Company FundamentalsCompany Fundamentals\Company Profile COMPANY PROFILE Figures in Japanese Yen A Wright Investors' Service Research Report: Toyota Motor Corporation 440 Wheelers Farms Road Milford, CT 06461 U.S.A. Wright Quality Rating :ABC7 TOYOTA MOTOR CORPORATION is a Japan-based company mainly engaged in the automobile business and financial business.The Company operates through three business segments. The Automobile segment is engaged in the design, manufacture and sale of car products including passenger cars, minivans and trucks, as well as the related parts and accessories. The Finance segment is involved in the provision of financial services related to the sale of the Company's products, as well as the leasing of vehicles and equipment. The Others segment is involved in the design, manufacture and sale of housings, as well as information and communication business. Stock Price (12/3/2010): 3,275.00 Stock Chart Recent stock performance 1 Week - 0.5% 4 Weeks 10.5% 13 Weeks 12.6% 52 Weeks - 12.2% Chairman Fujio Cho (Rep) Vice Chairman Kazuo Okamoto (Rep) Vice Chairman Katsuaki Watanabe (Rep) President Akio Toyoda (Rep) Vice President Yukitoshi Funo (Rep) Officers Earnings / Dividends (as of 9/30/2010) Earnings Dividends Most Recent Qtr 31.47 20.00 Last 12 Months 176.9 45.00 Ratio Analysis Price / Earnings Ratio 18.52 Dividend Yield 1.37% Price / Sales Ratio 0.54 Payout Ratio 25.45% Price / Book Ratio 0.97 % Held by Insiders 33.10% Key Data Ticker: 7203 2010 Sales: 18,950,973,000,000 Major Industry: Automotive Sub Industry: Diversified Automotive Mfrs. Country: Japan Currency: Japanese Yen Fiscal Year Ends: March Employees 320,590 Exchanges: NAS OSA TYO Share Type: Common Market Capitalization: 10,270,345,074,975 Total Shares Outstanding: 3,135,983,229 Closely Held Shares: 1,038,109,000
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Company FundamentalsCompany Fundamentals\Company Profile
COMPANY PROFILE Figures in Japanese Yen
A Wright Investors' Service Research Report: Toyota Motor Corporation
440 Wheelers Farms Road Milford, CT 06461 U.S.A.
Wright Quality Rating:ABC7
TOYOTA MOTOR CORPORATION is a Japan-based company mainly engaged in the automobile business and financial business.The Company operates through three business segments. The Automobile segment is engaged in the design, manufacture and sale of car products including passenger cars, minivans and trucks, as well as the related parts and accessories. The Finance segment is involved in the provision of financial services related to the sale of the Company's products, as well as the leasing of vehicles and equipment. The Others segment is involved in the design, manufacture and sale of housings, as well as information and communication business.
Earnings / Dividends (as of 9/30/2010) Earnings Dividends
Most Recent Qtr 31.47 20.00 Last 12 Months 176.9 45.00
Ratio AnalysisPrice / Earnings Ratio 18.52 Dividend Yield 1.37% Price / Sales Ratio 0.54 Payout Ratio 25.45% Price / Book Ratio 0.97 % Held by Insiders 33.10%
Company Fundamentals\Comparative Business Analysis
A Wright Investors' Service Research Report: Toyota Motor Corporation Provided By CorporateInformation.com
440 Wheelers Farms Road Milford, CT 06461 U.S.A.
Wright Comparative Business Analysis Report
Report Date: 12/3/2010
Company Description TOYOTA MOTOR CORPORATION is a Japan-based company mainly engaged in the automobile business and financial business.The Company operates through three business segments. The Automobile segment is engaged in the design, manufacture and sale of car products including passenger cars, minivans and trucks, as well as the related parts and accessories. The Finance segment is involved in the provision of financial services related to the sale of the Company's products, as well as the leasing of vehicles and equipment. The Others segment is involved in the design, manufacture and sale of housings, as well as information and communication business.
Competitor Analysis
Toyota Motor Corporation operates within the Motor vehicles and car bodies sector. This analysis compares Toyota Motor with three other companies: Honda Motor Co., Ltd. (2010 sales of 8.58 trillion Japanese Yen [US$101.92 billion] of which 76% was Automobile Business), Nissan Motor Co Ltd (2010 sales: 7.52 trillion Japanese Yen [US$89.31 billion] of which 93% was Automobiles), and Motors Liquidation Company which is based in the United States (2008 sales of $148.98 billion of which 99% was Automotive Products). Note: not all of these companies have the same fiscal year: the most recent data for each company are being used.
