TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - NYSE:TM - US8923313071 - ADR
185.22 USD
-7.11 (-3.7%)
186.05 USD
+0.83 (+0.45%)
TM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 37 industry peers in the Automobiles industry. While TM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TM has a valuation in line with the averages, but it does not seem to be growing.
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.
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 4.57%, TM belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
With an excellent Return On Equity value of 11.86%, TM belongs to the best of the industry, outperforming 97.30% of the companies in the same industry.
TM has a Return On Invested Capital of 5.35%. This is amongst the best in the industry. TM outperforms 94.59% 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 5.68%.
The 3 year average ROIC (4.89%) for TM is below the current ROIC(5.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.57% | ||
| ROE | 11.86% | ||
| ROIC | 5.35% |
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
With an excellent Profit Margin value of 8.82%, TM belongs to the best of the industry, outperforming 97.30% of the companies in the same industry.
TM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.60%, TM belongs to the top of the industry, outperforming 97.30% of the companies in the same industry.
TM's Operating Margin has improved in the last couple of years.
The Gross Margin of TM (19.29%) is better than 78.38% of its industry peers.
TM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.6% | ||
| PM (TTM) | 8.82% | ||
| GM | 19.29% |
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
TM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TM has been reduced compared to 1 year ago.
Compared to 5 years ago, TM has less shares outstanding
The debt/assets ratio for TM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that TM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.72, TM is in the better half of the industry, outperforming 78.38% of the companies in the same industry.
TM has a Debt/Equity ratio of 0.64. This is a neutral value indicating TM is somewhat dependend on debt financing.
The Debt to Equity ratio of TM (0.64) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.72 |
ROIC/WACC1.67
WACC3.21%
2.3 Liquidity
A Current Ratio of 1.27 indicates that TM should not have too much problems paying its short term obligations.
TM has a Current ratio of 1.27. This is comparable to the rest of the industry: TM outperforms 59.46% of its industry peers.
TM has a Quick Ratio of 1.11. 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 better Quick ratio (1.11) than 72.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for TM have decreased strongly by -11.70% in the last year.
Measured over the past years, TM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.57% on average per year.
Looking at the last year, TM shows a small growth in Revenue. The Revenue has grown by 4.45% in the last year.
Measured over the past years, TM shows a quite strong growth in Revenue. The Revenue has been growing by 9.97% on average per year.
EPS 1Y (TTM)-11.7%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-34.79%
Revenue 1Y (TTM)4.45%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%3.51%
3.2 Future
Based on estimates for the next years, TM will show a decrease in Earnings Per Share. The EPS will decrease by -3.55% on average per year.
The Revenue is expected to grow by 3.06% on average over the next years.
EPS Next Y-30.07%
EPS Next 2Y-8.38%
EPS Next 3Y-3.55%
EPS Next 5YN/A
Revenue Next Year3.73%
Revenue Next 2Y3.18%
Revenue Next 3Y3.06%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.70, 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 94.59% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.02. TM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.38, the valuation of TM can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TM is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
TM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 9.38 |
4.2 Price Multiples
TM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TM is cheaper than 91.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.7 |
4.3 Compensation for Growth
TM has an outstanding profitability rating, which may justify a higher PE ratio.
TM's earnings are expected to decrease with -3.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y-8.38%
EPS Next 3Y-3.55%
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 3.39%. 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 3.23. TM pays more dividend than 91.89% of the companies in the same industry.
TM's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
5.2 History
The dividend of TM is nicely growing with an annual growth rate of 14.07%!
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
TM pays out 27.58% of its income as dividend. This is a sustainable payout ratio.
DP27.58%
EPS Next 2Y-8.38%
EPS Next 3Y-3.55%
185.22
-7.11 (-3.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners25.8%
Inst Owner Change-0.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap241.41B
Analysts77.69
Price Target203.41 (9.82%)
Short Float %0.11%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
Yearly Dividend5.79
Dividend Growth(5Y)14.07%
DP27.58%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.78%
Min EPS beat(2)7.7%
Max EPS beat(2)11.86%
EPS beat(4)3
Avg EPS beat(4)13.09%
Min EPS beat(4)-41.93%
Max EPS beat(4)74.75%
EPS beat(8)7
Avg EPS beat(8)17.77%
EPS beat(12)9
Avg EPS beat(12)13.82%
EPS beat(16)13
Avg EPS beat(16)14.33%
Revenue beat(2)1
Avg Revenue beat(2)0.54%
Min Revenue beat(2)-0.47%
Max Revenue beat(2)1.55%
Revenue beat(4)2
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)2.33%
Revenue beat(8)5
Avg Revenue beat(8)2.64%
Revenue beat(12)9
Avg Revenue beat(12)3.25%
Revenue beat(16)13
Avg Revenue beat(16)3.35%
PT rev (1m)7.91%
PT rev (3m)11.41%
EPS NQ rev (1m)-2.41%
EPS NQ rev (3m)-25.16%
EPS NY rev (1m)0.77%
EPS NY rev (3m)-22.32%
Revenue NQ rev (1m)1.21%
Revenue NQ rev (3m)-3.38%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 9.38 | ||
| P/S | 0.76 | ||
| P/FCF | N/A | ||
| P/OCF | 7.54 | ||
| P/B | 1.02 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 7.7 |
EPS(TTM)21.28
EY11.49%
EPS(NY)19.75
Fwd EY10.66%
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)24.55
OCFY13.26%
SpS243.31
BVpS180.98
TBVpS174.13
PEG (NY)N/A
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.57% | ||
| ROE | 11.86% | ||
| ROCE | 7.25% | ||
| ROIC | 5.35% | ||
| ROICexc | 7.12% | ||
| ROICexgc | 7.32% | ||
| OM | 9.6% | ||
| PM (TTM) | 8.82% | ||
| GM | 19.29% | ||
| 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%
ROICexcg growth 3Y-39.12%
ROICexcg 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 224.58% | ||
| Cap/Sales | 10.33% | ||
| Interest Coverage | 2.83 | ||
| Cash Conversion | 71.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 1.72 |
F-Score6
WACC3.21%
ROIC/WACC1.67
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)-11.7%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-34.79%
EPS Next Y-30.07%
EPS Next 2Y-8.38%
EPS Next 3Y-3.55%
EPS Next 5YN/A
Revenue 1Y (TTM)4.45%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%3.51%
Revenue Next Year3.73%
Revenue Next 2Y3.18%
Revenue Next 3Y3.06%
Revenue Next 5YN/A
EBIT growth 1Y-16.01%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year17782.8%
EBIT Next 3Y492.14%
EBIT Next 5YN/A
FCF growth 1Y73.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.77%
OCF growth 3Y-0.23%
OCF growth 5Y9.04%