Tata Motors Ltd (TTM) Fundamental Analysis & Valuation

NYSE:TTM • US8765685024

Current stock price

25.14 USD
+0.26 (+1.05%)
At close:
24.75 USD
-0.39 (-1.55%)
After Hours:

This TTM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. TTM Profitability Analysis

1.1 Basic Checks

  • In the past year TTM has reported negative net income.
  • TTM had a positive operating cash flow in the past year.
TTM Yearly Net Income VS EBIT VS OCF VS FCFTTM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200B -200B

1.2 Ratios

  • TTM has negative profitability rations, so we won't be analyzing them here.
  • TTM has a better Return On Invested Capital (0.79%) than 69.44% of its industry peers.
Industry RankSector Rank
ROA N/A
ROE N/A
ROIC 0.79%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
TTM Yearly ROA, ROE, ROICTTM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 -20 -40

1.3 Margins

  • Looking at the Operating Margin, with a value of 0.69%, TTM is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
  • Looking at the Gross Margin, with a value of 40.01%, TTM belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
  • In the last couple of years the Gross Margin of TTM has declined.
Industry RankSector Rank
OM 0.69%
PM (TTM) N/A
GM 40.01%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.28%
GM growth 5Y-1.51%
TTM Yearly Profit, Operating, Gross MarginsTTM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40

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1

2. TTM Health Analysis

2.1 Basic Checks

  • TTM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, TTM has about the same amount of shares outstanding.
  • TTM has a worse debt/assets ratio than last year.
TTM Yearly Shares OutstandingTTM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M
TTM Yearly Total Debt VS Total AssetsTTM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 1T 2T 3T

2.2 Solvency

  • Based on the Altman-Z score of 1.38, we must say that TTM is in the distress zone and has some risk of bankruptcy.
  • TTM's Altman-Z score of 1.38 is in line compared to the rest of the industry. TTM outperforms 58.33% of its industry peers.
  • The Debt to FCF ratio of TTM is 17.12, which is on the high side as it means it would take TTM, 17.12 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 17.12, TTM is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
  • A Debt/Equity ratio of 3.87 is on the high side and indicates that TTM has dependencies on debt financing.
  • With a Debt to Equity ratio value of 3.87, TTM is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 3.87
Debt/FCF 17.12
Altman-Z 1.38
ROIC/WACC0.07
WACC11.8%
TTM Yearly LT Debt VS Equity VS FCFTTM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 200B 400B 600B 800B 1T

2.3 Liquidity

  • TTM has a Current Ratio of 0.93. This is a bad value and indicates that TTM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Current ratio of TTM (0.93) is worse than 77.78% of its industry peers.
  • A Quick Ratio of 0.68 indicates that TTM may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.68, TTM is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.93
Quick Ratio 0.68
TTM Yearly Current Assets VS Current LiabilitesTTM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 500B 1T 1.5T

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. TTM Growth Analysis

3.1 Past

  • TTM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -2089.76%.
  • Looking at the last year, TTM shows a small growth in Revenue. The Revenue has grown by 3.47% in the last year.
  • TTM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.29% yearly.
EPS 1Y (TTM)-2089.76%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%71.61%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y-2.66%
Revenue growth 5Y0.29%
Sales Q2Q%29.7%

3.2 Future

  • The Earnings Per Share is expected to grow by 52.05% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 15.23% on average over the next years. This is quite good.
EPS Next Y60.68%
EPS Next 2Y75.09%
EPS Next 3Y52.05%
EPS Next 5YN/A
Revenue Next Year17.61%
Revenue Next 2Y17.87%
Revenue Next 3Y15.23%
Revenue Next 5YN/A

3.3 Evolution

  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
TTM Yearly Revenue VS EstimatesTTM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1T 2T 3T 4T
TTM Yearly EPS VS EstimatesTTM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 200

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6

4. TTM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for TTM. In the last year negative earnings were reported.
  • Based on the Price/Forward Earnings ratio of 13.69, the valuation of TTM can be described as correct.
  • Based on the Price/Forward Earnings ratio, TTM is valued a bit cheaper than 75.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, TTM is valued a bit cheaper.
Industry RankSector Rank
PE N/A
Fwd PE 13.69
TTM Price Earnings VS Forward Price EarningsTTM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 30 40

