Skip to Content

Toyota Motor Corp ADR TM

Morningstar Rating
$197.13 −2.22 (1.11%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Toyota Earnings: Great Finish to Fiscal 2024 but Large Cost Increases Expected in Fiscal 2025

Toyota finished fiscal 2024 with excellent year-over-year profit growth despite lower unit volumes in Japan following Daihatsu’s safety scandal. We are raising our per share fair value estimates to JPY 3,300 from JPY 3,000 and to $211 from $200 on the time value of money, higher book value for the finance arm, and a weaker average yen aiding profits over our five-year explicit forecast period. Fourth-quarter operating income rose 77.5% to over JPY 1.1 trillion with operating margin up 450 basis points to 10%. A nearly 13% weaker yen against the dollar boosted profit by JPY 200 billion and overall currency benefits to profit growth were JPY 305 billion, nearly two thirds of the JPY 485.7 billion profit increase. Lower material costs and cost-reduction efforts contributed another JPY 185 billion of profit increase and more than offset JPY 100 billion of higher labor costs.

Price vs Fair Value

TM is trading at a 124% premium.
Price
$197.13
Fair Value
$322.00
Uncertainty
High
1-Star Price
$762.76
5-Star Price
$469.30
Economic Moat
Rpxxm
Capital Allocation
Tdvlmwdl

Bulls Say, Bears Say

Bulls

Its popular vehicles usually allow Toyota to use fewer incentives than the Detroit Three, boosting the firm's profits and improving the resale value of vehicles.

Bears

Environmental laws are becoming stricter, which will make cars more expensive to produce and more expensive for consumers to buy.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if TM is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$199.35
Day Range
$195.42197.79
52-Week Range
$152.78255.23
Bid/Ask
$195.25 / $197.59
Market Cap
$265.51 Bil
Volume/Avg
483,308 / 276,355

Key Statistics

Price/Earnings (Normalized)
8.33
Price/Sales
0.85
Dividend Yield (Trailing)
1.02%
Dividend Yield (Forward)
2.03%
Total Yield
1.61%

Company Profile

Founded in 1937, Toyota is one of the world's largest automakers, with 10.56 million units sold at retail in fiscal 2023 across its light-vehicle brands. Brands include Toyota, Lexus, Daihatsu, and truckmaker Hino; market share in Japan is about 51% excluding mini-vehicles, while US share is around 15%. The firm also owns 3.3% of Denso, a parts supplier, about 20% of Subaru, and holds investments in many other firms, including shares of Uber Technologies, Joby Aviation, Aurora Innovation, Isuzu Motors, and about 5% in each of Mazda and Suzuki. Fiscal 2024 sales excluding financial services were JPY 41.8 trillion. Toyota also has a financing arm and manufactures homes and boats.
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Stock Style Box
Large Core
Total Number of Employees
380,793

Competitors

Valuation

Metric
TM
VWAGY
HMC
Price/Earnings (Normalized)
8.333.487.88
Price/Book Value
1.170.340.61
Price/Sales
0.850.170.37
Price/Cash Flow
4.701.194.03
Price/Earnings
TM
VWAGY
HMC

Financial Strength

Metric
TM
VWAGY
HMC
Quick Ratio
0.980.891.07
Current Ratio
1.181.161.45
Interest Coverage
320.5129.4327.53
Quick Ratio
TM
VWAGY
HMC

Profitability

Metric
TM
VWAGY
HMC
Return on Assets (Normalized)
5.79%2.83%3.87%
Return on Equity (Normalized)
15.14%10.57%8.59%
Return on Invested Capital (Normalized)
6.76%4.62%4.54%
Return on Assets
TM
VWAGY
HMC
See how this stock stacks up to its competitors with Morningstar Investor

Auto Manufacturers Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Tesla Inc
TSLA
CjbzzzbkRzgtqr$567.7 Bil
Ferrari NV
RACE
McltlnnScwm$73.3 Bil
Mercedes-Benz Group AG
MBGAF
JshbfywtxSnmpsg$72.6 Bil
Stellantis NV
STLA
MxpsmyzdNbbt$60.2 Bil
Bayerische Motoren Werke AG ADR
BMWYY
CpxptjcsFpdmpgw$59.3 Bil
Volkswagen AG ADR
VWAGY
MpjdmtscvTbrw$59.1 Bil
Volkswagen AG ADR
VWAPY
YwtnnzkkCdtbt$59.1 Bil
General Motors Co
GM
CvnwdcdyZhjj$53.3 Bil
Honda Motor Co Ltd ADR
HMC
LxbwyxkqwSkst$52.0 Bil

Sponsor Center