BUY BUY BUY BUY: Toyota Motor Corp

November 15, 2015
NYSE: TM
TOYOTA MOTOR CORP

BUY
A+
A-
HOLD
B+
Annual Dividend Rate

$2.92
B-
C+
Annual Dividend Yield

2.39%
SELL
C-
D+
Beta
0.69
E+
E-
Market Capitalization
$208.0 Billion
Sector: Consumer Goods & Svcs

TM BUSINESS DESCRIPTION
Toyota 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.
D-
Weekly Price: (US$)
BUY
52-Week Range
$105.00-$145.80
Sub-Industry: Automobile Manufacturers

SMA (50)
RATING SINCE
TARGET PRICE
SMA (100)
04/02/2012
$140.60
Price as of 11/12/2015
$121.73
Source: S&P
1 Year
2 Years
145
TARGET
PRICE
$140.60
TARGET
TARGETPRICE
PRICE$140.60
$140.60
TARGET
PRICE
$140.60
140
135
130
125
120
STOCK PERFORMANCE (%)

3 Mo.
Price Change
-4.47
1 Yr.
2.47
3 Yr (Ann)
16.14
12 Mo.
-11.38
-1.31
-0.80
3 Yr CAGR
-4.23
35.58
35.56
115
110
105
GROWTH (%)
Last Qtr
-9.31
-8.78
-8.20
Revenues
Net Income
EPS
100
Rating History
BUY
Volume in Millions
RETURN ON EQUITY (%)

TM
12.49
12.27
9.42
Q1 2015
Q1 2014
Q1 2013
Ind Avg
1.33
5.96
4.41
S&P 500
12.91
14.28
13.75
3
2013
2014
2015
COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History
RECOMMENDATION
We 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.
P/E COMPARISON
10.91
13.51
21.56
TM
Ind Avg
S&P 500
HIGHLIGHTS
The 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.
EPS ANALYSIS ($)
2013
2014
Q1 3.36
Q4 2.36
Q3 2.61
Q2 2.83
Q1 3.66
Q4 2.02
Q3 2.72
Q2 2.85
Q1 3.58
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%.
2015
NA = not available NM = not meaningful

1 Compustat fiscal year convention is used for all fundamental
data items.
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).
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 accuracy
or 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.
Report Date: November 15, 2015
PAGE 1
November 15, 2015

NYSE: TM
TOYOTA MOTOR CORP

Sector: Consumer Goods & Svcs Automobile Manufacturers Source: S&P
$2.92

2.39%
PEER GROUP ANALYSIS
35%
KNDI
V
FA
AB
OR
LE
R
VO
FA
F
GM
LE
AB
-15%
UN
Revenue Growth (TTM)
WGO
HOG
TM
-10%
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 and
Amortization.
35%
REVENUE GROWTH AND EARNINGS YIELD
KNDI
V
FA
AB
OR
LE
UN
R
VO
FA
LE
AB
-15%
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. Harleys heavy motorcycle sales have remained relatively flat, but light
motorcycle sales have been hurt by tough economic conditions.
THO
Revenue Growth (TTM)
$121.73
25%
EBITDA Margin (TTM)
-2.5%
52-Week Range
$105.00-$145.80
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.
THO
TSLA
$208.0 Billion
INDUSTRY ANALYSIS
The 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 Detroits 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.
REVENUE GROWTH AND EBITDA MARGIN*
TSLA
Beta
0.69
WGO
F
GM
HMC HOG
TM 10%
Earnings Yield (TTM)

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.
Manufacturers have recognized growing demand from developing economies and the opportunity to increase
auto parts sourcing from these economies.
PEER GROUP: Automobiles
Ticker
TM
HOG
HMC
WGO
GM
F
KNDI
THO
TSLA
Company Name
TOYOTA MOTOR CORP
HARLEY-DAVIDSON INC
HONDA MOTOR CO LTD
WINNEBAGO INDUSTRIES
GENERAL MOTORS CO
FORD MOTOR CO
KANDI TECHNOLOGIES GROUP
THOR INDUSTRIES INC
TESLA MOTORS INC
Recent
Price ($)
121.73
48.33
32.22
20.84
35.09
14.04
9.77
55.03
212.94
Market
Cap ($M)
208,036
9,273
58,364
562
55,147
54,725
459
2,888
27,885
Price/
Earnings
10.91
12.89
13.37
13.62
12.85
11.80
16.56
14.48
NM
Net Sales
TTM ($M)
221,159.00
6,014.92
111,941.43
976.51
152,352.00
145,177.00
188.84
4,006.82
3,788.31
Net Income
TTM ($M)
17,608.00
784.49
4,323.75
41.21
5,408.00
4,770.00
26.76
199.39
-675.90
The peer group comparison is based on Major Automobile Manufacturers companies of comparable size.
PAGE 2
November 15, 2015

