TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - NYSE:TM - US8923313071 - ADR
196.13 USD
-1.5 (-0.76%)
197.4 USD
+1.27 (+0.65%)
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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TM had positive earnings in the past year.
In the past year TM had a positive cash flow from operations.
In the past 5 years TM has always been profitable.
TM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TM has a better Return On Assets (4.57%) than 91.89% of its industry peers.
The Return On Equity of TM (11.86%) is better than 97.30% of its industry peers.
With an excellent Return On Invested Capital value of 5.35%, TM belongs to the best of the industry, outperforming 94.59% of the companies in the same industry.
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
The Profit Margin of TM (8.82%) is better than 97.30% of its industry peers.
TM's Profit Margin has improved in the last couple of years.
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 has a better Gross Margin (19.29%) than 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TM 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
The debt/assets ratio for TM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that TM is in the distress zone and has some risk of bankruptcy.
TM's Altman-Z score of 1.72 is amongst the best of the industry. TM outperforms 81.08% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that TM is somewhat dependend on debt financing.
TM has a Debt to Equity ratio (0.64) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.72 |
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 has a Current ratio of 1.27. This is comparable to the rest of the industry: TM outperforms 56.76% of its industry peers.
A Quick Ratio of 1.11 indicates that TM should not have too much problems paying 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
TM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.70%.
TM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.57% yearly.
TM shows a small growth in Revenue. In the last year, the Revenue has grown by 4.45%.
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)-11.7%
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
The Earnings Per Share is expected to decrease by -4.62% on average over the next years.
The Revenue is expected to grow by 3.01% on average over the next years.
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 8.92.
Based on the Price/Earnings ratio, TM is valued cheaper than 94.59% of the companies in the same industry.
When comparing the Price/Earnings ratio of TM to the average of the S&P500 Index (27.30), we can say TM is valued rather cheaply.
A Price/Forward Earnings ratio of 9.84 indicates a reasonable valuation of TM.
Based on the Price/Forward Earnings ratio, TM is valued cheaply inside the industry as 83.78% of the companies are valued more expensively.
TM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 9.84 |
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 | 7.63 |
4.3 Compensation for Growth
The excellent profitability rating of TM 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
TM has a Yearly Dividend Yield of 3.29%. Purely for dividend investing, there may be better candidates out there.
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
TM pays out 27.58% of its income as dividend. This is a sustainable payout ratio.
DP27.58%
EPS Next 2Y-9.43%
EPS Next 3Y-4.62%
196.13
-1.5 (-0.76%)
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 Cap255.62B
Analysts77.86
Price Target203.41 (3.71%)
Short Float %0.1%
Short Ratio2.01
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 | 8.92 | ||
| Fwd PE | 9.84 | ||
| P/S | 0.78 | ||
| P/FCF | N/A | ||
| P/OCF | 7.73 | ||
| P/B | 1.05 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 7.63 |
EPS(TTM)21.98
EY11.21%
EPS(NY)19.94
Fwd EY10.17%
FCF(TTM)-0.59
FCFYN/A
OCF(TTM)25.36
OCFY12.93%
SpS251.32
BVpS186.94
TBVpS179.87
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 | 1.72 |
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 Year19701.1%
EBIT Next 3Y485.85%
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%