Tata Motors Ltd(NYSE:TTM) stock Fundamental Analysis

Fundamental Rating

Overall TTM gets a fundamental rating of 3 out of 10. We evaluated TTM against 40 industry peers in the Automobiles industry. TTM may be in some trouble as it scores bad on both profitability and health. TTM has a correct valuation and a medium growth rate.

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1. Profitability

1.1 Basic Checks

In the past year TTM has reported negative net income.

In the past year TTM had a positive cash flow from operations.

TTM had negative earnings in 4 of the past 5 years.

Each year in the past 5 years TTM had a positive operating cash flow.

1.2 Ratios

TTM has negative profitability rations, so we won't be analyzing them here.

TTM has a Return On Invested Capital of 0.79%. This is in the better half of the industry: TTM outperforms 69.44% of its industry peers.

		Industry Rank	Sector Rank
ROA	N/A
ROE	N/A
ROIC	0.79%

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

TTM's Operating Margin of 0.69% is fine compared to the rest of the industry. TTM outperforms 69.44% of its industry peers.

The Gross Margin of TTM (40.01%) is better than 91.67% of its industry peers.

TTM's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	0.69%
PM (TTM)	N/A
GM	40.01%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-0.28%

GM growth 5Y-1.51%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TTM is destroying value.

TTM has about the same amout of shares outstanding than it did 1 year ago.

Compared to 1 year ago, TTM has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.38, we must say that TTM is in the distress zone and has some risk of bankruptcy.

Looking at the Altman-Z score, with a value of 1.38, TTM is in line with its industry, outperforming 58.33% of the companies in the same industry.

The Debt to FCF ratio of TTM is 17.12, which is on the high side as it means it would take TTM, 17.12 years of fcf income to pay off all of its debts.

TTM has a better Debt to FCF ratio (17.12) than 77.78% of its industry peers.

A Debt/Equity ratio of 3.87 is on the high side and indicates that TTM has dependencies on debt financing.

TTM's Debt to Equity ratio of 3.87 is on the low side compared to the rest of the industry. TTM is outperformed by 91.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	3.87
Debt/FCF	17.12
Altman-Z	1.38

ROIC/WACC0.07

WACC11.8%

2.3 Liquidity

TTM has a Current Ratio of 0.93. This is a bad value and indicates that TTM is not financially healthy enough and could expect problems in meeting its short term obligations.

The Current ratio of TTM (0.93) is worse than 77.78% of its industry peers.

TTM has a Quick Ratio of 0.93. This is a bad value and indicates that TTM is not financially healthy enough and could expect problems in meeting its short term obligations.

The Quick ratio of TTM (0.68) is worse than 77.78% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.93
Quick Ratio	0.68

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

TTM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -2089.76%.

TTM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.47%.

TTM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.29% yearly.

EPS 1Y (TTM)-2089.76%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%71.61%

Revenue 1Y (TTM)3.47%

Revenue growth 3Y-2.66%

Revenue growth 5Y0.29%

Sales Q2Q%29.7%

3.2 Future

Based on estimates for the next years, TTM will show a very strong growth in Earnings Per Share. The EPS will grow by 52.05% on average per year.

Based on estimates for the next years, TTM will show a quite strong growth in Revenue. The Revenue will grow by 15.23% on average per year.

EPS Next Y60.68%

EPS Next 2Y75.09%

EPS Next 3Y52.05%

EPS Next 5YN/A

Revenue Next Year17.61%

Revenue Next 2Y17.87%

Revenue Next 3Y15.23%

Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

TTM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.

Based on the Price/Forward Earnings ratio of 13.69, the valuation of TTM can be described as correct.

TTM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TTM is cheaper than 75.00% of the companies in the same industry.

Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, TTM is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	13.69

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TTM is valued cheaper than 86.11% of the companies in the same industry.

Based on the Price/Free Cash Flow ratio, TTM is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	18.7
EV/EBITDA	7.1

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

TTM's earnings are expected to grow with 52.05% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y75.09%

EPS Next 3Y52.05%

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5. Dividend

5.1 Amount

TTM does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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Tata Motors Ltd

NYSE:TTM (1/23/2023, 8:04:00 PM)

After market: 24.75 -0.39 (-1.55%)

25.14

+0.26 (+1.05%)

Chartmill FA Rating

GICS SectorConsumer Discretionary

GICS IndustryGroupAutomobiles & Components

GICS IndustryAutomobiles

Earnings (Last)01-25 2023-01-25/amc

Earnings (Next)05-10 2023-05-10/amc

Inst OwnersN/A

Inst Owner ChangeN/A

Ins OwnersN/A

Ins Owner ChangeN/A

Market Cap19.26B

Analysts83.78

Price Target30.29 (20.49%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly DividendN/A

Dividend Growth(5Y)N/A

DP0%

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)0

Avg EPS beat(2)-3874.18%

Min EPS beat(2)-7289.98%

Max EPS beat(2)-458.39%

EPS beat(4)0

Avg EPS beat(4)-3493.06%

Min EPS beat(4)-7289.98%

Max EPS beat(4)-198.83%

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)1

Avg Revenue beat(2)-0.56%

Min Revenue beat(2)-2.82%

Max Revenue beat(2)1.7%

Revenue beat(4)1

Avg Revenue beat(4)-3.9%

Min Revenue beat(4)-8.74%

Max Revenue beat(4)1.7%

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)0.23%

PT rev (3m)-7.13%

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)0%

EPS NY rev (3m)-180%

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)0%

Revenue NY rev (3m)-3.86%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	13.69
P/S	0.52
P/FCF	18.7
P/OCF	6.89
P/B	6.03
P/tB	N/A
EV/EBITDA	7.1

EPS(TTM)-1.54

EYN/A

EPS(NY)1.84

Fwd EY7.31%

FCF(TTM)1.34

FCFY5.35%

OCF(TTM)3.65

OCFY14.51%

SpS48.17

BVpS4.17

TBVpS-3.99

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	N/A
ROE	N/A
ROCE	N/A
ROIC	0.79%
ROICexc	1.06%
ROICexgc	1.57%
OM	0.69%
PM (TTM)	N/A
GM	40.01%
FCFM	N/A

ROA(3y)N/A

ROA(5y)N/A

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-0.28%

GM growth 5Y-1.51%

F-Score4

Asset Turnover0.96

Health

		Industry Rank	Sector Rank
Debt/Equity	3.87
Debt/FCF	17.12
Debt/EBITDA	5.48
Cap/Depr	59.6%
Cap/Sales	N/A
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	0.93
Quick Ratio	0.68
Altman-Z	1.38

F-Score4

WACC11.8%

ROIC/WACC0.07

Cap/Depr(3y)95.17%

Cap/Depr(5y)119.58%

Cap/Sales(3y)N/A

Cap/Sales(5y)N/A

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-2089.76%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%71.61%

EPS Next Y60.68%

EPS Next 2Y75.09%

EPS Next 3Y52.05%

EPS Next 5YN/A

Revenue 1Y (TTM)3.47%

Revenue growth 3Y-2.66%

Revenue growth 5Y0.29%

Sales Q2Q%29.7%

Revenue Next Year17.61%

Revenue Next 2Y17.87%

Revenue Next 3Y15.23%

Revenue Next 5YN/A

EBIT growth 1Y-77.91%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year2291.66%

EBIT Next 3Y246.06%

EBIT Next 5YN/A

FCF growth 1Y268.34%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y18.74%

OCF growth 3Y-9.29%

OCF growth 5Y-13.91%

Tata Motors Ltd (TTM) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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