TOYOTA MOTOR CORP -SPON ADR (TM)
US8923313071 - ADR
We assign a fundamental rating of 5 out of 10 to TM. TM was compared to 39 industry peers in the Automobiles industry. While TM belongs to the best of the industry regarding profitability, there are concerns on its financial health. TM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TM had positive earnings in the past year.
In the past year TM had a positive cash flow from operations.
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 3.78%, TM belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
TM has a Return On Equity of 9.98%. This is amongst the best in the industry. TM outperforms 82.05% of its industry peers.
TM has a Return On Invested Capital of 4.23%. This is amongst the best in the industry. TM outperforms 82.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TM is significantly below the industry average of 9.28%.
The 3 year average ROIC (3.69%) for TM is below the current ROIC(4.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 9.98% | ||
| ROIC | 4.23% |
ROA(3y)3.71%
ROA(5y)3.7%
ROE(3y)9.7%
ROE(5y)9.68%
ROIC(3y)3.69%
ROIC(5y)3.92%
1.3 Margins
With an excellent Profit Margin value of 7.72%, TM belongs to the best of the industry, outperforming 89.74% of the companies in the same industry.
In the last couple of years the Profit Margin of TM has declined.
TM has a better Operating Margin (8.33%) than 87.18% of its industry peers.
TM's Operating Margin has declined in the last couple of years.
TM's Gross Margin of 17.81% is fine compared to the rest of the industry. TM outperforms 79.49% of its industry peers.
In the last couple of years the Gross Margin of TM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.33% | ||
| PM (TTM) | 7.72% | ||
| GM | 17.81% |
OM growth 3Y-2.99%
OM growth 5Y-2.13%
PM growth 3Y-1.09%
PM growth 5Y-4.82%
GM growth 3Y-1.94%
GM growth 5Y-1.89%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TM is destroying value.
Compared to 1 year ago, TM has less shares outstanding
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
TM has an Altman-Z score of 1.63. This is a bad value and indicates that TM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.63, TM is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
TM has a Debt/Equity ratio of 0.60. This is a neutral value indicating TM is somewhat dependend on debt financing.
TM's Debt to Equity ratio of 0.60 is on the low side compared to the rest of the industry. TM is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.63 |
ROIC/WACC0.54
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.11 indicates that TM should not have too much problems paying its short term obligations.
The Current ratio of TM (1.11) is worse than 69.23% of its industry peers.
TM has a Quick Ratio of 1.11. This is a bad value and indicates that TM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TM (0.93) is worse than 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
TM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.39%, which is quite good.
The Earnings Per Share has been growing slightly by 1.27% on average over the past years.
The Revenue has grown by 22.78% in the past year. This is a very strong growth!
Measured over the past years, TM shows a small growth in Revenue. The Revenue has been growing by 4.81% on average per year.
EPS 1Y (TTM)14.39%
EPS 3Y6.85%
EPS 5Y1.27%
EPS growth Q2Q80.32%
Revenue 1Y (TTM)22.78%
Revenue growth 3Y7.55%
Revenue growth 5Y4.81%
Revenue growth Q2Q24.21%
3.2 Future
The Earnings Per Share is expected to grow by 16.14% on average over the next years. This is quite good.
TM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.90% yearly.
EPS Next Y44.01%
EPS Next 2Y22.98%
EPS Next 3Y16.14%
EPS Next 5YN/A
Revenue Next Year13.92%
Revenue Next 2Y8.47%
Revenue Next 3Y6.9%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.59, TM is valued correctly.
84.62% of the companies in the same industry are more expensive than TM, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.81. TM is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 10.32 indicates a reasonable valuation of TM.
Based on the Price/Forward Earnings ratio, TM is valued cheaper than 82.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 19.91. TM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.59 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TM is valued cheaply inside the industry as 82.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.71 |
4.3 Compensation for Growth
TM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TM's earnings are expected to grow with 16.14% in the coming years.
PEG (NY)0.29
PEG (5Y)9.94
EPS Next 2Y22.98%
EPS Next 3Y16.14%
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 2.33%. 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 3.37. TM pays more dividend than 92.31% of the companies in the same industry.
TM's Dividend Yield is comparable with the S&P500 average which is at 2.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
The dividend of TM has a limited annual growth rate of 4.56%.
TM has paid a dividend for at least 10 years, which is a reliable track record.
TM has decreased its dividend recently.
Dividend Growth(5Y)4.56%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TM pays out 27.00% of its income as dividend. This is a sustainable payout ratio.
TM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27%
EPS Next 2Y22.98%
EPS Next 3Y16.14%
TOYOTA MOTOR CORP -SPON ADR
NYSE:TM (12/6/2023, 8:37:07 AM)
191.21
+3.22 (+1.71%)
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 Cap258.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.59 | ||
| Fwd PE | 10.32 | ||
| 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)0.29
PEG (5Y)9.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 9.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.33% | ||
| PM (TTM) | 7.72% | ||
| GM | 17.81% | ||
| 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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.93 | ||
| 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)
Growth
EPS 1Y (TTM)14.39%
EPS 3Y6.85%
EPS 5Y
EPS growth Q2Q
EPS Next Y44.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.78%
Revenue growth 3Y7.55%
Revenue growth 5Y
Revenue growth 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