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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.22
TM's Cash to Debt is ranked lower than
58% of the 1170 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 1.02 vs. TM: 0.22 )
TM' s 10-Year Cash to Debt Range
Min: 0.16   Max: No Debt
Current: 0.22

Equity to Asset 0.35
TM's Equity to Asset is ranked lower than
53% of the 1175 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 0.50 vs. TM: 0.35 )
TM' s 10-Year Equity to Asset Range
Min: 0.34   Max: 0.5
Current: 0.35

0.34
0.5
Interest Coverage 57.51
TM's Interest Coverage is ranked higher than
78% of the 793 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 15.88 vs. TM: 57.51 )
TM' s 10-Year Interest Coverage Range
Min: 4.42   Max: 87.97
Current: 57.51

4.42
87.97
F-Score: 7
Z-Score: 1.70
M-Score: -2.58
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 5.99
TM's Operating margin (%) is ranked higher than
73% of the 1165 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 5.27 vs. TM: 5.99 )
TM' s 10-Year Operating margin (%) Range
Min: -2.25   Max: 9.64
Current: 5.99

-2.25
9.64
Net-margin (%) 4.36
TM's Net-margin (%) is ranked higher than
70% of the 1165 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 3.84 vs. TM: 4.36 )
TM' s 10-Year Net-margin (%) Range
Min: -2.13   Max: 6.87
Current: 4.36

-2.13
6.87
ROE (%) 7.92
TM's ROE (%) is ranked higher than
68% of the 1159 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 8.52 vs. TM: 7.92 )
TM' s 10-Year ROE (%) Range
Min: -4.34   Max: 14.47
Current: 7.92

-4.34
14.47
ROA (%) 2.71
TM's ROA (%) is ranked higher than
59% of the 1172 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 3.92 vs. TM: 2.71 )
TM' s 10-Year ROA (%) Range
Min: -1.5   Max: 5.29
Current: 2.71

-1.5
5.29
ROC (Joel Greenblatt) (%) 11.74
TM's ROC (Joel Greenblatt) (%) is ranked higher than
67% of the 1168 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 13.58 vs. TM: 11.74 )
TM' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -4.03   Max: 21.73
Current: 11.74

-4.03
21.73
Revenue Growth (%) 4.90
TM's Revenue Growth (%) is ranked higher than
61% of the 959 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 7.40 vs. TM: 4.90 )
TM' s 10-Year Revenue Growth (%) Range
Min: -9.9   Max: 14.8
Current: 4.9

-9.9
14.8
EBITDA Growth (%) 13.00
TM's EBITDA Growth (%) is ranked higher than
78% of the 855 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 7.20 vs. TM: 13.00 )
TM' s 10-Year EBITDA Growth (%) Range
Min: -32.6   Max: 38.1
Current: 13

-32.6
38.1
EPS Growth (%) 65.70
TM's EPS Growth (%) is ranked higher than
93% of the 705 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 11.30 vs. TM: 65.70 )
TM' s 10-Year EPS Growth (%) Range
Min: -49.2   Max: 65.7
Current: 65.7

-49.2
65.7
» TM's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

TM Guru Trades in Q1 2013

Steven Cohen 4,488 sh (New)
Sarah Ketterer 39,091 sh (+12.53%)
Ken Heebner 300,000 sh (+7.14%)
Bill Gates 153,300 sh (unchged)
Jean-Marie Eveillard Sold Out
Donald Smith 347,093 sh (-0.05%)
Ken Fisher 4,526,707 sh (-1.13%)
John Rogers 3,821 sh (-14.88%)
Charles Brandes 1,162,329 sh (-15.95%)
Manning & Napier Advisors, Inc 1,061,920 sh (-19%)
NWQ Managers 2,787 sh (-24.94%)
» More
Q2 2013

TM Guru Trades in Q2 2013

Julian Robertson 318,900 sh (New)
George Soros 76,000 sh (New)
Ken Fisher 4,530,323 sh (+0.08%)
Bill Gates 153,300 sh (unchged)
Ken Heebner 300,000 sh (unchged)
Sarah Ketterer 38,747 sh (-0.88%)
Donald Smith 297,935 sh (-14.16%)
NWQ Managers 2,177 sh (-21.89%)
Charles Brandes 851,639 sh (-26.73%)
Steven Cohen 3,158 sh (-29.63%)
John Rogers 2,430 sh (-36.4%)
Manning & Napier Advisors, Inc 5,710 sh (-99.46%)
» More
Q3 2013