4.2 Price Multiples

  • 86.11% of the companies in the same industry are more expensive than TTM, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, TTM is valued cheaper than 86.11% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.7
EV/EBITDA 7.1
TTM Per share dataTTM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as TTM's earnings are expected to grow with 52.05% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y75.09%
EPS Next 3Y52.05%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. TTM Dividend Analysis

5.1 Amount

  • TTM does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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TTM Fundamentals: All Metrics, Ratios and Statistics

Tata Motors Ltd

NYSE:TTM (1/23/2023, 8:04:00 PM)

After market: 24.75 -0.39 (-1.55%)

25.14

+0.26 (+1.05%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)01-25
Earnings (Next)05-10
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.26B
Revenue(TTM)3.02T
Net Income(TTM)-85.00B
Analysts83.78
Price Target30.29 (20.49%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3874.18%
Min EPS beat(2)-7289.98%
Max EPS beat(2)-458.39%
EPS beat(4)0
Avg EPS beat(4)-3493.06%
Min EPS beat(4)-7289.98%
Max EPS beat(4)-198.83%
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)-0.56%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)1.7%
Revenue beat(4)1
Avg Revenue beat(4)-3.9%
Min Revenue beat(4)-8.74%
Max Revenue beat(4)1.7%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.23%
PT rev (3m)-7.13%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-180%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.86%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 13.69
P/S 0.52
P/FCF 18.7
P/OCF 6.89
P/B 6.03
P/tB N/A
EV/EBITDA 7.1
EPS(TTM)-1.54
EYN/A
EPS(NY)1.84
Fwd EY7.31%
FCF(TTM)1.34
FCFY5.35%
OCF(TTM)3.65
OCFY14.51%
SpS48.17
BVpS4.17
TBVpS-3.99
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE N/A
ROIC 0.79%
ROICexc 1.06%
ROICexgc 1.57%
OM 0.69%
PM (TTM) N/A
GM 40.01%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.28%
GM growth 5Y-1.51%
F-Score4
Asset Turnover0.96
Health
Industry RankSector Rank
Debt/Equity 3.87
Debt/FCF 17.12
Debt/EBITDA 5.48
Cap/Depr 59.6%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.93
Quick Ratio 0.68
Altman-Z 1.38
F-Score4
WACC11.8%
ROIC/WACC0.07
Cap/Depr(3y)95.17%
Cap/Depr(5y)119.58%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2089.76%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%71.61%
EPS Next Y60.68%
EPS Next 2Y75.09%
EPS Next 3Y52.05%
EPS Next 5YN/A
Revenue 1Y (TTM)3.47%
Revenue growth 3Y-2.66%
Revenue growth 5Y0.29%
Sales Q2Q%29.7%
Revenue Next Year17.61%
Revenue Next 2Y17.87%
Revenue Next 3Y15.23%
Revenue Next 5YN/A
EBIT growth 1Y-77.91%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year2291.66%
EBIT Next 3Y246.06%
EBIT Next 5YN/A
FCF growth 1Y268.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.74%
OCF growth 3Y-9.29%
OCF growth 5Y-13.91%

Tata Motors Ltd / TTM Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for Tata Motors Ltd?

ChartMill assigns a fundamental rating of 3 / 10 to TTM.


What is the valuation status of Tata Motors Ltd (TTM) stock?

ChartMill assigns a valuation rating of 3 / 10 to Tata Motors Ltd (TTM). This can be considered as Overvalued.


What is the profitability of TTM stock?

Tata Motors Ltd (TTM) has a profitability rating of 1 / 10.


Can you provide the financial health for TTM stock?

The financial health rating of Tata Motors Ltd (TTM) is 2 / 10.


How sustainable is the dividend of Tata Motors Ltd (TTM) stock?

The dividend rating of Tata Motors Ltd (TTM) is 0 / 10 and the dividend payout ratio is 0%.