Toyota Motor Corp/ (NYSE: TM)

Sector: Consumer Cyclical Industry: Auto Manufacturers CIK: 0001094517
Market Cap 286.80 Bn
P/B 1.14
P/E 9.26
P/S 0.87
ROIC (Qtr) 636.85
Div Yield % 1.58
Rev 1y % (Qtr) 2.94
Total Debt (Qtr) 287.20 Bn
Debt/Equity (Qtr) 1.15

About

Toyota Motor Corp., known by its ticker symbol TM, is a prominent player in the global automotive industry, specializing in the design, manufacturing, and sale of a wide array of vehicles. Headquartered in Toyota City, Japan, Toyota is recognized as one of the world's largest and most successful automobile manufacturers. Toyota's operations span across various business activities, generating revenue through the sale of vehicles, financial services, and other related activities. The company's product portfolio encompasses passenger cars, commercial...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 32.27B provides exceptional 29.78x coverage of interest expenses 1.08B, showing strong debt service capability.
  • Operating cash flow of 32.27B provides exceptional 35x coverage of minority interest expenses 922.01M, showing strong core operations.
  • Long-term investments of 261.71B provide solid 1.63x coverage of long-term debt 160.69B, indicating strategic financial planning.
  • Cash position of 54.27B provides exceptional 58.86x coverage of minority interest expenses 922.01M, indicating strong liquidity.
  • Retained earnings of 247.91B provide full 1.54x coverage of long-term debt 160.69B, indicating strong internal capital position.

Bear case

  • Operating cash flow of 32.27B barely covers its investment activities of (30.91B), with a coverage ratio of -1.04, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 32.27B provides thin coverage of dividend payments of (7.88B) with a -4.09 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 41.37B show weak coverage of depreciation charges of 15.08B, with a 2.74 ratio indicating high capital intensity and potential reinvestment needs.
  • Long-term investments of 261.71B represent a high 2.34x of fixed assets 111.66B, indicating potential overexposure to financial assets versus operational capabilities.
  • High depreciation of 15.08B relative to operating cash flow of 32.27B, which is 0.47x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the Auto Manufacturers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TSLA Tesla, Inc. 1,386.72 Bn 263.09 14.50 7.70 Bn
2 TM Toyota Motor Corp/ 286.80 Bn 9.26 0.87 287.20 Bn
3 GM General Motors Co 81.08 Bn 25.50 0.44 130.28 Bn
4 RACE Ferrari N.V. 59.53 Bn 31.60 7.15 3.38 Bn
5 F Ford Motor Co 55.12 Bn 17.49 0.30 161.94 Bn
6 HMC Honda Motor Co Ltd 42.13 Bn 9.65 0.29 88.09 Bn
7 STLA Stellantis N.V. 29.73 Bn -10.57 0.17 -
8 XPEV Xpeng Inc. 17.74 Bn -44.29 1.79 4.87 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.06 1.20
EV to Cash from Ops. EV/CFO 1.27 5.88
EV to Debt EV to Debt 0.14 28.94
EV to EBIT EV/EBIT 0.99 11.38
EV to EBITDA EV/EBITDA 0.93 7.73
EV to Free Cash Flow [EV/FCF] EV/FCF 3.73 8.79
EV to Market Cap EV to Market Cap 0.14 304,683.06
EV to Revenue EV/Rev 0.12 16.98
Price to Book Value [P/B] P/B 1.14 3.04
Price to Earnings [P/E] P/E 9.26 9.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.03 0.59
Dividend Payout Ratio % Div Payout % (Qtr) 14.60 6.04
Dividend per Basic Share Div per Share (Qtr) 3.46 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.27 2.58
Interest Coverage Int. cover (Qtr) 38.17 8.74
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -0.81 -59.34
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1.19 62.23
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.34
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 4.28 -1,057.18
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -15.81 -19.82
EBIT Growth (1y) % EBIT 1y % (Qtr) -5.99 -1,011.94
EBT Growth (1y) % EBT 1y % (Qtr) -6.76 -216.80
EPS Growth (1y) % EPS 1y % (Qtr) 6.19 -59.11
FCF Growth (1y) % FCF 1y % (Qtr) 111.34 -21.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -13.81 -10.92
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.33
Cash Payout Ratio Cash Payout (Qtr) 0.15 0.03
Cash Ratio Cash Ratio (Qtr) 0.26 0.40
Current Ratio Curr Ratio (Qtr) 1.26 1.21
Debt to Equity Ratio Debt/Equity (Qtr) 1.15 0.99
Interest Cover Ratio Int Coverage (Qtr) 38.17 8.74
Times Interest Earned Times Interest Earned (Qtr) 38.17 8.74
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 17.10 -2,589.89
EBIT Margin % EBIT Margin % (Qtr) 1,872.29 -104,371.67
EBT Margin % EBT Margin % (Qtr) 12.20 -3,156.67
Gross Margin % Gross Margin % (Qtr) 18.00 -649.09
Net Profit Margin % Net Margin % (Qtr) 9.40 -3,158.82