Toyota Motor decreases
|Description||Value||Rank In Market|
|Debt to Equity||1.0||In Bottom Quartile|
|Earnings Yield %||12.4||In Bottom Quartile|
SECTION 2 TOYOTA MOTOR BULLISH SIGNALS
Undervaluation [compared with sector average]:
+ Price/Earnings of 8.1 [8.7]. We estimate Toyota Motor stock is trading at a current year P/E of 8.2 and a forward year P/E of 7.7. The P/E of 8.1 plus annual inflation in the Japan of 0.2% adds up to 8.3, well within the value benchmark Rule of 19.
+ The price earnings ratio of 8.1 divided by annual growth in EPS (FY2018 vs FY2017) of 39.1% corresponds to an attractive P/E/G of 0.2 times ; being less than the value benchmark of 1.0.
+ Toyota Motor is cash rich with Cash to Market Capitalisation at 12.1%.
+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.4. Compared with the rest of the market the stock is undervalued.
+ The present value of JPY1,000 (PV1000) invested one month ago in Toyota Motor is JPY1,029, for a capital gain of JPY29.
|Nikkei 225 Index||1,012||1,014||1,009|
High Performance Indicators and rank of Toyota Motor in the Japan market:
|Description||Value||Rank In Market|
|Today's Trading Turnover||JPY25.5 billion (US$228.5 million)||In Top 1%|
|Price/Earnings/Growth||0.2||In Top Quartile|
SECTION 3 TOYOTA MOTOR PRICE VOLUME DYNAMICS
+ Volume: there were 3,750,000 shares worth JPY25.5 billion (US$228.5 million) traded today. In the past week, volume was 0.7 times average and the shares were up 2.1%.
+ Toyota Motor is at a discount of 10.4% to its 12-month high of JPY7,578.08 on May 11, 2018. It is also at a premium of 12.3% to the 12-month low of JPY6,045.0 on December 26.
3.2 Turnover Rate & Turnover Period:
+ The turnover rate in the 12 months to date was 49.8% (or a turnover period of 2 years 4 days). This average length of ownership of the stock at 2.0 times the average holding period of 1 year for stocks in the Nikkei 225 Index suggests a larger number of core investors, making a long-term investment safer.
3.3 Beta & Alpha:
+ Beta: the Beta of Toyota Motor stock is 0.9. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.
+ Alpha: the Alpha of the stock is 0.8. The actual return of 2.78% exceeded the expected return of 2.0%, reflecting outperformance.
+ Toyota Motor Corporation (TO:7203), added JPY382.0 (or 6%) year-to-date (YTD) in 2019 to close at JPY6,788.0 today. The stock is trading at a Price/Earnings/Growth multiple of 0.2 times. The Price/Earnings/Growth is 0.9 times the sector average of 0.2; and is the 3rd lowest in the Transportation Equipment sector.
SECTION 4 TOYOTA MOTOR RELATED NEWS
American Depository Receipts
+ Toyota Motor ADR in its biggest weekly gain in 3 months
Toyota Motor Corporation (N:TM), the International Depository Receipt (IDR) market's largest Auto manufacturers company by market cap, has increased 46.0c (0.4%) from its previous trading session to close at $US122.54 on Friday. Compared with the Bank of New York Mellon Composite ADR Index which rose 0.6 points (0.4%) in the day, the relative price change was -0.02%. The volume was 0.6 times the average daily trading volume of 211,050 ADRs. In the past week the ADRs have lifted 3.8%, the biggest weekly gain since January 10. Its MCap is $US199.7 billion.
RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF JPY6,788.0):
SECTION 5 TOYOTA MOTOR BULLISH PARAMETERS
5.1 Growth and Performance:
+ Return on Equity 12.8% [11.3%].
+ Year-on-Year Earnings Growth of 39.1% [35.7%].
+ The P/E of 8.1 multiplied by the P/NTA of 1.1 is 9.2. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.
+ Economic Value Added defined by Net Operating Profit After Tax of JPY2,261.1 billion less Cost of Capital of JPY14.1 billion was JPY2,246.9 billion. The multiple EVA/Cost of Capital was exemplary at 159 times.
+ Return on Assets 5.1% [4.7%].
+ Interest cover defined by EBIT/I is 96 times. This indicates it is less leveraged.
+ Net profit margin has averaged 8.1% in the last 3 years. This is better than the sector average of 5.8% and suggests a high margin of safety.
+ Brandirectory have estimated Toyota Motor's brand value at JPY2,893.6 billion (US$26 billion). The Brand Value represents 6.9% of the estimated Enterprise Value of JPY42,170.6 billion (US$378.6 billion).
+ As per the Du Pont analysis, Return on Equity [ROE] of 12.8% is better than sector average of 11.3%. ROE is computed as net profit margin of 8.8% times asset turnover [sales/assets] of 0.59 times leverage factor [total assets/shareholders' equity] of 2.6.
