TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - NYSE:TM - US8923313071 - ADR
198.08 USD
+2.67 (+1.37%)
TM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 37 industry peers in the Automobiles industry. TM scores excellent on profitability, but there are some minor concerns on its financial health. TM has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TM was profitable.
TM had a positive operating cash flow in the past year.
Each year in the past 5 years TM has been profitable.
Each year in the past 5 years TM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TM (4.57%) is better than 91.89% of its industry peers.
TM has a Return On Equity of 11.86%. This is amongst the best in the industry. TM outperforms 97.30% of its industry peers.
TM's Return On Invested Capital of 5.35% is amongst the best of the industry. TM outperforms 94.59% 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 5.68%.
The last Return On Invested Capital (5.35%) for TM is above the 3 year average (4.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.57% | ||
| ROE | 11.86% | ||
| ROIC | 5.35% |
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
With an excellent Profit Margin value of 8.82%, TM belongs to the best of the industry, outperforming 97.30% of the companies in the same industry.
In the last couple of years the Profit Margin of TM has grown nicely.
The Operating Margin of TM (9.60%) is better than 97.30% of its industry peers.
TM's Operating Margin has improved in the last couple of years.
TM's Gross Margin of 19.29% is fine compared to the rest of the industry. TM outperforms 78.38% of its industry peers.
TM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.6% | ||
| PM (TTM) | 8.82% | ||
| GM | 19.29% |
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.
The number of shares outstanding for TM has been reduced compared to 1 year ago.
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
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.
With a decent Altman-Z score value of 1.73, TM is doing good in the industry, outperforming 78.38% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that TM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, TM is in line with its industry, outperforming 59.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.73 |
ROIC/WACC1.66
WACC3.22%
2.3 Liquidity
A Current Ratio of 1.27 indicates that TM should not have too much problems paying its short term obligations.
TM's Current ratio of 1.27 is in line compared to the rest of the industry. TM outperforms 59.46% of its industry peers.
TM has a Quick Ratio of 1.11. This is a normal value and indicates that TM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of TM (1.11) is better than 72.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for TM have decreased strongly by -11.70% in the last year.
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 4.45%.
The Revenue has been growing by 9.97% on average over the past years. This is quite good.
EPS 1Y (TTM)-11.7%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-34.79%
Revenue 1Y (TTM)4.45%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%3.51%
3.2 Future
TM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.55% yearly.
The Revenue is expected to grow by 3.06% on average over the next years.
EPS Next Y-30.07%
EPS Next 2Y-8.38%
EPS Next 3Y-3.55%
EPS Next 5YN/A
Revenue Next Year3.73%
Revenue Next 2Y3.18%
Revenue Next 3Y3.06%
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
A Price/Earnings ratio of 9.22 indicates a reasonable valuation of TM.
Based on the Price/Earnings ratio, TM is valued cheaply inside the industry as 94.59% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.29. TM is valued rather cheaply when compared to this.
TM is valuated reasonably with a Price/Forward Earnings ratio of 9.93.
Based on the Price/Forward Earnings ratio, TM is valued cheaper than 83.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.85. TM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TM indicates a rather cheap valuation: TM is cheaper than 91.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.74 |
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 -3.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y-8.38%
EPS Next 3Y-3.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.22%, TM has a reasonable but not impressive dividend return.
TM's Dividend Yield is rather good when compared to the industry average which is at 3.56. TM pays more dividend than 89.19% of the companies in the same industry.
TM's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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.
TM has decreased its dividend in the last 3 years.
Dividend Growth(5Y)14.07%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
27.58% of the earnings are spent on dividend by TM. This is a low number and sustainable payout ratio.
DP27.58%
EPS Next 2Y-8.38%
EPS Next 3Y-3.55%
NYSE:TM (10/17/2025, 3:57:57 PM)
198.08
+2.67 (+1.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners25.8%
Inst Owner Change0.02%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap258.18B
Analysts77.69
Price Target203.41 (2.69%)
Short Float %0.11%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Yearly Dividend5.6
Dividend Growth(5Y)14.07%
DP27.58%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.78%
Min EPS beat(2)7.7%
Max EPS beat(2)11.86%
EPS beat(4)3
Avg EPS beat(4)13.09%
Min EPS beat(4)-41.93%
Max EPS beat(4)74.75%
EPS beat(8)7
Avg EPS beat(8)17.77%
EPS beat(12)9
Avg EPS beat(12)13.82%
EPS beat(16)13
Avg EPS beat(16)14.33%
Revenue beat(2)1
Avg Revenue beat(2)0.54%
Min Revenue beat(2)-0.47%
Max Revenue beat(2)1.55%
Revenue beat(4)2
Avg Revenue beat(4)0.69%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)2.33%
Revenue beat(8)5
Avg Revenue beat(8)2.64%
Revenue beat(12)9
Avg Revenue beat(12)3.25%
Revenue beat(16)13
Avg Revenue beat(16)3.35%
PT rev (1m)7.91%
PT rev (3m)11.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.43%
EPS NY rev (1m)0.77%
EPS NY rev (3m)-22.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 9.93 | ||
| P/S | 0.81 | ||
| P/FCF | N/A | ||
| P/OCF | 7.99 | ||
| P/B | 1.08 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 7.74 |
EPS(TTM)21.49
EY10.85%
EPS(NY)19.95
Fwd EY10.07%
FCF(TTM)-0.58
FCFYN/A
OCF(TTM)24.8
OCFY12.52%
SpS245.72
BVpS182.78
TBVpS175.86
PEG (NY)N/A
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.57% | ||
| ROE | 11.86% | ||
| ROCE | 7.25% | ||
| ROIC | 5.35% | ||
| ROICexc | 7.12% | ||
| ROICexgc | 7.32% | ||
| OM | 9.6% | ||
| PM (TTM) | 8.82% | ||
| GM | 19.29% | ||
| 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%
ROICexcg growth 3Y-39.12%
ROICexcg 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 224.58% | ||
| Cap/Sales | 10.33% | ||
| Interest Coverage | 2.83 | ||
| Cash Conversion | 71.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 1.73 |
F-Score6
WACC3.22%
ROIC/WACC1.66
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)-11.7%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-34.79%
EPS Next Y-30.07%
EPS Next 2Y-8.38%
EPS Next 3Y-3.55%
EPS Next 5YN/A
Revenue 1Y (TTM)4.45%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%3.51%
Revenue Next Year3.73%
Revenue Next 2Y3.18%
Revenue Next 3Y3.06%
Revenue Next 5YN/A
EBIT growth 1Y-16.01%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year17606.9%
EBIT Next 3Y490.19%
EBIT Next 5YN/A
FCF growth 1Y73.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.77%
OCF growth 3Y-0.23%
OCF growth 5Y9.04%