TM Guru Trades in Q3 2013

Jim Simons 253,600 sh (New)
John Rogers 4,021 sh (+65.47%)
Sarah Ketterer 45,506 sh (+17.44%)
Steven Cohen 3,689 sh (+16.81%)
Ken Fisher 4,546,748 sh (+0.36%)
Bill Gates 153,300 sh (unchged)
George Soros Sold Out
Manning & Napier Advisors, Inc Sold Out
Julian Robertson Sold Out
Donald Smith 297,836 sh (-0.03%)
Ken Heebner 280,000 sh (-6.67%)
Charles Brandes 697,892 sh (-18.05%)
NWQ Managers 307 sh (-85.9%)
» More
Q4 2013

TM Guru Trades in Q4 2013

Louis Moore Bacon 80,000 sh (New)
Sarah Ketterer 118,719 sh (+160.89%)
Jim Simons 517,200 sh (+103.94%)
Donald Smith 440,684 sh (+47.96%)
John Rogers 5,698 sh (+41.71%)
Ken Fisher 4,571,217 sh (+0.54%)
NWQ Managers Sold Out
Steven Cohen Sold Out
Bill Gates Sold Out
Charles Brandes 671,010 sh (-3.85%)
Ken Heebner 145,000 sh (-48.21%)
» More
» Details

Insider Trades

Latest Guru Trades with TM

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Donald Smith 2013-12-31 Add 47.96%0.36%$118.61 - $131.65 $ 108.47-14%440684
Julian Robertson 2013-09-30 Sold Out 2.4%$120.25 - $134.33 $ 108.47-15%0
Charles Brandes 2013-09-30 Reduce -18.05%0.23%$120.25 - $134.33 $ 108.47-15%697892
George Soros 2013-09-30 Sold Out 0.1%$120.25 - $134.33 $ 108.47-15%0
Julian Robertson 2013-06-30 New Buy2.4%$99.95 - $129.72 $ 108.47-7%318900
Charles Brandes 2013-06-30 Reduce -26.73%0.37%$99.95 - $129.72 $ 108.47-7%851639
Donald Smith 2013-06-30 Reduce -14.16%0.11%$99.95 - $129.72 $ 108.47-7%297935
George Soros 2013-06-30 New Buy0.1%$99.95 - $129.72 $ 108.47-7%76000
Jean-Marie Eveillard 2013-03-31 Sold Out 0.0033%$93.25 - $105.93 $ 108.478%0
Jean-Marie Eveillard 2012-12-31 New Buy$74.5 - $92.63 $ 108.4732%10000
Donald Smith 2012-06-30 Add 22.93%0.17%$74.48 - $86.63 $ 108.4737%369197
Donald Smith 2011-06-30 Add 22.34%0.16%$76.12 - $83.63 $ 108.4736%320595
Donald Smith 2011-03-31 New Buy0.65%$78.63 - $93.68 $ 108.4727%262050
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Toyota Motor Corp

John Rogers Comments on Toyota Motors - Aug 17, 2012

From his second quarter commentary:

In our international and global portfolios, we recently made a large investment in Toyota Motors (TM), a 75-year old company whose best days, in our opinion, are still ahead. While it is not a play on Cloud Computing or China or the iPhone, it is a multi-billion dollar business that has delighted customers globally with its well-engineered and reliable, low-cost products. Allow us to share our views that drive our investment thesis:

- It does not manufacture in China, yet ranks among the lowest cost producers of its products in the world
- It does not charge the highest prices, yet delivers the best quality in each of its product segments
- It leads in next generation technologies in its industry and is usually the first to commercially deploy them
- Hundreds of books have been published on its business model, yet no company has replicated its recipe to secure sustainable competitive advantages
- It is dominant in its home market and even more successful overseas, with 50% of revenues stemming from exports
- It has one of the strongest balance sheets in its sector

A Perfect Storm

How can such a terrific franchise also be a terrific investment bargain? A perfect storm erupted for Toyota and the stock fell more than -50%. Not only did the industry undergo a severe downturn, but its manufacturing facilities suffered from natural catastrophes, creating cost, quality and supply chain problems. Like any astute leadership team, management took advantage of the crisis and engaged in deeper soul searching to uncover underlying problems hidden by past success. One key problem was that the company had become too focused on production targets, instead of on the changing priorities and tastes of consumers.

A Bold Move Forward

While Toyota has always prided itself on making small but continuous improvements, it made a bold move to fundamentally overhaul its organizational structure, manufacturing base and product lineup. Design engineers were given equality of status alongside production engineers. Sales and distribution channels received a direct voice to Design Teams. This 360 degree feedback loop ensures that products are designed, engineered and produced to 'wow' the consumer on cost and efficiency, as well as on aesthetics and feel.

