TOYOTA MOTOR CORP -SPON ADR (TM)
US8923313071 - ADR
Taking everything into account, TM scores 6 out of 10 in our fundamental rating. TM was compared to 40 industry peers in the Automobiles industry. TM scores excellent on profitability, but there are concerns on its financial health. TM has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
In the past year TM was profitable.
TM had a positive operating cash flow in the past year.
TM had positive earnings in each of the past 5 years.
TM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.34%, TM belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
TM has a Return On Equity of 13.82%. This is amongst the best in the industry. TM outperforms 81.58% of its industry peers.
With a decent Return On Invested Capital value of 5.96%, TM is doing good in the industry, outperforming 78.95% of the companies in the same industry.
TM had an Average Return On Invested Capital over the past 3 years of 3.69%. This is significantly below the industry average of 9.59%.
The 3 year average ROIC (3.69%) for TM is below the current ROIC(5.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.34% | ||
| ROE | 13.82% | ||
| ROIC | 5.96% |
ROA(3y)3.71%
ROA(5y)3.7%
ROE(3y)9.7%
ROE(5y)9.68%
ROIC(3y)3.69%
ROIC(5y)3.92%
1.3 Margins
The Profit Margin of TM (10.29%) is better than 92.11% of its industry peers.
In the last couple of years the Profit Margin of TM has declined.
TM has a Operating Margin of 11.13%. This is amongst the best in the industry. TM outperforms 92.11% of its industry peers.
In the last couple of years the Operating Margin of TM has declined.
The Gross Margin of TM (19.86%) is better than 76.32% of its industry peers.
In the last couple of years the Gross Margin of TM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.13% | ||
| PM (TTM) | 10.29% | ||
| GM | 19.86% |
OM growth 3Y-2.99%
OM growth 5Y-2.13%
PM growth 3Y-1.09%
PM growth 5Y-4.82%
GM growth 3Y-1.94%
GM growth 5Y-1.89%
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.
TM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TM has been reduced compared to 5 years ago.
The debt/assets ratio for TM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.85 indicates that TM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TM (1.85) is better than 65.79% of its industry peers.
TM has a Debt/Equity ratio of 0.59. This is a neutral value indicating TM is somewhat dependend on debt financing.
The Debt to Equity ratio of TM (0.59) is worse than 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.85 |
ROIC/WACC0.77
WACC7.76%
2.3 Liquidity
TM has a Current Ratio of 1.18. This is a normal value and indicates that TM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TM (1.18) is worse than 68.42% of its industry peers.
TM has a Quick Ratio of 1.02. This is a normal value and indicates that TM is financially healthy and should not expect problems in meeting its short term obligations.
TM has a Quick ratio of 1.02. This is comparable to the rest of the industry: TM outperforms 44.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
TM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 87.40%, which is quite impressive.
The Earnings Per Share has been growing slightly by 1.27% on average over the past years.
TM shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.87%.
The Revenue has been growing slightly by 4.81% on average over the past years.
EPS 1Y (TTM)87.4%
EPS 3Y6.85%
EPS 5Y1.27%
EPS growth Q2Q88.55%
Revenue 1Y (TTM)22.87%
Revenue growth 3Y7.55%
Revenue growth 5Y4.81%
Revenue growth Q2Q23.44%
3.2 Future
The Earnings Per Share is expected to grow by 25.63% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.33% on average over the next years. This is quite good.
EPS Next Y90.75%
EPS Next 2Y38.79%
EPS Next 3Y25.63%
EPS Next 5YN/A
Revenue Next Year20.79%
Revenue Next 2Y12.16%
Revenue Next 3Y9.33%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.59, the valuation of TM can be described as reasonable.
84.21% 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 25.20, TM is valued rather cheaply.
The Price/Forward Earnings ratio is 10.19, which indicates a very decent valuation of TM.
TM's Price/Forward Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 84.21% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.59 | ||
| Fwd PE | 10.19 |
4.2 Price Multiples
TM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TM is cheaper than 81.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.31 |
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.
The decent profitability rating of TM may justify a higher PE ratio.
A more expensive valuation may be justified as TM's earnings are expected to grow with 25.63% in the coming years.
PEG (NY)0.12
PEG (5Y)8.36
EPS Next 2Y38.79%
EPS Next 3Y25.63%
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 1.80%. Purely for dividend investing, there may be better candidates out there.
TM's Dividend Yield is rather good when compared to the industry average which is at 2.87. TM pays more dividend than 86.84% of the companies in the same industry.
TM's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
The dividend of TM has a limited annual growth rate of 4.56%.
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)4.56%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
19.56% of the earnings are spent on dividend by TM. This is a low number and sustainable payout ratio.
The dividend of TM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP19.56%
EPS Next 2Y38.79%
EPS Next 3Y25.63%
TOYOTA MOTOR CORP -SPON ADR
NYSE:TM (4/26/2024, 11:34:58 AM)
226.74
+1.38 (+0.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap305.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.59 | ||
| Fwd PE | 10.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.12
PEG (5Y)8.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.34% | ||
| ROE | 13.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.13% | ||
| PM (TTM) | 10.29% | ||
| GM | 19.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)87.4%
EPS 3Y6.85%
EPS 5Y
EPS growth Q2Q
EPS Next Y90.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.87%
Revenue growth 3Y7.55%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y