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 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 160.35, the median projection reflects a rise of +17.11%.
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.
Toyota: A reliable dividend stock?
Toyota distributes 25.4% 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 a 20.58% increase in the dividend for the current fiscal year.
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%.
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.
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.
Can you purchase Toyota stock?
- contrasting stock trading platforms You must locate a trading platform that provides access to international stock markets if you want to purchase shares in a firm that is listed outside of Australia. Look for a platform with cheap brokerage and foreign currency fees if you’re just getting started.
- Create and add money to your brokerage account. Fill out an application with your financial and personal information, including your ID and tax file number. Use a bank transfer, credit card, or debit card to top off your account.
- Look up Toyota. Find the stock using the ticker symbol or name: TM. Look into its past to make sure it will help you achieve your financial objectives.
- Purchase today or tomorrow. Use a market order to buy now, or a limit order to postpone your purchase until Toyota hits the price you want. Look into dollar-cost averaging, which smooths out buying at regular times and amounts, to spread out your risk.
- Choose how many to purchase. Compare your budget to a diversified portfolio that can reduce risk during market ups and downs at the last closure price of US$161.31. Depending on your broker, you might be able to purchase a fractional share of Toyota.
- Inspect your investment. Congratulations, you are now a Toyota shareholder. Track the performance of your stock and even the company to maximize your portfolio while keeping a long-term perspective. Dividends and shareholder voting rights on directors and management that could impact your stock may be available to you.
Is Toyota a firm that is traded publicly?
Toyota’s stock is a part of the Nikkei 225 and TOPIX Core30 indices and is traded on the London Stock Exchange, Nagoya Stock Exchange, New York Stock Exchange, and Tokyo Stock Exchange.
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: