Toyota Motor Corp reports 7.7% EBITDA growth and 4.3% Revenue growth
11 May 2016 • About Toyota Motor Corp (
$TYT) • By InTwits
Toyota Motor Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Toyota Motor Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.1%. At the same time it's a lot of higher than industry average of 2.9%.
- CAPEX is quite volatile: 2,324,112 in 2016, 2,560,244 in 2015, 3,505,549 in 2014, 6,569,613 in 2013, 7,054,543 in 2012
- The company has business model with low profitability: ROIC is at 7.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Toyota Motor Corp ($TYT) key annual financial indicators
| mln. JPY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 18,583,653 | 22,064,192 | 25,691,911 | 27,234,521 | 28,403,118 | 4.3% |
| Gross Profit | 2,195,089 | 3,423,197 | 4,890,772 | 5,392,845 | 5,797,653 | 7.5% |
| SG&A | 1,059,656 | 1,294,855 | 1,688,143 | 1,637,734 | 1,888,010 | 15.3% |
| EBITDA | 1,423,457 | 2,425,997 | 3,542,965 | 4,159,639 | 4,479,808 | 7.7% |
| Net Income | 283,559 | 962,163 | 1,823,120 | 2,173,340 | 2,312,690 | 6.4% |
Balance Sheet
|
|---|
| Cash | 1,679,200 | 1,718,297 | 2,041,170 | 2,284,557 | 2,939,428 | 28.7% |
| Short Term Debt | 5,963,269 | 6,793,956 | 7,780,483 | 8,963,492 | 8,521,088 | -4.9% |
| Long Term Debt | 6,042,277 | 7,337,824 | 8,546,910 | 10,014,395 | 9,772,065 | -2.4% |
Cash flow
|
|---|
| Capex | 723,537 | 854,561 | 970,021 | 1,146,318 | 1,282,545 | 11.9% |
Ratios
|
|---|
| Revenue growth | -2.2% | 18.7% | 16.4% | 6.0% | 4.3% | |
| EBITDA growth | -13.4% | 70.4% | 46.0% | 17.4% | 7.7% | |
| Gross Margin | 11.8% | 15.5% | 19.0% | 19.8% | 20.4% | 0.6% |
| EBITDA Margin | 7.7% | 11.0% | 13.8% | 15.3% | 15.8% | 0.5% |
| Net Income Margin | 1.5% | 4.4% | 7.1% | 8.0% | 8.1% | 0.2% |
| SG&A, % of revenue | 5.7% | 5.9% | 6.6% | 6.0% | 6.6% | 0.6% |
| CAPEX, % of revenue | 3.9% | 3.9% | 3.8% | 4.2% | 4.5% | 0.3% |
| ROIC | 1.5% | 5.0% | 7.3% | 7.5% | 7.3% | -0.2% |
| ROE | 2.7% | 8.5% | 13.7% | 13.9% | 13.8% | -0.1% |
| Net Debt/EBITDA | 7.3x | 5.1x | 4.0x | 4.0x | 3.4x | -0.6x |
Revenue and profitability
Toyota Motor Corp's Revenue increased on 4.3% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.8 pp from 9.7% to 11.4% in 2016.
Gross Margin increased slightly on 0.61 pp from 19.8% to 20.4% in FY2016. SG&A as a % of Revenue increased slightly on 0.63 pp from 6.0% to 6.6% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 4.5%. CAPEX/Revenue increased slightly on 0.64 pp from 3.9% in FY2013 to 4.5% in FY2016. It's average CAPEX/Revenue for the last three years was 4.2%.
Return on investment
The company operates at good ROE (13.76%) while ROIC is low (7.31%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 3.4x Net Debt / EBITDA and 4.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 4.0x to 3.4x in FY2016. Debt decreased on 3.6% in FY2016 while cash jumped on 28.7% in FY2016.
Valuation
Toyota Motor Corp's trades at EV/EBITDA 3.4x and P/E 0.0x while industy averages are 15.6x and 19.1x. Toyota Motor Corp's EV/(EBITDA-CAPEX) is 4.8x with the industry average at 19.0x.
Appendix 1: Peers in Automobiles & Parts
Below we provide Toyota Motor Corp benchmarking against other companies in Automobiles & Parts industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hyundai Motor Co ($HYUD) | 8.6% | 3.4% | 2.2% | 3.0% | |
| Kumho Tire Co Inc ($KHTC) | 4.0% | -9.1% | -7.0% | -11.6% | |
| |
|---|
| Median (2 companies) | 6.3% | -2.9% | -2.4% | -4.3% | |
|---|
| Toyota Motor Corp ($TYT) | | 18.7% | 16.4% | 6.0% | 4.3% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kumho Tire Co Inc ($KHTC) | 25.3% | 26.5% | 29.4% | 25.5% | |
| Hyundai Motor Co ($HYUD) | 23.1% | 22.3% | 21.4% | 19.9% | |
| |
|---|
| Median (2 companies) | 24.2% | 24.4% | 25.4% | 22.7% | |
|---|
| Toyota Motor Corp ($TYT) | 11.8% | 15.5% | 19.0% | 19.8% | 20.4% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kumho Tire Co Inc ($KHTC) | 13.7% | 14.4% | 15.8% | 11.2% | |
| Hyundai Motor Co ($HYUD) | 13.0% | 12.4% | 11.3% | 10.0% | |
| |
|---|
| Median (2 companies) | 13.3% | 13.4% | 13.6% | 10.6% | |
|---|
| Toyota Motor Corp ($TYT) | 7.7% | 11.0% | 13.8% | 15.3% | 15.8% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kumho Tire Co Inc ($KHTC) | 4.7% | 6.6% | 8.2% | 22.2% | |
| Hyundai Motor Co ($HYUD) | 3.6% | 3.6% | 3.8% | 8.9% | |
| |
|---|
| Median (2 companies) | 4.1% | 5.1% | 6.0% | 15.5% | |
|---|
| Toyota Motor Corp ($TYT) | 3.9% | 3.9% | 3.8% | 4.2% | 4.5% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hyundai Motor Co ($HYUD) | 9.3% | 8.2% | 6.6% | 4.9% | |
| Kumho Tire Co Inc ($KHTC) | 10.2% | 9.3% | 9.7% | 3.6% | |
| |
|---|
| Median (2 companies) | 9.7% | 8.7% | 8.2% | 4.3% | |
|---|
| Toyota Motor Corp ($TYT) | 1.5% | 5.0% | 7.3% | 7.5% | 7.3% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kumho Tire Co Inc ($KHTC) | 5.0x | 4.6x | 4.1x | 7.4x | |
| Hyundai Motor Co ($HYUD) | 3.5x | 3.8x | 4.7x | 6.3x | |
| |
|---|
| Median (2 companies) | 4.2x | 4.2x | 4.4x | 6.9x | |
|---|
| Toyota Motor Corp ($TYT) | 7.3x | 5.1x | 4.0x | 4.0x | 3.4x |
