TOYOTA MOTOR CORP -SPON ADR (TM)
US8923313071 - ADR
We assign a fundamental rating of 5 out of 10 to TM. TM was compared to 41 industry peers in the Automobiles industry. While TM has a great profitability rating, there are quite some 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.
In the past year TM had a positive cash flow from operations.
TM had positive earnings in each of the past 5 years.
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 5.49%, TM belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
TM's Return On Equity of 14.45% is fine compared to the rest of the industry. TM outperforms 78.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.18%, TM is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
TM had an Average Return On Invested Capital over the past 3 years of 4.63%. This is significantly below the industry average of 11.59%.
The 3 year average ROIC (4.63%) for TM is below the current ROIC(6.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 14.45% | ||
| ROIC | 6.18% |
ROA(3y)4.33%
ROA(5y)4.08%
ROE(3y)11.32%
ROE(5y)10.69%
ROIC(3y)4.63%
ROIC(5y)4.29%
1.3 Margins
With an excellent Profit Margin value of 10.97%, TM belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
In the last couple of years the Profit Margin of TM has grown nicely.
TM has a better Operating Margin (11.87%) than 95.12% of its industry peers.
In the last couple of years the Operating Margin of TM has grown nicely.
TM's Gross Margin of 20.77% is fine compared to the rest of the industry. TM outperforms 73.17% of its industry peers.
In the last couple of years the Gross Margin of TM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.87% | ||
| PM (TTM) | 10.97% | ||
| GM | 20.77% |
OM growth 3Y13.7%
OM growth 5Y7.77%
PM growth 3Y9.95%
PM growth 5Y12.15%
GM growth 3Y5.37%
GM growth 5Y2.9%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TM is destroying 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.
TM has a worse debt/assets ratio than last year.
2.2 Solvency
TM has an Altman-Z score of 1.71. This is a bad value and indicates that TM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TM (1.71) is better than 70.73% of its industry peers.
TM has a Debt/Equity ratio of 0.62. This is a neutral value indicating TM is somewhat dependend on debt financing.
TM has a Debt to Equity ratio of 0.62. This is in the lower half of the industry: TM underperforms 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.71 |
ROIC/WACC0.84
WACC7.35%
2.3 Liquidity
TM has a Current Ratio of 1.19. This is a normal value and indicates that TM is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.19, TM is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
TM has a Quick Ratio of 1.03. 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 1.03, TM is in line with its industry, outperforming 53.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 103.90% over the past year.
TM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.98% yearly.
The Revenue has grown by 21.37% in the past year. This is a very strong growth!
Measured over the past years, TM shows a quite strong growth in Revenue. The Revenue has been growing by 8.33% on average per year.
EPS 1Y (TTM)103.9%
EPS 3Y31.58%
EPS 5Y22.98%
EPS Q2Q%82.03%
Revenue 1Y (TTM)21.37%
Revenue growth 3Y18.33%
Revenue growth 5Y8.33%
Sales Q2Q%14.27%
3.2 Future
Based on estimates for the next years, TM will show a decrease in Earnings Per Share. The EPS will decrease by -0.37% on average per year.
Based on estimates for the next years, TM will show a small growth in Revenue. The Revenue will grow by 3.95% on average per year.
EPS Next Y-7.36%
EPS Next 2Y-2.62%
EPS Next 3Y-0.37%
EPS Next 5YN/A
Revenue Next Year5.6%
Revenue Next 2Y4.44%
Revenue Next 3Y3.95%
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
Based on the Price/Earnings ratio of 8.03, the valuation of TM can be described as reasonable.
TM's Price/Earnings ratio is rather cheap when compared to the industry. TM is cheaper than 87.80% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.41. TM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.66 indicates a reasonable valuation of TM.
80.49% of the companies in the same industry are more expensive than TM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 8.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TM is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.78 |
4.3 Compensation for Growth
The excellent profitability rating of TM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-2.62%
EPS Next 3Y-0.37%
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 2.39%. 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 3.01. TM pays more dividend than 92.68% of the companies in the same industry.
TM's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
On average, the dividend of TM grows each year by 7.71%, 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 recently.
Dividend Growth(5Y)7.71%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TM pays out 17.80% of its income as dividend. This is a sustainable payout ratio.
DP17.8%
EPS Next 2Y-2.62%
EPS Next 3Y-0.37%
TOYOTA MOTOR CORP -SPON ADR
NYSE:TM (7/26/2024, 7:04:00 PM)
After market: 192.52 0 (0%)192.52
-2.73 (-1.4%)
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 Cap259.32B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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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 | 8.03 | ||
| Fwd PE | 8.66 | ||
| 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)N/A
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 14.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.87% | ||
| PM (TTM) | 10.97% | ||
| GM | 20.77% | ||
| 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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.03 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)103.9%
EPS 3Y31.58%
EPS 5Y
EPS Q2Q%
EPS Next Y-7.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.37%
Revenue growth 3Y18.33%
Revenue growth 5Y
Sales 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