Toyota

TOYOTA MOTOR CORPTMNYSE:

November 15, 2015

BUY HOLD SELL

BUYBUYBUYBUYBUYRATING SINCE 04/02/2012

TARGET PRICE $140.60A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F

Annual Dividend Rate$2.92

Annual Dividend Yield2.39%

Beta0.69

Market Capitalization$208.0 Billion

52-Week Range$105.00-$145.80

Price as of 11/12/2015$121.73

Sector: Consumer Goods & Svcs Sub-Industry: Automobile Manufacturers Source: S&P

This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet Ratings nor any other party guarantees its accuracyor makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet Ratings. Copyright(c) 2006-2015. All rights reserved.

PAGE 1Report Date: November 15, 2015

TM BUSINESS DESCRIPTIONToyota Motor Corporation designs, manufactures,

assembles, and sells passenger cars, minivans and

commercial vehicles, and related parts and

accessories. The company operates through

Automotive, Financial Services, and All Other

segments.

STOCK PERFORMANCE (%)

3 Mo. 1 Yr. 3 Yr (Ann)

Price Change -4.47 2.47 16.14

GROWTH (%)

Last Qtr 12 Mo. 3 Yr CAGR

Revenues -9.31 -11.38 -4.23

Net Income -8.78 -1.31 35.58

EPS -8.20 -0.80 35.56

RETURN ON EQUITY (%)

TM Ind Avg S&P 500

Q1 2015 12.49 1.33 12.91

Q1 2014 12.27 5.96 14.28

Q1 2013 9.42 4.41 13.75

P/E COMPARISON

10.91

TM

13.51

Ind Avg

21.56

S&P 500

EPS ANALYSIS¹ ($)

2015

Q1

3.36

2014

Q4

2.36

Q3

2.61

Q2

2.83

Q1

3.66

2013

Q4

2.02

Q3

2.72

Q2

2.85

Q1

3.58

NA = not available NM = not meaningful

1 Compustat fiscal year convention is used for all fundamentaldata items.

Weekly Price: (US$) SMA (50) SMA (100) 2 Years1 Year

2013 2014 2015

100

105

110

115

120

125

130

135

140

145

TARGET PRICE $140.60TARGET PRICE $140.60TARGET PRICE $140.60TARGET PRICE $140.60TARGET PRICE $140.60

Rating History

BUY

0

3

5Volume in Millions

COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History

RECOMMENDATIONWe rate TOYOTA MOTOR CORP (TM) a BUY. This is driven by several positive factors, which we believe

should have a greater impact than any weaknesses, and should give investors a better performance

opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its

attractive valuation levels, good cash flow from operations, solid stock price performance and notable return

on equity. We feel its strengths outweigh the fact that the company has had generally high debt management

risk by most measures that we evaluated.

HIGHLIGHTSThe return on equity has improved slightly when compared to the same quarter one year prior. This can be

construed as a modest strength in the organization. When compared to other companies in the Automobiles

industry and the overall market, TOYOTA MOTOR CORP's return on equity has significantly outperformed in

comparison with the industry average, but has underperformed when compared to that of the S&P 500.

Net operating cash flow has slightly increased to $9,200.00 million or 6.41% when compared to the same

quarter last year. Despite an increase in cash flow, TOYOTA MOTOR CORP's average is still marginally south

of the industry average growth rate of 10.20%.

After a year of stock price fluctuations, the net result is that TM's price has not changed very much. Although

its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the

performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our

attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an

overall down market. However, in any other environment, this stock still has good upside potential despite

the fact that it has already risen in the past year.

TOYOTA MOTOR CORP's earnings per share declined by 8.2% in the most recent quarter compared to the

same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is

poised for EPS growth in the coming year. During the past fiscal year, TOYOTA MOTOR CORP increased its

bottom line by earning $11.46 versus $11.17 in the prior year. This year, the market expects an improvement in

earnings ($12.66 versus $11.46).


