TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
NYSE:TM - New York Stock Exchange, Inc. - US8923313071 - ADR - Currency: USD
Overall TM gets a fundamental rating of 6 out of 10. We evaluated TM against 37 industry peers in the Automobiles industry. While TM has a great profitability rating, there are some minor concerns on its financial health. TM is valued correctly, but it does not seem to be growing.
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.
In the past 5 years TM always reported a positive cash flow from operatings.
1.2 Ratios
TM has a Return On Assets of 5.09%. This is amongst the best in the industry. TM outperforms 94.59% of its industry peers.
Looking at the Return On Equity, with a value of 13.26%, TM belongs to the top of the industry, outperforming 94.59% of the companies in the same industry.
TM's Return On Invested Capital of 5.51% is amongst the best of the industry. TM outperforms 89.19% of its industry peers.
TM had an Average Return On Invested Capital over the past 3 years of 5.04%. This is in line with the industry average of 6.62%.
The last Return On Invested Capital (5.51%) for TM is above the 3 year average (5.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 13.26% | ||
| ROIC | 5.51% |
ROA(3y)4.63%
ROA(5y)4.34%
ROE(3y)12.12%
ROE(5y)11.36%
ROIC(3y)5.04%
ROIC(5y)4.62%
1.3 Margins
TM's Profit Margin of 9.92% is amongst the best of the industry. TM outperforms 97.30% of its industry peers.
In the last couple of years the Profit Margin of TM has grown nicely.
Looking at the Operating Margin, with a value of 9.98%, TM belongs to the top of the industry, outperforming 97.30% of the companies in the same industry.
TM's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 19.94%, TM belongs to the best of the industry, outperforming 81.08% of the companies in the same industry.
TM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.98% | ||
| PM (TTM) | 9.92% | ||
| GM | 19.94% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TM is still creating some value.
The number of shares outstanding for TM has been reduced compared to 1 year ago.
The number of shares outstanding for TM has been reduced compared to 5 years ago.
The debt/assets ratio for TM is higher compared to a year ago.
2.2 Solvency
TM has an Altman-Z score of 1.70. 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 1.70. This is in the better half of the industry: TM outperforms 75.68% of its industry peers.
TM has a Debt/Equity ratio of 0.64. This is a neutral value indicating TM is somewhat dependend on debt financing.
The Debt to Equity ratio of TM (0.64) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.7 |
ROIC/WACC1.72
WACC3.21%
2.3 Liquidity
A Current Ratio of 1.26 indicates that TM should not have too much problems paying its short term obligations.
TM has a Current ratio (1.26) which is comparable to the rest of the industry.
A Quick Ratio of 1.10 indicates that TM should not have too much problems paying its short term obligations.
TM has a better Quick ratio (1.10) than 70.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for TM have decreased by -1.74% in the last year.
The Earnings Per Share has been growing by 19.57% on average over the past years. This is quite good.
Looking at the last year, TM shows a small growth in Revenue. The Revenue has grown by 6.52% in the last year.
The Revenue has been growing by 9.97% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.74%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-30.32%
Revenue 1Y (TTM)6.52%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%11.66%
3.2 Future
The Earnings Per Share is expected to decrease by -4.15% on average over the next years.
The Revenue is expected to grow by 2.63% on average over the next years.
EPS Next Y-10.2%
EPS Next 2Y-4.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.14%
Revenue Next 2Y3.38%
Revenue Next 3Y2.63%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.84, the valuation of TM can be described as very cheap.
91.89% 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 27.69. TM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.73 indicates a reasonable valuation of TM.
TM's Price/Forward Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 83.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TM to the average of the S&P500 Index (37.36), we can say TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.84 | ||
| Fwd PE | 8.73 |
4.2 Price Multiples
91.89% of the companies in the same industry are more expensive than TM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.49 |
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 -4.15% in the coming years.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y-4.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 2.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.77, TM pays a better dividend. On top of this TM pays more dividend than 86.49% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, TM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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
TM pays out 23.76% of its income as dividend. This is a sustainable payout ratio.
DP23.76%
EPS Next 2Y-4.15%
EPS Next 3YN/A
193.18
+23.19 (+13.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners24.68%
Inst Owner Change-2.04%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap251.77B
Analysts75.71
Price Target176.73 (-8.52%)
Short Float %0.12%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend5.77
Dividend Growth(5Y)14.07%
DP23.76%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)43.31%
Min EPS beat(2)11.86%
Max EPS beat(2)74.75%
EPS beat(4)3
Avg EPS beat(4)13.19%
Min EPS beat(4)-41.93%
Max EPS beat(4)74.75%
EPS beat(8)7
Avg EPS beat(8)23.68%
EPS beat(12)9
Avg EPS beat(12)13.4%
EPS beat(16)13
Avg EPS beat(16)15.65%
Revenue beat(2)2
Avg Revenue beat(2)1.94%
Min Revenue beat(2)1.55%
Max Revenue beat(2)2.33%
Revenue beat(4)2
Avg Revenue beat(4)0.77%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)2.33%
Revenue beat(8)6
Avg Revenue beat(8)3.37%
Revenue beat(12)10
Avg Revenue beat(12)3.6%
Revenue beat(16)14
Avg Revenue beat(16)3.76%
PT rev (1m)-9.95%
PT rev (3m)-9.59%
EPS NQ rev (1m)9.31%
EPS NQ rev (3m)-6.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.24%
Revenue NQ rev (1m)1.61%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.84 | ||
| Fwd PE | 8.73 | ||
| P/S | 0.77 | ||
| P/FCF | N/A | ||
| P/OCF | 9.96 | ||
| P/B | 1.03 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 7.49 |
EPS(TTM)24.64
EY12.75%
EPS(NY)22.13
Fwd EY11.45%
FCF(TTM)-8.19
FCFYN/A
OCF(TTM)19.39
OCFY10.04%
SpS251.97
BVpS188.44
TBVpS181.29
PEG (NY)N/A
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 13.26% | ||
| ROCE | 7.47% | ||
| ROIC | 5.51% | ||
| ROICexc | 7.33% | ||
| ROICexgc | 7.54% | ||
| OM | 9.98% | ||
| PM (TTM) | 9.92% | ||
| GM | 19.94% | ||
| FCFM | N/A |
ROA(3y)4.63%
ROA(5y)4.34%
ROE(3y)12.12%
ROE(5y)11.36%
ROIC(3y)5.04%
ROIC(5y)4.62%
ROICexc(3y)6.42%
ROICexc(5y)5.83%
ROICexgc(3y)6.6%
ROICexgc(5y)18.11%
ROCE(3y)7.22%
ROCE(5y)6.72%
ROICexcg growth 3Y-36.84%
ROICexcg growth 5Y7.63%
ROICexc growth 3Y11.1%
ROICexc growth 5Y7.64%
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-Score5
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.26 | ||
| Cap/Depr | 233.56% | ||
| Cap/Sales | 10.95% | ||
| Interest Coverage | 2.98 | ||
| Cash Conversion | 52.46% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.7 |
F-Score5
WACC3.21%
ROIC/WACC1.72
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)-1.74%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%-30.32%
EPS Next Y-10.2%
EPS Next 2Y-4.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.52%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%11.66%
Revenue Next Year3.14%
Revenue Next 2Y3.38%
Revenue Next 3Y2.63%
Revenue Next 5YN/A
EBIT growth 1Y-10.41%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year19482.1%
EBIT Next 3Y483.69%
EBIT Next 5YN/A
FCF growth 1Y-85.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.11%
OCF growth 3Y-0.23%
OCF growth 5Y9.04%