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Tata Motors Ltd (TTM) Stock Fundamental Analysis

NYSE:TTM - New York Stock Exchange, Inc. - US8765685024 - ADR - Currency: USD

25.14  +0.26 (+1.05%)

After market: 24.75 -0.39 (-1.55%)

Fundamental Rating

3

Taking everything into account, TTM scores 3 out of 10 in our fundamental rating. TTM was compared to 38 industry peers in the Automobiles industry. TTM may be in some trouble as it scores bad on both profitability and health. TTM has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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3

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.
TTM had negative earnings in 4 of the past 5 years.
In the past 5 years TTM always reported a positive cash flow from operatings.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 200B -200B

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 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 2015 2016 2017 2018 2019 2020 2021 2022 0 20 -20 -40

1.3 Margins

TTM has a better Operating Margin (0.69%) than 69.44% of its industry peers.
With an excellent Gross Margin value of 40.01%, TTM belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
TTM's Gross Margin has declined in the last couple of years.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20 30 40

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1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TTM is destroying value.
The number of shares outstanding for TTM remains at a similar level compared to 1 year ago.
Compared to 1 year ago, TTM has a worse debt to assets ratio.
TTM Yearly Shares OutstandingTTM Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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.
Looking at the Altman-Z score, with a value of 1.38, TTM is in line with its industry, outperforming 58.33% of the companies in the same industry.
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.
Looking at the Debt to Equity ratio, with a value of 3.87, TTM is doing worse than 91.67% of the companies in the same industry.
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 2015 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.
TTM's Current ratio of 0.93 is on the low side compared to the rest of the industry. TTM is outperformed by 77.78% of its industry peers.
TTM has a Quick 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.
Looking at the Quick ratio, with a value of 0.68, TTM is doing worse than 77.78% of the companies in the same industry.
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 2015 2016 2017 2018 2019 2020 2021 2022 500B 1T 1.5T

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4

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

TTM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 52.05% yearly.
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.
TTM Yearly Revenue VS EstimatesTTM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 200

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6

4. Valuation

4.1 Price/Earnings Ratio

TTM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 13.69, TTM is valued correctly.
75.00% of the companies in the same industry are more expensive than TTM, based on the Price/Forward Earnings ratio.
TTM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.99.
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

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TTM indicates a rather cheap valuation: TTM is cheaper than 86.11% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TTM indicates a rather cheap valuation: TTM is cheaper than 86.11% of the companies listed 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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0

5. Dividend

5.1 Amount

No dividends for TTM!.
Industry RankSector Rank
Dividend Yield N/A

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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 SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)01-25 2023-01-25/amc
Earnings (Next)05-10 2023-05-10/amc
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap19.26B
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
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
ROICexcg growth 3YN/A
ROICexcg 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%