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How Toyota Performed on Wall Street in 2017

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Toyota Motor

The ADRs (American depositary receipts) of the largest Japanese automaker, Toyota Motor (TM), traded on a positive note in 2017. The ADRs yielded a total of 8.5% in 2017, which was the result of a 10.4% fall in 1H17 and a 21.1% rise in 2H17.

Let’s take a look at the company’s key fundamentals.

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US sales remained firm in 2017

Toyota sold ~2.21 million units in the US market in the first 11 months of 2017. These data reflected a volume increase of ~0.2% in the period compared the ~2.20 million units that were sold during the same period in 2016.

In the US market, Toyota offers its vehicles under two key brands: Toyota and Lexus. In the first 11 months of 2017, the sales of the company’s Toyota brand vehicles rose 1.3% YoY (year-over-year), while the sales of its Lexus brand fell 7.0% YoY.

Other positive factors

Toyota’s US truck sales have been rising on a YoY basis for the last ten consecutive months, which should act as a positive influence on its profit margins. Note that Toyota Motor’s profitability is already much better than those of its industry peers (XLY) such as Fiat Chrysler (FCAU), General Motors (GM), and Ford Motor Company (F). In the company’s most recently reported quarter, which ended in September 2017, its adjusted net profit margin was 6.4%, much better than GM’s 5.8%, Ford’s 5.2%, and FCAU’s 3.5%.

In its fiscal 2Q18, TM’s consolidated global sales fell 0.7% YoY, but its revenue rose 10.2% YoY. A weaker Japanese yen against the US dollar helped the company to post higher revenue despite its nearly flat global sales in the quarter.

Continue to the next article, where we’ll find out how Ford stock traded in 2017.

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