has a better Return On Assets (4.57%) than 94.44% of its industry peers.
With an excellent Return On Equity value of 11.86%, TM belongs to the best of the industry, outperforming 97.22% of the companies in the same industry.
TM has a better Return On Invested Capital (5.35%) than 94.44% 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 5.46%.
The last Return On Invested Capital (5.35%) for TM is above the 3 year average (4.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.57% | ||
| ROE | 11.86% | ||
| ROIC | 5.35% |
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 has a better Profit Margin (8.82%) than 97.22% of its industry peers.
In the last couple of years the Profit Margin of TM has grown nicely.
The Operating Margin of TM (9.60%) is better than 97.22% of its industry peers.
In the last couple of years the Operating Margin of TM has grown nicely.
The Gross Margin of TM (19.29%) is better than 77.78% of its industry peers.
TM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.6% | ||
| PM (TTM) | 8.82% | ||
| GM | 19.29% |
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.
Compared to 1 year ago, TM has less shares outstanding
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 1.74, we must say that TM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TM (1.74) is better than 75.00% of its industry peers.
TM has a Debt/Equity ratio of 0.64. This is a neutral value indicating TM is somewhat dependend on debt financing.
TM has a Debt to Equity ratio (0.64) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.74 |
ROIC/WACC1.66
WACC3.22%
2.3 Liquidity
TM has a Current Ratio of 1.27. 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 (1.27) which is in line with its industry peers.
TM has a Quick Ratio of 1.11. 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 1.11. This is in the better half of the industry: TM outperforms 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for TM have decreased strongly by -11.70% in the last year.
The Earnings Per Share has been growing by 19.57% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.45% 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)-11.7%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-34.78%
Revenue 1Y (TTM)4.45%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%3.51%
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.
TM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.14% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TM is valuated reasonably with a Price/Earnings ratio of 9.60.
TM's Price/Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 94.44% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.67, TM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.11, the valuation of TM can be described as reasonable.
80.56% of the companies in the same industry are more expensive than TM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 31.86. TM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 10.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TM is valued cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.94 |
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)0.49
EPS Next 2Y-7.35%
EPS Next 3Y-2.71%
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 2.03%.
Compared to an average industry Dividend Yield of 3.21, TM pays a better dividend. On top of this TM pays more dividend than 86.11% of the companies listed in the same industry.
TM's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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 27.58% of its income as dividend. This is a sustainable payout ratio.
DP27.58%
EPS Next 2Y-7.35%
EPS Next 3Y-2.71%
202.94
+3.79 (+1.9%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners25.8%
Inst Owner Change-0.45%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap264.51B
Revenue(TTM)48452.15B
Net Income(TTM)4273.08B
Analysts76.92
Price Target203.41 (0.23%)
Short Float %0.09%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
Yearly Dividend5.55
Dividend Growth(5Y)14.07%
DP27.58%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.78%
Min EPS beat(2)7.7%
Max EPS beat(2)11.86%
EPS beat(4)3
Avg EPS beat(4)13.1%
Min EPS beat(4)-41.93%
Max EPS beat(4)74.75%
EPS beat(8)7
Avg EPS beat(8)17.77%
EPS beat(12)9
Avg EPS beat(12)13.82%
EPS beat(16)13
Avg EPS beat(16)14.33%
Revenue beat(2)1
Avg Revenue beat(2)0.54%
Min Revenue beat(2)-0.47%
Max Revenue beat(2)1.55%
Revenue beat(4)2
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)2.33%
Revenue beat(8)5
Avg Revenue beat(8)2.64%
Revenue beat(12)9
Avg Revenue beat(12)3.25%
Revenue beat(16)13
Avg Revenue beat(16)3.35%
PT rev (1m)0%
PT rev (3m)15.1%
EPS NQ rev (1m)2.5%
EPS NQ rev (3m)7.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-22.32%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)1.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 10.11 | ||
| P/S | 0.84 | ||
| P/FCF | N/A | ||
| P/OCF | 8.32 | ||
| P/B | 1.13 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)21.15
EY10.42%
EPS(NY)20.08
Fwd EY9.89%
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)24.4
OCFY12.02%
SpS241.81
BVpS179.86
TBVpS173.06
PEG (NY)N/A
PEG (5Y)0.49
Graham Number292.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.57% | ||
| ROE | 11.86% | ||
| ROCE | 7.25% | ||
| ROIC | 5.35% | ||
| ROICexc | 7.12% | ||
| ROICexgc | 7.32% | ||
| OM | 9.6% | ||
| PM (TTM) | 8.82% | ||
| GM | 19.29% | ||
| 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 224.58% | ||
| Cap/Sales | 10.33% | ||
| Interest Coverage | 2.83 | ||
| Cash Conversion | 71.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 1.74 |
F-Score6
WACC3.22%
ROIC/WACC1.66
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)-11.7%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-34.78%
EPS Next Y-27.48%
EPS Next 2Y-7.35%
EPS Next 3Y-2.71%
EPS Next 5YN/A
Revenue 1Y (TTM)4.45%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%3.51%
Revenue Next Year4.38%
Revenue Next 2Y3.39%
Revenue Next 3Y3.14%
Revenue Next 5YN/A
EBIT growth 1Y-16.01%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year17893.6%
EBIT Next 3Y493.36%
EBIT Next 5YN/A
FCF growth 1Y73.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.77%
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 6 / 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 9 / 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 9.6 and the Price/Book (PB) ratio is 1.13.
How financially healthy is TOYOTA MOTOR CORP -SPON ADR?
The financial health rating of TOYOTA MOTOR CORP -SPON ADR (TM) is 4 / 10.