Toyota Motor Corporation (TM) – Soaring material prices is a concern

Toyota Motor Corporation (TM) (Q4FY23)

Introduction

Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories. It operates in Automotive, Financial Services, and All Other segments.

The company offers hybrid cars under the Prius name, fuel cell vehicles under the MIRAI name; and conventional engine vehicles, including subcompact and compact cars under the Corolla and Raize names. It also provides mini-vehicles, passenger vehicles, commercial vehicles, and auto parts under the Toyota name; mid-size cars; luxury cars; sports cars under the GR Yaris, Corolla Sport, Corolla Cross, and Supra names; and recreational and sport-utility vehicles under the Highlander name.

The company offers pickup trucks under the Tacoma name; minivans; and trucks and buses. Further, it provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards; and designs, manufactures, and sells prefabricated housing. Additionally, the company operates GAZOO.com, a web portal for automobile information.

Highlights

Toyota had been witnessing an increase in material prices which had impacted the operating income significantly. Toyota faced ~¥1,545bn impact of soaring material prices which includes ¥500bn for activities aimed at strengthening the structure of the entire supply chain in addition to fluctuations in market conditions for materials.

Stock performance

Over the past 3 years, Toyota delivered returns of 63% where the stock price surged from ¥1362.6 in Jul 17, 2020 to ¥2218 in Jul 14, 2023. The stock had a 200-Day Moving Average of ¥1953.53 and a 50-Day Moving Average of ¥2104.84.

In the past 1 year, Toyota generated returns of 1% where the stock price increased from ¥2202.5 in Jul 22, 2022 to ¥2218 in Jul 14, 2023. The stock had a 52 Week High of ¥2282.5 and a 52 Week Low of ¥1787.5.

Over the past 3 months, Toyota delivered returns of 21% where the stock price increased from ¥1833.5 in Apr 18, 2023 to ¥2218 in Jul 14, 2023.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 33

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