Sales Analysis
During the year ended March of 2010, sales at Toyota Motor were ¥18.95 trillion (US$225.14 billion). This is a decrease of 7.7% versus 2009, when the company's sales were ¥20.53 trillion. The sales level in 2010 was fairly close to the level five years ago: in 2005, Toyota Motor had sales of ¥18.55 trillion. Contributing to the drop in overall sales was the 13.8% decline in Other, from ¥623.22 billion to ¥537.42 billion. There were also decreases in sales in Automotive (down 7.3% to ¥17.19 trillion) and Financial Services (down 9.6% to ¥1.23 trillion) .
Recent Sales at Toyota Motor
(Figures in Trillions of Japanese Yen) The company derives most of its revenues in its home market of Japan: in 2010, this region's sales were ¥11.22 trillion, which is equivalent to 59.2% of total sales. On a geographical basis, contributing to the decline in the company's sales in 2010 were the declines in Europe, where sales dropped 25.7% to ¥2.15 trillion. Sales in North America were also lower, falling 7.0% (to ¥5.67 trillion) . However, not all regions experienced a decline in sales. Sales in Japan increased 50.2% (to ¥11.22 trillion). Sales also increased in Asia/Far East (up 8.4% to ¥2.66 trillion) and in Rest of the World (up 3.3% to ¥1.67 trillion) . The company currently employs 320,590. With sales of ¥18.95 trillion (US$225.14 billion) , this equates to sales of US$702,260 per employee. This is higher than the three comparable companies, which had sales between US$566,571 and US$613,082 per employee.
Sales Comparisons (Most Recent Fiscal Year)
19
21
24
26
21
19
2005 2006 2007 2008 2009 2010
CompanyYear Ended
Sales (US$blns)
Sales Growth
Sales/ Emp (US$) Largest Region
Recent Stock Performance
In recent years, this stock has performed terribly. In fiscal year 2007, the stock traded as high as ¥8,350.00 , versus ¥3,275.00 on 12/3/2010. For the 52 weeks ending 12/3/2010, the stock of this company was down 12.2% to ¥3,275.00 . During the past 13 weeks, the stock has increased 12.6%. During the 12 months ending 9/30/2010, earnings per share totalled ¥176.85 per share. Thus, the Price / Earnings ratio is 18.52. These 12 month earnings are substantially greater than the earnings per share achieved during the last fiscal year of the company, which ended in March of 2010, when the company reported earnings of 66.79 per share. Note that the earnings number - includes a 0.79 pre-tax charge in fiscal year 2010. This company is currently trading at 0.54 times sales. Toyota Motor is trading at 0.97 times book value. Since the price to book ratio is less than 1, this means that theoretically, the net value of the assets is greater than the value of a company as a going concern.
Summary of company valuations (as of 12/3/2010).
The market capitalization of this company is ¥10.27 trillion (US$122.01 billion) . The capitalization of the floating stock (i.e., that which is not closely held) is ¥6.87 trillion (US$81.62 billion) .
Dividend Analysis
During the 12 months ending 9/30/2010, Toyota Motor paid dividends totalling ¥45.00 per share. Since the stock is currently trading at ¥3,275.00 , this implies a dividend yield of 1.4%. The company has paid a dividend for 6 straight years. Toyota Motor last raised its dividend during fiscal year 2008, when it raised its dividend to ¥140.00 from ¥120.00. During the same 12 month period ended 9/30/2010, the Company reported earnings of ¥176.85 per share. Thus, the company paid 25.4% of its profits as dividends.
Profitability Analysis On the ¥18.95 trillion in sales reported by the company in 2010, the cost of goods sold totalled ¥15.27 trillion, or 80.6% of sales (i.e., the gross profit was 19.4% of sales). This gross profit margin is better than the company achieved in 2009, when cost of goods sold totalled 82.6% of sales. There was a wide variation in the gross profit margins at the three comparable companies, from 3.9% of sales to 32.6% of sales. Some of this disparity may be due to different accounting standards. The company's earnings before interest, taxes, depreciation and amorization (EBITDA) were ¥1.56 trillion, or 8.2% of sales. This EBITDA margin is better than the company achieved in 2009, when the EBITDA margin was equal to 5.0% of sales. In 2010, earnings before extraordinary items at Toyota Motor were ¥209.46 billion, or 1.1% of sales. This profit margin is an improvement over the level the company achieved in 2009, when the profit margin was -2.1% of sales. The company's return on equity in 2010 was 2.1%. This was significantly better than the -3.7% return the company achieved in 2009. (Extraordinary items have been excluded).
