TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
NYSE:TM - New York Stock Exchange, Inc. - US8923313071 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to TM. TM was compared to 37 industry peers in the Automobiles industry. While TM has a great profitability rating, there are some minor concerns on its financial health. TM has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TM was profitable.
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
The Return On Assets of TM (5.09%) is better than 94.59% of its industry peers.
TM has a Return On Equity of 13.26%. This is amongst the best in the industry. TM outperforms 94.59% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.51%, TM belongs to the top of the industry, outperforming 86.49% of the companies in the same industry.
TM had an Average Return On Invested Capital over the past 3 years of 5.04%. This is in line with the industry average of 6.67%.
The 3 year average ROIC (5.04%) for TM is below the current ROIC(5.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 13.26% | ||
| ROIC | 5.51% |
ROA(3y)4.63%
ROA(5y)4.34%
ROE(3y)12.12%
ROE(5y)11.36%
ROIC(3y)5.04%
ROIC(5y)4.62%
1.3 Margins
With an excellent Profit Margin value of 9.92%, TM belongs to the best of the industry, outperforming 97.30% of the companies in the same industry.
In the last couple of years the Profit Margin of TM has grown nicely.
TM has a better Operating Margin (9.98%) than 97.30% of its industry peers.
TM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 19.94%, TM belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.
In the last couple of years the Gross Margin of TM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.98% | ||
| PM (TTM) | 9.92% | ||
| GM | 19.94% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TM is still creating some value.
The number of shares outstanding for TM has been reduced compared to 1 year ago.
TM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TM has a worse debt to assets ratio.
2.2 Solvency
TM has an Altman-Z score of 1.66. This is a bad value and indicates that TM is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.66, TM is doing good in the industry, outperforming 78.38% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that TM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, TM is in line with its industry, outperforming 56.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.66 |
ROIC/WACC1.72
WACC3.21%
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 51.35% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that TM should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.10, TM is doing good in the industry, outperforming 70.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for TM have decreased by -1.74% in the last year.
The Earnings Per Share has been growing by 19.57% on average over the past years. This is quite good.
Looking at the last year, TM shows a small growth in Revenue. The Revenue has grown by 6.52% in the last year.
The Revenue has been growing by 9.97% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.74%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-30.32%
Revenue 1Y (TTM)6.52%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%11.66%
3.2 Future
The Earnings Per Share is expected to decrease by -4.15% on average over the next years.
Based on estimates for the next years, TM will show a small growth in Revenue. The Revenue will grow by 2.63% on average per year.
EPS Next Y-10.2%
EPS Next 2Y-4.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.14%
Revenue Next 2Y3.38%
Revenue Next 3Y2.63%
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
TM is valuated cheaply with a Price/Earnings ratio of 6.97.
91.89% of the companies in the same industry are more expensive than TM, based on the Price/Earnings ratio.
TM is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
TM is valuated cheaply with a Price/Forward Earnings ratio of 7.76.
81.08% of the companies in the same industry are more expensive than TM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.97 | ||
| Fwd PE | 7.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TM is valued cheaply inside the industry as 89.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.99 |
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 -4.15% in the coming years.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-4.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.35%, TM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.56, TM pays a better dividend. On top of this TM pays more dividend than 86.49% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, TM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
5.2 History
On average, the dividend of TM grows each year by 14.07%, which is quite nice.
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
23.76% of the earnings are spent on dividend by TM. This is a low number and sustainable payout ratio.
DP23.76%
EPS Next 2Y-4.15%
EPS Next 3YN/A
172.4
-3.19 (-1.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners24.68%
Inst Owner Change12.26%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap224.68B
Analysts75.33
Price Target196.26 (13.84%)
Short Float %0.1%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Yearly Dividend5.94
Dividend Growth(5Y)14.07%
DP23.76%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)43.31%
Min EPS beat(2)11.86%
Max EPS beat(2)74.75%
EPS beat(4)3
Avg EPS beat(4)13.19%
Min EPS beat(4)-41.93%
Max EPS beat(4)74.75%
EPS beat(8)7
Avg EPS beat(8)23.68%
EPS beat(12)9
Avg EPS beat(12)13.4%
EPS beat(16)13
Avg EPS beat(16)15.65%
Revenue beat(2)2
Avg Revenue beat(2)1.94%
Min Revenue beat(2)1.55%
Max Revenue beat(2)2.33%
Revenue beat(4)2
Avg Revenue beat(4)0.77%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)2.33%
Revenue beat(8)6
Avg Revenue beat(8)3.37%
Revenue beat(12)10
Avg Revenue beat(12)3.6%
Revenue beat(16)14
Avg Revenue beat(16)3.76%
PT rev (1m)-1.4%
PT rev (3m)4.05%
EPS NQ rev (1m)-14.59%
EPS NQ rev (3m)-34.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)-2.4%
Revenue NQ rev (3m)-5.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.97 | ||
| Fwd PE | 7.76 | ||
| P/S | 0.68 | ||
| P/FCF | N/A | ||
| P/OCF | 8.85 | ||
| P/B | 0.91 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 6.99 |
EPS(TTM)24.74
EY14.35%
EPS(NY)22.22
Fwd EY12.89%
FCF(TTM)-8.22
FCFYN/A
OCF(TTM)19.47
OCFY11.3%
SpS253.03
BVpS189.23
TBVpS182.05
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 13.26% | ||
| ROCE | 7.47% | ||
| ROIC | 5.51% | ||
| ROICexc | 7.33% | ||
| ROICexgc | 7.54% | ||
| OM | 9.98% | ||
| PM (TTM) | 9.92% | ||
| GM | 19.94% | ||
| FCFM | N/A |
ROA(3y)4.63%
ROA(5y)4.34%
ROE(3y)12.12%
ROE(5y)11.36%
ROIC(3y)5.04%
ROIC(5y)4.62%
ROICexc(3y)6.42%
ROICexc(5y)5.83%
ROICexgc(3y)6.6%
ROICexgc(5y)18.11%
ROCE(3y)7.22%
ROCE(5y)6.72%
ROICexcg growth 3Y-36.84%
ROICexcg growth 5Y7.63%
ROICexc growth 3Y11.1%
ROICexc growth 5Y7.64%
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-Score5
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 233.56% | ||
| Cap/Sales | 10.95% | ||
| Interest Coverage | 2.98 | ||
| Cash Conversion | 52.46% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.66 |
F-Score5
WACC3.21%
ROIC/WACC1.72
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)-1.74%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-30.32%
EPS Next Y-10.2%
EPS Next 2Y-4.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.52%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%11.66%
Revenue Next Year3.14%
Revenue Next 2Y3.38%
Revenue Next 3Y2.63%
Revenue Next 5YN/A
EBIT growth 1Y-10.41%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year19400.2%
EBIT Next 3Y482.87%
EBIT Next 5YN/A
FCF growth 1Y-85.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.11%
OCF growth 3Y-0.23%
OCF growth 5Y9.04%