TOYOTA MOTOR CORP -SPON ADR (TM) Stock Fundamental Analysis
USA - NYSE:TM - US8923313071 - ADR
203.341 USD
-3.95 (-1.91%)
Overall TM gets a fundamental rating of 5 out of 10. We evaluated TM against 36 industry peers in the Automobiles industry. While TM has a great profitability rating, there are some minor concerns on its financial health. TM has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years TM has always been profitable.
Each year in the past 5 years TM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TM (4.75%) is better than 94.44% of its industry peers.
The Return On Equity of TM (12.35%) is better than 94.44% of its industry peers.
TM has a better Return On Invested Capital (4.81%) than 88.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TM is in line with the industry average of 5.83%.
| 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
TM has a better Profit Margin (9.38%) than 94.44% of its industry peers.
In the last couple of years the Profit Margin of TM has grown nicely.
The Operating Margin of TM (8.78%) is better than 94.44% of its industry peers.
In the last couple of years the Operating Margin of TM has grown nicely.
Looking at the Gross Margin, with a value of 17.97%, TM is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
In the last couple of years the Gross Margin of TM has grown nicely.
| 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
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.
TM has less shares outstanding than it did 5 years ago.
TM has a worse debt/assets ratio than last year.
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.
With a decent Altman-Z score value of 1.70, TM is doing good in the industry, outperforming 69.44% of the companies in the same industry.
TM has a Debt/Equity ratio of 0.63. This is a neutral value indicating TM is somewhat dependend on debt financing.
TM has a better Debt to Equity ratio (0.63) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.7 |
ROIC/WACC1.49
WACC3.22%
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 of 1.25. This is comparable to the rest of the industry: TM outperforms 58.33% of its industry peers.
TM has a Quick Ratio of 1.10. 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 Quick ratio of 1.10. This is in the better half of the industry: TM outperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for TM have decreased by -1.74% 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 6.44% 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)-1.74%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%66.53%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%8.15%
3.2 Future
TM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.71% yearly.
The Revenue is expected to grow by 3.14% on average over the next years.
EPS Next Y-27.48%
EPS Next 2Y-7.35%
EPS Next 3Y-2.71%
EPS Next 5YN/A
Revenue Next Year4.38%
Revenue Next 2Y3.39%
Revenue Next 3Y3.14%
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
A Price/Earnings ratio of 8.75 indicates a reasonable valuation of TM.
Compared to the rest of the industry, the Price/Earnings ratio of TM indicates a rather cheap valuation: TM is cheaper than 91.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. TM is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.20, the valuation of TM can be described as reasonable.
80.56% of the companies in the same industry are more expensive than TM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TM to the average of the S&P500 Index (34.43), we can say TM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 10.2 |
4.2 Price Multiples
TM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TM is cheaper than 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.49 |
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 -2.71% in the coming years.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y-7.35%
EPS Next 3Y-2.71%
5. Dividend
5.1 Amount
TM has a Yearly Dividend Yield of 3.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.35, TM pays a better dividend. On top of this TM pays more dividend than 88.89% of the companies listed in the same industry.
TM's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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
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-7.35%
EPS Next 3Y-2.71%
NYSE:TM (11/13/2025, 3:02:40 PM)
203.341
-3.95 (-1.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners25.8%
Inst Owner Change0.07%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap265.03B
Revenue(TTM)49.39T
Net Income(TTM)4.63T
Analysts76.92
Price Target206.64 (1.62%)
Short Float %0.09%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend5.58
Dividend Growth(5Y)14.07%
DP25.44%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.07%
Min Revenue beat(2)-0.47%
Max Revenue beat(2)0.61%
Revenue beat(4)3
Avg Revenue beat(4)1.01%
Min Revenue beat(4)-0.47%
Max Revenue beat(4)2.33%
Revenue beat(8)5
Avg Revenue beat(8)1.95%
Revenue beat(12)9
Avg Revenue beat(12)3.04%
Revenue beat(16)13
Avg Revenue beat(16)3.09%
PT rev (1m)1.59%
PT rev (3m)9.62%
EPS NQ rev (1m)5.7%
EPS NQ rev (3m)-20.7%
EPS NY rev (1m)3.7%
EPS NY rev (3m)-19.44%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-4.59%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 10.2 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | 8.5 | ||
| P/B | 1.09 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 8.49 |
EPS(TTM)23.23
EY11.42%
EPS(NY)19.94
Fwd EY9.81%
FCF(TTM)-0.08
FCFYN/A
OCF(TTM)23.91
OCFY11.76%
SpS244.77
BVpS185.83
TBVpS179.05
PEG (NY)N/A
PEG (5Y)0.45
Graham Number311.65
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 | 1.7 |
F-Score6
WACC3.22%
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)-1.74%
EPS 3Y20.57%
EPS 5Y19.57%
EPS Q2Q%66.53%
EPS Next Y-27.48%
EPS Next 2Y-7.35%
EPS Next 3Y-2.71%
EPS Next 5YN/A
Revenue 1Y (TTM)6.44%
Revenue growth 3Y15.25%
Revenue growth 5Y9.97%
Sales Q2Q%8.15%
Revenue Next Year4.38%
Revenue Next 2Y3.39%
Revenue Next 3Y3.14%
Revenue Next 5YN/A
EBIT growth 1Y-17.51%
EBIT growth 3Y16.98%
EBIT growth 5Y14.86%
EBIT Next Year18017.8%
EBIT Next 3Y494.72%
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 5 / 10 to TM.
What is the valuation status for TM stock?
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.
What is the valuation of TOYOTA MOTOR CORP -SPON ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TOYOTA MOTOR CORP -SPON ADR (TM) is 8.75 and the Price/Book (PB) ratio is 1.09.
How financially healthy is TOYOTA MOTOR CORP -SPON ADR?
The financial health rating of TOYOTA MOTOR CORP -SPON ADR (TM) is 4 / 10.