TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TM - US8923313071 - ADR
219.38 USD
+3.3 (+1.53%)
219.82 USD
+0.44 (+0.2%)
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. 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.
In the past 5 years TM has always been profitable.
Each year in the past 5 years TM had a positive operating cash flow.
1.2 Ratios
TM's Return On Assets of 4.75% is amongst the best of the industry. TM outperforms 94.59% of its industry peers.
With an excellent Return On Equity value of 12.35%, TM belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
TM's Return On Invested Capital of 4.81% is amongst the best of the industry. TM outperforms 89.19% 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 5.86%.
| 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
Looking at the Profit Margin, with a value of 9.38%, TM belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
In the last couple of years the Profit Margin of TM has grown nicely.
Looking at the Operating Margin, with a value of 8.78%, TM belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
In the last couple of years the Operating Margin of TM has grown nicely.
TM's Gross Margin of 17.97% is fine compared to the rest of the industry. TM outperforms 72.97% of its industry peers.
In the last couple of years the Gross Margin of TM has grown nicely.
| 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
TM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TM has less shares outstanding
TM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.73, we must say that TM is in the distress zone and has some risk of bankruptcy.
TM has a better Altman-Z score (1.73) than 78.38% of its industry peers.
TM has a Debt/Equity ratio of 0.63. This is a neutral value indicating TM is somewhat dependend on debt financing.
TM's Debt to Equity ratio of 0.63 is in line compared to the rest of the industry. TM outperforms 56.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.73 |
ROIC/WACC1.49
WACC3.22%
2.3 Liquidity
A Current Ratio of 1.25 indicates that TM should not have too much problems paying its short term obligations.
TM's Current ratio of 1.25 is in line compared to the rest of the industry. TM outperforms 56.76% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.10, TM is in the better half of the industry, outperforming 72.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
TM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.57%, which is quite good.
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 6.44%.
The Revenue has been growing by 9.97% on average over the past years. This is quite good.
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 decrease by -1.10% on average over the next years.
Based on estimates for the next years, TM will show a small growth in Revenue. The Revenue will grow by 4.09% on average per year.
EPS Next Y-25.55%
EPS Next 2Y-5.11%
EPS Next 3Y-1.1%
EPS Next 5YN/A
Revenue Next Year5.5%
Revenue Next 2Y4.42%
Revenue Next 3Y4.09%
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.
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
A Price/Earnings ratio of 9.76 indicates a reasonable valuation of TM.
Based on the Price/Earnings ratio, TM is valued cheaply inside the industry as 91.89% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.38. TM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.65 indicates a reasonable valuation of TM.
TM's Price/Forward Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 81.08% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.83. TM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TM is valued cheaper than 89.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.97 |
4.3 Compensation for Growth
The excellent profitability rating of TM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-5.11%
EPS Next 3Y-1.1%
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 2.82%. 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 0.80. TM pays more dividend than 86.49% of the companies in the same industry.
TM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
The dividend of TM is nicely growing with an annual growth rate of 14.07%!
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
25.44% of the earnings are spent on dividend by TM. This is a low number and sustainable payout ratio.
DP25.44%
EPS Next 2Y-5.11%
EPS Next 3Y-1.1%
219.38
+3.3 (+1.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners26.29%
Inst Owner Change2.53%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap285.93B
Revenue(TTM)49.39T
Net Income(TTM)4.63T
Analysts76.92
Price Target223.87 (2.05%)
Short Float %0.1%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
Yearly Dividend5.43
Dividend Growth(5Y)14.07%
DP25.44%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.99%
Min EPS beat(2)7.7%
Max EPS beat(2)24.28%
EPS beat(4)4
Avg EPS beat(4)29.65%
Min EPS beat(4)7.7%
Max EPS beat(4)74.75%
EPS beat(8)7
Avg EPS beat(8)15.35%
EPS beat(12)10
Avg EPS beat(12)18.99%
EPS beat(16)13
Avg EPS beat(16)14.27%
Revenue beat(2)0
Avg Revenue beat(2)-4.74%
Min Revenue beat(2)-9%
Max Revenue beat(2)-0.47%
Revenue beat(4)2
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-9%
Max Revenue beat(4)2.33%
Revenue beat(8)4
Avg Revenue beat(8)0.75%
Revenue beat(12)8
Avg Revenue beat(12)2.23%
Revenue beat(16)12
Avg Revenue beat(16)2.49%
PT rev (1m)8.34%
PT rev (3m)10.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)61.15%
EPS NY rev (1m)2.67%
EPS NY rev (3m)6.47%
Revenue NQ rev (1m)1.45%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 10.65 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | 9.32 | ||
| P/B | 1.2 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 8.97 |
EPS(TTM)22.48
EY10.25%
EPS(NY)20.59
Fwd EY9.39%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)23.54
OCFY10.73%
SpS240.99
BVpS182.95
TBVpS176.28
PEG (NY)N/A
PEG (5Y)0.5
Graham Number304.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 12.35% | ||
| ROCE | 6.52% | ||
| ROIC | 4.81% | ||
| ROICexc | 6.44% | ||
| ROICexgc | 6.63% | ||
| OM | 8.78% | ||
| PM (TTM) | 9.38% | ||
| GM | 17.97% | ||
| 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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.58 | ||
| Cap/Depr | 214.68% | ||
| Cap/Sales | 9.8% | ||
| Interest Coverage | 2.6 | ||
| Cash Conversion | 73.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.73 |
F-Score6
WACC3.22%
ROIC/WACC1.49
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)11.57%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%65.7%
EPS Next Y-25.55%
EPS Next 2Y-5.11%
EPS Next 3Y-1.1%
EPS Next 5YN/A
Revenue 1Y (TTM)6.44%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%-2.18%
Revenue Next Year5.5%
Revenue Next 2Y4.42%
Revenue Next 3Y4.09%
Revenue Next 5YN/A
EBIT growth 1Y-17.51%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year18834.8%
EBIT Next 3Y505.48%
EBIT Next 5YN/A
FCF growth 1Y97.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y34.97%
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.
What is the valuation status for TM stock?
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.
What is the valuation of TOYOTA MOTOR CORP -SPON ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TOYOTA MOTOR CORP -SPON ADR (TM) is 9.76 and the Price/Book (PB) ratio is 1.2.
How financially healthy is TOYOTA MOTOR CORP -SPON ADR?
The financial health rating of TOYOTA MOTOR CORP -SPON ADR (TM) is 4 / 10.