TTM Fundamental Analysis - Tata Motors Ltd

Fundamental Rating

TTM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 36 industry peers in the Automobiles industry. TTM has a bad profitability rating. Also its financial health evaluation is rather negative. TTM has a correct valuation and a medium growth rate.

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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.

In the past 5 years TTM reported 4 times negative net income.

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.

Looking at the Return On Invested Capital, with a value of 0.79%, TTM is in the better half of 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

Looking at the Operating Margin, with a value of 0.69%, TTM is in the better half of the industry, outperforming 69.44% of the companies in the same industry.

The Gross Margin of TTM (40.01%) is better than 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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

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.

The Altman-Z score of TTM (1.38) 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.

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.

TTM has a Debt/Equity ratio of 3.87. This is a high value indicating a heavy dependency on external 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 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.

The Current ratio of TTM (0.93) is worse than 77.78% of its industry peers.

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

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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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.

Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, TTM is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	13.69

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 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%

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5. Dividend

5.1 Amount

TTM does not give a dividend.

		Industry Rank	Sector 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 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

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

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 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) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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