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Toyota Motor Corp 7203

Morningstar Rating
JPY 3,447.00 +11.00 (0.32%)
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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

7203 is trading at a 127% premium.
Price
JPY 3,447.00
Fair Value
JPY 5,192.00
Uncertainty
High
1-Star Price
JPY 7,582.00
5-Star Price
JPY 5,745.00
Economic Moat
Mmbt
Capital Allocation
Wzlwfdjx

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.

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News

Trading Information

Previous Close Price
JPY 3,436.00
Day Range
JPY 3,417.003,478.00
52-Week Range
JPY 1,857.003,891.00
Bid/Ask
JPY 3,446.00 / JPY 3,451.00
Market Cap
JPY 46.43 Tril
Volume/Avg
23.7 Mil / 31.1 Mil

Key Statistics

Price/Earnings (Normalized)
10.33
Price/Sales
1.03
Dividend Yield (Trailing)
2.18%
Dividend Yield (Forward)
2.18%
Total Yield
2.67%

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
7203
HMC
NSANY
Price/Earnings (Normalized)
10.337.823.77
Price/Book Value
1.350.640.34
Price/Sales
1.030.380.15
Price/Cash Flow
5.674.181.80
Price/Earnings
7203
HMC
NSANY

Financial Strength

Metric
7203
HMC
NSANY
Quick Ratio
0.981.071.36
Current Ratio
1.181.451.75
Interest Coverage
320.5127.537.91
Quick Ratio
7203
HMC
NSANY

Profitability

Metric
7203
HMC
NSANY
Return on Assets (Normalized)
5.79%3.87%2.64%
Return on Equity (Normalized)
15.14%8.59%8.81%
Return on Invested Capital (Normalized)
6.76%4.54%3.75%
Return on Assets
7203
HMC
NSANY
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