Toyota Motor Corporation (TM:NYE) Analysts rate as Buy, $178 target

STA Research
by: STA Research
Toyota Motor Corporation Stock

Based on the Toyota Motor Corporation stock forecasts from 2 analysts, the average analyst target price for Toyota Motor Corporation is USD 178.00 over the next 12 months. Toyota Motor Corporation’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Toyota Motor Corporation is Bullish, which is based on 14 positive signals and 2 negative signals. At the last closing, Toyota Motor Corporation’s stock price was USD 166.37. Toyota Motor Corporation’s stock price has changed by +5.77% over the past week, -4.63% over the past month and -3.46% over the last year.

Recently, JP Morgan & Company upgraded the stock to Overweight from Neutral.

Toyota Motor Corporation is a Japanese automaker that designs, manufactures, assembles, and sells passenger cars, minivans, and commercial vehicles, as well as related components and accessories. It operates in three segments: automotive, financial services, and everything else. Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East are all served. The corporation is headquartered in Toyota, Japan, and was formed in 1933.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to book value

The stock is trading low compared to its peers on a price-to-book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on a cash flow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization

The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peer and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on a free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth

Compared to its sector, this stock has shown top quartile earnings growth in the previous 5 years.

Superior Revenue Growth

Compared to its sector, this stock has shown top quartile revenue growth in the previous 5 years.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

 

 

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