Toyota Motor Corporation (NYSE: TM) shares have advanced from $139.29 above $163 since the beginning of February 2021, and the current price stands around $161. Toyota’s business is going well, and at the current stock price, this company is fairly valued.
Fundamental analysis: Toyota reported that U.S. sales jumped 182% in April
Toyota is a global market leader in sales of hybrid electric vehicles that continues to generate steady revenue and a healthy profit margin. Toyota reported that U.S. sales jumped 182% in April to 239,311 units vs. a consensus of 227,321 units.
According to the report, APV sales have increased more than 500%, SUV sales have risen by 224%, while Pickup sales jumped +49.8%. Another positive news is that European passenger car registrations rose 218.6% last month; still, it is also important to say that this has happened because of last year’s low base of comparison due to COVID-19 restrictions.
Toyota Motor reported 2021 fiscal year results this month, and total revenue has decreased -8.9% Y/Y, which is not bad in this pandemic environment. Total retail vehicle sales were 10.46 million compared to 9.92 million vehicles sold in the 2020 fiscal year, while the net income for the 2021 fiscal year was $20.27 billion ($19.31 billion was in the 2020 fiscal year).
With more deployment of the vaccines, the company’s management expects that demand for vehicles will continue to grow, and they remain very optimistic about the 2022 fiscal year in terms of growth. The company’s outlook remains stable, and Bank of America assigned a buy rating on Toyota after the automaker’s earnings report.
“We feel Toyota is able to pursue its all-tech strategy precisely because it already has plentiful electrification technology and because it has the
