TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
NYSE:TM - New York Stock Exchange, Inc. - 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 has a great profitability rating, there are quite some concerns on its financial health. TM is not valued too expensively and it also shows a decent growth rate.
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.
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
TM's Return On Assets of 4.78% is amongst the best of the industry. TM outperforms 87.50% of its industry peers.
TM has a Return On Equity of 12.40%. This is amongst the best in the industry. TM outperforms 82.50% of its industry peers.
With an excellent Return On Invested Capital value of 6.05%, TM belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TM is below the industry average of 9.39%.
The 3 year average ROIC (4.46%) for TM is below the current ROIC(6.05%), indicating increased profibility in the last year.
| 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
TM's Profit Margin of 9.19% is amongst the best of the industry. TM outperforms 87.50% of its industry peers.
In the last couple of years the Profit Margin of TM has grown nicely.
Looking at the Operating Margin, with a value of 11.33%, TM belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
In the last couple of years the Operating Margin of TM has grown nicely.
TM has a better Gross Margin (21.13%) than 75.00% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TM is destroying 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
TM has an Altman-Z score of 1.73. 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 1.73. This is in the better half of the industry: TM outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that TM is somewhat dependend on debt financing.
TM's Debt to Equity ratio of 0.63 is on the low side compared to the rest of the industry. TM is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.73 |
ROIC/WACC0.76
WACC7.94%
2.3 Liquidity
A Current Ratio of 1.23 indicates that TM should not have too much problems paying its short term obligations.
The Current ratio of TM (1.23) is comparable to the rest of the industry.
TM has a Quick Ratio of 1.07. This is a normal value and indicates that TM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.07, TM is in line with its industry, outperforming 57.50% of the companies in the same industry.
| 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 11.05%, 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.
TM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.33% yearly.
EPS 1Y (TTM)11.05%
EPS 3Y31.58%
EPS 5Y22.98%
EPS Q2Q%-54.34%
Revenue 1Y (TTM)12%
Revenue growth 3Y18.33%
Revenue growth 5Y8.33%
Sales Q2Q%0.09%
3.2 Future
TM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.01% yearly.
The Revenue is expected to grow by 4.24% on average over the next years.
EPS Next Y-10.52%
EPS Next 2Y-4.53%
EPS Next 3Y-2.01%
EPS Next 5YN/A
Revenue Next Year5.71%
Revenue Next 2Y4.65%
Revenue Next 3Y4.24%
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
With a Price/Earnings ratio of 9.06, the valuation of TM can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TM indicates a rather cheap valuation: TM is cheaper than 85.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. TM is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.60, the valuation of TM can be described as reasonable.
87.50% of the companies in the same industry are more expensive than TM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TM to the average of the S&P500 Index (24.44), we can say TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 8.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TM is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.12 |
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 -2.01% in the coming years.
PEG (NY)N/A
PEG (5Y)0.39
EPS Next 2Y-4.53%
EPS Next 3Y-2.01%
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 3.17%.
Compared to an average industry Dividend Yield of 3.90, TM pays a better dividend. On top of this TM pays more dividend than 92.50% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, TM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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.
TM has decreased its dividend recently.
Dividend Growth(5Y)7.71%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
23.74% of the earnings are spent on dividend by TM. This is a low number and sustainable payout ratio.
DP23.74%
EPS Next 2Y-4.53%
EPS Next 3Y-2.01%
TOYOTA MOTOR CORP -SPON ADR
NYSE:TM (1/21/2025, 6:40:00 PM)
After market: 186.93 0 (0%)186.93
+6.15 (+3.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners24.94%
Inst Owner Change-1.84%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap245.10B
Analysts78.52
Price Target184.62 (-1.24%)
Short Float %0.1%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
Yearly Dividend65.1
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)3.44%
PT rev (3m)-5.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.76%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 8.6 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 10.24 | ||
| P/B | 1.12 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 7.12 |
EPS(TTM)20.64
EY11.04%
EPS(NY)21.73
Fwd EY11.63%
FCF(TTM)-9.46
FCFYN/A
OCF(TTM)18.26
OCFY9.77%
SpS226.22
BVpS167.57
TBVpS161.16
PEG (NY)N/A
PEG (5Y)0.39
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 | 1.73 |
F-Score7
WACC7.94%
ROIC/WACC0.76
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)11.05%
EPS 3Y31.58%
EPS 5Y22.98%
EPS Q2Q%-54.34%
EPS Next Y-10.52%
EPS Next 2Y-4.53%
EPS Next 3Y-2.01%
EPS Next 5YN/A
Revenue 1Y (TTM)12%
Revenue growth 3Y18.33%
Revenue growth 5Y8.33%
Sales Q2Q%0.09%
Revenue Next Year5.71%
Revenue Next 2Y4.65%
Revenue Next 3Y4.24%
Revenue Next 5YN/A
EBIT growth 1Y26.91%
EBIT growth 3Y34.55%
EBIT growth 5Y16.75%
EBIT Next Year19620%
EBIT Next 3Y488.53%
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%