With industry sales recovering, the company's sales have stabilized, profits have improved and cash-flow generation has increased dramatically. Yet, the stock remains undervalued due to headwinds from currency appreciation. We take solace in the fact that the company has a proven track record of pioneering manufacturing practices, which deliver ongoing improvement in efficiency. There is no reason to believe Toyota Motors won't overcome this currency headwind in the future, just as they have in the past, by reducing costs, improving productivity and increasing their overseas production ratio. Its engineering knowhow and manufacturing prowess has allowed it to offer low-priced, entry-level cars (Corolla & Camry) to next generation technology hybrid cars (Prius) to highend, luxury models (Lexus). The CEO, Akio Toyoda, personally test-drives each car model and recommends design and feature changes. In our judgment, he is the right person to lead a company that needs to master the soft parts of the car (design, soul, feel) as it has the hard ones (reliability, fuel efficiency and value engineering).

Check out John Rogers latest stock trades

Top Ranked Articles about Toyota Motor Corp

Guru Stocks at 52-Week Lows: TM, C, MTU, BCS
According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows. Read more...
Manning & Napier Advisors – Heavy Selling
The third quarter portfolio update of Manning & Napier Advisors lists 330 stocks, with 33 new ones. The portfolio’s total value is $21.26 billion, with a quarter-over-quarter turnover of 13%. The portfolio is currently weighted with these top three sectors: consumer cyclical at 17.3%, energy at 11.1%, and industrials at 9.7%. The hedge fund has averaged a return of 11.36% over 12 months. Read more...
Bright Spot: Auto Sales Best Month in Five Years
A vital indicator of consumer spending, the U.S. auto sales spike for the month of August is very positive news. The three top-selling auto makers, General Motors, Toyota, and Ford, are reporting sales increases of 15% - 18.4% year over year, making August 2013 the best-selling month auto makers have seen in five years. Read more...
Third Avenue Management Comments on Toyota Industries
Toyota Motor (TAH)(TM) is a business school case study in the making. Since 2009, Toyota Motor has faced quality issues, increasing competitive pressures and the impacts of a strong yen exacerbated by production/supply chain issues wrought by the Great East Japan earthquake/tsunami and subsequent massive flooding in Thailand. Against these headwinds, the company has been taking steps to reinvigorate itself, including recruiting a family member, Akio Toyoda, back to the helm. He has so far succeeded in aggressively addressing quality issues at Toyota. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 9.40
TM's P/E(ttm) is ranked higher than
83% of the 1022 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 15.50 vs. TM: 9.40 )
TM' s 10-Year P/E(ttm) Range
Min: 7.48   Max: 56.52
Current: 9.4

7.48
56.52
P/B 1.20
TM's P/B is ranked higher than
66% of the 1154 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 1.41 vs. TM: 1.20 )
TM' s 10-Year P/B Range
Min: 0.76   Max: 2.35
Current: 1.2

0.76
2.35
P/S 0.70
TM's P/S is ranked higher than
53% of the 1198 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 0.61 vs. TM: 0.70 )
TM' s 10-Year P/S Range
Min: 0.35   Max: 1.14
Current: 0.7

0.35
1.14
PFCF 20.10
TM's PFCF is ranked higher than
52% of the 609 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 16.80 vs. TM: 20.10 )
TM' s 10-Year PFCF Range
Min: 3.66   Max: 59.85
Current: 20.1

3.66
59.85
EV-to-EBIT 4.30
TM's EV-to-EBIT is ranked higher than
94% of the 1050 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 12.08 vs. TM: 4.30 )
TM' s 10-Year EV-to-EBIT Range
Min: 10.6   Max: 150.2
Current: 4.3

10.6
150.2
PEG 0.50
TM's PEG is ranked higher than
79% of the 681 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 0.87 vs. TM: 0.50 )
TM' s 10-Year PEG Range
Min: 0.22   Max: 2.69
Current: 0.5

0.22
2.69
Shiller P/E 31.20
TM's Shiller P/E is ranked higher than
50% of the 516 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 20.03 vs. TM: 31.20 )
TM' s 10-Year Shiller P/E Range
Min: 6.5   Max: 37.74
Current: 31.2

6.5
37.74

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.30
TM's Dividend Yield is ranked higher than
80% of the 888 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 1.68 vs. TM: 2.30 )
TM' s 10-Year Dividend Yield Range
Min: 0.88   Max: 1.86
Current: 2.3

0.88
1.86
Dividend Payout 0.20
TM's Dividend Payout is ranked higher than
70% of the 782 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 0.23 vs. TM: 0.20 )
TM' s 10-Year Dividend Payout Range
Min: 0.33   Max: 3.33
Current: 0.2

0.33
3.33
Dividend growth (3y) 23.90
TM's Dividend growth (3y) is ranked higher than
74% of the 423 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 23.90 vs. TM: 23.90 )
TM' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 23.9
Current: 23.9

0
23.9
Yield on cost (5-Year) 5.47
TM's Yield on cost (5-Year) is ranked higher than
88% of the 906 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 1.89 vs. TM: 5.47 )
TM' s 10-Year Yield on cost (5-Year) Range
Min: 2.09   Max: 4.42
Current: 5.47

2.09
4.42
Share Buyback Rate -0.30
TM's Share Buyback Rate is ranked higher than
76% of the 652 Companies
in the Global Auto Manufacturers industry.

