If Toyota develops a differentiating technology, it can use the technology on over 9 million vehicles, leveraging its technology investments. This should provide Toyota higher margins.
We’ll take a brief look at industry sales to assess Toyota Motor Company’s (TM) position in the global industry. First, we’ll look at industry sales, and second, we’ll assess Toyota’s ability to capture its share of the market.
Toyota Motor Corporation (TM) designs, builds, and sells automobiles worldwide. It’s the largest automobile manufacturer in the world based on units sold in 2013.
A decrease in retail sales, would imply the opposite. In this section, we will analyze some of the macro factors that will likely impact retail sales.
U.S. e-commerce sales have grown at a compounded annual growth rate (or CAGR) of ~19% over the period 2000–2013 and were estimated at ~$263 billion in 2013 (Source: U.S. Census Bureau).
U.S. e-commerce sales grew 15% year-on-year (or YoY) to $71.2 billion in 1Q14, as per the e-commerce sales report released by the U.S. Census Bureau on Thursday, May 15.
The Index measures the change in same-store sales based on a sample that includes major retail chains that are statistically representative of sales in the retail industry.
As mentioned in the last section, the U.S. Census Bureau estimated advance U.S. retail sales in April at ~$435 billion.
Retail sales are one of the most important economic indicators for the U.S. economy.
We will discuss some of the in-store and online strategies the retailer is undertaking to boost revenues and reduce costs going forward.
Mass merchandiser Walmart (WMT), is the world’s largest retailer with over 10,900 stores in 27 countries.
During the last few days there have been a number of economic indicators and earnings releases for the retail sector.
At year-end 2013, Ford’s pension plans totaled $73 billion, with an additional $6 billion in OPEB liabilities.
Ford is focusing on improving operations, reducing capacity in over-supplied markets, reducing the platform numbers, improving its engine technology, investing in R&D, and expanding capacity in India and China.
Ford’s free cash flow yield is increasing and is currently at 9.6. The free cash flow is increasing, while the market value per share of has been fairly stable.
Currently, Ford is trading at less than 15x enterprise value to consensus-estimate EBITDA.
Ford is generating free cash flow to pay for pensions, reduce debts, and build cash for future investments.
Ford’s EBITDA margin is falling due to significant changes in the company that should lead to improved earnings in the future.
Ford’s story in Asia Pacific is driven by China, where it sold almost one million vehicles in 2013, and has a 4% market share.
In 2013, Ford spent $6.5 billion on capital expenditures. It maintains 65 manufacturing facilities globally with approximately half of them in North America.