TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TM - US8923313071 - ADR
229.03 USD
+6.44 (+2.89%)
225.07 USD
-3.96 (-1.73%)
Overall TM gets a fundamental rating of 6 out of 10. We evaluated TM against 35 industry peers in the Automobiles industry. TM has an excellent profitability rating, but there are some minor 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
- 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.
- Each year in the past 5 years TM had a positive operating cash flow.
1.2 Ratios
- TM has a Return On Assets of 4.75%. This is amongst the best in the industry. TM outperforms 97.14% of its industry peers.
- Looking at the Return On Equity, with a value of 12.35%, TM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 4.81%, TM belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
- 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 5.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 12.35% | ||
| ROIC | 4.81% |
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
- Looking at the Profit Margin, with a value of 9.38%, TM belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- In the last couple of years the Profit Margin of TM has grown nicely.
- TM has a Operating Margin of 8.78%. This is amongst the best in the industry. TM outperforms 94.29% of its industry peers.
- In the last couple of years the Operating Margin of TM has grown nicely.
- TM's Gross Margin of 17.97% is fine compared to the rest of the industry. TM outperforms 80.00% of its industry peers.
- TM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.78% | ||
| PM (TTM) | 9.38% | ||
| GM | 17.97% |
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.
- 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 1.76. This is a bad value and indicates that TM is not financially healthy and even has some risk of bankruptcy.
- TM has a better Altman-Z score (1.76) than 80.00% of its industry peers.
- TM has a Debt/Equity ratio of 0.63. This is a neutral value indicating TM is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.63, TM is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.76 |
ROIC/WACC1.49
WACC3.23%
2.3 Liquidity
- TM has a Current Ratio of 1.25. This is a normal value and indicates that TM is financially healthy and should not expect problems in meeting its short term obligations.
- TM has a Current ratio (1.25) 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.
- Looking at the Quick ratio, with a value of 1.10, TM is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- TM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.57%, which is quite good.
- 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.
- TM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.44%.
- TM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.97% yearly.
EPS 1Y (TTM)11.57%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%65.7%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%-2.18%
3.2 Future
- Based on estimates for the next years, TM will show a decrease in Earnings Per Share. The EPS will decrease by -1.10% on average per year.
- TM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.09% yearly.
EPS Next Y-25.55%
EPS Next 2Y-5.11%
EPS Next 3Y-1.1%
EPS Next 5YN/A
Revenue Next Year5.5%
Revenue Next 2Y4.42%
Revenue Next 3Y4.09%
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 10.29, the valuation of TM can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of TM indicates a rather cheap valuation: TM is cheaper than 94.29% of the companies listed in the same industry.
- TM is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 11.24 indicates a reasonable valuation of TM.
- 80.00% 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 24.04. TM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 11.24 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TM is valued cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.34 |
4.3 Compensation for Growth
- The excellent profitability rating of TM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y-5.11%
EPS Next 3Y-1.1%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.88%, 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 0.92. TM pays more dividend than 85.71% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, TM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
- The dividend of TM is nicely growing with an annual growth rate of 14.07%!
- TM has paid a dividend for at least 10 years, which is 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
- 25.44% of the earnings are spent on dividend by TM. This is a low number and sustainable payout ratio.
DP25.44%
EPS Next 2Y-5.11%
EPS Next 3Y-1.1%
229.03
+6.44 (+2.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)11-05 2025-11-05/dmh
Earnings (Next)02-03 2026-02-03/bmo
Inst Owners24.9%
Inst Owner Change0.07%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap298.50B
Revenue(TTM)49.39T
Net Income(TTM)4.63T
Analysts76.92
Price Target223.87 (-2.25%)
Short Float %0.09%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
Yearly Dividend5.42
Dividend Growth(5Y)14.07%
DP25.44%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.99%
Min EPS beat(2)7.7%
Max EPS beat(2)24.28%
EPS beat(4)4
Avg EPS beat(4)29.65%
Min EPS beat(4)7.7%
Max EPS beat(4)74.75%
EPS beat(8)7
Avg EPS beat(8)15.35%
EPS beat(12)10
Avg EPS beat(12)18.99%
EPS beat(16)13
Avg EPS beat(16)14.27%
Revenue beat(2)0
Avg Revenue beat(2)-4.74%
Min Revenue beat(2)-9%
Max Revenue beat(2)-0.47%
Revenue beat(4)2
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-9%
Max Revenue beat(4)2.33%
Revenue beat(8)4
Avg Revenue beat(8)0.75%
Revenue beat(12)8
Avg Revenue beat(12)2.23%
Revenue beat(16)12
Avg Revenue beat(16)2.49%
PT rev (1m)7.17%
PT rev (3m)10.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)61.16%
EPS NY rev (1m)1.22%
EPS NY rev (3m)6.47%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 11.24 | ||
| P/S | 0.96 | ||
| P/FCF | N/A | ||
| P/OCF | 9.83 | ||
| P/B | 1.26 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 9.34 |
EPS(TTM)22.25
EY9.71%
EPS(NY)20.38
Fwd EY8.9%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)23.3
OCFY10.17%
SpS238.54
BVpS181.09
TBVpS174.49
PEG (NY)N/A
PEG (5Y)0.53
Graham Number301.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 12.35% | ||
| ROCE | 6.52% | ||
| ROIC | 4.81% | ||
| ROICexc | 6.44% | ||
| ROICexgc | 6.63% | ||
| OM | 8.78% | ||
| PM (TTM) | 9.38% | ||
| GM | 17.97% | ||
| 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%
ROICexgc growth 3Y-39.12%
ROICexgc 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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.58 | ||
| Cap/Depr | 214.68% | ||
| Cap/Sales | 9.8% | ||
| Interest Coverage | 2.6 | ||
| Cash Conversion | 73.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.76 |
F-Score6
WACC3.23%
ROIC/WACC1.49
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)11.57%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%65.7%
EPS Next Y-25.55%
EPS Next 2Y-5.11%
EPS Next 3Y-1.1%
EPS Next 5YN/A
Revenue 1Y (TTM)6.44%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%-2.18%
Revenue Next Year5.5%
Revenue Next 2Y4.42%
Revenue Next 3Y4.09%
Revenue Next 5YN/A
EBIT growth 1Y-17.51%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year19219.2%
EBIT Next 3Y510.65%
EBIT Next 5YN/A
FCF growth 1Y97.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y34.97%
OCF growth 3Y-0.23%
OCF growth 5Y9.04%
TOYOTA MOTOR CORP -SPON ADR / TM FAQ
What is the ChartMill fundamental rating of TOYOTA MOTOR CORP -SPON ADR (TM) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TM.
Can you provide the valuation status for TOYOTA MOTOR CORP -SPON ADR?
ChartMill assigns a valuation rating of 6 / 10 to TOYOTA MOTOR CORP -SPON ADR (TM). This can be considered as Fairly Valued.
How profitable is TOYOTA MOTOR CORP -SPON ADR (TM) stock?
TOYOTA MOTOR CORP -SPON ADR (TM) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for TM stock?
The Price/Earnings (PE) ratio for TOYOTA MOTOR CORP -SPON ADR (TM) is 10.29 and the Price/Book (PB) ratio is 1.26.
What is the expected EPS growth for TOYOTA MOTOR CORP -SPON ADR (TM) stock?
The Earnings per Share (EPS) of TOYOTA MOTOR CORP -SPON ADR (TM) is expected to decline by -25.55% in the next year.