5.2 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the real rate of return has averaged 13%. The Moving Annual Return has been positive in 4 of the last 5 years. An investment a year ago in 7203 would have produced a return of 3.8%.
|7203||Close (JPY)||Dividends (JPY)||Capital Gain / (Loss) %||% Yield||Annual Return %|
|1 Yr ago||6,633.53||220||17.6||3.9||21.5|
|2 Yrs ago||5,640.58||210||12.5||4.2||16.7|
|3 Yrs ago||5,015.28||210||(33.4)||2.8||(30.6)|
|4 Yrs ago||7,526.16||200||49.5||4||53.5|
Close 5 years ago JPY5,033.83
5.3 Present value of JPY1,000 invested thirty years Ago
+ The present value of JPY1,000 (PV1000) invested thirty years ago in Toyota Motor is JPY5,343, including a capital gain of JPY3,610 and dividend reinvested of JPY734.
+ 30 years Multiplier in JPY = 5.343x
+ Annualized Total Shareholder Returns (TSR) in JPY = 5.7%
Apr 08, 2019: USD 1 equals JPY 111.38
5.4 Increased VWAP
Past five years, 12 months ended Apr 08 (JPY)
|Year||High Price||VWAP||Low Price|
In the past five years Volume Weighted Average Price (VWAP) has increased by 14.3% to JPY6,864.02.
SECTION 6 TOYOTA MOTOR BEARISH PARAMETERS
6.1 Growth and Performance:
+ Return on Capital Employed 8.1% [8.5%].
6.2 Declining ADVT past five years
Avg. Volume Traded 12 months ended Apr 08, million shares
In the past five years, Average Daily Volume of Trading (ADVT) has decreased 24.4% to 6.3 million shares.
6.3 Declining Average Daily Turnover
Past five years, 12 months ended Apr 08 (JPY billion)
|Year||Average Daily Turnover|
In the past five years, average daily share turnover has decreased 13.9% to JPY42.7 billion. This suggests decreased liquidity.
SECTION 7 OTHER NEWS
+ BuySellSignals/News Bites:
Toyota Motor Corporation is placed 765/3470 in BuySellSignals News Bites' ranking of Japan performers in the past week, a percentile ranking of 78.
+ Vanguard Total World Stock ETF 7571:
The stock was one of 7571 global stocks selected by Vanguard Total World Stock ETF (VT) who sold 4,900 shares in the period Jan 31, 2019 to Feb 28, 2019 worth $US-32,695,911 at an estimated Volume Weighted Average Price (VWAP) of $US6672.6349. As at Feb 28, 2019, the Vanguard Total World Stock ETF held 867,494 shares worth $US52,356,718 or 0.3% by value of the ETF's portfolio [Ranked 35 out of 7571 by value and 1 out of 1333 for Japan].
SECTION 8 TOYOTA MOTOR SUMMARY FINANCIALS
8.1 Dividend History
+ Trailing 12 months dividend has deteriorated from JPY200.0 in 2015 to JPY100.0 in 2019.
8.2 Financials Summary
|Year ended||Mar 2018||Mar 2017||Mar 2016|
|Sales (USD B)||263.7||247.7||254.3|
|Pretax (USD B)||23.5||19.6||26.7|
|Net (USD B)||22.3||16.4||20.7|
+ Net profit was up 36.2% from US$16.4 billion in 2017 to US$22.3 billion in 2018.
+ Earnings Per Share (EPS) was up 39.1% from JPY605.47 to JPY842.0.
SECTION 9 CORPORATE PROFILE
Toyota Motor primarily conducts automobile, financial and other businesses. Its business segments are automotive operations, financial services operations and all other operations. Its automotive operations include the design, manufacture, assembly and sale of passenger cars, minivans and trucks and related parts and accessories. Toyota's financial services business consists primarily of providing financing to dealers and their customers for the purchase or lease of Toyota vehicles.
9.2 Top Management
The chairman is Takeshi Uchiyamada.
9.3 Issued Capital and MCap
Based on 3,260,000,000 issued shares the market capitalisation is JPY22,128.9 billion (US$198.7 billion).
Contact: 81 56 52 82 12 1
Physical Address: 1 Toyota-cho Toyota City Aichi, 471-0826 Japan
State/Province/Country: ACH, Japan
Country of Incorporation: Japan
Exchange: Tokyo Stock Exchange
Business Sector: Transportation
Economic Sector: Industrials
TO:7203; TYO:7203; T:7203; JP:7203; 7203.T
Toyota Motor Corp
For comprehensive research on Toyota Motor Corporation, including details from the latest Annual Report and extensive financial data, please search by Company Name on source name "News Bites Stock Review" on Lexis-Nexis platforms.