TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
NYSE:TM - New York Stock Exchange, Inc. - US8923313071 - ADR - Currency: USD
Taking everything into account, TM scores 6 out of 10 in our fundamental rating. TM was compared to 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TM had positive earnings in the past year.
In the past year TM had a positive cash flow from operations.
Each year in the past 5 years TM has been profitable.
TM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TM has a better Return On Assets (5.09%) than 94.59% of its industry peers.
With an excellent Return On Equity value of 13.26%, TM belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
TM's Return On Invested Capital of 5.51% is amongst the best of the industry. TM outperforms 86.49% of its industry peers.
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 6.62%.
The last Return On Invested Capital (5.51%) for TM is above the 3 year average (5.04%), which is a sign of increasing profitability.
| 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
TM has a better Profit Margin (9.92%) than 97.30% of its industry peers.
TM's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 9.98%, 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 Operating Margin of TM has grown nicely.
The Gross Margin of TM (19.94%) is better than 81.08% of its industry peers.
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.
TM has less shares outstanding than it did 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 1.65, 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 1.65, 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 | 1.65 |
ROIC/WACC1.72
WACC3.21%
2.3 Liquidity
TM has a Current Ratio of 1.26. This is a normal value and indicates that TM is financially healthy and should not expect problems in meeting its short term obligations.
TM's Current ratio of 1.26 is in line compared to the rest of the industry. TM outperforms 51.35% of its industry peers.
TM has a Quick Ratio of 1.10. This is a normal value and indicates that TM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TM (1.10) is better than 70.27% of its industry peers.
| 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.
TM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.57% yearly.
The Revenue has been growing slightly by 6.52% in the past year.
TM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.97% yearly.
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
Based on estimates for the next years, TM will show a decrease in Earnings Per Share. The EPS will decrease by -4.15% on average per year.
TM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.63% yearly.
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 6.87.
TM's Price/Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 94.59% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. TM is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.65, which indicates a rather cheap valuation of TM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TM indicates a rather cheap valuation: TM is cheaper than 86.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.87 | ||
| Fwd PE | 7.65 |
4.2 Price Multiples
TM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TM is cheaper than 89.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.86 |
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 -4.15% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-4.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.49%, TM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.86, 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 2.42, TM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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
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
171.54
-0.72 (-0.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners24.68%
Inst Owner Change12.25%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap223.56B
Analysts75.33
Price Target182.59 (6.44%)
Short Float %0.09%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
Yearly Dividend5.92
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)-8.27%
PT rev (3m)-3.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.87 | ||
| Fwd PE | 7.65 | ||
| P/S | 0.67 | ||
| P/FCF | N/A | ||
| P/OCF | 8.73 | ||
| P/B | 0.9 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 6.86 |
EPS(TTM)24.97
EY14.56%
EPS(NY)22.42
Fwd EY13.07%
FCF(TTM)-8.3
FCFYN/A
OCF(TTM)19.65
OCFY11.46%
SpS255.35
BVpS190.97
TBVpS183.72
PEG (NY)N/A
PEG (5Y)0.35
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 | 1.65 |
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 Year19222.6%
EBIT Next 3Y481.1%
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%