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%)
Taking everything into account, TTM scores 3 out of 10 in our fundamental rating. TTM was compared to 36 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
TTM had negative earnings in the past year.
In the past year TTM had a positive cash flow from operations.
TTM had negative earnings in 4 of the past 5 years.
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.
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 better Gross Margin (40.01%) than 91.67% of its industry peers.
TTM's Gross Margin has declined in the last couple of years.
| 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.
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.
With a Altman-Z score value of 1.38, TTM perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
TTM has a debt to FCF ratio of 17.12. This is a negative value and a sign of low solvency as TTM would need 17.12 years to pay back of all of its debts.
TTM has a better Debt to FCF ratio (17.12) than 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 worse Debt to Equity ratio (3.87) 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.
With a Current ratio value of 0.93, TTM is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
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 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.
Looking at the last year, TTM shows a small growth in Revenue. The Revenue has grown by 3.47% in the last year.
Measured over the past years, TTM shows a small growth in Revenue. The Revenue has been growing by 0.29% on average per year.
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
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
TTM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 13.69 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.
The average S&P500 Price/Forward Earnings ratio is at 36.59. TTM is valued rather cheaply 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.
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 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.