Last Updated: 18 Sep 2024
Executive Summary
Toyota Motor Corporation ADR (TM) is a Japanese multinational automotive manufacturer headquartered in Toyota, Japan. The company is a leading global player in the automotive industry, known for its high-quality vehicles and strong financial performance. With a market capitalization of $234.8 billion, TM is one of the most valuable companies in the world.
Company Overview
TM designs, manufactures, assembles, and sells passenger cars, minivans, commercial vehicles, and related parts and accessories. The company has a global presence, with operations in over 170 countries and regions. TM's key brands include Toyota, Lexus, and Hino.
Fundamental Analysis
TM's financial performance has been strong in recent years. The company has consistently reported positive earnings and revenue growth. In the fiscal year ended March 2023, TM generated revenue of $463.9 billion and net income of $26.15 billion. The company's profit margin was 10.7%, and its return on equity was 15%.
TM has a strong balance sheet, with $59.7 billion in cash and equivalents and $124.3 billion in total assets. The company's debt-to-equity ratio is 0.25, which is considered conservative.
Technical Analysis
TM's stock price has been trending higher in recent months. The stock is currently trading at $173.15, which is above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 60, which indicates that the stock is overbought.
Short Term Outlook
TM's stock price is expected to continue to rise in the short term. The company's strong financial performance and positive analyst sentiment are likely to support the stock's momentum. However, the stock's overbought RSI suggests that a pullback could occur in the near future.
Long Term Outlook
TM's long-term prospects are positive. The company is well-positioned to benefit from the growing demand for automobiles in emerging markets. Additionally, TM's investment in electric vehicles and autonomous driving technology could provide the company with significant growth opportunities in the future.
Analyst Recommendations
Analysts are generally bullish on TM's stock. The consensus analyst rating is "Buy," with an average target price of $242.87. One analyst has a "Strong Buy" rating, two analysts have "Hold" ratings, and no analysts have "Sell" ratings.
