TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TM - US8923313071 - ADR
200.26 USD
+1.2 (+0.6%)
198.96 USD
-1.3 (-0.65%)
We assign a fundamental rating of 6 out of 10 to TM. TM was compared to 36 industry peers in the Automobiles industry. TM scores excellent on profitability, but 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.
In the past 5 years TM has always been profitable.
In the past 5 years TM always reported a positive cash flow from operatings.
1.2 Ratios
TM has a Return On Assets of 4.75%. This is amongst the best in the industry. TM outperforms 94.44% of its industry peers.
TM's Return On Equity of 12.35% is amongst the best of the industry. TM outperforms 94.44% of its industry peers.
TM has a Return On Invested Capital of 4.81%. This is amongst the best in the industry. TM outperforms 88.89% 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 5.83%.
| 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
With an excellent Profit Margin value of 9.38%, TM belongs to the best 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.
TM has a Operating Margin of 8.78%. This is amongst the best in the industry. TM outperforms 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 in the better half of the industry: TM outperforms 72.22% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TM is creating some value.
Compared to 1 year ago, TM has less shares outstanding
Compared to 5 years ago, TM has less shares outstanding
Compared to 1 year ago, TM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that TM is in the distress zone and has some risk of bankruptcy.
TM has a better Altman-Z score (1.69) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that TM is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.63, TM is doing good in the industry, outperforming 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.69 |
ROIC/WACC1.49
WACC3.22%
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 has a Current ratio of 1.25. This is comparable to the rest of the industry: TM outperforms 58.33% of its industry peers.
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.
With a decent Quick ratio value of 1.10, TM is doing good in the industry, outperforming 72.22% of the companies in the same industry.
| 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.
TM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.57% yearly.
Looking at the last year, TM shows a small growth in Revenue. The Revenue has grown by 6.44% in the last year.
The Revenue has been growing by 9.97% on average over the past years. This is quite good.
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
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.
Based on estimates for the next years, TM will show a small growth in Revenue. The Revenue will grow by 3.14% on average per year.
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
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
The Price/Earnings ratio is 8.89, which indicates a very decent valuation of TM.
94.44% of the companies in the same industry are more expensive than TM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TM to the average of the S&P500 Index (25.98), we can say TM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.18, the valuation of TM can be described as reasonable.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.89 | ||
| Fwd PE | 10.18 |
4.2 Price Multiples
TM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TM is cheaper than 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.32 |
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 -2.71% in the coming years.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y-7.35%
EPS Next 3Y-2.71%
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 3.12%.
TM's Dividend Yield is rather good when compared to the industry average which is at 3.48. 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
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
TM pays out 25.44% of its income as dividend. This is a sustainable payout ratio.
DP25.44%
EPS Next 2Y-7.35%
EPS Next 3Y-2.71%
200.26
+1.2 (+0.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners25.8%
Inst Owner Change2.44%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap261.01B
Revenue(TTM)49.39T
Net Income(TTM)4.63T
Analysts76.92
Price Target208.88 (4.3%)
Short Float %0.08%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
Yearly Dividend5.45
Dividend Growth(5Y)14.07%
DP25.44%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)2.69%
PT rev (3m)10.81%
EPS NQ rev (1m)52.48%
EPS NQ rev (3m)67.49%
EPS NY rev (1m)3.7%
EPS NY rev (3m)-19.24%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.89 | ||
| Fwd PE | 10.18 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 8.49 | ||
| P/B | 1.09 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 8.32 |
EPS(TTM)22.52
EY11.25%
EPS(NY)19.66
Fwd EY9.82%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)23.58
OCFY11.77%
SpS241.37
BVpS183.25
TBVpS176.56
PEG (NY)N/A
PEG (5Y)0.45
Graham Number304.71
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 | 1.69 |
F-Score6
WACC3.22%
ROIC/WACC1.49
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-27.48%
EPS Next 2Y-7.35%
EPS Next 3Y-2.71%
EPS Next 5YN/A
Revenue 1Y (TTM)6.44%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%-2.18%
Revenue Next Year4.38%
Revenue Next 2Y3.39%
Revenue Next 3Y3.14%
Revenue Next 5YN/A
EBIT growth 1Y-17.51%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year18273.9%
EBIT Next 3Y497.51%
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.
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 8 / 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 8.89 and the Price/Book (PB) ratio is 1.09.
How financially healthy is TOYOTA MOTOR CORP -SPON ADR?
The financial health rating of TOYOTA MOTOR CORP -SPON ADR (TM) is 4 / 10.