Tata Motors Ltd (TTM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TTM - US8765685024 - ADR
25.14 USD
+0.26 (+1.05%)
24.75 USD
-0.39 (-1.55%)
Overall TTM gets a fundamental rating of 3 out of 10. We evaluated TTM against 35 industry peers in the Automobiles industry. Both the profitability and financial health of TTM have multiple concerns. TTM has a decent growth rate and is not valued too expensively.
1. Profitability
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.
1.2 Ratios
The profitability ratios for TTM are negative, so there is not much use analyzing them.
TTM has a better Return On Invested Capital (0.79%) 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
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.
The Gross Margin of TTM (40.01%) is better 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
TTM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TTM remains at a similar level compared to 1 year ago.
The debt/assets ratio for TTM is higher compared to a year ago.
2.2 Solvency
TTM has an Altman-Z score of 1.38. This is a bad value and indicates that TTM is not financially healthy and even 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.
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.
The Debt to Equity ratio of TTM (3.87) is worse than 91.67% of its industry peers.
| 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.
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.
TTM's Quick ratio of 0.68 is on the low side compared to the rest of the industry. TTM is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The earnings per share for TTM have decreased strongly by -2089.76% in the last year.
TTM shows a small growth in Revenue. In the last year, the Revenue has grown by 3.47%.
The Revenue has been growing slightly by 0.29% on average over the past years.
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
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.
The Price/Forward Earnings ratio is 13.69, which indicates a correct valuation of TTM.
TTM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TTM is cheaper than 75.00% of the companies in the same industry.
TTM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| 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.
Based on the Price/Free Cash Flow ratio, TTM is valued 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.
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%
5. Dividend
5.1 Amount
TTM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.14
+0.26 (+1.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 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.
Can you provide the profitability details for Tata Motors Ltd?
Tata Motors Ltd (TTM) has a profitability rating of 1 / 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%.