Analyzing Ferrari’s Valuation Multiples ahead of 2Q16 Earnings
As of July 18, 2016, Ferrari’s (RACE) forward EV-to-EBITDA multiple is 11.1x. Ferrari’s forward PE (price-to-earnings) multiple is trading at 20.2x.
Automotive
Everything you need to know about stock and business developments in the automotive sector.
What Drove General Motors’ Revenues Higher in 2Q16?
In 2Q16, General Motors’ (GM) revenues came in at $42.4 billion. This reflects an increase of 11.1% over $38.2 billion in the corresponding quarter of the previous year.
How Did Polaris Industries’ Segments Fare in 2Q16?
In 2Q16, Polaris Industries (PII) reported sales of $1,130.8 million, a fall of 0.58% compared to the corresponding period last year.
Can Ford Sustain Its Revenue Growth?
In 1Q16, Ford (F) reported an 11.3% year-over-year (or YoY) rise in its global revenue, which was $37.7 billion compared to $33.9 billion in 2Q15.
Why Did Honda Motor’s Stock Rise ~3% on July 11?
Honda Motor (HMC) has a market cap of $45.2 billion. It rose by 2.8% to close at $25.78 per share on July 11, 2016.
Understanding Zipcar’s Business Model
Founded in 2000, Zipcar was one of the car-sharing industry’s early entrants.
Why Did Toyota Motor Recall Its Vehicles?
Toyota Motor (TM) has a market cap of $158.3 billion. It fell 0.41% to close at $99.85 per share on June 28.
Portfolio Moves of the AB International Growth Fund in YTD 2016
The AB International Growth Fund’s assets were spread across 57 holdings in May 2016, and it was managing $334.2 million in assets.
Why Tesla’s SolarCity Acquisition Could Pay Off
According to Tesla’s (TSLA) SolarCity acquisition proposal, it’s ready to pay $26.50 to $28.50 per share for SolarCity.
Auto Industry Indicators: What Do Recent Vehicle Sales Data Suggest?
The US auto industry has witnessed good times in the past couple of years. In 2015, US auto sales were at their highest, with 17.4 million vehicles sold.
An Investor’s Guide to Honda’s Valuation
On June 10, 2016, Honda had a forward EV-to-EBITDA multiple of 3.2x for the next 12 months.
Tata Motors Opened New Plant in Brazil to Increase Profitability
Tata Motors Limited-ADR (TTM) rose by 2.1% to close at $34.83 per share at the end of the third week of June 2016.
Analyzing Recent Trends in Honda’s Revenue
In fiscal 2016, Honda reported strong revenues of ~1.5 trillion Japanese yen, which is 9.6% higher than its revenues of ~1.3 trillion yen in fiscal 2015.
How Has Honda’s Marketing Strategy Helped It Grow?
Honda (HMC) markets its products through an extensive sales network in the US. This network comprises ~1,040 independent local dealers for motorcycles, ~1,310 for automobiles, and ~8,200 for power products.
Understanding Honda’s Financial Services Business
In fiscal 2016, Honda’s Financial Services’s net revenues stood at 1.8 trillion Japanese yen. This is 18% higher than its fiscal 2015 revenues of 1.5 trillion yen.
Honda Motor Company: Understanding Key Business Segments
By revenue, Honda’s Automobile segment is the company’s largest division. In fiscal 2016, ~73% of the company’s total revenues came from the Automobile segment.
What Are the Key Markets for Honda Motor Company?
Honda’s sales from Japan have been declining lately due to slowing auto demand in the region. In fiscal 2016, 12% of the company’s total revenues were from its home market, much lower than 19% in fiscal 2012.
Overview: The Beginning of Honda Motor Company
Honda Motor Company (HMC) is the second-largest Japanese automaker after Toyota and the world’s largest internal combustion engine manufacturer by volume. This series will help auto investors to become familiar with the key aspects of Honda’s business before investing in its stock and ADRs.
A Look at Toyota’s Key Leverage Ratios
At the end of most recent reported quarter, Toyota’s interest coverage ratio was 80.6x. This is far better than the GM’s interest coverage ratio of 15.6x and Ford’s ratio of 14.1x.
Toyota’s Financial Services Segment and Its Automotive Business
In the last five fiscal years, Toyota’s Financial Services’s revenues have grown by 73%. Rising revenues for the TFS segment reflects optimism in Toyota’s overall sales pattern.
Understanding Toyota’s Marketing Strategy
Toyota (TM) has become one of the top ten biggest advertising spenders in the US. The company spent 435 billion Japanese yen, or 1.6% of its revenues, on advertising and sales promotions during fiscal 2015.
An Investor’s Guide to Toyota’s Valuation
On May 23, 2016, Toyota’s forward PE ratio, based on earnings forecasts for the next 12 months, stood at 8.0x, also much higher than Ford’s 6.2x and GM’s 5.3x.
How Does Toyota Plan to Deal with Its Challenges?
With increasing environmental awareness across the globe, a delay in Toyota’s ability to deliver mainstream eco-friendly vehicles may restrict its future growth prospects.
Analyzing Recent Trends in Toyota’s Revenue
According to a report published by Forbes in May 2015, Toyota was the eighth-largest company in the world by revenue. The company is not directly listed in the US, although its ADR is traded on the NYSE.
