TOYOTA MOTOR CORP -SPON ADR (TM)
US8923313071 - ADR
TM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 industry peers in the Automobiles industry. While TM belongs to the best of the industry regarding profitability, there are 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.
TM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TM (4.78%) is better than 85.71% of its industry peers.
TM has a better Return On Equity (12.40%) than 80.95% of its industry peers.
With an excellent Return On Invested Capital value of 6.05%, TM belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TM is significantly below the industry average of 10.07%.
The last Return On Invested Capital (6.05%) for TM is above the 3 year average (4.46%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 12.4% | ||
| ROIC | 6.05% |
ROA(3y)4.33%
ROA(5y)4.08%
ROE(3y)11.32%
ROE(5y)10.69%
ROIC(3y)4.46%
ROIC(5y)4.18%
1.3 Margins
The Profit Margin of TM (9.19%) is better than 88.10% of its industry peers.
TM's Profit Margin has improved in the last couple of years.
TM has a Operating Margin of 11.33%. This is amongst the best in the industry. TM outperforms 92.86% of its industry peers.
In the last couple of years the Operating Margin of TM has grown nicely.
TM has a better Gross Margin (21.13%) than 76.19% of its industry peers.
In the last couple of years the Gross Margin of TM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.33% | ||
| PM (TTM) | 9.19% | ||
| GM | 21.13% |
OM growth 3Y13.7%
OM growth 5Y7.77%
PM growth 3Y9.95%
PM growth 5Y12.15%
GM growth 3Y5.37%
GM growth 5Y2.9%
2. Health
2.1 Basic Checks
TM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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
Based on the Altman-Z score of 1.72, we must say that TM is in the distress zone and has some risk of bankruptcy.
TM has a better Altman-Z score (1.72) than 76.19% of its industry peers.
TM has a Debt/Equity ratio of 0.63. This is a neutral value indicating TM is somewhat dependend on debt financing.
TM has a worse Debt to Equity ratio (0.63) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.72 |
ROIC/WACC0.8
WACC7.56%
2.3 Liquidity
A Current Ratio of 1.23 indicates that TM should not have too much problems paying its short term obligations.
TM's Current ratio of 1.23 is in line compared to the rest of the industry. TM outperforms 40.48% of its industry peers.
A Quick Ratio of 1.07 indicates that TM should not have too much problems paying its short term obligations.
TM has a Quick ratio (1.07) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
TM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.17%, which is quite good.
TM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.98% yearly.
The Revenue has grown by 12.00% in the past year. This is quite good.
Measured over the past years, TM shows a quite strong growth in Revenue. The Revenue has been growing by 8.33% on average per year.
EPS 1Y (TTM)10.17%
EPS 3Y31.58%
EPS 5Y22.98%
EPS Q2Q%-54.7%
Revenue 1Y (TTM)12%
Revenue growth 3Y18.33%
Revenue growth 5Y8.33%
Sales Q2Q%0.09%
3.2 Future
The Earnings Per Share is expected to decrease by -2.27% on average over the next years.
Based on estimates for the next years, TM will show a small growth in Revenue. The Revenue will grow by 4.35% on average per year.
EPS Next Y-11.22%
EPS Next 2Y-4.91%
EPS Next 3Y-2.27%
EPS Next 5YN/A
Revenue Next Year6.32%
Revenue Next 2Y4.76%
Revenue Next 3Y4.35%
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
With a Price/Earnings ratio of 8.68, the valuation of TM can be described as very reasonable.
83.33% of the companies in the same industry are more expensive than TM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.73, TM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.25, the valuation of TM can be described as reasonable.
88.10% of the companies in the same industry are more expensive than TM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.68 | ||
| Fwd PE | 8.25 |
4.2 Price Multiples
88.10% of the companies in the same industry are more expensive than TM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
TM has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TM's earnings are expected to decrease with -2.27% in the coming years.
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y-4.91%
EPS Next 3Y-2.27%
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 3.31%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.77, TM pays a better dividend. On top of this TM pays more dividend than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, TM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
5.2 History
The dividend of TM is nicely growing with an annual growth rate of 7.71%!
TM has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of TM decreased recently.
Dividend Growth(5Y)7.71%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TM pays out 23.74% of its income as dividend. This is a sustainable payout ratio.