Profitability Comparison
Toyota Motor Mar 2010 225.138 -7.7% 702,260 Japan (59.2%)
Honda Motor Co., Ltd. Mar 2010 101.921 -14.3% 576,425 North America (43.7%)
Nissan Motor Co Ltd Mar 2010 89.305 -10.9% 566,571 North America (35.7%)
Motors Liquidation Company Dec 2008 148.979 N/A 613,082 the United States (50.6%)
Company P/EPrice/
BookPrice/ Sales
52 Wk Pr Chg
Toyota Motor 18.5 0.97 0.54 -12.20%
Honda Motor Co., Ltd. 9.3 1.32 0.66 4.13%
Nissan Motor Co Ltd 14.1 1.16 0.46 12.91%
Motors Liquidation Company N/A N/A 0.00 -79.83%
Company Year
Gross Profit Margin
EBITDA Margin
Earns bef. extra
Toyota Motor 2010 19.4% 8.2% 1.1%
Toyota Motor 2009 17.4% 5.0% -2.1%
Honda Motor Co., Ltd. 2010 32.6% 11.6% 3.1%
Nissan Motor Co Ltd 2010 26.1% 12.9% 0.6%
Motors Liquidation Company 2008 3.9% -9.8% -20.7%
Toyota Motor reports profits by product line. During 2010, the itemized operating profits at all divisions were ¥147.52 billion, which is equal to 0.8% of total sales. Of all the product lines, Financial Services had the highest operating profits in 2010, with operating profits equal to 20.1% of sales. (However, Financial Services only accounts for 6% of total sales at Toyota Motor). Automotive had the lowest operating profit margin in 2010, with the operating profit showing a loss equivalent to 0.5% of sales. (This product line is the largest product line at Toyota Motor, accounting for approximately 91% of sales in 2010). However, in 2009, Financial Services had the lowest profit margin (-5.3% of sales versus -2.1% for Automotive).
Inventory Analysis
As of March 2010, the value of the company's inventory totalled ¥1.42 trillion. Since the cost of goods sold was ¥15.27 trillion for the year, the company had 34 days of inventory on hand (another way to look at this is to say that the company turned over its inventory 10.7 times per year). Although the inventory level dropped by ¥37.02 billion during FY2010, there was an increase in days in inventory from March 2009, when the company had ¥1.46 trillion, which was 31 days of sales in inventory.
Research and Development
Research and Development Expenses at Toyota Motor in 2010 were ¥725.35 billion, which is equivalent to 3.8% of sales. In 2010, R&D expenditures dropped both as a percentage of sales and in actual amounts: In 2009, Toyota Motor spent ¥904.08 billion on R&D, which was 4.4% of sales. This company's R&D expenditures in 2010 were less than all three companies as a percentage of sales: Honda Motor Co., Ltd. spent 5.4% of its sales on R&D, Nissan Motor Co Ltd spent 5.1%, and Motors Liquidation Company spent 5.4%. A large portion of the profits that Toyota Motor reported in 2010 are a result of its cut in R&D expenditures. In 2009, the company spent ¥904.08 billion, which is ¥178.73 billion higher than what it spent in 2010. If Toyota Motor had spent the same amount on R&D in 2010 as it spent in 2009, it would have reported profits that were approximately 59% lower (ordinary income before taxes would have been ¥123.39 billion instead of ¥302.12 billion).
Financial Position
As of March 2010, the company's long term debt was ¥7.02 trillion and total liabilities (i.e., all monies owed) were ¥19.30 trillion. The long term debt to equity ratio of the company is 0.64. As of March 2010, the accounts receivable for the company were ¥6.46 trillion, which is equivalent to 124 days of sales. This is higher than at the end of 2009, when Toyota Motor had 100 days of sales in accounts receivable.
Financial Positions
Note that some of the financial ratios stated within this analysis may be distorted because of sales in financing, leasing, etc., which can distort certain ratios. At Toyota Motor, sales of Financial Services totalled ¥1.23 trillion, which was equal to 6.47% of sales in 2010.
Industry Overview
Company YearLT Debt/ Equity
Days AR
Days Inv.
