TOYOTA

1
TOYOTA
Ye, Ding Ma, Vicki Nasser, Yalena Jones,
Jason Sun, LiangChen



2
Founder
The company was founded by Kiichiro Toyoda, who
in 1933 established the company as an automobile
department in his father's loom factory-Toyoda
Automatic Loom Works, Ltd. The department
concentrated on building fuel-efficient vehicles
and completed its first experimental vehicles in
1935. In 1937 Toyoda established Toyota Motor
Co., Ltd.
Kiichro Toyoda
3
Company History
Toyota launched its first small car (Model AA) in
1936. The production of vehicles outside Japan
began in 1959. The 'Toyota Production System
was established in the late 1950s Toyota is the
world's third largest manufacturer of
automobiles. It is by far the largest Japanese
automotive manufacturer, producing more than 4.5
million vehicles per year, equivalent to one
every six seconds.
4
Car History
1936 Toyota Model AA
1951 Toyota Toyopet
1961 Toyota Publica UP10
1955 Toyota Crown RS
1968 Toyota 2000GT
1964 Toyota Corona RT40
5
Board of Directors
6
Stock Owership
 
7
Products
The Toyota Land Cruiser is the most expensive car
out of the popular vehicles that Toyota
manufacturers and sells. This is due to the fact
that it has a niche market while, on the other
spectrum. It is a luxury family car with high
protection
The Corolla is marketed towards the younger or
more price-sensitive market. It is suitable for
medium-lower class people. It is one of the most
common seen vehicles in United States.




The Camry is marketed towards the medium-upper
class people. It is suitable for businessman and
also, it is a favorite family car.
The MR2 Spyder is designed as a Sporty Utilities
Car. It has a high horse power and convertible
externals. It has attracted many fashionable
people.
8
Toyota Car Prices
Camry XLE
Land Cruiser
MR2
Corolla LE
9
Major Competitors
General Motor
Ford
Honda
10
Market Capitalization
11
Industry Comparison
12
Growth Ratios
TMs Growth Rates as FAIR.
13
Price Ratios
The P/E ratio of TOYOTA is POOR. The Price/Book
Value of TM is FAIR.
14
Financial Condition Ratio
Debt/Equity ratio is EXCELLENT. Current ratio is
ACCEPTABLE. Quick Ratio is POOR.
15
Profit Margin Ratios
5year gross margin is UNSATISFACTORY. 5year
pretax margins and net profit margins is GREAT.
16
Investment Return Ratios
Return on Equity ratio of TM is FAIR. Return on
Capital is GREAT.
17
Management Efficiency Ratios
Management efficiency is EXCELLENT.
18
Overall Conclusion of Ratios
Overall Conclusion of Ratios GOOD
19
Holding Period Return
HPR of Toyota Motor is Under priced
20
Free Cash Flow of Equity
21
Discounted Cash Flow
Toyota Motors Cash Flow is Healthy
22
Weighted Average Cost of Capital
Using the CAPMs Ke
Toyota Motors Stock is Under priced
23
Market Efficiency

• NON SPECIFIC COMPANY- GOOD NEWS
• General Motors outlined a restructuring of the
  elimination of at least 25,000 jobs in the U.S.
  over the next four years, which is definitely
  GOOD NEWS for competitors like Toyota.

NO FORM of Market Efficiency
24
Market Efficiency

• SPECIFIC COMPANY- GOOD NEWS
• Toyota, GM Earn Top Spots in Quality Poll

Its a GOOD NEWS.
A WEAK efficiency
25
M M Theory of WACC

• No available model

26
Risk Analysis
27
Buy, Sell or Hold??
FIVE YEAR CHART
The stock is a GOOD BUY.
28
Strengths and Weaknesses

• Strengths
• High Growth Rate
• Good Financial Condition
• Low Debt/Equity Ratio
• HPR is low

• Weaknesses
• Low Profit Margin
• Fair Price Ratio
• 21 Ownership

• Our recommendations
• To Buy or to Hold this Stock

29

• Since its founding, our company has been aiming
  to enrich society through car making. Our goal is
  to be a good corporate citizen, constantly
  winning the trust and respect of the
  international community. Continuing in the 21st
  century, we aim for stable long-term growth,
  while striving for harmony with people, society
  and the environment.