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%)
TTM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 36 industry peers in the Automobiles industry. Both the profitability and financial health of TTM have multiple concerns. TTM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TTM has reported negative net income.
In the past year TTM had a positive cash flow from operations.
TTM had negative earnings in 4 of the past 5 years.
TTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TTM has negative profitability rations, so we won't be analyzing them here.
With a decent Return On Invested Capital value of 0.79%, TTM is doing good in the industry, outperforming 69.44% of the companies in the same industry.
| 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
The Operating Margin of TTM (0.69%) is better than 69.44% of its industry peers.
TTM has a Gross Margin of 40.01%. This is amongst the best in the industry. TTM outperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TTM is destroying value.
TTM has about the same amout of shares outstanding than it did 1 year ago.
TTM has a worse debt/assets ratio than last year.
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 has a Altman-Z score of 1.38. This is comparable 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's Debt to FCF ratio of 17.12 is fine compared to the rest of the industry. TTM outperforms 77.78% of its industry peers.
A Debt/Equity ratio of 3.87 is on the high side and indicates that TTM has dependencies on debt financing.
TTM has a Debt to Equity ratio of 3.87. This is amonst the worse of the industry: TTM underperforms 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
A Current Ratio of 0.93 indicates that TTM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.93, TTM is doing worse than 77.78% of the companies in the same industry.
A Quick Ratio of 0.68 indicates that TTM may have some problems paying its short term obligations.
TTM has a worse Quick ratio (0.68) than 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 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
TTM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.23% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
TTM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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 24.03, TTM is valued a bit cheaper.
| 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 cheaper than 86.11% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TTM is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
| 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 for 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.
Can you provide the financial health for TTM stock?
The financial health rating of Tata Motors Ltd (TTM) is 2 / 10.
Can you provide the expected EPS growth for TTM stock?
The Earnings per Share (EPS) of Tata Motors Ltd (TTM) is expected to grow by 60.68% in the next year.