November 15, 2015

Sector: Consumer Goods & Svcs Automobile Manufacturers Source: S&P

Annual Dividend Rate

$2.92

Annual Dividend Yield

2.39%

Beta

0.69

Market Capitalization

$208.0 Billion

52-Week Range

$105.00-$145.80

Price as of 11/12/2015

$121.73



PEER GROUP ANALYSIS

REVENUE GROWTH AND EBITDA MARGIN*

EBITDA Margin (TTM)

Rev

enue

Gro

wth

(TTM

)

-15%

35%

25%-10%

FAVORABLE

UNFAVORABLE

HOGHOGHOGHOGHOG

WGOWGOWGOWGOWGO

GMGMGMGMGM

FFFFF

KNDIKNDIKNDIKNDIKNDI

THOTHOTHOTHOTHO

TSLATSLATSLATSLATSLA

TMTMTMTMTM

Companies with higher EBITDA margins and

revenue growth rates are outperforming companies

with lower EBITDA margins and revenue growth

rates. Companies for this scatter plot have a market

capitalization between $458.8 Million and $208

Billion. Companies with NA or NM values do not

appear.

*EBITDA – Earnings Before Interest, Taxes, Depreciation andAmortization.

REVENUE GROWTH AND EARNINGS YIELD

Earnings Yield (TTM)

Rev

enue

Gro

wth

(TTM

)

-15%

35%

10%-2.5%

FAVORABLE

UNFAVORABLE

HOGHOGHOGHOGHOGHMCHMCHMCHMCHMC

WGOWGOWGOWGOWGO

GMGMGMGMGMFFFFF

KNDIKNDIKNDIKNDIKNDI

THOTHOTHOTHOTHO

TSLATSLATSLATSLATSLA

TMTMTMTMTM

Companies that exhibit both a high earnings yield

and high revenue growth are generally more

attractive than companies with low revenue growth

and low earnings yield. Companies for this scatter

plot have revenue growth rates between -11.4% and

34.1%. Companies with NA or NM values do not

appear.

INDUSTRY ANALYSISThe automobile industry is comprised of companies that design, manufacture, engineer, assemble and market

automobiles and motorcycles as well as provide leasing and financial services. Industry performance is

closely linked with overall economic performance. Major players include General Motors (GM), Ford Motor

Company (F) and Chrysler. This group is commonly referred to as Detroit’s big three. BMW, Daimler (DAI),

Honda (HMC), Hyundai, Mazda, Nissan, Subaru, Toyota (TM) and Harley-Davidson (HOG) are other prominent

players. There are also niche players such as Winnebago Industries (WGO) for motor- homes and Tesla

Motors (TSLA) for high-end electric cars.

Surging oil prices have shifted demand away from SUVs and light trucks to more fuel-efficient options. This

change in consumer preferences has supported German, Japanese and Korean manufacturers, whose

market share has consequently expanded. The big three are trying to adapt their product lines to changing

preferences.

Huge health care and fringe benefits provided to big three employees give foreign competitors a strong

advantage. All three are negotiating new labor contracts with the United Auto Workers (UAW) union. With

these on-going negotiations, the big three hope to reduce the profit-per-vehicle gap. Reduced sales, different

platforms for parts, high raw material costs and tough exchange rates are other hurdles facing the industry.

US congress toughened the Corporate Average Fuel Economy (CAFE) regulations in 2007 that no longer grant

exemptions to light trucks classified as SUVs or passenger vans unless they exceed 10,000 lbs. In the near

future, the standard is to be modified to accommodate many larger vehicles.

Consumer choice in vehicles is more than ever being influenced by fuel efficiency. Automakers are exploring

alternate fuels such as ethanol and electric fuel cells and are delivering hybrid gasoline-electric vehicles and

pure-electric car for sale. The new cars are lighter, provide better fuel efficiency, enhanced safety features,

and many come with tax credits from the government to make costs competitive. Having an auto industry is

considered to be in the strategic interest of America and was bailed-out to help it survive the Great

Recession.

The motorcycle industry is reeling under pressures such as volatile raw material costs, high gasoline prices

and reduced consumer spending. Harley’s heavy motorcycle sales have remained relatively flat, but light

motorcycle sales have been hurt by tough economic conditions.

Manufacturers have recognized growing demand from developing economies and the opportunity to increase

auto parts sourcing from these economies.

