TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TM - US8923313071 - ADR
196.56 USD
-1.71 (-0.86%)
197 USD
+0.44 (+0.22%)
TM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 36 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 decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years TM has been profitable.
Each year in the past 5 years TM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.75%, TM belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
TM has a Return On Equity of 12.35%. This is amongst the best in 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.
The Average Return On Invested Capital over the past 3 years for TM is in line with the industry average of 5.86%.
| 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 Profit Margin of 9.38%. This is amongst the best in the industry. TM outperforms 94.44% of its industry peers.
TM's Profit Margin has improved in the last couple of years.
TM's Operating Margin of 8.78% is amongst the best of the industry. TM outperforms 94.44% 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 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
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.
TM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TM has a worse debt to assets ratio.
2.2 Solvency
TM has an Altman-Z score of 1.68. This is a bad value and indicates that TM is not financially healthy and even has some risk of bankruptcy.
TM has a Altman-Z score of 1.68. This is in the better half of the industry: TM outperforms 75.00% 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 Debt to Equity ratio (0.63) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.68 |
ROIC/WACC1.49
WACC3.22%
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 (1.25) which is in line with 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 better Quick ratio (1.10) than 72.22% 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.
TM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.57% yearly.
TM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.44%.
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
TM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.81% yearly.
TM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.68% yearly.
EPS Next Y-26.44%
EPS Next 2Y-5.93%
EPS Next 3Y-1.81%
EPS Next 5YN/A
Revenue Next Year5.17%
Revenue Next 2Y4%
Revenue Next 3Y3.68%
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 8.63, which indicates a very decent valuation of TM.
Based on the Price/Earnings ratio, TM is valued cheaply inside the industry as 94.44% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TM to the average of the S&P500 Index (26.49), we can say TM is valued rather cheaply.
The Price/Forward Earnings ratio is 9.59, which indicates a very decent valuation of TM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TM indicates a rather cheap valuation: TM is cheaper than 83.33% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TM to the average of the S&P500 Index (23.69), we can say TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 9.59 |
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 | 8.18 |
4.3 Compensation for Growth
TM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y-5.93%
EPS Next 3Y-1.81%
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 3.06%.
TM's Dividend Yield is rather good when compared to the industry average which is at 3.24. TM pays more dividend than 88.89% of the companies in the same industry.
TM's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
On average, the dividend of TM grows each year by 14.07%, which is quite nice.
TM has been paying a dividend for at least 10 years, so it has 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
25.44% of the earnings are spent on dividend by TM. This is a low number and sustainable payout ratio.
DP25.44%
EPS Next 2Y-5.93%
EPS Next 3Y-1.81%
196.56
-1.71 (-0.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners26.29%
Inst Owner Change2.53%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap256.18B
Revenue(TTM)49.39T
Net Income(TTM)4.63T
Analysts76.92
Price Target208.88 (6.27%)
Short Float %0.08%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend5.5
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)52.47%
EPS NQ rev (3m)67.49%
EPS NY rev (1m)1.44%
EPS NY rev (3m)6%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)0.89%
Revenue NY rev (1m)0.76%
Revenue NY rev (3m)2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 9.59 | ||
| P/S | 0.81 | ||
| P/FCF | N/A | ||
| P/OCF | 8.24 | ||
| P/B | 1.06 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 8.18 |
EPS(TTM)22.77
EY11.58%
EPS(NY)20.5
Fwd EY10.43%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)23.85
OCFY12.13%
SpS244.1
BVpS185.32
TBVpS178.56
PEG (NY)N/A
PEG (5Y)0.44
Graham Number308.13
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 | 1.68 |
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-26.44%
EPS Next 2Y-5.93%
EPS Next 3Y-1.81%
EPS Next 5YN/A
Revenue 1Y (TTM)6.44%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%-2.18%
Revenue Next Year5.17%
Revenue Next 2Y4%
Revenue Next 3Y3.68%
Revenue Next 5YN/A
EBIT growth 1Y-17.51%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year18593.2%
EBIT Next 3Y502.89%
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 8.63 and the Price/Book (PB) ratio is 1.06.
How financially healthy is TOYOTA MOTOR CORP -SPON ADR?
The financial health rating of TOYOTA MOTOR CORP -SPON ADR (TM) is 4 / 10.