TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
NYSE:TM - New York Stock Exchange, Inc. - US8923313071 - ADR - Currency: USD
Overall TM gets a fundamental rating of 6 out of 10. We evaluated TM against 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.
In the past year TM had a positive cash flow from operations.
TM had positive earnings in each of the past 5 years.
In the past 5 years TM always reported a positive cash flow from operatings.
1.2 Ratios
TM's Return On Assets of 5.09% is amongst the best of the industry. TM outperforms 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.
TM has a Return On Invested Capital of 5.51%. This is amongst the best in the industry. TM outperforms 86.49% 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 6.62%.
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
TM has a better Profit Margin (9.92%) than 97.30% of its industry peers.
In the last couple of years the Profit Margin of TM has grown nicely.
TM's Operating Margin of 9.98% is amongst the best of the industry. TM outperforms 97.30% of its industry peers.
In the last couple of years the Operating Margin of TM has grown nicely.
TM has a better Gross Margin (19.94%) 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
TM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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.
TM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.66, 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 1.66, TM is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that TM is somewhat dependend on debt financing.
TM has a Debt to Equity ratio (0.64) which is in line with its industry peers.
| 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.
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.
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
TM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.74%.
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.
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.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 6.95, the valuation of TM can be described as very cheap.
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 27.53. TM is valued rather cheaply when compared to this.
TM is valuated cheaply with a Price/Forward Earnings ratio of 7.74.
TM's Price/Forward Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 86.49% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TM to the average of the S&P500 Index (36.71), we can say TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.95 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TM is valued cheaper than 91.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
The excellent profitability rating of TM 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)0.36
EPS Next 2Y-4.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 2.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.77, TM pays a better dividend. On top of this TM pays more dividend than 86.49% of the companies listed in the same industry.
TM's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
5.2 History
On average, the dividend of TM grows each year by 14.07%, which is quite nice.
TM has paid a dividend for at least 10 years, which is 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 23.76% of its income as dividend. This is a sustainable payout ratio.
DP23.76%
EPS Next 2Y-4.15%
EPS Next 3YN/A
169.99
-0.04 (-0.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners24.68%
Inst Owner Change-2.04%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap221.54B
Analysts75.71
Price Target176.73 (3.96%)
Short Float %0.12%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend5.77
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)-9.95%
PT rev (3m)-9.59%
EPS NQ rev (1m)9.31%
EPS NQ rev (3m)-6.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)1.61%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.95 | ||
| Fwd PE | 7.74 | ||
| P/S | 0.68 | ||
| P/FCF | N/A | ||
| P/OCF | 8.84 | ||
| P/B | 0.91 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 6.9 |
EPS(TTM)24.45
EY14.38%
EPS(NY)21.95
Fwd EY12.91%
FCF(TTM)-8.12
FCFYN/A
OCF(TTM)19.24
OCFY11.32%
SpS249.99
BVpS186.96
TBVpS179.86
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 Year19637.4%
EBIT Next 3Y485.23%
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%