TOYOTA MOTOR CORP -SPON ADR (TM)

US8923313071 - ADR

194.14  -1.06 (-0.54%)

After market: 194 -0.14 (-0.07%)

Fundamental Rating

5

TM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 39 industry peers in the Automobiles industry. TM has an excellent profitability rating, but there are concerns on its financial health. TM has a decent growth rate and is not valued too expensively.



8

1. Profitability

1.1 Basic Checks

In the past year TM was profitable.
TM had a positive operating cash flow in the past year.
In the past 5 years TM has always been profitable.
In the past 5 years TM always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 5.49%, TM belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
TM's Return On Equity of 14.45% is fine compared to the rest of the industry. TM outperforms 78.95% of its industry peers.
TM has a Return On Invested Capital of 6.18%. This is amongst the best in the industry. TM outperforms 81.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TM is significantly below the industry average of 11.91%.
The 3 year average ROIC (4.63%) for TM is below the current ROIC(6.18%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.49%
ROE 14.45%
ROIC 6.18%
ROA(3y)4.33%
ROA(5y)4.08%
ROE(3y)11.32%
ROE(5y)10.69%
ROIC(3y)4.63%
ROIC(5y)4.29%

1.3 Margins

TM has a better Profit Margin (10.97%) than 92.11% of its industry peers.
In the last couple of years the Profit Margin of TM has grown nicely.
TM has a Operating Margin of 11.87%. This is amongst the best in the industry. TM outperforms 94.74% of its industry peers.
In the last couple of years the Operating Margin of TM has grown nicely.
TM has a better Gross Margin (20.77%) than 76.32% of its industry peers.
TM's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 11.87%
PM (TTM) 10.97%
GM 20.77%
OM growth 3Y13.7%
OM growth 5Y7.77%
PM growth 3Y9.95%
PM growth 5Y12.15%
GM growth 3Y5.37%
GM growth 5Y2.9%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TM is destroying value.
The number of shares outstanding for TM has been reduced compared to 1 year ago.
TM has less shares outstanding than it did 5 years ago.
TM has a worse debt/assets ratio than last year.

2.2 Solvency

TM has an Altman-Z score of 1.73. This is a bad value and indicates that TM is not financially healthy and even has some risk of bankruptcy.
TM has a Altman-Z score of 1.73. This is in the better half of the industry: TM outperforms 71.05% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that TM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, TM is doing worse than 68.42% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF N/A
Altman-Z 1.73
ROIC/WACC0.77
WACC8.02%

2.3 Liquidity

TM has a Current Ratio of 1.19. This is a normal value and indicates that TM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TM (1.19) is worse than 65.79% of its industry peers.
TM has a Quick Ratio of 1.03. 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 (1.03) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 1.03

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 103.90% over the past year.
The Earnings Per Share has been growing by 22.98% on average over the past years. This is a very strong growth
Looking at the last year, TM shows a very strong growth in Revenue. The Revenue has grown by 21.37%.
Measured over the past years, TM shows a quite strong growth in Revenue. The Revenue has been growing by 8.33% on average per year.
EPS 1Y (TTM)103.9%
EPS 3Y31.58%
EPS 5Y22.98%
EPS Q2Q%82.03%
Revenue 1Y (TTM)21.37%
Revenue growth 3Y18.33%
Revenue growth 5Y8.33%
Sales Q2Q%14.27%

3.2 Future

TM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.37% yearly.
The Revenue is expected to grow by 3.95% on average over the next years.
EPS Next Y-7.36%
EPS Next 2Y-2.62%
EPS Next 3Y-0.37%
EPS Next 5YN/A
Revenue Next Year5.6%
Revenue Next 2Y4.44%
Revenue Next 3Y3.95%
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.

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.37, the valuation of TM can be described as reasonable.
TM's Price/Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 84.21% of the companies in the same industry.
TM is valuated cheaply when we compare the Price/Earnings ratio to 28.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.03, the valuation of TM can be described as reasonable.
Based on the Price/Forward Earnings ratio, TM is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
TM is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.21, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.37
Fwd PE 9.03

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 RankSector Rank
P/FCF N/A
EV/EBITDA 7.96

4.3 Compensation for Growth

TM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-2.62%
EPS Next 3Y-0.37%

5

5. Dividend

5.1 Amount

TM has a Yearly Dividend Yield of 2.40%. Purely for dividend investing, there may be better candidates out there.
The stock price of TM dropped by -23.80% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.02, TM pays a better dividend. On top of this TM pays more dividend than 92.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, TM has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.4%

5.2 History

On average, the dividend of TM grows each year by 7.71%, 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)7.71%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

TM pays out 17.80% of its income as dividend. This is a sustainable payout ratio.
DP17.8%
EPS Next 2Y-2.62%
EPS Next 3Y-0.37%

TOYOTA MOTOR CORP -SPON ADR

NYSE:TM (6/18/2024, 7:04:00 PM)

After market: 194 -0.14 (-0.07%)

194.14

-1.06 (-0.54%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap261.49B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.4%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 8.37
Fwd PE 9.03
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.36
Profitability
Industry RankSector Rank
ROA 5.49%
ROE 14.45%
ROCE
ROIC
ROICexc
ROICexgc
OM 11.87%
PM (TTM) 10.97%
GM 20.77%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.19
Quick Ratio 1.03
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)103.9%
EPS 3Y31.58%
EPS 5Y
EPS Q2Q%
EPS Next Y-7.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.37%
Revenue growth 3Y18.33%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y