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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

Overall TTM gets a fundamental rating of 3 out of 10. We evaluated TTM against 37 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.


Dividend Valuation Growth Profitability Health

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3

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.
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.
The Return On Invested Capital of TTM (0.79%) is better 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's Operating Margin of 0.69% is fine compared to the rest of the industry. TTM outperforms 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.
In the last couple of years the Gross Margin of TTM has declined.
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

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.
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

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.
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.
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.
With a decent Debt to FCF ratio value of 17.12, TTM is doing good in 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.
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 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 has a Current ratio of 0.93. This is in the lower half of the industry: TTM underperforms 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.
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 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.
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

Based on estimates for the next years, TTM will show a very strong growth in Earnings Per Share. The EPS will grow by 52.05% on average per year.
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.
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

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.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TTM indicates a somewhat cheap valuation: TTM is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.54. TTM is valued rather cheaply when compared to this.
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 30 40

4.2 Price Multiples

TTM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TTM is 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 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

TTM's 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%

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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%