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Toyota Motor Corp
TM : NYSE : Consumer Goods
$105.26 | %
Today's Range: 102.54 - 105.37
Avg. Daily Volume: 369,300
02/12/16 - 4:00 PM ET

Financial Analysis


TOYOTA MOTOR CORP's gross profit margin for the second quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. TOYOTA MOTOR CORP has weak liquidity. Currently, the Quick Ratio is 0.85 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.64% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)60386.054952.0
EBITDA ($mil)10448.08279.0
EBIT ($mil)7023.05488.0
Net Income ($mil)5207.04473.0


Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)46537.041869.0
Total Assets ($mil)405430.0399271.0
Total Debt ($mil)162780.0160898.0
Equity ($mil)146206.0141068.0


Profitability Q2 FY15 Q2 FY14
Gross Profit Margin27.5124.91
EBITDA Margin17.315.06
Operating Margin11.639.99
Sales Turnover0.560.6
Return on Assets4.524.45
Return on Equity12.5412.61
Debt Q2 FY15 Q2 FY14
Current Ratio1.141.06
Debt/Capital0.530.53
Interest Expense128.047.0
Interest Coverage54.87116.77


Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)1556.881586.38
Div / share1.631.26
EPS3.312.83
Book value / share93.9188.92
Institutional Own % n/a n/a
Avg Daily Volume336344.0375590.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 11.93 for the Automobiles industry and a significant discount compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 1.22 indicates a discount versus the S&P 500 average of 2.51 and a discount versus the industry average of 2.33. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, TOYOTA MOTOR CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TM 9.82 Peers 11.93   TM 5.57 Peers 5.24

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

TM is trading at a discount to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TM is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TM 8.41 Peers 8.71   TM 0.91 Peers 0.87

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

TM is trading at a valuation on par with its peers.

 

Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

TM trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TM 1.22 Peers 2.33   TM 3.65 Peers 27.33

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TM is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, TM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TM 0.79 Peers 0.99   TM -5.58 Peers 1.48

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TM is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

TM significantly trails its peers on the basis of sales growth

 

 

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