R&D/ Sales
Toyota Motor 2010 0.64 124 34 3.8%
Honda Motor Co., Ltd. 2010 0.53 84 59 5.4%
Nissan Motor Co Ltd 2010 0.88 155 53 5.1%
Motors Liquidation Company 2008 N/A 19 33 5.4%
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Company Fundamentals\Summary Analysis
SUMMARY ANALYSIS: Toyota Motor Corporation Per Share- Japanese Yen
Year Price Value Ratios Equity Capital Earnings Dividends
(A): INCLUDES OR EXCLUDES EXTRAORDINARY CHARGE OR CREDIT - - INCLS 0.79 PRETAX CHG IN FIS 2010, - INCLS 70.35 PRETAX CHG IN FIS 2009, - INCLS 3.57 PRETAX CHG IN FIS 2008, - INCLS 1.44 PRETAX CHG IN FIS 2007, - INCLS 1.28 PRETAX CHG IN FIS 2006, - INCLS 43.47 PRETAX CR & 62.93 PRETAX CHG IN FIS 2005 (INCLS 43.47 PRETAX CR & 62.93 PRETAX CHG MAR 2005), - INCLS 31.58 PRETAX CR & 0.90 PRETAX CHG IN FIS 2004
(B): MAJOR ACCOUNTING STANDARDS SWITCH
(C): INCLUDES THE EFFECTS OF A CHANGE IN ACCOUNTING POLICIES OR TAX LAWS - - ADOPTED FIN 47 FOR CONDITIONAL ASSET RETIREMENT OBLIGATIONS AND SFAS 153 FOR EXCHANGES OF NOMONETARY ASSETS IN FIS 2006, EARNINGS IMPACT IMMATERIAL IN BOTH CASES, - ADPTD 150 FOR CERTAIN FINANL INSTRUMENTS WITH CHARACTERISTICS OF BOTH LIABS & EQUITY, 149, AN AMDMT OF STATEMENT 133, 145, AN AMDMT TO SFAS 13, TO ELIMINATE THE REQMNT THAT GN/LOSS FROM EXTNG OF DEBT TO BE TREATED AS XORD ITEM, 143 FOR ASSET RET'T OBLGNS & FIN 46 FOR CONSLDN OF VARIABLE INTEREST ENTITIES, EITF 00-21, EITF 02-9 & EITF 01-8 IN FIS 2004
(D): ACQ'D - TOYOTA AUTO BODY CO LTD, KANTO AUTO WORKS LTD, CENTRAL MOTOR CO LTD & PT TOYOTA MOTOR MANUFACTURING INDONESIA IN FIS 2004, (SOLD 3 J-PHONE GROUP) IN 2001
(E): BASED ON AVERAGE SHARES OUTSTANDING, - FULLY DILUTED EARNINGS FOR THE 12 MOS ENDED MAR 200 WERE 540.44, - FULLY DILUTED EARNINGS FOR THE 12 MOS ENDED MAR 2007 WERE 511.80, - FULLY DILUTED EARNINGS FOR THE 12 MOS ENDED MAR 2006 WERE 421.62, - FULLY DILUTED EARNINGS FOR THE 12MOS ENDED MAR 2005 WERE 355.28--, - FULLY DILUTED EARNINGS FOR THE 12MOS ENDED MAR 2004 WERE 342.86, FULLY DILUTED EARNINGS FOR THE 12MOS ENDED MAR 2003 WERE 272.73
Company Fundamentals\Earnings & Dividends Analysis
EARNINGS AND DIVIDENDS ANALYSIS: Toyota Motor Corporation Per Share- Japanese Yen Fiscal Year Ends in March
(A): INCLUDES OR EXCLUDES EXTRAORDINARY CHARGE OR CREDIT - - INCLS 0.79 PRETAX CHG IN FIS 2010, - INCLS 70.35 PRETAX CHG IN FIS 2009, - INCLS 3.57 PRETAX CHG IN FIS 2008, - INCLS 1.44 PRETAX CHG IN FIS 2007, - INCLS 1.28 PRETAX CHG IN FIS 2006, - INCLS 43.47 PRETAX CR & 62.93 PRETAX CHG IN FIS 2005 (INCLS 43.47 PRETAX CR & 62.93 PRETAX CHG MAR 2005), - INCLS 31.58 PRETAX CR & 0.90 PRETAX CHG IN FIS 2004
(B): MAJOR ACCOUNTING STANDARDS SWITCH