PEER GROUP: Automobiles

Recent Market Price/ Net Sales Net Income

Ticker Price ($)Company Name Cap ($M) Earnings TTM ($M) TTM ($M)

TM 121.73TOYOTA MOTOR CORP 208,036 10.91 221,159.00 17,608.00

HOG 48.33HARLEY-DAVIDSON INC 9,273 12.89 6,014.92 784.49

HMC 32.22HONDA MOTOR CO LTD 58,364 13.37 111,941.43 4,323.75

WGO 20.84WINNEBAGO INDUSTRIES 562 13.62 976.51 41.21

GM 35.09GENERAL MOTORS CO 55,147 12.85 152,352.00 5,408.00

F 14.04FORD MOTOR CO 54,725 11.80 145,177.00 4,770.00

KNDI 9.77KANDI TECHNOLOGIES GROUP 459 16.56 188.84 26.76

THO 55.03THOR INDUSTRIES INC 2,888 14.48 4,006.82 199.39

TSLA 212.94TESLA MOTORS INC 27,885 NM 3,788.31 -675.90

The peer group comparison is based on Major Automobile Manufacturers companies of comparable size.


November 15, 2015



$2.92


2.39%

Beta

0.69


$208.0 Billion

52-Week Range

$105.00-$145.80


$121.73



COMPANY DESCRIPTIONToyota Motor Corporation designs, manufactures,

assembles, and sells passenger cars, minivans and

commercial vehicles, and related parts and accessories.

The company operates through Automotive, Financial

Services, and All Other segments. It offers hybrid cars

under the GS450h, Yaris, ES300h, Auris, Avalon, Crown,

IS300h, Corolla Axio/Corolla Fielder, Harrier, Voxy/Noah,

NX300h, RC300h, Esquire, Alphard, and Vellfire names;

fuel cell passenger vehicle under the MIRAI name; and

conventional engine vehicles, including subcompact and

compact cars under the Corolla sedan, Yaris, Vitz, Aygo,

Corolla Axio/Fielder, Porte, Spade, Auris, Etios, Vios, and

AGYA brand names. The company also provides

mini-vehicles, passenger vehicles, commercial vehicles,

and auto parts under the Toyota brand; mid-size cars

under the Camry, REIZ, and Mark X names; luxury cars

under the Lexus, Avalon, and Crown names; Century

limousines; sports cars under the under the Scion tC,

Scion FR-S, and Lexus names; and sport-utility vehicles

under the Sequoia, 4Runner, RAV4, Highlander, FJ

Cruiser, Land Cruiser, and Lexus names. In addition, it

offers pickup trucks under the Tacoma and Tundra

names; minivans under the Alphard, Vellfire, Corolla

Verso, Wish, Noah/Voxy, Esquire, Estima, Sienta, Isis,

and Sienna names; large, medium, and small trucks; and

large, medium, small, and micro-buses. Further, the

company provides financial services, such as retail

financing, retail leasing, wholesale financing, insurance,

and credit cards; and manufactures and sells

prefabricated housing. Additionally, it is involved in the

information technology related businesses, including a

Web portal for automobile information known as

GAZOO.com; and sales promotions of KDDI's

communication-related products primarily the au brand.

The company operates in Japan, North America, Europe,

Asia, Central and South America, Oceania, and Africa.

Toyota Motor Corporation was founded in 1933 and is

headquartered in Toyota City, Japan.

TOYOTA MOTOR CORP

1 Toyota-cho

Toyota City 471-8571

JPN

Phone: 81 565 28 2121

http://www.toyota.co.jp

Employees: 344000

STOCK-AT-A-GLANCEBelow is a summary of the major fundamental and technical factors we consider when determining our

overall recommendation of TM shares. It is provided in order to give you a deeper understanding of our rating

methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is

important to note, however, that these factors only tell part of the story. To gain an even more comprehensive

understanding of our stance on the stock, these factors must be assessed in combination with the stock’s

valuation. Please refer to our Valuation section on page 5 for further information.

