TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TM • US8923313071
244.22 USD
+7.03 (+2.96%)
At close: Feb 6, 2026
238.75 USD
-5.47 (-2.24%)
Pre-Market: 2/9/2026, 6:21:06 AM
Overall TM gets a fundamental rating of 6 out of 10. We evaluated TM against 35 industry peers in the Automobiles industry. TM scores excellent on profitability, but there are some minor concerns on its financial health. TM is not valued too expensively and it also shows a decent growth rate.
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.
- TM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TM has a Return On Assets of 4.75%. This is amongst the best in the industry. TM outperforms 97.14% of its industry peers.
- Looking at the Return On Equity, with a value of 12.35%, TM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 4.81%, TM belongs to the best of the industry, outperforming 91.43% 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 5.26%.
| 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
- TM has a better Profit Margin (9.38%) than 94.29% of its industry peers.
- TM's Profit Margin has improved in the last couple of years.
- TM has a better Operating Margin (8.78%) than 94.29% of its industry peers.
- TM's Operating Margin has improved in the last couple of years.
- The Gross Margin of TM (17.97%) is better than 77.14% of its industry peers.
- 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.
- 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.
- Compared to 1 year ago, TM has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.78, 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 1.78, TM belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
- TM has a Debt/Equity ratio of 0.63. This is a neutral value indicating TM is somewhat dependend on debt financing.
- The Debt to Equity ratio of TM (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.78 |
ROIC/WACC1.48
WACC3.24%
2.3 Liquidity
- TM has a Current Ratio of 1.25. This is a normal value and indicates that TM is financially healthy and should not expect problems in meeting its short term obligations.
- TM's Current ratio of 1.25 is in line compared to the rest of the industry. TM outperforms 54.29% of its industry peers.
- A Quick Ratio of 1.10 indicates that TM should not have too much problems paying its short term obligations.
- TM has a Quick ratio of 1.10. This is in the better half of the industry: TM outperforms 65.71% 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.
- The Earnings Per Share has been growing by 19.57% on average over the past years. This is quite good.
- Looking at the last year, TM shows a small growth in Revenue. The Revenue has grown by 6.44% in the last 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
- TM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.19% yearly.
- 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
- 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
- TM is valuated reasonably with a Price/Earnings ratio of 10.85.
- TM's Price/Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 91.43% of the companies in the same industry.
- When comparing the Price/Earnings ratio of TM to the average of the S&P500 Index (27.93), we can say TM is valued rather cheaply.
- TM is valuated reasonably with a Price/Forward Earnings ratio of 11.64.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TM indicates a rather cheap valuation: TM is cheaper than 82.86% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.77, TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.85 | ||
| Fwd PE | 11.64 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TM is valued cheaper than 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.73 |
4.3 Compensation for Growth
- The excellent profitability rating of TM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
5. Dividend
5.1 Amount
- TM has a Yearly Dividend Yield of 2.51%. Purely for dividend investing, there may be better candidates out there.
- TM's Dividend Yield is rather good when compared to the industry average which is at 0.93. TM pays more dividend than 85.71% 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 | 2.51% |
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.
- 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
- 25.44% of the earnings are spent on dividend by TM. This is a low number and 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%
244.22
+7.03 (+2.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)05-06 2026-05-06/bmo
Inst Owners24.9%
Inst Owner Change1.27%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap318.30B
Revenue(TTM)49.39T
Net Income(TTM)4.63T
Analysts76.92
Price Target236.39 (-3.21%)
Short Float %0.12%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend5.44
Dividend Growth(5Y)14.07%
DP25.44%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.99%
Min EPS beat(2)7.7%
Max EPS beat(2)24.28%
EPS beat(4)4
Avg EPS beat(4)29.65%
Min EPS beat(4)7.7%
Max EPS beat(4)74.75%
EPS beat(8)7
Avg EPS beat(8)15.35%
EPS beat(12)10
Avg EPS beat(12)18.99%
EPS beat(16)13
Avg EPS beat(16)14.27%
Revenue beat(2)0
Avg Revenue beat(2)-4.74%
Min Revenue beat(2)-9%
Max Revenue beat(2)-0.47%
Revenue beat(4)2
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-9%
Max Revenue beat(4)2.33%
Revenue beat(8)4
Avg Revenue beat(8)0.75%
Revenue beat(12)8
Avg Revenue beat(12)2.23%
Revenue beat(16)12
Avg Revenue beat(16)2.49%
PT rev (1m)5.59%
PT rev (3m)16.21%
EPS NQ rev (1m)-32.08%
EPS NQ rev (3m)3.56%
EPS NY rev (1m)2.16%
EPS NY rev (3m)8.77%
Revenue NQ rev (1m)1.26%
Revenue NQ rev (3m)3.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.85 | ||
| Fwd PE | 11.64 | ||
| P/S | 1.01 | ||
| P/FCF | N/A | ||
| P/OCF | 10.36 | ||
| P/B | 1.33 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 9.73 |
EPS(TTM)22.5
EY9.21%
EPS(NY)20.99
Fwd EY8.59%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)23.56
OCFY9.65%
SpS241.21
BVpS183.12
TBVpS176.44
PEG (NY)N/A
PEG (5Y)0.55
Graham Number304.48
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 | 1.78 |
F-Score6
WACC3.24%
ROIC/WACC1.48
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)11.57%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%65.7%
EPS Next Y-23.94%
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
EPS Next 5YN/A
Revenue 1Y (TTM)6.44%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%-2.18%
Revenue Next Year5.5%
Revenue Next 2Y4.42%
Revenue Next 3Y4.09%
Revenue Next 5YN/A
EBIT growth 1Y-17.51%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year19005.4%
EBIT Next 3Y508.39%
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 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 8 / 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 10.85 and the Price/Book (PB) ratio is 1.33.
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.