TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TM • US8923313071
229.155 USD
-2.43 (-1.05%)
Last: Feb 3, 2026, 02:30 PM
TM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 35 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
- In the past year TM was profitable.
- TM had a positive operating cash flow in the past year.
- TM had positive earnings in each of the past 5 years.
- Each year in the past 5 years TM had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 4.75%, TM belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
- TM has a better Return On Equity (12.35%) than 94.29% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.81%, TM belongs to the top 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 Operating Margin of 8.78%. This is amongst the best in the industry. TM outperforms 94.29% of its industry peers.
- In the last couple of years the Operating Margin of TM has grown nicely.
- TM has a better Gross Margin (17.97%) than 77.14% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TM is still 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 1.75, we must say that TM is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.75, TM is doing good in the industry, outperforming 80.00% 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.
- TM's Debt to Equity ratio of 0.63 is in line compared to the rest of the industry. TM outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.75 |
ROIC/WACC1.49
WACC3.23%
2.3 Liquidity
- A Current Ratio of 1.25 indicates that TM should not have too much problems paying its short term obligations.
- TM has a Current ratio of 1.25. This is comparable 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.
- 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 small growth in Earnings Per Share. The EPS will grow by 0.19% on average per year.
- Based on estimates for the next years, TM will show a small growth in Revenue. The Revenue will grow by 4.09% on average per year.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- A Price/Earnings ratio of 10.05 indicates a reasonable valuation of TM.
- Based on the Price/Earnings ratio, TM is valued cheaply inside the industry as 94.29% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.41. TM is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 10.78, the valuation of TM can be described as reasonable.
- 82.86% of the companies in the same industry are more expensive than TM, based on the Price/Forward Earnings ratio.
- TM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.05 | ||
| Fwd PE | 10.78 |
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 | 9.25 |
4.3 Compensation for Growth
- The excellent profitability rating of TM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.76%, TM has a reasonable but not impressive dividend return.
- TM's Dividend Yield is rather good when compared to the industry average which is at 0.86. TM pays more dividend than 85.71% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, TM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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.
- 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%
NYSE:TM (2/3/2026, 2:30:51 PM)
229.155
-2.43 (-1.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)11-05 2025-11-05/dmh
Earnings (Next)02-03 2026-02-03/bmo
Inst Owners24.9%
Inst Owner Change0.09%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap298.67B
Revenue(TTM)49.39T
Net Income(TTM)4.63T
Analysts76.92
Price Target223.87 (-2.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend5.54
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)0%
PT rev (3m)10.05%
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 | 10.05 | ||
| Fwd PE | 10.78 | ||
| P/S | 0.94 | ||
| P/FCF | N/A | ||
| P/OCF | 9.6 | ||
| P/B | 1.24 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 9.25 |
EPS(TTM)22.8
EY9.95%
EPS(NY)21.26
Fwd EY9.28%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)23.87
OCFY10.42%
SpS244.37
BVpS185.52
TBVpS178.75
PEG (NY)N/A
PEG (5Y)0.51
Graham Number308.5
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 | 1.75 |
F-Score6
WACC3.23%
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-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 Year18758.6%
EBIT Next 3Y505.76%
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 10.05 and the Price/Book (PB) ratio is 1.24.
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.