FACTOR SCORE

Growth out of 5 stars3.5Measures the growth of both the company's income statement and

cash flow. On this factor, TM has a growth score better than 60% of the

stocks we rate.

weak strong

Total Return out of 5 stars3.5Measures the historical price movement of the stock. The stock

performance of this company has beaten 60% of the companies we

cover.

weak strong

Efficiency out of 5 stars4.0Measures the strength and historic growth of a company's return on

invested capital. The company has generated more income per dollar of

capital than 70% of the companies we review.

weak strong

Price volatility out of 5 stars3.0Measures the volatility of the company's stock price historically. The

stock is less volatile than 50% of the stocks we monitor.

weak strong

Solvency out of 5 stars3.5Measures the solvency of the company based on several ratios. The

company is more solvent than 60% of the companies we analyze.

weak strong

Income out of 5 stars4.0Measures dividend yield and payouts to shareholders. The company's

dividend is higher than 70% of the companies we track.

weak strong

THESTREET RATINGS RESEARCH METHODOLOGY

TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both

price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to

perform against a general benchmark of the equities market and interest rates. While our model is

quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include

expected equities market returns, future interest rates, implied industry outlook and forecasted company

earnings. Objective elements include volatility of past operating revenues, financial strength, and company

cash flows.

Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown

as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of

acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings

growth; and the financial strength of the underlying company as compared to its stock's valuation as

compared to projected earnings growth; and the financial strength of the underlying company as compared

to its stock's performance. These and many more derived observations are then combined, ranked, weighted,

and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of

selecting stocks.


November 15, 2015



$2.92


2.39%

Beta

0.69


$208.0 Billion

52-Week Range

$105.00-$145.80


$121.73



Consensus EPS Estimates² ($)IBES consensus estimates are provided by Thomson Financial

NA

NA

12.66 E

2016(E)

13.51 E

2017(E)

INCOME STATEMENT

Q1 FY15 Q1 FY14

Net Sales ($mil) 57,229.00 63,100.00

EBITDA ($mil) 9,317.00 9,960.00

EBIT ($mil) 6,192.00 6,840.00

Net Income ($mil) 5,294.00 5,803.00

BALANCE SHEET

Q1 FY15 Q1 FY14

Cash & Equiv. ($mil) 40,144.00 43,119.00

Total Assets ($mil) 399,848.00 409,318.00

Total Debt ($mil) 161,074.00 162,795.00

Equity ($mil) 140,909.00 145,281.00

PROFITABILITY

Q1 FY15 Q1 FY14

Gross Profit Margin 25.93% 25.22%

EBITDA Margin 16.28% 15.78%

Operating Margin 10.82% 10.84%

Sales Turnover 0.55 0.61

Return on Assets 4.40% 4.35%

Return on Equity 12.49% 12.27%

DEBT

Q1 FY15 Q1 FY14

Current Ratio 1.09 1.09

Debt/Capital 0.53 0.53

Interest Expense 36.00 39.00

Interest Coverage 172.00 175.38

SHARE DATA

Q1 FY15 Q1 FY14

Shares outstanding (mil) 1,574 1,585

Div / share 0.00 0.00

EPS 3.36 3.66

Book value / share 89.55 91.66

Institutional Own % NA NA

Avg Daily Volume 365,072 254,404

2 Sum of quarterly figures may not match annual estimates due touse of median consensus estimates.

FINANCIAL ANALYSISTOYOTA MOTOR CORP's gross profit margin for the first quarter of its fiscal year 2015 is essentially

unchanged when compared to the same period a year ago. Sales and net income have dropped,

underperforming the average competitor within its industry. TOYOTA MOTOR CORP has weak liquidity.

Currently, the Quick Ratio is 0.82 which shows a lack of ability to cover short-term cash needs. The company's

liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing

by 3.00% from the same quarter last year. Overall, the key liquidity measurements indicate that the company

is in a position in which financial difficulties could develop in the future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the

next 12-months. To learn more visit www.TheStreetRatings.com.


November 15, 2015



$2.92


2.39%

Beta

0.69


$208.0 Billion

52-Week Range

$105.00-$145.80


$121.73



RATINGS HISTORYOur rating for TOYOTA MOTOR CORP has not

changed since 4/2/2012. As of 11/12/2015, the stock

was trading at a price of $121.73 which is 16.5%

below its 52-week high of $145.80 and 15.9% above

its 52-week low of $105.00.

