The consensus price goal among the 19 analysts that are providing 12-month price projections for Toyota Motor Corp. is 187.78, with a high estimate of 195.98 and a low estimate of 149.58. From the most recent price of 156.46, the median forecast reflects a rise of +20.02%.
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Is Toyota stock a wise investment?
Toyota Motor is a buy for a number of reasons. The draw in this case is the brand name, which enjoys a devoted fan base, which naturally creates a strong demand for any future EV offering with the Toyota or Lexus badge. Even if the corporation hasn’t been a pioneer in battery-powered EVs, given its extensive global infrastructure and manufacturing know-how, its plan to build up in that direction seems plausible. According to this metric, the company continues to have a positive growth outlook and is in a good position to increase its market share globally.
With a price estimate of $235.00 for the next year, which corresponds to a 1-year forward P/E of 10x the current consensus fiscal 2023 EPS, we rank shares of TM as a buy. The chart below shows that since the peak of the pandemic crash in 2020, shares of TM have been closely following a trendline. This pattern should continue, in our opinion, and the most recent decline from the early-January high of $212 signals a fresh window for purchasing.
We are adopting a more upbeat stance in the midst of all the stories about macro concerns, heightened inflation pressures on consumer discretionary spending, and rising interest rates. Nevertheless, there are dangers to think about. The positive case for the stock might be undermined by a worsening of the forecast for global growth while keeping a watch on events in Eastern Europe related to the conflict between Russia and Ukraine. A review of the long-term profits prospects would allow for a leg lower in the stock if the results were less than anticipated and below management guidance. Over the coming quarters, keep an eye on things like production and sales levels, the operating margin, and any changes to the BEV plan.
Can I invest in Toyota Motor?
Buy is the general consensus for Toyota Motor. Based on 3 buy ratings, 2 hold ratings, and no sell ratings, the firm has an average rating score of 2.60.
Why did Toyota’s stock rise?
Shares of Toyota Motor Corp. increased after the firm disclosed persistent part shortages while also announcing production levels for November that were higher than in recent years. The top automaker in the world announced on Friday that it anticipates producing between 850,000 and 900,000 units in March.
Toyota stock: Is it overpriced?
According to GuruFocus Value assessment, the stock of Toyota Motor (NYSE:TM, 30-year Financials) exhibits all the symptoms of being materially overvalued. The stock should be traded at the GuruFocus Value, which is GuruFocus’ assessment of the stock’s fair value. It is determined using previous stock multiples, historical business growth, and analyst projections of future business performance. An expensive stock will likely have a bad future return if its price is much higher than the GF Value Line. On the other hand, its future return will probably be larger if it is far below the GF Value Line. Toyota Motor stock appears to be extremely expensive at its current price of $182.41 per share and market worth of $255 billion. In the graph below, the GF Value for Toyota Motor is displayed.
The long-term return of Toyota Motor’s stock is probably going to be substantially lower than its expected future company growth, which is predicted to gain 0.06% yearly over the next three to five years, because Toyota Motor is significantly overvalued.
Are shares of Toyota undervalued?
In my perspective, Toyota Motor is still undervalued. It is cheap in comparison to its automotive counterparts based on its comparatively low price-earnings ratio of 12.38. Investors are prepared to spend more for every dollar of earnings from 77% of Toyota’s automobile competitors.
Accordingly, TM stock is obviously cheap using that criteria. But I believe it’s also fair to say that Toyota is underrated in the context of the EV market. A few months back, Andrew Hawkins, senior transportation correspondent for theverge, said that Toyota was a luddite when it came to EVs. Toyota was said to have finally decided to “get off its ass” when it announced the release of 15 new battery-EVs by the year 2025 in April.
Toyota is not recognized for producing flashy, expensive, or anything but intelligent, dependable vehicles. Without giving it any thought, I wouldn’t have anticipated it to make a 180-degree turn and position itself as a car manufacturer that supports the change to electric vehicles. In essence, the business doesn’t seem to do that.
What I do anticipate is that Toyota will provide intelligent, cost-effective, and dependable EV cars. Toyota is a good deal on the stock market for automobiles. It will always be conservative, but the smart money frequently invests heavily in inexpensive, traditional investments like Toyota. There is now just a showy justification to do so.
Toyota: A reliable dividend stock?
Toyota distributes 26.7% of its earnings to its stockholders. Our indicator for the dividend’s dependability is 0.87 out of a possible 1.0. This suggests a historically dependable dividend payer. Analysts also anticipate an 18.96% increase in the dividend for the current fiscal year.
