Toyota Motor Corp Net Income jumped on 19.2% in 2015 and EBITDA Margin increased slightly on 1.5 pp from 13.8% to 15.3%
08 May 2015 • About Toyota Motor Corp (
$TYT) • By InTwits
Toyota Motor Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 15.3% in FY2015 vs. 13.8% in FY2014 vs. 8.7% in FY2011
- Toyota Motor Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's in pair with industry average of 5.4%.
- CAPEX is quite volatile: 2,560,244 in 2015, 3,505,549 in 2014, 6,569,613 in 2013, 7,054,543 in 2012, 5,330,968 in 2011
- The company has business model with low profitability: ROIC is at 7.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 4.0x while industry average is 4.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Toyota Motor Corp ($TYT) key annual financial indicators
| mln. JPY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 18,993,688 | 18,583,653 | 22,064,192 | 25,691,911 | 27,234,521 | 6.0% |
| Gross Profit | 2,378,362 | 2,195,089 | 3,423,197 | 4,890,772 | 5,392,845 | 10.3% |
| SG&A | 1,179,743 | 1,059,656 | 1,294,855 | 1,688,143 | 1,637,734 | -3.0% |
| EBITDA | 1,643,852 | 1,423,457 | 2,425,997 | 3,542,965 | 4,159,639 | 17.4% |
| Net Income | 408,183 | 283,559 | 962,163 | 1,823,120 | 2,173,340 | 19.2% |
Balance Sheet
|
|---|
| Cash | 2,080,709 | 1,679,200 | 1,718,297 | 2,041,170 | 2,284,557 | 11.9% |
| Short Term Debt | 5,951,836 | 5,963,269 | 6,793,956 | 7,780,483 | 8,963,492 | 15.2% |
| Long Term Debt | 6,449,220 | 6,042,277 | 7,337,824 | 8,546,910 | 10,014,395 | 17.2% |
Cash flow
|
|---|
| Capex | 629,326 | 723,537 | 854,561 | 970,021 | 1,146,318 | 18.2% |
Ratios
|
|---|
| Revenue growth | 0.2% | -2.2% | 18.7% | 16.4% | 6.0% | |
| EBITDA growth | 5.2% | -13.4% | 70.4% | 46.0% | 17.4% | |
| Gross Margin | 12.5% | 11.8% | 15.5% | 19.0% | 19.8% | 0.8% |
| EBITDA Margin | 8.7% | 7.7% | 11.0% | 13.8% | 15.3% | 1.5% |
| Net Income Margin | 2.1% | 1.5% | 4.4% | 7.1% | 8.0% | 0.9% |
| SG&A, % of revenue | 6.2% | 5.7% | 5.9% | 6.6% | 6.0% | -0.6% |
| CAPEX, % of revenue | 3.3% | 3.9% | 3.9% | 3.8% | 4.2% | 0.4% |
| ROIC | 1.9% | 1.5% | 5.0% | 7.3% | 7.5% | 0.2% |
| ROE | 3.9% | 2.7% | 8.5% | 13.7% | 13.9% | 0.2% |
| Net Debt/EBITDA | 6.3x | 7.3x | 5.1x | 4.0x | 4.0x | -0.0x |
Revenue and profitability
Toyota Motor Corp's Revenue increased on 6.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.7 pp from 20.9% to 23.6% in 2015.
Gross Margin increased slightly on 0.77 pp from 19.0% to 19.8% in FY2015. SG&A as a % of Revenue decreased slightly on 0.56 pp from 6.6% to 6.0% in FY2015.
Net Income marign increased slightly on 0.88 pp from 7.1% to 8.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.2% in FY2015. Toyota Motor Corp's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 4.0%.
Return on investment
The company operates at good ROE (13.91%) while ROIC is low (7.51%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.0x and Debt / EBITDA is 4.6x. Net Debt / EBITDA decreased slightly on 0.019x from 4.0x to 4.0x in FY2015. Debt jumped on 16.2% in FY2015 while cash surged on 11.9% in FY2015.
Valuation
The company's trades at EV/EBITDA 4.0x and P/E 0.0x while industy averages are 10.5x and 26.1x. Toyota Motor Corp's EV/(EBITDA-CAPEX) is 5.5x with the industry average at 4.7x.
Appendix 1: Peers in Automobiles & Parts
Below you can find Toyota Motor Corp benchmarking vs. other companies in Automobiles & Parts industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hyundai Motor Co ($HYUD) | 16.1% | 8.6% | 3.4% | 2.2% | |
| Kumho Tire Co Inc ($KHTC) | 10.9% | 4.0% | -9.1% | -7.0% | |
| |
|---|
| Median (2 companies) | 13.5% | 6.3% | -2.9% | -2.4% | |
|---|
| Toyota Motor Corp ($TYT) | | -2.2% | 18.7% | 16.4% | 6.0% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kumho Tire Co Inc ($KHTC) | 20.6% | 25.3% | 26.5% | 29.4% | |
| Hyundai Motor Co ($HYUD) | 24.3% | 23.1% | 22.3% | 21.4% | |
| |
|---|
| Median (2 companies) | 22.4% | 24.2% | 24.4% | 25.4% | |
|---|
| Toyota Motor Corp ($TYT) | 12.5% | 11.8% | 15.5% | 19.0% | 19.8% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kumho Tire Co Inc ($KHTC) | 9.6% | 13.7% | 14.4% | 15.8% | |
| Hyundai Motor Co ($HYUD) | 13.3% | 13.0% | 12.4% | 11.3% | |
| |
|---|
| Median (2 companies) | 11.5% | 13.3% | 13.4% | 13.6% | |
|---|
| Toyota Motor Corp ($TYT) | 8.7% | 7.7% | 11.0% | 13.8% | 15.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kumho Tire Co Inc ($KHTC) | 2.8% | 4.7% | 6.6% | 8.2% | |
| Hyundai Motor Co ($HYUD) | 3.7% | 3.6% | 3.6% | 3.8% | |
| |
|---|
| Median (2 companies) | 3.2% | 4.1% | 5.1% | 6.0% | |
|---|
| Toyota Motor Corp ($TYT) | 3.3% | 3.9% | 3.9% | 3.8% | 4.2% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kumho Tire Co Inc ($KHTC) | 5.4% | 10.2% | 9.3% | 9.7% | |
| Hyundai Motor Co ($HYUD) | 10.1% | 9.3% | 8.2% | 6.6% | |
| |
|---|
| Median (2 companies) | 7.7% | 9.7% | 8.7% | 8.2% | |
|---|
| Toyota Motor Corp ($TYT) | 1.9% | 1.5% | 5.0% | 7.3% | 7.5% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hyundai Motor Co ($HYUD) | 3.6x | 3.5x | 3.8x | 4.7x | |
| Kumho Tire Co Inc ($KHTC) | 7.7x | 5.0x | 4.6x | 4.1x | |
| |
|---|
| Median (2 companies) | 5.6x | 4.2x | 4.2x | 4.4x | |
|---|
| Toyota Motor Corp ($TYT) | 6.3x | 7.3x | 5.1x | 4.0x | 4.0x |
