Company & Industry OverviewsWhy 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.
Fund ManagersPortfolio Moves of the AB International Growth Fund in YTD 2016The AB International Growth Fund’s assets were spread across 57 holdings in May 2016, and it was managing $334.2 million in assets.
MiscellaneousWhy Tesla’s SolarCity Acquisition Could Pay OffAccording to Tesla’s (TSLA) SolarCity acquisition proposal, it’s ready to pay $26.50 to $28.50 per share for SolarCity.
Macroeconomic AnalysisAuto 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.
Company & Industry OverviewsAn Investor’s Guide to Honda’s ValuationOn June 10, 2016, Honda had a forward EV-to-EBITDA multiple of 3.2x for the next 12 months.
Company & Industry OverviewsTata Motors Opened New Plant in Brazil to Increase ProfitabilityTata 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.
Company & Industry OverviewsAnalyzing Recent Trends in Honda’s RevenueIn 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.
Company & Industry OverviewsHow 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.
Company & Industry OverviewsUnderstanding Honda’s Financial Services BusinessIn 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.
Company & Industry OverviewsHonda Motor Company: Understanding Key Business SegmentsBy 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.
Company & Industry OverviewsWhat 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.
Company & Industry OverviewsOverview: The Beginning of Honda Motor CompanyHonda 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.
Company & Industry OverviewsA Look at Toyota’s Key Leverage RatiosAt 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.
Company & Industry OverviewsToyota’s Financial Services Segment and Its Automotive BusinessIn 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.
Company & Industry OverviewsUnderstanding Toyota’s Marketing StrategyToyota (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.
Company & Industry OverviewsAn Investor’s Guide to Toyota’s ValuationOn 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.
Company & Industry OverviewsHow 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.
Company & Industry OverviewsAnalyzing Recent Trends in Toyota’s RevenueAccording 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.
Company & Industry OverviewsWhat 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.
Company & Industry OverviewsThe Reason behind Tata Motors’ Complaint against Jiangling MotorsPrice 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 […]
Company & Industry OverviewsWhy Tata Motors’ Top and Bottom Lines Rose in Fiscal 4Q16Tata 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.
Company & Industry OverviewsHow Research and Development Is Important to Toyota’s BusinessIn 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.
Company & Industry OverviewsWhy Toyota’s Just-in-Time Method Is Critical to Its SuccessToyota 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.
Company & Industry OverviewsHow Toyota Became the World’s Largest AutomakerToyota established its US headquarters in 1982. It expanded into luxury cars in the 1980s, pickup trucks in the 1990s, and hybrids in the 2000s.
Company & Industry OverviewsOverview: All You Need to Know about Toyota Motor CorporationIn 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.
Company & Industry OverviewsWhat 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.
Company & Industry OverviewsWhat 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.
Company & Industry OverviewsCould 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.
Company & Industry OverviewsWhat 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.
Company & Industry OverviewsWhat 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.
Company & Industry OverviewsWhat 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.
Company & Industry OverviewsWhere Are Harley-Davidson Motorcycles Manufactured?Most of Harley-Davidson’s (HOG) manufacturing and assembly plants are located in the US.
Company & Industry OverviewsThe Early History of Harley-Davidson: The Motorcycle PioneerHarley-Davidson has become a synonym for power, passion, and class among motorcycle enthusiasts around the world.
Company & Industry OverviewsGeneral Motors Continues to Rule the Chinese Auto MarketIn 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.
Company & Industry OverviewsKey Brands Under General Motors’ UmbrellaCadillac is the most popular luxury car brand in General Motors’ portfolio. It was established with the foundation of the Cadillac Automobile Company.
Company & Industry OverviewsWhat 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.
Company & Industry OverviewsWhat Factors Are Affecting General Motors’ Profitability?According to 2015 sales volume, General Motors is the largest US automaker and the third-largest automaker globally.
Company & Industry OverviewsWhy 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.
Company & Industry OverviewsHow GM Helps Customers Buy Vehicles through GM FinancialTo encourage people to purchase its vehicles, General Motors provides automotive financing services through GM Financial Company.
Company & Industry OverviewsKey Geographical Markets for General MotorsSince General Motors’ beginning, North America has been its most important market. North America alone accounted for ~70% of GM’s total revenues in 2015.
Macroeconomic AnalysisConsumerism Abroad to Drive Growth in MexicoMexico 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.
Company & Industry OverviewsWhy 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.
Company & Industry OverviewsAnalyzing Ford Motor Company’s Leverage PositionFord 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.
Company & Industry OverviewsAn Investor’s Guide to Ford’s ValuationFord’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.
Company & Industry OverviewsHow Chevrolet Was Vital for General Motors’ SuccessIn 1911, three years after founding General Motors, the founder William C. Durant and road racer Louis Chevrolet created the Chevrolet brand.
Company & Industry OverviewsGeneral Motors: The Beginning of the US Auto GiantGeneral Motors (GM) is the largest American automaker. The company was founded in the year 1908 by William C. Durant.
Company & Industry OverviewsWhat Factors Could Affect Ford’s Valuation Multiples?In Ford’s case, a number of risk factors may affect its future earnings estimates and could negatively affect its valuation multiples going forward.
Company & Industry OverviewsWhy the One Ford Plan Is Still Critical for FordGlobal platform consolidation under the One Ford plan has helped Ford to reduce its vehicle development–related costs.
Company & Industry OverviewsFord’s Global Product Lineup: Product Portfolio StrengthsIn 2014 and 2015, Ford Motor Company (F) launched 40 new or upgraded vehicle variants globally. This was done under the One Ford plan.
Company & Industry OverviewsFord Is Shifting Gears on Its Target MarketsNorth America and Europe are two important geographic regions for Ford Motor Company. The US accounts for more than half of Ford’s total revenues.