2 Year Chart

2014

$125

$150

BU

Y: $

127.

30

MOST RECENT RATINGS CHANGES

Date Price Action From To

11/12/13 $127.30 No Change Buy Buy

Price reflects the closing price as of the date listed, if available

RATINGS DEFINITIONS &DISTRIBUTION OF THESTREET RATINGS

(as of 11/12/2015)

39.39% Buy - We believe that this stock has the

opportunity to appreciate and produce a total return of

more than 10% over the next 12 months.

32.35% Hold - We do not believe this stock offers

conclusive evidence to warrant the purchase or sale of

shares at this time and that its likelihood of positive total

return is roughly in balance with the risk of loss.

28.26% Sell - We believe that this stock is likely to

decline by more than 10% over the next 12 months, with

the risk involved too great to compensate for any

possible returns.

TheStreet Ratings14 Wall Street, 15th FloorNew York, NY 10005www.thestreet.comResearch Contact: 212-321-5381

Sales Contact: 866-321-8726

VALUATIONBUY. This stock's P/E ratio indicates a discount compared to an average of 13.51 for the Automobiles industry

and a significant discount compared to the S&P 500 average of 21.56. For additional comparison, its

price-to-book ratio of 1.36 indicates a discount versus the S&P 500 average of 2.72 and a discount versus the

industry average of 2.71. The current price-to-sales ratio is well below the S&P 500 average and is also below

the industry average, indicating a discount. Upon assessment of these and other key valuation criteria,

TOYOTA MOTOR CORP proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5Price/Earningspremium discount

TM 10.91 Peers 13.51

• Discount. A lower P/E ratio than its peers can

signify a less expensive stock or lower growth

expectations.

• TM is trading at a discount to its peers.

1 2 3 4 5Price/CashFlowpremium discount

TM 6.11 Peers 5.91

• Average. The P/CF ratio, a stock’s price divided by

the company's cash flow from operations, is useful

for comparing companies with different capital

requirements or financing structures.

• TM is trading at a valuation on par to its peers.

1 2 3 4 5Price/Projected Earningspremium discount

TM 9.01 Peers 10.16

• Average. An average price-to-projected earnings

ratio can signify an industry neutral stock price and

average future growth expectations.

• TM is trading at a valuation on par with its peers.

1 2 3 4 5Price to Earnings/Growthpremium discount

TM 1.05 Peers 0.72

• Premium. The PEG ratio is the stock’s P/E divided by

the consensus estimate of long-term earnings

growth. Faster growth can justify higher price

multiples.

• TM trades at a significant premium to its peers.

1 2 3 4 5Price/Bookpremium discount

TM 1.36 Peers 2.71

• Discount. A lower price-to-book ratio makes a

stock more attractive to investors seeking stocks

with lower market values per dollar of equity on the

balance sheet.

• TM is trading at a significant discount to its peers.

1 2 3 4 5Earnings Growthlower higher

TM -0.80 Peers -13.12

• Higher. Elevated earnings growth rates can lead to

capital appreciation and justify higher

price-to-earnings ratios.

• TM is expected to have an earnings growth rate

that significantly exceeds its peers.

1 2 3 4 5Price/Salespremium discount

TM 0.87 Peers 1.20

• Discount. In the absence of P/E and P/B multiples,

the price-to-sales ratio can display the value

investors are placing on each dollar of sales.

• TM is trading at a significant discount to its

industry on this measurement.

1 2 3 4 5Sales Growthlower higher

TM -11.38 Peers -3.70

• Lower. A sales growth rate that trails the industry

implies that a company is losing market share.

• TM significantly trails its peers on the basis of sales

growth

DISCLAIMER:

The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but

TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided

via the COMPUSTAT® Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as

other third-party data providers.

TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided

for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or

other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a

qualified securities professional, before you make any investment. None of the information contained in this report constitutes,

or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a

determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of

the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the

investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at

http://www.thestreet.com/static/about/terms-of-use.html.

Toyota

Documents

Transcript of Toyota