The price of the (TM) shares as of August 4th, 2022 is $157.31. Compared to being down -14.01% over the previous year, the (TM) stock is down -3.2% over the last five trading days. (TM) is now down -15.1% in 2022.
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Should you buy or sell Toyota stock?
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.
Is Toyota stock a wise investment?
If you want to know whether the new stock buyback program is beneficial for investors, I believe there are three important factors to take into account.
First and foremost, Toyota Motor’s current price levels and valuations are crucial since it would be foolish for the business to repurchase its own shares if they were not “undervalued.”
Only 15% down than its all-time historical high stock price of $213.74 registered during intra-day trading on January 13, 2022, TM’s last traded share price of $180.62 as of March 30, 2022.
Separately, according to S&P Capital IQ data, the market values Toyota Motor at consensus forward P/E multiples for the fiscal years 2023 and 2024 of 10.3 times and 9.4 times, respectively. This seems to be in line with TM’s planned ROEs of the low-teens percentage range over the same time and its expected FY 2022-2025 earnings per share CAGR of +9.4%.
To put it another way, Toyota Motor appears to be decently valued at best, therefore the stock repurchase may not be the ideal approach to distribute extra cash to shareholders.
Second, rather than repurchasing shares, it could be preferable for Toyota Motor to increase its regular dividend or give out a special payout.
According to S&P Capital IQ’s financial projections, the consensus forward dividend yields for TM’s fiscal years 2023 and 2024 are 2.8% and 3.1%, respectively. These are respectable figures, but Toyota Motor would be even more appealing to yield-focused investors with a significantly higher mid-single digit dividend yield. As a point of comparison, TM’s dividend payout ratio for the fiscal year 2021 was 29.8%, which is acceptable but might be increased to 50% or even higher.
Toyota Motor may have thought about paying a non-recurring special dividend to lower its equity base and increase future ROEs if it is concerned about the sustainability of future regular dividend payouts. Repurchasing its own shares, on the other hand, at a time when TM isn’t exactly undervalued, might not be the greatest course of action.
According to Reuters, Toyota Motor “may pursue mergers or acquisitions to buy new automotive technologies” in the middle of 2017. The fact that TM acquired Renovo, an automotive software startup, and Lyft’s (LYFT) self-driving unit last year suggests there are business sectors in which the company might invest in M&A to spur future growth.
In conclusion, I like that TM keeps returning excess resources through share buybacks. However, given the current values of Toyota Motor, dividends and acquisitions may be potentially superior options in terms of capital allocation at this point.
What is the all-time high of Toyota’s stock?
Since 1976, Toyota has maintained a daily share price chart and data that has been split-adjusted. As of August 12, 2022, Toyota’s stock had a most recent closing price of 161.31.
- The 52-week low stock price for Toyota is 152.14, or 5.7% less than the current share price.
- The 52-week high stock price for Toyota is 213.74, or 32.5% more than the current share price.
- For the previous 52 weeks, the price of Toyota stock has been 175.13.
- On January 13, 2022, the closing price of Toyota stock reached an all-time high of 208.82.
What is the stock price outlook for Toyota?
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 159.57, the median projection reflects a rise of +17.68%.
Analyst Recommendations
22 investment analysts were surveyed, and the current consensus is to buy Toyota Motor Corp. shares. Since August, when it remained unchanged from a Buy rating, this rating has been stable. Mouse over the previous months for more information.
Is Toyota currently a buy?
TM currently has a Value grade of A and a Zacks Rank of #1 (Strong Buy). The stock’s P/E ratio is 9.10, while the P/E for its sector is 10.96 on average.
Does the stock of Toyota pay dividends?
Toyota distributes dividends twice a year. May and November are the payment months. The dividend calendar displays the month that each firm distributes dividends for more than 1,000 dividend stocks. Plan your annual passive income flow.
Why are shares of Toyota down?
Reuters, TOKYO, June 13 – After media reports cited complaints from European pension funds of the automaker for what they claimed were lobbying attempts that violated industry climate regulations, shares of Toyota Motor Corp (7203. T) began down more than 2% on Monday.
Will Toyota shares gain ground?
By July 7, 2023, the Wall Street analyst expected Toyota Motor’s share price to reach $179.41. From the present TM share price of $157.89, the average Toyota Motor stock price projection predicts a possible increase of 13.63%.
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:
Starting share price:
Final cost/share:
Initial shares:
Final shares:
Reinvested dividends per share:
Total profit:
Annual Total Return on Average:
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:
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.
How much money is Toyota worth?
Toyota’s net worth is estimated to be over $236 billion US. Toyota is a Japanese automaker (18.583 trillion Yen). Toyota was established in the early 1930s by Klichiro Toyoda. It was once a component of Toyoda Automatic Loom Works, but by 1937 it was able to separate and take on its own identity with a minor name change. During its initial years of existence, Toyota created the A1 and the G1, a truck and a passenger automobile, respectively, and then it started to grow from there. The American government started imposing steep import duties when the cars started to sell well in the country. In response, Toyota established production facilities in the US. Smaller, more fuel-efficient automobiles became more popular as a result of the early 1970s oil crisis, and Toyota started to establish a reputation in this sector of the auto industry. In the early 1980s, they also started producing motorsport vehicles. They diversified into the production of luxury cars in the mid- to late-1990s, adding a line of pickup trucks and SUVs as well as starting to make the Prius, the most well-known hybrid automobile. They have increased production in Europe over the past fifteen years, establishing operations in the UK and collaborating with Formula One racing in France. They are currently the ninth-biggest company in the world by annual revenue and the largest automaker in the world. 324,747 people work for Toyota across several countries.