TOYOTA MOTOR CORP -SPON ADR (TM) Fundamental Analysis & Valuation
NYSE:TM • US8923313071
221.48 USD
-11.33 (-4.87%)
At close: Mar 5, 2026
222.73 USD
+1.25 (+0.56%)
After Hours: 3/5/2026, 8:23:43 PM
This TM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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 is not valued too expensively and it also shows a decent growth rate.
1. TM Profitability Analysis
1.1 Basic Checks
- TM had positive earnings in the past year.
- TM had a positive operating cash flow in the past year.
- 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
- With an excellent Return On Assets value of 3.61%, TM belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
- The Return On Equity of TM (9.48%) is better than 94.29% of its industry peers.
- TM has a Return On Invested Capital of 4.56%. This is amongst the best in the industry. TM outperforms 91.43% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TM is in line with the industry average of 5.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 9.48% | ||
| ROIC | 4.56% |
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
- Looking at the Profit Margin, with a value of 7.33%, TM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- TM's Profit Margin has improved in the last couple of years.
- The Operating Margin of TM (8.55%) is better than 94.29% of its industry peers.
- TM's Operating Margin has improved in the last couple of years.
- TM's Gross Margin of 17.62% is fine compared to the rest of the industry. TM outperforms 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 | 8.55% | ||
| PM (TTM) | 7.33% | ||
| GM | 17.62% |
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. TM Health Analysis
2.1 Basic Checks
- TM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- TM has less shares outstanding than it did 1 year ago.
- TM has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for TM is higher compared to a year ago.
2.2 Solvency
- TM has an Altman-Z score of 1.70. This is a bad value and indicates that TM is not financially healthy and even has some risk of bankruptcy.
- TM has a better Altman-Z score (1.70) than 80.00% of its industry peers.
- A Debt/Equity ratio of 0.64 indicates that TM is somewhat dependend on debt financing.
- TM has a Debt to Equity ratio (0.64) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.7 |
ROIC/WACC1.41
WACC3.23%
2.3 Liquidity
- A Current Ratio of 1.26 indicates that TM should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.26, TM perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
- A Quick Ratio of 1.12 indicates that TM should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.12, TM is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.12 |
3. TM Growth Analysis
3.1 Past
- TM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.62%.
- The Earnings Per Share has been growing by 19.57% on average over the past years. This is quite good.
- TM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.92%.
- TM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.97% yearly.
EPS 1Y (TTM)-25.62%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-41.81%
Revenue 1Y (TTM)7.92%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%8.6%
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.
- TM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.31% yearly.
EPS Next Y-23.94%
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
EPS Next 5YN/A
Revenue Next Year5.92%
Revenue Next 2Y4.74%
Revenue Next 3Y4.31%
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. TM Valuation Analysis
4.1 Price/Earnings Ratio
- TM is valuated correctly with a Price/Earnings ratio of 12.24.
- Based on the Price/Earnings ratio, TM is valued cheaper than 85.71% of the companies in the same industry.
- When comparing the Price/Earnings ratio of TM to the average of the S&P500 Index (26.74), we can say TM is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.56, 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 82.86% 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 (24.82), we can say TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TM is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.74 |
4.3 Compensation for Growth
- TM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.63
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
5. TM Dividend Analysis
5.1 Amount
- TM has a Yearly Dividend Yield of 2.52%.
- TM's Dividend Yield is rather good when compared to the industry average which is at 0.95. 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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 33.53% 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.
DP33.53%
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
TM Fundamentals: All Metrics, Ratios and Statistics
221.48
-11.33 (-4.87%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)05-06 2026-05-06/bmo
Inst Owners24.9%
Inst Owner Change4.98%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap288.66B
Revenue(TTM)50.45T
Net Income(TTM)3.70T
Analysts76.15
Price Target243.09 (9.76%)
Short Float %0.08%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Yearly Dividend5.47
Dividend Growth(5Y)14.07%
DP33.53%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.87%
Min EPS beat(2)24.28%
Max EPS beat(2)27.46%
EPS beat(4)4
Avg EPS beat(4)17.83%
Min EPS beat(4)7.7%
Max EPS beat(4)27.46%
EPS beat(8)7
Avg EPS beat(8)16.02%
EPS beat(12)10
Avg EPS beat(12)20.66%
EPS beat(16)13
Avg EPS beat(16)14.81%
Revenue beat(2)1
Avg Revenue beat(2)-2.75%
Min Revenue beat(2)-9%
Max Revenue beat(2)3.51%
Revenue beat(4)2
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-9%
Max Revenue beat(4)3.51%
Revenue beat(8)4
Avg Revenue beat(8)0.57%
Revenue beat(12)8
Avg Revenue beat(12)2.16%
Revenue beat(16)12
Avg Revenue beat(16)2.59%
PT rev (1m)8.59%
PT rev (3m)16.38%
EPS NQ rev (1m)-13.41%
EPS NQ rev (3m)436.26%
EPS NY rev (1m)0%
EPS NY rev (3m)4.89%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 10.56 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | 9.96 | ||
| P/B | 1.16 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 9.74 |
EPS(TTM)18.09
EY8.17%
EPS(NY)20.98
Fwd EY9.47%
FCF(TTM)-0.28
FCFYN/A
OCF(TTM)22.23
OCFY10.04%
SpS246.38
BVpS190.33
TBVpS183.7
PEG (NY)N/A
PEG (5Y)0.63
Graham Number278.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 9.48% | ||
| ROCE | 6.18% | ||
| ROIC | 4.56% | ||
| ROICexc | 5.98% | ||
| ROICexgc | 6.13% | ||
| OM | 8.55% | ||
| PM (TTM) | 7.33% | ||
| GM | 17.62% | ||
| 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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.78 | ||
| Cap/Depr | 199.39% | ||
| Cap/Sales | 9.13% | ||
| Interest Coverage | 2.54 | ||
| Cash Conversion | 68.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 1.7 |
F-Score6
WACC3.23%
ROIC/WACC1.41
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)-25.62%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-41.81%
EPS Next Y-23.94%
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
EPS Next 5YN/A
Revenue 1Y (TTM)7.92%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%8.6%
Revenue Next Year5.92%
Revenue Next 2Y4.74%
Revenue Next 3Y4.31%
Revenue Next 5YN/A
EBIT growth 1Y-10%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year19270.3%
EBIT Next 3Y516.75%
EBIT Next 5YN/A
FCF growth 1Y89.91%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y16.25%
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 12.24 and the Price/Book (PB) ratio is 1.16.
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.