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Toyota Motor Announces Plans for Its Japanese Market

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Price movement

Toyota Motor (TM) has a market cap of $191.8 billion. It rose by 3.3% to close at $115.96 per share on August 5, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 3.9%, 15.3%, and -5.8%, respectively, on the same day. TM is trading 6.4% above its 20-day moving average, 10.1% above its 50-day moving average, and 4.4% above its 200-day moving average.

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Related ETF and peers

The Schwab Fundamental International Large Company ETF (FNDF) invests 0.07% of its holdings in Toyota Motor. The ETF tracks an index of large companies from developed markets outside of the United States. Its selection and weighting is based on fundamental factors such as sales, cash flow, dividends, and buybacks. The YTD price movement of FNDF was 2.5% on August 5.

The market caps of Toyota Motor’s competitors are as follows:

  • Ford Motor (F) — $47.9 billion
  • General Motors (GM) — $47.5 billion

Latest news on Toyota Motor

In a press release on August 5, 2016, Reuters reported that “Toyota Motor Corp is developing a next-generation taxi for the Japanese market and it has formed a partnership with the country’s hire-taxi federation to explore uses for new technology, the company said on Friday. The partnership comes as Japan’s biggest automaker invests heavily in automated driving, car sharing and other connected mobility technologies, while Japan’s powerful taxi industry has opposed efforts by ride-hailing app Uber to expand into the country.”

It added that “Toyota’s new taxi, which is being developed in cooperation with the Japan Federation of Hire-Taxi Associations, will focus on being accessible to the elderly, families with children and foreign tourists. It would become available in 2017, it said.”

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Sales of Toyota Motor in July 2016

Toyota Motor reported total Toyota sales of 214,233 units, a fall of 1.4% from July 2015. It reported total Toyota division sales of 186,343 units, a fall of 0.5% from July 2015. The company reported total Lexus sales of 27,890 units, a fall of 6.5% from July 2015.

Sales reported by type were as follows:

  • Toyota car: 101,991 units, a fall of 8.8% from July 2015
  • Toyota truck: 112,242 units, a rise of 6.5% from July 2015

Performance of Toyota Motor in fiscal 1Q17

Toyota Motor reported fiscal 1Q17 total net revenues of 6.6 trillion yen, a fall of 5.7% from the total net revenues of 7.0 trillion yen in fiscal 1Q16. The company’s operating income fell by 15.1% between fiscals 1Q16 and 1Q17.

Its net income and EPS (earnings per share) fell to 552.5 billion yen and 179.11 yen, respectively, in fiscal 1Q17, compared with 646.4 billion yen and 205.30 yen, respectively, in fiscal 1Q16.

TM’s cash and cash equivalents rose by 11.4% and its inventories fell by 5.0% between fiscals 4Q16 and 1Q17. Its current ratio and debt-to-equity ratio fell to 1.08x and 1.6x, respectively, in fiscal 1Q17, from 1.13x and 1.7x, respectively, in fiscal 4Q16.

Projections

The company has made the following projections for fiscal 2017:

  • net revenues of 26.0 trillion yen
  • operating income of 1.6 trillion yen
  • net income of 1.5 trillion yen

In the next part of this series, we’ll discuss Pitney Bowes (PBI).

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