Toyota Motor Corporation
Toyota Motor Corporation Fundamental Analysis
Toyota Motor Corporation (TM) shows moderate financial fundamentals with a PE ratio of 13.00, profit margin of 7.33%, and ROE of 10.02%. The company generates $50693.7B in annual revenue with moderate year-over-year growth of 6.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TM's fundamental strength across five key dimensions:
Efficiency Score
WeakTM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTM trades at attractive valuation levels.
Growth Score
ModerateTM shows steady but slowing expansion.
Financial Health Score
ModerateTM shows balanced financial health with some risks.
Profitability Score
WeakTM struggles to sustain strong margins.
Key Financial Metrics
Is TM Expensive or Cheap?
P/E Ratio
TM trades at 13.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TM's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Toyota Motor Corporation at 1.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.92 times EBITDA. This is generally considered low.
How Well Does TM Make Money?
Net Profit Margin
For every $100 in sales, Toyota Motor Corporation keeps $7.33 as profit after all expenses.
Operating Margin
Core operations generate 8.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.02 in profit for every $100 of shareholder equity.
ROA
Toyota Motor Corporation generates $3.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Toyota Motor Corporation generates limited operating cash flow of $4.64T, signaling weaker underlying cash strength.
Free Cash Flow
Toyota Motor Corporation generates weak or negative free cash flow of $166.16B, restricting financial flexibility.
FCF Per Share
Each share generates $127.49 in free cash annually.
FCF Yield
TM converts 0.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.95
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How TM Stacks Against Its Sector Peers
| Metric | TM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.00 | 25.25 | Better (Cheaper) |
| ROE | 10.02% | 1170.00% | Weak |
| Net Margin | 7.33% | 742.00% | Weak |
| Debt/Equity | 1.08 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.26 | 9.19 | Neutral |
| ROA | 3.63% | -6467.00% (disorted) | Weak |
TM outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Toyota Motor Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
69.84%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
147.13%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
62.77%
Industry Style: Cyclical, Growth, Discretionary
High Growth