(C): INCLUDES THE EFFECTS OF A CHANGE IN ACCOUNTING POLICIES OR TAX LAWS - - ADOPTED FIN 47 FOR CONDITIONAL ASSET RETIREMENT OBLIGATIONS AND SFAS 153 FOR EXCHANGES OF NOMONETARY ASSETS IN FIS 2006, EARNINGS IMPACT IMMATERIAL IN BOTH CASES, - ADPTD 150 FOR CERTAIN FINANL INSTRUMENTS WITH CHARACTERISTICS OF BOTH LIABS & EQUITY, 149, AN AMDMT OF STATEMENT 133, 145, AN AMDMT TO SFAS 13, TO ELIMINATE THE REQMNT THAT GN/LOSS FROM EXTNG OF DEBT TO BE TREATED AS XORD ITEM, 143 FOR ASSET RET'T OBLGNS & FIN 46 FOR CONSLDN OF VARIABLE INTEREST ENTITIES, EITF 00-21, EITF 02-9 & EITF 01-8 IN FIS 2004
(D): ACQ'D - TOYOTA AUTO BODY CO LTD, KANTO AUTO WORKS LTD, CENTRAL MOTOR CO LTD & PT TOYOTA MOTOR MANUFACTURING INDONESIA IN FIS 2004, (SOLD 3 J-PHONE GROUP) IN 2001
(E): BASED ON AVERAGE SHARES OUTSTANDING, - FULLY DILUTED EARNINGS FOR THE 12 MOS ENDED MAR 200 WERE 540.44, - FULLY DILUTED EARNINGS FOR THE 12 MOS ENDED MAR 2007 WERE 511.80, - FULLY DILUTED EARNINGS FOR THE 12 MOS ENDED MAR 2006 WERE 421.62, - FULLY DILUTED EARNINGS FOR THE 12MOS ENDED MAR 2005 WERE 355.28--, - FULLY DILUTED EARNINGS FOR THE 12MOS ENDED MAR 2004 WERE 342.86, FULLY DILUTED EARNINGS FOR THE 12MOS ENDED MAR 2003 WERE 272.73
reliable, but accuracy, completeness and opinions are not guaranteed.
Financial Statement AnalysesFinancial Statement Analyses\Balance Sheet - Common Size
Balance Sheet - (Common Size): Toyota Motor Corporation Figures are expressed as Percent of Total Assets. Total Assets are in millions of Japanese Yen.
Fiscal Year 2010 2009 2008 2007 2006
Fiscal Year End Date
3/31/2010 3/31/2009 3/31/2008 3/31/2007 3/31/2006
Assets
Total Assets 30,226,670.0 28,912,526.0 32,346,843.0 32,476,736.0 28,624,880.0
Financial Statement Analyses\Income Statement - Common Size
Income Statement - (Common Size): Toyota Motor Corporation Figures are expressed as Percent of Net Sales or Revenues. Net Sales or Revenues are in millions of Japanese Yen.
Financial Statement Analyses\Sources of Capital - Net Change
Sources of Capital: Toyota Motor Corporation Currency figures are in millions of Japanese Yen. Year to year % changes pertain to reported Balance Sheet values.
Fiscal Year 2010 2009 2008 2007 2006
Fiscal Year End Date
3/31/2010 3/31/2009 3/31/2008 3/31/2007 3/31/2006
Total Capital 17,945,852.0 16,902,206.0 18,508,125.0 18,727,921.0 16,790,519.0
Percent of Total Capital
Short Term Debt 30.6% 37.4% 33.7% 31.3% 28.3%
Long Term Debt 39.1% 37.3% 32.3% 33.4% 33.6%
Other Liabilities 1.3% 1.7% 1.5% 0.7% 0.8%
Total Liabilities 107.5% 108.3% 107.1% 106.9% 104.1%
Minority Interest 3.2% 3.2% 3.5% 3.4% 3.5%
Preferred Stock 0.0% 0.0% 0.0% 0.0% 0.0%
Retained Earnings 64.5% 68.2% 67.0% 62.8% 62.3%
Common Equity 57.7% 59.5% 64.1% 63.2% 62.9%
Total Capital 100.0% 100.0% 100.0% 100.0% 100.0%
Year to Year Net Changes
Short Term Debt -81,918.7 8,903.2 36,264.5 110,860.0 122,416.0
Long Term Debt 71,394.0 31,953.8 -28,165.4 62,309.5 62,556.5
Other Liabilities -6,831.0 1,548.3 15,144.8 -1,272.6 5,508.6
Total Liabilities 98,443.8 -150,886.0 -19,175.1 253,754.9 268,971.9