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 has a great profitability rating, 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
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.
Each year in the past 5 years TM had a positive operating cash flow.
1.2 Ratios
TM has a Return On Assets of 4.57%. This is amongst the best in the industry. TM outperforms 91.89% of its industry peers.
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's Return On Invested Capital of 5.35% is amongst the best of the industry. TM outperforms 94.59% of its industry peers.
TM had an Average Return On Invested Capital over the past 3 years of 4.89%. This is in line with the industry average of 5.32%.
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
TM has a better Profit Margin (8.82%) than 97.30% of its industry peers.
TM's Profit Margin has improved in the last couple of years.
The Operating Margin of TM (9.60%) is better than 97.30% of its industry peers.
In the last couple of years the Operating Margin of TM has grown nicely.
TM's Gross Margin of 19.29% is amongst the best of the industry. TM outperforms 81.08% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TM is creating some value.
TM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TM has less shares outstanding
Compared to 1 year ago, TM has a worse debt to assets ratio.
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.
TM has a better Altman-Z score (1.72) than 78.38% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that TM is somewhat dependend on debt financing.
TM has a Debt to Equity ratio of 0.64. This is comparable to the rest of the industry: TM outperforms 59.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.72 |
ROIC/WACC1.66
WACC3.22%
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 (1.27) which is comparable to the rest of the industry.
A Quick Ratio of 1.11 indicates that TM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.11, TM is in the better half of the industry, outperforming 70.27% of the companies in the same industry.
| 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.
TM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.45%.
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)-11.7%
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
The Earnings Per Share is expected to decrease by -4.15% on average over the next years.
The Revenue is expected to grow by 2.90% on average over the next years.
EPS Next Y-10.2%
EPS Next 2Y-4.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.67%
Revenue Next 2Y2.79%
Revenue Next 3Y2.9%
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.
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
A Price/Earnings ratio of 9.05 indicates a reasonable valuation of TM.
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.
TM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.84.
The Price/Forward Earnings ratio is 8.91, which indicates a very decent valuation of TM.
Based on the Price/Forward Earnings ratio, TM is valued cheaply inside the industry as 81.08% of the companies are valued more expensively.
TM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 8.91 |
4.2 Price Multiples
89.19% of the companies in the same industry are more expensive than TM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.7 |
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)0.46
EPS Next 2Y-4.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.39%, TM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.54, TM pays a better dividend. On top of this TM pays more dividend than 89.19% of the companies listed in the same industry.
TM's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| 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 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 27.58% of its income as dividend. This is a sustainable payout ratio.
DP27.58%
EPS Next 2Y-4.15%
EPS Next 3YN/A
199.19
+0.59 (+0.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners24.68%
Inst Owner Change-4.29%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap259.61B
Analysts75.71
Price Target188.5 (-5.37%)
Short Float %0.08%
Short Ratio1.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
Yearly Dividend5.81
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)3.24%
PT rev (3m)-5.3%
EPS NQ rev (1m)3.94%
EPS NQ rev (3m)-23.31%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-4.26%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 8.91 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | 7.85 | ||
| P/B | 1.06 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 7.7 |
EPS(TTM)22
EY11.04%
EPS(NY)22.35
Fwd EY11.22%
FCF(TTM)-0.59
FCFYN/A
OCF(TTM)25.38
OCFY12.74%
SpS251.51
BVpS187.08
TBVpS180
PEG (NY)N/A
PEG (5Y)0.46
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
WACC3.22%
ROIC/WACC1.66
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-10.2%
EPS Next 2Y-4.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.45%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%3.51%
Revenue Next Year2.67%
Revenue Next 2Y2.79%
Revenue Next 3Y2.9%
Revenue Next 5YN/A
EBIT growth 1Y-16.01%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year19686.5%
EBIT Next 3Y485.71%
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%