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 38 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 correct valuation and a medium growth rate.
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 94.74% of its industry peers.
With an excellent Return On Equity value of 13.26%, TM belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.51%, TM belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
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 6.56%.
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
Looking at the Profit Margin, with a value of 9.92%, TM belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
TM's Profit Margin has improved in the last couple of years.
TM has a better Operating Margin (9.98%) than 97.37% of its industry peers.
TM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 19.94%, TM is doing good in the industry, outperforming 78.95% of the companies in the same industry.
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 below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TM has less shares outstanding
Compared to 5 years ago, TM has less shares outstanding
TM has a worse debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 1.67, TM belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that TM is somewhat dependend on debt financing.
TM's Debt to Equity ratio of 0.64 is in line compared to the rest of the industry. TM outperforms 57.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.67 |
ROIC/WACC0.71
WACC7.79%
2.3 Liquidity
A Current Ratio of 1.26 indicates that TM should not have too much problems paying its short term obligations.
The Current ratio of TM (1.26) is comparable to the rest of the 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.
TM has a Quick ratio of 1.10. This is in the better half of the industry: TM outperforms 71.05% 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 has grown by an impressive 118.34% over the past year.
Measured over the past years, TM shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.27% on average per year.
The Revenue has been growing slightly by 6.52% in the past year.
Measured over the past years, TM shows a quite strong growth in Revenue. The Revenue has been growing by 9.97% on average per year.
EPS 1Y (TTM)118.34%
EPS 3Y57.34%
EPS 5Y40.27%
EPS Q2Q%562.97%
Revenue 1Y (TTM)6.52%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%6.08%
3.2 Future
Based on estimates for the next years, TM will show a very negative growth in Earnings Per Share. The EPS will decrease by -35.70% 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-59.59%
EPS Next 2Y-35.7%
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
With a Price/Earnings ratio of 3.27, the valuation of TM can be described as very cheap.
Based on the Price/Earnings ratio, TM is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TM to the average of the S&P500 Index (25.91), we can say TM is valued rather cheaply.
A Price/Forward Earnings ratio of 8.10 indicates a reasonable valuation of TM.
Based on the Price/Forward Earnings ratio, TM is valued cheaply inside the industry as 84.21% 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 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.27 | ||
| Fwd PE | 8.1 |
4.2 Price Multiples
TM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TM is cheaper than 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.11 |
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 -35.70% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.08
EPS Next 2Y-35.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 3.58%. Purely for dividend investing, there may be better candidates out there.
TM's Dividend Yield is rather good when compared to the industry average which is at 3.58. TM pays more dividend than 89.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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.
The dividend of TM decreased recently.
Dividend Growth(5Y)14.07%
Div Incr Years1
Div Non Decr Years1
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-35.7%
EPS Next 3YN/A
182.82
-1.65 (-0.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners24.78%
Inst Owner Change12.28%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap238.26B
Analysts78
Price Target199.05 (8.88%)
Short Float %0.12%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Yearly Dividend5.88
Dividend Growth(5Y)14.07%
DP23.76%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)519.55%
Min EPS beat(2)74.75%
Max EPS beat(2)964.36%
EPS beat(4)3
Avg EPS beat(4)251.32%
Min EPS beat(4)-41.93%
Max EPS beat(4)964.36%
EPS beat(8)7
Avg EPS beat(8)142.74%
EPS beat(12)9
Avg EPS beat(12)92.77%
EPS beat(16)13
Avg EPS beat(16)75.18%
Revenue beat(2)1
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)2.33%
Revenue beat(4)1
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-3.51%
Max Revenue beat(4)2.33%
Revenue beat(8)5
Avg Revenue beat(8)2.74%
Revenue beat(12)9
Avg Revenue beat(12)3.17%
Revenue beat(16)13
Avg Revenue beat(16)3.44%
PT rev (1m)1.82%
PT rev (3m)3.51%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-22.87%
EPS NY rev (1m)-0.24%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.27 | ||
| Fwd PE | 8.1 | ||
| P/S | 0.71 | ||
| P/FCF | N/A | ||
| P/OCF | 9.24 | ||
| P/B | 0.95 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 7.11 |
EPS(TTM)55.85
EY30.55%
EPS(NY)22.57
Fwd EY12.35%
FCF(TTM)-8.35
FCFYN/A
OCF(TTM)19.78
OCFY10.82%
SpS257
BVpS192.2
TBVpS184.91
PEG (NY)N/A
PEG (5Y)0.08
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 | 1.67 |
F-Score5
WACC7.79%
ROIC/WACC0.71
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)118.34%
EPS 3Y57.34%
EPS 5Y40.27%
EPS Q2Q%562.97%
EPS Next Y-59.59%
EPS Next 2Y-35.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.52%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%6.08%
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 Year21613.5%
EBIT Next 3YN/A
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%