Toyota: Does it pay dividends?
Toyota considers the interests of its shareholders to be one of its top management principles, and it will keep working to strengthen its corporate culture in order to achieve sustainable growth and raise its stock value.
Toyota will work to maintain and increase its current consolidated payout ratio of 30% to its shareholders while pursuing steady and ongoing dividend payments.
Toyota will aim to use its internal funds primarily for investment in growth for the next generation, such as environmental technologies to achieve a carbon-neutral society and safety technologies for the safety and security of its customers, as well as for the stakeholders, such as employees, business partners, and local communities. This is in order to survive fierce competition and transition to a mobility company.
By decision of the board of directors in accordance with Toyota’s articles of incorporation, Toyota has decided to pay a year-end dividend of 28 yen (140 yen on a pre-stock split basis) per share of common stock with respect to the dividends for fiscal 2022. As a result, the annual dividend will be 52 yen when combined with the interim dividend of 24 yen (120 yen on a pre-stock split basis) per share of common stock.
(260 yen on a pre-stock split basis) per share of common stock, with a total dividend payment of 718.2 billion yen for the entire year.
Additionally, Toyota decided to repurchase up to 140 million shares of its common stock between June 17, 2022, and September 30, 2022 for a total maximum purchase price of 200 billion yen at its board of directors meeting on May 11, 2022.
With a greater degree of flexibility than before, Toyota plans to repurchase shares with the goal of boosting capital efficiency by carefully considering its investment in growth, the amount of its dividends, its cash reserves, and the price level of its common stock.
A maximum of 100 billion yen of the 200 billion yen total maximum purchase price will be used for share repurchases that will be carried out more flexibly than in the past based on variables like the price level of its common stock.
Why are Toyota stock prices dropping?
2.34 million cars were sold under the Toyota and Lexus brands overall, an 8% decrease over the same quarter last year. Longer delivery windows brought on by the manufacturing slump and reduced inventory levels were the causes of the reduction.
What goals does Toyota have for the upcoming five years?
Toyota is reacting to market and regulatory demands for greener automobiles with a dual focus. Toyota will allocate engineers to concentrate on advancing battery-electric vehicles and hybrid technology between now and 2021. In order to achieve its objectives under the new five-year plan, Toyota intends to boost the number of employees devoted to developing hybrid systems by 30%, according to industry publications. It appears Toyota will spend less money on cars that are fuel cell powered given the new initiative.
How frequently have Toyota shares split?
A producer of automobiles is Toyota Motor. Co.’s main business activities include designing, producing, and marketing sedans, minivans, compact cars, sport utility vehicles, trucks, and related components and accessories globally. In order to assist the sales of cars and other items made by Co., Co. offers financing, car leasing, and a few other financial services primarily to its dealers and their clients. Design, production, assembly, and sales of passenger cars, minivans, trucks, and accessories are all included in Co.’s automotive business. Finance for dealers and their clients makes up the majority of Co.’s financial services activity. Toyota Motor has experienced 1 split, as per our data for the company’s stock splits in the past.
Our database of Toyota Motor stock splits shows 1 split for the company (TM). For TM, the separation happened on March 15, 1982. This was a 5 for 1 split, which meant that the shareholder now held 5 shares of TM instead of the pre-split 1 share. A 1000 share holding, for instance, before the split, became a 5000 share position after the split.
When a corporation splits its shares, like Toyota Motor did, the market capitalization before and after the split stays same, giving the shareholder additional shares but at a reduced value per share. However, a stock with a lower price per share frequently attracts a wider spectrum of buyers. If the share price increases as a result of the increased demand, the total market capitalization increases after the split. However, depending on the underlying principles of the firm, this does not always occur.
A stake size of 1000 shares at the beginning of the Toyota Motor stock split would have become 5000 shares at the current price. The compound annual growth rate (CAGR) for a short investment in Toyota Motor stock, commencing with a $10,000 purchase of TM, is examined here. It is presented on a split-history-adjusted basis taking into account the whole Toyota Motor stock split history.
Begin date:
Ending on:
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Final cost/share:
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the first investment:
Finally invested:
Years:
Dividends received/divided:
The following firms, which are likewise in the Materials sector and have a history of stock splits, are grouped under TM:
Why does Toyota have two stocks?
According to a release from Toyota, the stock split is intended to “create an environment in which it is easier to invest in our common stock by reducing the minimum investment amount and enhancing the company’s liquidity.”