Toyota Motor Corp reports 36.2% Net Income growth in 2018 and 6.5% Revenue growth
09 May 2018 • About Toyota Motor Corp (
$TYT) • By InTwits
Toyota Motor Corp reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Toyota Motor Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.3%. At the same time it's in pair with industry average of 5.9%
- CAPEX is quite volatile: 3,226,486 KRWm in 2018, 3,055,023 KRWm in 2017, 2,971,161 KRWm in 2016, 8,141,729 KRWm in 2015, 3,353,809 KRWm in 2014
- The company has potentially unprofitable business model: ROIC is 6.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 6.5%. During the last 5 years Revenue growth bottomed in FY2017 at -2.8%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.77 pp from 6.9% to 7.7% in 2018.
Gross Margin increased slightly on 1.1 pp from 17.6% to 18.7% in FY2018. SG&A as a % of Revenue showed almost no change in FY2018.
Net Income margin increased slightly on 1.9 pp from 6.6% to 8.5% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 4.4% in FY2018. CAPEX/Revenue showed almost no change from FY2015 to FY2018. Average CAPEX/Revenue for the last three years was 4.4%. During FY2014-FY2018 CAPEX as a % of Revenue topped in FY2016 at 4.5% and was declining since that time.
Return on investment
The company operates at good ROE (13.7%) while ROIC is low (6.0%). ROIC increased slightly on 0.88 pp from 5.1% to 6.0% in FY2018. ROE increased on 3.1 pp from 10.6% to 13.7% in FY2018.
Leverage (Debt)
Debt level is 3.9x Net Debt / EBITDA and 4.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 4.5x to 3.9x in FY2018. Debt increased slightly on 0.91% while cash increased slightly on 1.9%.
Toyota Motor Corp has short term refinancing risk: cash is only 32.7% of short term debt.
Financial and operational results
FY ended 31 Mar 2018
Toyota Motor Corp ($TYT) key annual financial indicators| mln. JPY | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 25,691,911 | 27,234,521 | 28,403,118 | 27,597,193 | 29,379,510 | 6.5% |
| Gross Profit | 4,890,772 | 5,392,845 | 5,797,653 | 4,862,857 | 5,490,357 | 12.9% |
| SG&A | 1,688,143 | 1,637,734 | 1,888,010 | 1,830,957 | 2,026,226 | 10.7% |
| EBITDA | 3,542,965 | 4,159,639 | 4,479,808 | 3,605,322 | 4,133,895 | 14.7% |
| Net Income | 1,823,120 | 2,173,340 | 2,312,690 | 1,831,110 | 2,493,980 | 36.2% |
Balance Sheet
|
|---|
| Cash | 2,041,170 | 2,284,557 | 2,939,428 | 2,995,075 | 3,052,269 | 1.9% |
| Short Term Debt | 7,780,483 | 8,963,492 | 8,521,088 | 9,248,774 | 9,346,986 | 1.1% |
| Long Term Debt | 8,546,910 | 10,014,395 | 9,772,065 | 9,929,202 | 10,006,374 | 0.8% |
Cash flow
|
|---|
| Capex | 970,021 | 1,146,318 | 1,282,545 | 1,223,878 | 1,291,117 | 5.5% |
Ratios
|
|---|
| Revenue growth | 16.4% | 6.0% | 4.3% | -2.8% | 6.5% | |
| EBITDA growth | 46.0% | 17.4% | 7.7% | -19.5% | 14.7% | |
|
|---|
| Gross Margin | 19.0% | 19.8% | 20.4% | 17.6% | 18.7% | 1.1% |
| EBITDA Margin | 13.8% | 15.3% | 15.8% | 13.1% | 14.1% | 1.0% |
| SG&A, % of revenue | 6.6% | 6.0% | 6.6% | 6.6% | 6.9% | 0.3% |
| Net Income Margin | 7.1% | 8.0% | 8.1% | 6.6% | 8.5% | 1.9% |
| CAPEX, % of revenue | 3.8% | 4.2% | 4.5% | 4.4% | 4.4% | -0.0% |
|
|---|
| ROIC | 7.3% | 7.5% | 7.3% | 5.1% | 6.0% | 0.9% |
| ROE | 13.7% | 13.9% | 13.8% | 10.6% | 13.7% | 3.1% |
| Net Debt/EBITDA | 4.0x | 4.0x | 3.4x | 4.5x | 3.9x | -0.5x |
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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Hyundai Motor Co ($HYUD) | 2.2% | 3.0% | 1.8% | 2.9% | |
| Kumho Tire Co Inc ($KHTC) | -7.0% | -11.6% | -3.1% | -2.4% | |
| |
|---|
| Median (2 companies) | -2.4% | -4.3% | -0.6% | 0.3% | |
|---|
| Toyota Motor Corp ($TYT) | | 6.0% | 4.3% | -2.8% | 6.5% |
Top companies by Gross margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Hyundai Motor Co ($HYUD) | 21.4% | 19.9% | 18.9% | 18.2% | |
| Kumho Tire Co Inc ($KHTC) | 29.4% | 25.5% | 25.3% | 16.0% | |
| |
|---|
| Median (2 companies) | 25.4% | 22.7% | 22.1% | 17.1% | |
|---|
| Toyota Motor Corp ($TYT) | 19.0% | 19.8% | 20.4% | 17.6% | 18.7% |
Top companies by EBITDA margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Hyundai Motor Co ($HYUD) | 11.3% | 10.0% | 9.1% | 8.4% | |
| Kumho Tire Co Inc ($KHTC) | 15.8% | 11.2% | 11.7% | 2.2% | |
| |
|---|
| Median (2 companies) | 13.6% | 10.6% | 10.4% | 5.3% | |
|---|
| Toyota Motor Corp ($TYT) | 13.8% | 15.3% | 15.8% | 13.1% | 14.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Kumho Tire Co Inc ($KHTC) | 8.2% | 22.2% | 12.4% | 10.1% | |
| Hyundai Motor Co ($HYUD) | 3.8% | 8.9% | 3.2% | 3.2% | |
| |
|---|
| Median (2 companies) | 6.0% | 15.5% | 7.8% | 6.6% | |
|---|
| Toyota Motor Corp ($TYT) | 3.8% | 4.2% | 4.5% | 4.4% | 4.4% |
Top companies by ROIC, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Hyundai Motor Co ($HYUD) | 6.6% | 4.9% | 3.6% | 3.1% | |
| Kumho Tire Co Inc ($KHTC) | 9.7% | 3.6% | 3.1% | -4.5% | |
| |
|---|
| Median (2 companies) | 8.2% | 4.3% | 3.4% | -0.7% | |
|---|
| Toyota Motor Corp ($TYT) | 7.3% | 7.5% | 7.3% | 5.1% | 6.0% |
Top companies by Net Debt / EBITDA
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Kumho Tire Co Inc ($KHTC) | 4.1x | 7.4x | 7.5x | 34.8x | |
| Hyundai Motor Co ($HYUD) | 4.7x | 6.3x | 7.7x | 7.8x | |
| |
|---|
| Median (2 companies) | 4.4x | 6.9x | 7.6x | 21.3x | |
|---|
| Toyota Motor Corp ($TYT) | 4.0x | 4.0x | 3.4x | 4.5x | 3.9x |
