TOYOTA MOTOR CORP -SPON ADR (TM) Fundamental Analysis & Valuation
NYSE:TM • US8923313071
210.84 USD
-5.75 (-2.65%)
At close: Mar 13, 2026
210.84 USD
0 (0%)
After Hours: 3/13/2026, 4:27:21 PM
This TM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 6 out of 10 to TM. TM was compared to 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 decent growth rate and is not valued too expensively.
1. TM Profitability Analysis
1.1 Basic Checks
- TM had positive earnings in the past year.
- TM had a positive operating cash flow in the past year.
- TM had positive earnings in each of the past 5 years.
- TM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of TM (3.61%) is better than 91.43% of its industry peers.
- Looking at the Return On Equity, with a value of 9.48%, TM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- TM has a better Return On Invested Capital (4.56%) than 91.43% 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 5.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 9.48% | ||
| ROIC | 4.56% |
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
- The Profit Margin of TM (7.33%) is better than 94.29% of its industry peers.
- TM's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 8.55%, TM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- TM's Operating Margin has improved in the last couple of years.
- The Gross Margin of TM (17.62%) is better than 77.14% of its industry peers.
- In the last couple of years the Gross Margin of TM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.55% | ||
| PM (TTM) | 7.33% | ||
| GM | 17.62% |
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. TM Health Analysis
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.
- 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
- Based on the Altman-Z score of 1.67, we must say that TM is in the distress zone and has some risk of bankruptcy.
- TM has a better Altman-Z score (1.67) than 80.00% of its industry peers.
- TM has a Debt/Equity ratio of 0.64. This is a neutral value indicating TM is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.64, TM perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.67 |
ROIC/WACC1.41
WACC3.23%
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 57.14% of the companies in the same industry.
- A Quick Ratio of 1.12 indicates that TM should not have too much problems paying its short term obligations.
- TM has a better Quick ratio (1.12) than 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.12 |
3. TM Growth Analysis
3.1 Past
- TM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.62%.
- The Earnings Per Share has been growing by 19.57% on average over the past years. This is quite good.
- TM shows a small growth in Revenue. In the last year, the Revenue has grown by 7.92%.
- The Revenue has been growing by 9.97% on average over the past years. This is quite good.
EPS 1Y (TTM)-25.62%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-41.81%
Revenue 1Y (TTM)7.92%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%8.6%
3.2 Future
- TM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.19% yearly.
- Based on estimates for the next years, TM will show a small growth in Revenue. The Revenue will grow by 4.31% on average per year.
EPS Next Y-23.94%
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
EPS Next 5YN/A
Revenue Next Year5.92%
Revenue Next 2Y4.74%
Revenue Next 3Y4.31%
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. TM Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.79, the valuation of TM can be described as very reasonable.
- Based on the Price/Earnings ratio, TM is valued cheaper than 85.71% of the companies in the same industry.
- When comparing the Price/Earnings ratio of TM to the average of the S&P500 Index (25.71), we can say TM is valued rather cheaply.
- A Price/Forward Earnings ratio of 10.16 indicates a reasonable valuation of TM.
- TM's Price/Forward Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 85.71% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 10.16 |
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 | 9.32 |
4.3 Compensation for Growth
- TM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
5. TM Dividend Analysis
5.1 Amount
- TM has a Yearly Dividend Yield of 2.52%.
- Compared to an average industry Dividend Yield of 0.97, 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 | 2.52% |
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.
- The dividend of TM decreased in the last 3 years.
Dividend Growth(5Y)14.07%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- TM pays out 33.53% of its income as dividend. This is a sustainable payout ratio.
- TM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.53%
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
TM Fundamentals: All Metrics, Ratios and Statistics
210.84
-5.75 (-2.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)05-06 2026-05-06/bmo
Inst Owners24.9%
Inst Owner Change4.98%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap274.80B
Revenue(TTM)50.45T
Net Income(TTM)3.70T
Analysts76.15
Price Target243.09 (15.3%)
Short Float %0.08%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Yearly Dividend5.47
Dividend Growth(5Y)14.07%
DP33.53%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.87%
Min EPS beat(2)24.28%
Max EPS beat(2)27.46%
EPS beat(4)4
Avg EPS beat(4)17.83%
Min EPS beat(4)7.7%
Max EPS beat(4)27.46%
EPS beat(8)7
Avg EPS beat(8)16.02%
EPS beat(12)10
Avg EPS beat(12)20.66%
EPS beat(16)13
Avg EPS beat(16)14.81%
Revenue beat(2)1
Avg Revenue beat(2)-2.75%
Min Revenue beat(2)-9%
Max Revenue beat(2)3.51%
Revenue beat(4)2
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-9%
Max Revenue beat(4)3.51%
Revenue beat(8)4
Avg Revenue beat(8)0.57%
Revenue beat(12)8
Avg Revenue beat(12)2.16%
Revenue beat(16)12
Avg Revenue beat(16)2.59%
PT rev (1m)2.83%
PT rev (3m)16.38%
EPS NQ rev (1m)-13.41%
EPS NQ rev (3m)436.26%
EPS NY rev (1m)0%
EPS NY rev (3m)3.41%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 10.16 | ||
| P/S | 0.87 | ||
| P/FCF | N/A | ||
| P/OCF | 9.59 | ||
| P/B | 1.12 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 9.32 |
EPS(TTM)17.89
EY8.49%
EPS(NY)20.75
Fwd EY9.84%
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)21.98
OCFY10.43%
SpS243.67
BVpS188.25
TBVpS181.68
PEG (NY)N/A
PEG (5Y)0.6
Graham Number275.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 9.48% | ||
| ROCE | 6.18% | ||
| ROIC | 4.56% | ||
| ROICexc | 5.98% | ||
| ROICexgc | 6.13% | ||
| OM | 8.55% | ||
| PM (TTM) | 7.33% | ||
| GM | 17.62% | ||
| 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%
ROICexgc growth 3Y-39.12%
ROICexgc 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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.78 | ||
| Cap/Depr | 199.39% | ||
| Cap/Sales | 9.13% | ||
| Interest Coverage | 2.54 | ||
| Cash Conversion | 68.71% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 1.67 |
F-Score6
WACC3.23%
ROIC/WACC1.41
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)-25.62%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-41.81%
EPS Next Y-23.94%
EPS Next 2Y-4.25%
EPS Next 3Y0.19%
EPS Next 5YN/A
Revenue 1Y (TTM)7.92%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%8.6%
Revenue Next Year5.92%
Revenue Next 2Y4.74%
Revenue Next 3Y4.31%
Revenue Next 5YN/A
EBIT growth 1Y-10%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year19485.2%
EBIT Next 3Y519.02%
EBIT Next 5YN/A
FCF growth 1Y89.91%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y16.25%
OCF growth 3Y-0.23%
OCF growth 5Y9.04%
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 11.79 and the Price/Book (PB) ratio is 1.12.
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.