TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TM - US8923313071 - ADR
225.62 USD
-0.66 (-0.29%)
225 USD
-0.62 (-0.27%)
TM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 35 industry peers in the Automobiles industry. TM has an excellent profitability rating, but there are some minor concerns on its financial health. TM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year TM was profitable.
- TM had a positive operating cash flow in the past year.
- 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
- With an excellent Return On Assets value of 4.75%, TM belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
- TM has a better Return On Equity (12.35%) than 94.29% of its industry peers.
- TM's Return On Invested Capital of 4.81% is amongst the best of the industry. TM outperforms 91.43% 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 5.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 12.35% | ||
| ROIC | 4.81% |
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
- TM's Profit Margin of 9.38% is amongst the best of the industry. TM outperforms 94.29% of its industry peers.
- In the last couple of years the Profit Margin of TM has grown nicely.
- TM has a better Operating Margin (8.78%) than 94.29% of its industry peers.
- TM's Operating Margin has improved in the last couple of years.
- The Gross Margin of TM (17.97%) is better than 80.00% of its industry peers.
- TM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.78% | ||
| PM (TTM) | 9.38% | ||
| GM | 17.97% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TM is creating some value.
- The number of shares outstanding for TM has been reduced compared to 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 1.75, we must say that TM is in the distress zone and has some risk of bankruptcy.
- TM's Altman-Z score of 1.75 is fine compared to the rest of the industry. TM outperforms 80.00% of its industry peers.
- A Debt/Equity ratio of 0.63 indicates that TM is somewhat dependend on debt financing.
- TM has a Debt to Equity ratio (0.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.75 |
ROIC/WACC1.49
WACC3.23%
2.3 Liquidity
- TM has a Current Ratio of 1.25. This is a normal value and indicates that TM is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.25, TM is in line with its industry, outperforming 54.29% 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.
- The Quick ratio of TM (1.10) is better than 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 11.57% over the past year.
- The Earnings Per Share has been growing by 19.57% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 6.44% 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)11.57%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%65.7%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%-2.18%
3.2 Future
- The Earnings Per Share is expected to grow by 0.19% on average over the next years.
- TM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.09% yearly.
EPS Next Y-23.94%
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
EPS Next 5YN/A
Revenue Next Year5.5%
Revenue Next 2Y4.42%
Revenue Next 3Y4.09%
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
- TM is valuated reasonably with a Price/Earnings ratio of 10.09.
- Compared to the rest of the industry, the Price/Earnings ratio of TM indicates a rather cheap valuation: TM is cheaper than 91.43% of the companies listed in the same industry.
- TM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- TM is valuated reasonably with a Price/Forward Earnings ratio of 10.82.
- 82.86% of the companies in the same industry are more expensive than TM, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. TM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 10.82 |
4.2 Price Multiples
- TM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TM is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.22 |
4.3 Compensation for Growth
- TM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
5. Dividend
5.1 Amount
- TM has a Yearly Dividend Yield of 2.65%.
- Compared to an average industry Dividend Yield of 0.84, TM pays a better dividend. On top of this TM pays more dividend than 85.71% of the companies listed in the same industry.
- TM's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
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
- 25.44% of the earnings are spent on dividend by TM. This is a low number and sustainable payout ratio.
- TM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.44%
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
TOYOTA MOTOR CORP -SPON ADR / TM FAQ
What is the ChartMill fundamental rating of TOYOTA MOTOR CORP -SPON ADR (TM) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TM.
Can you provide the valuation status for TOYOTA MOTOR CORP -SPON ADR?
ChartMill assigns a valuation rating of 6 / 10 to TOYOTA MOTOR CORP -SPON ADR (TM). This can be considered as Fairly Valued.
How profitable is TOYOTA MOTOR CORP -SPON ADR (TM) stock?
TOYOTA MOTOR CORP -SPON ADR (TM) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for TM stock?
The Price/Earnings (PE) ratio for TOYOTA MOTOR CORP -SPON ADR (TM) is 10.09 and the Price/Book (PB) ratio is 1.24.
What is the expected EPS growth for TOYOTA MOTOR CORP -SPON ADR (TM) stock?
The Earnings per Share (EPS) of TOYOTA MOTOR CORP -SPON ADR (TM) is expected to decline by -23.94% in the next year.