( Industry Median: -1.00 vs. TM: -0.30 )
TM' s 10-Year Share Buyback Rate Range
Min: 3.4   Max: -0.8
Current: -0.3

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 2.90
TM's Price/Net Current Asset Value is ranked higher than
81% of the 302 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 6.60 vs. TM: 2.90 )
TM' s 10-Year Price/Net Current Asset Value Range
Min: 0   Max: 0
Current: 2.9

Price/Tangible Book 1.40
TM's Price/Tangible Book is ranked higher than
64% of the 1099 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 1.50 vs. TM: 1.40 )
TM' s 10-Year Price/Tangible Book Range
Min: 0.8   Max: 3.01
Current: 1.4

0.8
3.01
Price/DCF (Projected) 0.90
TM's Price/DCF (Projected) is ranked higher than
78% of the 520 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 1.40 vs. TM: 0.90 )
TM' s 10-Year Price/DCF (Projected) Range
Min: 0.6   Max: 23.04
Current: 0.9

0.6
23.04
Price/Median PS Value 1.00
TM's Price/Median PS Value is ranked higher than
80% of the 1113 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 1.10 vs. TM: 1.00 )
TM' s 10-Year Price/Median PS Value Range
Min: 0.56   Max: 2.25
Current: 1

0.56
2.25
Price/Peter Lynch Fair Value 0.40
TM's Price/Peter Lynch Fair Value is ranked higher than
91% of the 309 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 0.80 vs. TM: 0.40 )
TM' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.44   Max: 2.47
Current: 0.4

0.44
2.47
Price/Graham Number 0.80
TM's Price/Graham Number is ranked higher than
78% of the 987 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 1.00 vs. TM: 0.80 )
TM' s 10-Year Price/Graham Number Range
Min: 0.66   Max: 2.38
Current: 0.8

0.66
2.38
Earnings Yield (Greenblatt) 23.20
TM's Earnings Yield (Greenblatt) is ranked higher than
94% of the 1075 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 8.10 vs. TM: 23.20 )
TM' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.7   Max: 23.4
Current: 23.2

0.7
23.4
Forward Rate of Return (Yacktman) 45.31
TM's Forward Rate of Return (Yacktman) is ranked higher than
97% of the 722 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 8.27 vs. TM: 45.31 )
TM' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -29.9   Max: 46.5
Current: 45.31

-29.9
46.5

Business Description

Industry: Autos » Auto Manufacturers
Compare:VLKPY, BAMXF, DDAIF, NSANY, GM » details
Traded in other countries:TYT.UK, 7203.Japan, 7203.Japan, TOM.Germany, TOMA.Germany, TOYOF.USA
Toyota Motor Corp., is a limited liability, joint-stock company, which was incorporated under the Corporation Act of Japan. It commenced operations in 1933 as the automobile division of Toyota Industries Corporation and became a separate company on August 28, 1937. In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the Toyota Motor Corporation of today. The company conducts business in the automotive industry. It also conducts business in finance and other industries. The Company's business segments are automotive operations, financial services operations and all other operations. Its automotive operations include the design, manufacture, assembly and sale of passenger cars, minivans and commercial vehicles such as trucks and related parts and accessories. Through its subsidiary, Daihatsu Motor Co., Ltd. ('Daihatsu'), produces and sells mini-vehicles and compact cars. Hino Motors, Ltd. ('Hino'), also a subsidiary of the Company which produces and sells commercial vehicles such as trucks and buses. Its markets for its automobiles are Japan, North America, Europe and Asia. The Company's financial services business consists of providing finance to dealers and their customers for the purchase or lease of Toyota vehicles. The Company through financial services also provides retail leasing through the purchase of lease contracts originated by its dealers. The Company's all other operations business segment includes the design and manufacture of prefabricated housing, information technology related businesses including an e-commerce marketplace called GAZOO.com, and sales promotions for KDDI communication related products (predominantly the au brand). The Company's competitors in Europe are Volkswagen, Opel, Renault, Ford and Peugeot, as well as Korean manufacturers Hyundai and Kia. Its competitors for retail financing and retail leasing include commercial banks, credit unions and other finance companies. The Company is subject to laws in various jurisdictions regulating the levels of pollutants generated by its plants. In addition, it is also subject to regulations relating to the emission levels, fuel economy, noise and safety of its products.

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