TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - NYSE:TM - US8923313071 - ADR
198.885 USD
-1.59 (-0.79%)
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 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.
TM had positive earnings in each of the past 5 years.
TM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TM's Return On Assets of 4.57% is amongst the best of the industry. TM outperforms 91.89% of its industry peers.
TM has a better Return On Equity (11.86%) than 97.30% of its industry peers.
TM has a Return On Invested Capital of 5.35%. This is amongst the best in the industry. TM outperforms 94.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TM is in line with the industry average of 5.63%.
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
TM has a better Profit Margin (8.82%) than 97.30% of its industry peers.
In the last couple of years the Profit Margin of TM has grown nicely.
TM has a better Operating Margin (9.60%) than 97.30% of its industry peers.
In the last couple of years the Operating Margin of TM has grown nicely.
The Gross Margin of TM (19.29%) is better than 78.38% of its industry peers.
In the last couple of years the Gross Margin of TM has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TM is creating some value.
TM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TM has been reduced compared to 5 years ago.
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.
Looking at the Altman-Z score, with a value of 1.73, TM is in the better half of 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.
With a Debt to Equity ratio value of 0.64, TM perfoms like the industry average, outperforming 56.76% 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.
With a Current ratio value of 1.27, TM perfoms like the industry average, outperforming 56.76% of the companies in the same industry.
A Quick Ratio of 1.11 indicates that TM should not have too much problems paying its short term obligations.
TM has a better Quick ratio (1.11) 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.
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.
The Revenue has been growing slightly by 4.45% in the past year.
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
Based on estimates for the next years, TM will show a decrease in Earnings Per Share. The EPS will decrease by -4.62% on average per year.
TM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.01% yearly.
EPS Next Y-30.6%
EPS Next 2Y-9.43%
EPS Next 3Y-4.62%
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y3.05%
Revenue Next 3Y3.01%
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
TM is valuated reasonably with a Price/Earnings ratio of 9.02.
94.59% of the companies in the same industry are more expensive than TM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.41, TM is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.94, the valuation of TM can be described as very reasonable.
86.49% of the companies in the same industry are more expensive than TM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.88. TM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 9.94 |
4.2 Price Multiples
TM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TM is cheaper than 91.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.74 |
4.3 Compensation for Growth
TM has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TM's earnings are expected to decrease with -4.62% in the coming years.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-9.43%
EPS Next 3Y-4.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.29%, TM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.27, TM pays a better dividend. On top of this TM pays more dividend than 91.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, TM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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.
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
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-9.43%
EPS Next 3Y-4.62%
NYSE:TM (9/19/2025, 9:48:09 AM)
198.885
-1.59 (-0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners24.68%
Inst Owner Change-4.28%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap259.21B
Analysts77.86
Price Target203.41 (2.28%)
Short Float %0.09%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Yearly Dividend5.77
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)3.65%
EPS NQ rev (1m)-2.41%
EPS NQ rev (3m)-25.16%
EPS NY rev (1m)-22.72%
EPS NY rev (3m)-22.91%
Revenue NQ rev (1m)0.91%
Revenue NQ rev (3m)-3.38%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 9.94 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | 7.82 | ||
| P/B | 1.06 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 7.74 |
EPS(TTM)22.05
EY11.09%
EPS(NY)20.01
Fwd EY10.06%
FCF(TTM)-0.59
FCFYN/A
OCF(TTM)25.45
OCFY12.79%
SpS252.15
BVpS187.55
TBVpS180.46
PEG (NY)N/A
PEG (5Y)0.46
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-30.6%
EPS Next 2Y-9.43%
EPS Next 3Y-4.62%
EPS Next 5YN/A
Revenue 1Y (TTM)4.45%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%3.51%
Revenue Next Year3.27%
Revenue Next 2Y3.05%
Revenue Next 3Y3.01%
Revenue Next 5YN/A
EBIT growth 1Y-16.01%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year19636.7%
EBIT Next 3Y485.22%
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%