What Are the Key Markets for Toyota Motor Corporation?
Toyota (TM) has 53 overseas manufacturing companies in 28 countries and regions. Originally considered a regional auto manufacturer, Toyota has busted this myth by gaining a huge global market share, particularly in the US and Europe.
The Reason behind Tata Motors’ Complaint against Jiangling Motors
Price movement of Tata Motors Tata Motors (TTM) has a market cap of $22.1 billion. It rose by 0.32% to close at $34.28 per share on June 3, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 15.3%, 20.8%, and 16.3%, respectively, as of the same day. This means that TTM is […]
Why Tata Motors’ Top and Bottom Lines Rose in Fiscal 4Q16
Tata Motors (TTM) has a market capitalization of $21.6 billion. It rose by 12.4% to close at $33.49 per share on May 31, 2016.
How Research and Development Is Important to Toyota’s Business
In fiscal 2016 (April 1, 2015–March 31, 2016), Toyota spent ~3.7% of its revenue, or about 1,055 billion Japanese yen, on its R&D program for its vehicles.
Why Toyota’s Just-in-Time Method Is Critical to Its Success
Toyota began using the Just-in-Time method in 1938. However, the true potential of this strategy was realized when it integrated this strategy with TPS.
How Toyota Became the World’s Largest Automaker
Toyota established its US headquarters in 1982. It expanded into luxury cars in the 1980s, pickup trucks in the 1990s, and hybrids in the 2000s.
Overview: All You Need to Know about Toyota Motor Corporation
In 2015, Toyota ranked 11th on Forbes’s list of the world’s largest companies. This ranking was based on a composite score of the revenues, profits, assets, and market value of various companies.
What Are Harley-Davidson’s Valuation Multiples?
As of March 29, 2016, Harley-Davidson’s forward EV/EBITDA multiple is 11x for the next 12 months.
What Is Harley-Davidson’s Marketing Strategy?
It’s important for investors to take a look at an automaker’s marketing strategy to understand how the company differentiates its strategy to market its offerings.
Could Harley-Davidson’s Electric Motorcycle Be a Reality Soon?
One such innovation that could soon become large in the two wheeler segment is electric motorcycles.
What Factors Could Affect Harley-Davidson’s Profitability?
Last year, currency headwinds stole nearly 4.4% of the company’s total revenues, which resulted in an unfavorable impact on Harley-Davidson’s profitability and margins.
What Are the Broad Categories of Harley-Davidson Motorcycles?
Harley-Davidson (HOG) is a well-known global motorcycle brand that currently produces a variety of motorcycle models. These models range from lightweight motorcycles to large heavyweight motorcycles.
What Are the Key Geographical Markets for Harley-Davidson?
In 2015, the company shipped ~95,000 motorcycles outside the US. Australia, Mexico, and Canada are also some of the other key markets for Harley-Davidson motorcycles.
Where Are Harley-Davidson Motorcycles Manufactured?
Most of Harley-Davidson’s (HOG) manufacturing and assembly plants are located in the US.
The Early History of Harley-Davidson: The Motorcycle Pioneer
Harley-Davidson has become a synonym for power, passion, and class among motorcycle enthusiasts around the world.
General Motors Continues to Rule the Chinese Auto Market
In 2015, GM remained at the top in the Chinese auto market, with the largest market share of 14.9%. This was higher than its share of 14.7% in 2014.
Key Brands Under General Motors’ Umbrella
Cadillac is the most popular luxury car brand in General Motors’ portfolio. It was established with the foundation of the Cadillac Automobile Company.
What Factors Could Affect General Motors’ Valuation Multiples?
The majority of General Motors’ revenues come from North America. The company’s high dependence on the US market alone can be seen as a big risk.
What Factors Are Affecting General Motors’ Profitability?
According to 2015 sales volume, General Motors is the largest US automaker and the third-largest automaker globally.
Why Is General Motors’ Global Market Share Falling?
In recent years, General Motors’ global market share has been falling. In 2015, its global market share stood at 11.2% against 11.5% two years ago.
How GM Helps Customers Buy Vehicles through GM Financial
To encourage people to purchase its vehicles, General Motors provides automotive financing services through GM Financial Company.
Key Geographical Markets for General Motors
Since General Motors’ beginning, North America has been its most important market. North America alone accounted for ~70% of GM’s total revenues in 2015.
Consumerism Abroad to Drive Growth in Mexico
Mexico is known for its industrial base. In 2015, vehicles constituted about 23.7% of Mexican exports, followed by electronic equipment at 21.3% of exports.
Why Has Ford’s Global Market Share Fallen in the Last Decade?
Ford’s market share fell from 11.1% in 2005 to ~7% in 2015, mostly due to competition outside North America and strength in the commercial vehicle segment.
Analyzing Ford Motor Company’s Leverage Position
Ford uses a high amount of financial leverage. At the end of 2015, 70.4% of Ford’s capital structure was made up of debt, while 29.6% was made up of equity.
An Investor’s Guide to Ford’s Valuation
Ford’s valuation multiples are in a negative trend. This could be because of the concern that US auto sales may have already peaked last year.