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 36 industry peers in the Automobiles industry. TTM has a bad profitability rating. Also its financial health evaluation is rather negative. TTM is not valued too expensively and it also shows a decent 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.
In the past 5 years TTM reported 4 times negative net income.
In the past 5 years TTM always reported a positive cash flow from operatings.
1.2 Ratios
The profitability ratios for TTM are negative, so there is not much use analyzing them.
TTM's Return On Invested Capital of 0.79% is fine compared to the rest of the industry. TTM outperforms 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
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.
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.
TTM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 1 year ago, TTM has a worse debt to assets ratio.
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.
TTM has a Altman-Z score (1.38) which is comparable to the rest of the 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 Debt to FCF ratio of 17.12. This is in the better half 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 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.
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
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
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.
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.
Based on the Price/Forward Earnings ratio, TTM is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, 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.
86.11% of the companies in the same industry are more expensive than TTM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.7 | ||
| EV/EBITDA | 7.1 |
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.
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
No dividends for TTM!.
| 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.