DP23.74%
EPS Next 2Y-4.91%
EPS Next 3Y-2.27%
TOYOTA MOTOR CORP -SPON ADR
NYSE:TM (12/20/2024, 8:04:00 PM)
After market: 178.38 +0.21 (+0.12%)178.17
+3.96 (+2.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners1.63%
Inst Owner Change3.97%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap234.29B
Analysts78.52
Price Target178.48 (0.17%)
Short Float %0.01%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Dividend Growth(5Y)7.71%
DP23.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-16.92%
Min EPS beat(2)-41.93%
Max EPS beat(2)8.1%
EPS beat(4)3
Avg EPS beat(4)1.05%
Min EPS beat(4)-41.93%
Max EPS beat(4)22.06%
EPS beat(8)6
Avg EPS beat(8)13.66%
EPS beat(12)9
Avg EPS beat(12)9.15%
EPS beat(16)13
Avg EPS beat(16)16.4%
Revenue beat(2)0
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)-0.14%
Revenue beat(4)2
Avg Revenue beat(4)2.9%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)7.45%
Revenue beat(8)6
Avg Revenue beat(8)4.05%
Revenue beat(12)10
Avg Revenue beat(12)3.79%
Revenue beat(16)14
Avg Revenue beat(16)4.1%
PT rev (1m)-1.02%
PT rev (3m)-8.39%
EPS NQ rev (1m)-7.06%
EPS NQ rev (3m)-5.55%
EPS NY rev (1m)0%
EPS NY rev (3m)0.44%
Revenue NQ rev (1m)-2.76%
Revenue NQ rev (3m)-2.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.68 | ||
| Fwd PE | 8.25 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | 9.81 | ||
| P/B | 1.07 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 6.97 |
EPS(TTM)20.52
EY11.52%
EPS(NY)21.61
Fwd EY12.13%
FCF(TTM)-9.41
FCFYN/A
OCF(TTM)18.16
OCFY10.19%
SpS224.91
BVpS166.61
TBVpS160.23
PEG (NY)N/A
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 12.4% | ||
| ROCE | 8.59% | ||
| ROIC | 6.05% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 8.08% | ||
| OM | 11.33% | ||
| PM (TTM) | 9.19% | ||
| GM | 21.13% | ||
| FCFM | N/A |
ROA(3y)4.33%
ROA(5y)4.08%
ROE(3y)11.32%
ROE(5y)10.69%
ROIC(3y)4.46%
ROIC(5y)4.18%
ROICexc(3y)5.5%
ROICexc(5y)5.13%
ROICexgc(3y)13.43%
ROICexgc(5y)16.85%
ROCE(3y)6.91%
ROCE(5y)6.56%
ROICexcg growth 3Y-42.54%
ROICexcg growth 5Y7.18%
ROICexc growth 3Y18.6%
ROICexc growth 5Y6.62%
OM growth 3Y13.7%
OM growth 5Y7.77%
PM growth 3Y9.95%
PM growth 5Y12.15%
GM growth 3Y5.37%
GM growth 5Y2.9%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.9 | ||
| Cap/Depr | 259.06% | ||
| Cap/Sales | 12.26% | ||
| Interest Coverage | 3.72 | ||
| Cash Conversion | 50.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.72 |
F-Score7
WACC7.56%
ROIC/WACC0.8
Cap/Depr(3y)211.26%
Cap/Depr(5y)219.56%
Cap/Sales(3y)11.13%
Cap/Sales(5y)11.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.17%
EPS 3Y31.58%
EPS 5Y22.98%
EPS Q2Q%-54.7%
EPS Next Y-11.22%
EPS Next 2Y-4.91%
EPS Next 3Y-2.27%
EPS Next 5YN/A
Revenue 1Y (TTM)12%
Revenue growth 3Y18.33%
Revenue growth 5Y8.33%
Sales Q2Q%0.09%
Revenue Next Year6.32%
Revenue Next 2Y4.76%
Revenue Next 3Y4.35%
Revenue Next 5YN/A
EBIT growth 1Y26.91%
EBIT growth 3Y34.55%
EBIT growth 5Y16.75%
EBIT Next Year19677.5%
EBIT Next 3Y489.1%
EBIT Next 5YN/A
FCF growth 1Y-9655.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y6.75%
OCF growth 3Y15.54%
OCF growth 5Y2.23%