Tata Motors Ltd (TTM)
US8765685024 - ADR
Overall TTM gets a fundamental rating of 3 out of 10. We evaluated TTM against 39 industry peers in the Automobiles industry. TTM has a bad profitability rating. Also its financial health evaluation is rather negative. TTM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TTM had negative earnings in the past year.
TTM had a positive operating cash flow in the past year.
In the past 5 years TTM reported 4 times negative net income.
Each year in the past 5 years TTM had a positive operating cash flow.
1.2 Ratios
The profitability ratios for TTM are negative, so there is not much use analyzing them.
The Return On Invested Capital of TTM (0.79%) is better than 69.44% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
With a decent Operating Margin value of 0.69%, TTM is doing good in the industry, outperforming 69.44% of the companies in the same industry.
TTM has a better Gross Margin (40.01%) than 91.67% of its industry peers.
In the last couple of years the Gross Margin of TTM has declined.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TTM is destroying value.
Compared to 1 year ago, TTM has about the same amount of shares outstanding.
TTM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TTM is higher compared to a year ago.
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 has a Altman-Z score (1.38) which is in line with 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.
TTM has a better Debt to FCF ratio (17.12) than 77.78% of its industry peers.
TTM has a Debt/Equity ratio of 3.87. This is a high value indicating a heavy dependency on external 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.87 | ||
| Debt/FCF | 17.12 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.07
WACC11.8%
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.
TTM has a worse Current ratio (0.93) 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.
TTM has a Quick ratio of 0.68. This is in the lower half of the industry: TTM underperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.68 |
3. Growth
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 growth Q2Q71.61%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y-2.66%
Revenue growth 5Y0.29%
Revenue growth Q2Q29.7%
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
Based on estimates for the next years, TTM will show a quite strong growth in Revenue. The Revenue will grow by 15.23% on average per year.
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for TTM. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 13.69 indicates a correct valuation of TTM.
Based on the Price/Forward Earnings ratio, TTM is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.27. TTM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 13.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TTM is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
TTM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TTM is cheaper than 86.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.7 | ||
| EV/EBITDA | 7.1 |
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.
TTM's earnings are expected to grow with 52.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y75.09%
EPS Next 3Y52.05%
5. Dividend
5.1 Amount
TTM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Tata Motors Ltd
NYSE:TTM (1/23/2023, 7:04:00 PM)
After market: 24.75 -0.39 (-1.55%)25.14
+0.26 (+1.05%)
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 Cap19.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | N/A | ||
| Fwd PE | 13.69 | ||
| 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)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.69% | ||
| PM (TTM) | N/A | ||
| GM | 40.01% | ||
| 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 Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.87 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.68 | ||
| 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)
Growth
EPS 1Y (TTM)-2089.76%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y60.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.47%
Revenue growth 3Y-2.66%
Revenue growth 5Y
Revenue growth 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