TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - NYSE:TM - US8923313071 - ADR
198.78 USD
+1.5 (+0.76%)
200 USD
+1.22 (+0.61%)
Taking everything into account, TM scores 6 out of 10 in our fundamental rating. TM was compared to 37 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 on the other hand it scores bad on growth.
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 has a better Return On Assets (4.57%) than 91.89% of its industry peers.
TM's Return On Equity of 11.86% is amongst the best of the industry. TM outperforms 97.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.35%, TM belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TM is in line with the industry average of 5.63%.
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
Looking at the Profit Margin, with a value of 8.82%, TM belongs to the top of the industry, outperforming 97.30% of the companies in the same industry.
TM's Profit Margin has improved in the last couple of years.
TM has a Operating Margin of 9.60%. This is amongst the best in the industry. TM outperforms 97.30% of its industry peers.
TM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 19.29%, TM is doing good in the industry, outperforming 78.38% of the companies in the same industry.
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
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.
TM has less shares outstanding than it did 5 years ago.
TM has a worse debt/assets ratio than last year.
2.2 Solvency
TM has an Altman-Z score of 1.72. This is a bad value and indicates that TM is not financially healthy and even has some risk of bankruptcy.
TM has a better Altman-Z score (1.72) than 81.08% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that 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 | 1.72 |
ROIC/WACC1.66
WACC3.22%
2.3 Liquidity
A Current Ratio of 1.27 indicates that TM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.27, TM perfoms like the industry average, outperforming 56.76% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.11, TM is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
TM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.70%.
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 4.45%.
The Revenue has been growing by 9.97% on average over the past years. This is quite good.
EPS 1Y (TTM)-11.7%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-34.79%
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 -4.62% on average per year.
The Revenue is expected to grow by 3.01% on average over the next years.
EPS Next Y-30.6%
EPS Next 2Y-9.43%
EPS Next 3Y-4.62%
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y3.05%
Revenue Next 3Y3.01%
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.
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 8.99.
TM's Price/Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 94.59% of the companies in the same industry.
TM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
TM is valuated reasonably with a Price/Forward Earnings ratio of 9.91.
TM's Price/Forward Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 83.78% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.99 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TM is valued cheaper than 91.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.67 |
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 -4.62% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-9.43%
EPS Next 3Y-4.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.29%, TM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.27, TM pays a better dividend. On top of this TM pays more dividend than 91.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, TM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
5.2 History
On average, the dividend of TM grows each year by 14.07%, which is quite nice.
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
TM pays out 27.58% of its income as dividend. This is a sustainable payout ratio.
DP27.58%
EPS Next 2Y-9.43%
EPS Next 3Y-4.62%
198.78
+1.5 (+0.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners24.68%
Inst Owner Change-4.28%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap259.08B
Analysts77.86
Price Target203.41 (2.33%)
Short Float %0.09%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Yearly Dividend5.77
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)13.09%
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)7.91%
PT rev (3m)3.65%
EPS NQ rev (1m)-2.41%
EPS NQ rev (3m)-25.16%
EPS NY rev (1m)-22.72%
EPS NY rev (3m)-22.91%
Revenue NQ rev (1m)0.91%
Revenue NQ rev (3m)-3.38%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.99 | ||
| Fwd PE | 9.91 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | 7.79 | ||
| P/B | 1.06 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 7.67 |
EPS(TTM)22.12
EY11.13%
EPS(NY)20.07
Fwd EY10.09%
FCF(TTM)-0.59
FCFYN/A
OCF(TTM)25.52
OCFY12.84%
SpS252.91
BVpS188.12
TBVpS181.01
PEG (NY)N/A
PEG (5Y)0.46
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%
ROICexcg growth 3Y-39.12%
ROICexcg 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 | 1.72 |
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%-34.79%
EPS Next Y-30.6%
EPS Next 2Y-9.43%
EPS Next 3Y-4.62%
EPS Next 5YN/A
Revenue 1Y (TTM)4.45%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%3.51%
Revenue Next Year3.27%
Revenue Next 2Y3.05%
Revenue Next 3Y3.01%
Revenue Next 5YN/A
EBIT growth 1Y-16.01%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year19576.8%
EBIT Next 3Y484.63%
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%