In the end of March 2003, the stock was at ¥2,635.00.For the 52 weeks ending 11/30/07, the stock of this company was down 10.6% to ¥6,240.00 .During the past 13 weeks, the stock has fallen 7.7% 12 months ending 9/30/07, the Price / Earnings ratio is 11.02. These 12 month earnings are greater than the earnings per share achieved during the last fiscal year of the company, in March of 2007 when the company reported earnings of 512.09 per share. Earnings per share rose 21.4% in 2007 from 2006 This company trading at 0.84 times sales. a higher ratio than all three comparable companies, trading between 0.26 and 0.62 times sales. Toyota Motor is trading at 1.59 times book value. The company's price to book ratio is fairly close to the price to book ratios of the three other companies, currently trading between 1.52 and 1.69 times book value.
Company description <ul><li>Toyota Motor Corporation: The Group's principal activities are to manufacture and sell automobiles and provide financial services. </li></ul><ul><li>Automotive segment designs: manufactures, assembles and sells passenger cars </li></ul><ul><li>Financial services segment provides financing to dealers and their customers </li></ul><ul><li>Other services segment provides intelligent transport systems, information technology-based systems </li></ul><ul><li>The Group markets vehicles in more than 170 countries. </li></ul>
Competitor analysis <ul><li>Compares Toyota Motor with three other automobile manufacturers in Asia: </li></ul><ul><li>Mazda Motor Corporation (2007 sales of 3.25 trillion Japanese Yen [US$29.39 billion] of which 73% was Vehicles), </li></ul><ul><li>Nissan Motor Co Ltd (10.47 trillion Japanese Yen [US$94.74 billion] of which 94% was Automobiles), </li></ul><ul><li>Honda Motor Co., Ltd. (11.09 trillion Japanese Yen [US$100.34 billion] of which 80% was Automobile Business ). </li></ul>
Dividend Analysis <ul><li>During the 12 months ending 9/30/07, Toyota Motor paid dividends totalling ¥135.00 per share. Since the stock is currently trading at ¥6,240.00 , this implies a dividend yield of 2.2%. Toyota Motor has increased its dividend during each of the past 5 fiscal years (in 2002, the dividends were ¥28.00 per share). </li></ul><ul><li>.. </li></ul>
Market Share <ul><li>Toyota has a large market share in the United States and Japan, but a smaller presence in Europe </li></ul>
Economic Indicators Related to the Toyota Company <ul><li>GDP or Gross Domestic Product is the gross measure of market activity, and represents the monetary value of all the goods and services produced by an economy over a specific period, including consumption, government purchases, investments, and trade balance (2007). Currently, the GDP of India amounts to $4.042 trillion, with the growth of 9.0%, and is attributed to 19.9% of agriculture, 19.3% in industry, and 60.7% in services (2007). From this, it can be seen that growth in the GDP of India is relatively high, thus, can be considered a profitable market. With the increase in the GDP of India, the Toyota Company can continue making business with the country, as India can absolutely afford the importation of new automobiles from the company. This also means that the increase in the GDP in India, the country had an increase in foreign investments, and in production of crops and raw materials. This can be a good basis for the Toyota Company for continued and renewed business growth </li></ul>
How the Exchange Rates affect the Revenue of Toyota As you see ,there is an appreciation of the yen vs. the U.S. dollar
Fluctuations in the exchange rate between these currencies and the yen can lead to fluctuations in Toyota's profits <ul><li>Since the car we make in Japan is produced in Yen and sold in US dollars, we’ll have to exchange our dollars for Yen in order to get our cash back </li></ul><ul><li>Toyota Motor Corp. reported a sharp reduction in profit for its first quarter, absorbing a 28.1-percent plunge in net income, the company reported today. </li></ul><ul><li>Toyota said appreciation of the yen vs. the U.S. dollar accounted for most of the decrease of ¥262.9 billion in operating income, but added that price increases for raw materials also contributed. </li></ul><ul><li>The losses come despite the fact Toyota sold 2.19 million vehicles in first-quarter 2008, a slight increase of 24,000 vehicles compared with last year. </li></ul>
<ul><li>This exchange phenomenon can go both ways. U.S. automakers who were exporting vehicles during the same time period greatly benefited from the decline in the dollar, and in years past importers like Toyota have earned quite a bit as the dollar gained strength. </li></ul><ul><li>Currency exchange rates can greatly impact profits, and the best way to reduce their impact is to produce vehicles in the market in which they’re sold. Look for Toyota to shift more production from Japan to the US in the coming years. </li></ul>
Demand for green technology <ul><li>Gas prices continue to rise, the demand for fuel efficient vehicles may increase. In December of 2007, the American government passed a bill that mandates 35mpg car can be sold in U.S. </li></ul><ul><li>Toyota may already has a leg up in meeting these standards. </li></ul>
Hybrid Legislation <ul><li>In U.S., the government has encouraging the adoption of hybrid technology. </li></ul><ul><li>Under current laws, people who buy a hybrid vehicle can qualify for a federal income tax credit of up to $3,400. </li></ul><ul><li>Toyota has sold over 1 million hybrid vehicles. This could allow competitors who entered the hybrid market late to catch up with Toyota, as many of their rebates have yet to expire. </li></ul>
Housing market <ul><li>The housing market is traditionally tied to car- buying </li></ul><ul><li>Homeowners sometimes finance new cars with second mortgages. </li></ul><ul><li>Nowadays, the economic of the car industry are start to going up. </li></ul>
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