NYSE: TM
TOYOTA MOTOR CORP

$2.92

2.39%
Beta
0.69
$208.0 Billion
52-Week Range
$105.00-$145.80
$121.73
COMPANY DESCRIPTION
Toyota 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.
STOCK-AT-A-GLANCE
Below 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 stocks
valuation. Please refer to our Valuation section on page 5 for further information.
TOYOTA MOTOR CORP

1 Toyota-cho
Toyota City 471-8571
JPN
Phone: 81 565 28 2121
http://www.toyota.co.jp
Employees: 344000
THESTREET RATINGS RESEARCH METHODOLOGY
FACTOR
SCORE
3.5
Growth
out of 5 stars
weak
Measures 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.
strong
3.5
Total Return
out of 5 stars
weak
Measures the historical price movement of the stock. The stock
performance of this company has beaten 60% of the companies we
cover.
strong
4.0
Efficiency
out of 5 stars
weak
Measures 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.
strong
3.0
Price volatility
out of 5 stars
weak
Measures the volatility of the company's stock price historically. The
stock is less volatile than 50% of the stocks we monitor.
strong
3.5
Solvency
out of 5 stars
weak
Measures the solvency of the company based on several ratios. The
company is more solvent than 60% of the companies we analyze.
strong
4.0
Income
out of 5 stars
weak
Measures dividend yield and payouts to shareholders. The company's
dividend is higher than 70% of the companies we track.
strong
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.
PAGE 3
November 15, 2015

NYSE: TM
TOYOTA MOTOR CORP

$2.92

2.39%
Consensus EPS Estimates ($)

IBES consensus estimates are provided by Thomson Financial
NA
12.66 E
13.51 E
NA
2016(E)
2017(E)
Beta
0.69
$208.0 Billion
52-Week Range
$105.00-$145.80
$121.73
FINANCIAL ANALYSIS
TOYOTA MOTOR CORP's gross profit margin for the first quarter of its fiscal year 2015 is essentially
unchanged when compared to the same period a year ago. Sales and net income have dropped,
underperforming the average competitor within its industry. TOYOTA MOTOR CORP has weak liquidity.
Currently, the Quick Ratio is 0.82 which shows a lack of ability to cover short-term cash needs. The company's
liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing
by 3.00% from the same quarter last year. Overall, the key liquidity measurements indicate that the company
is in a position in which financial difficulties could develop in the future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the
next 12-months. To learn more visit www.TheStreetRatings.com.
INCOME STATEMENT
Net Sales ($mil)
EBITDA ($mil)
EBIT ($mil)
Net Income ($mil)
Q1 FY15
57,229.00
9,317.00
6,192.00
5,294.00
Q1 FY14
63,100.00
9,960.00
6,840.00
5,803.00
Q1 FY15
40,144.00
399,848.00
161,074.00
140,909.00
Q1 FY14
43,119.00
409,318.00
162,795.00
145,281.00
Q1 FY15
25.93%
16.28%
10.82%
0.55
4.40%
12.49%
Q1 FY14
25.22%
15.78%
10.84%
0.61
4.35%
12.27%
Q1 FY15
1.09
0.53
36.00
172.00
Q1 FY14
1.09
0.53
39.00
175.38
Q1 FY15
1,574
0.00
3.36
89.55
NA
365,072
Q1 FY14
1,585
0.00
3.66
91.66
NA
254,404
BALANCE SHEET
Cash & Equiv. ($mil)
Total Assets ($mil)
Total Debt ($mil)
Equity ($mil)
PROFITABILITY
Gross Profit Margin
EBITDA Margin
Operating Margin
Sales Turnover
Return on Assets
Return on Equity
DEBT
Current Ratio
Debt/Capital
Interest Expense
Interest Coverage
SHARE DATA
Shares outstanding (mil)
Div / share
EPS
Book value / share
Institutional Own %
Avg Daily Volume
2 Sum of quarterly figures may not match annual estimates due to

use of median consensus estimates.
PAGE 4
November 15, 2015

NYSE: TM
TOYOTA MOTOR CORP

$2.92

2.39%
RATINGS HISTORY
Our 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
Beta
0.69
$208.0 Billion
BUY: $127.30
Price/Earnings
premium
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.
Price/Projected Earnings
From
Buy
To
Buy
RATINGS DEFINITIONS &

DISTRIBUTION OF THESTREET RATINGS
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.
Price/Book
premium
Price/Sales
premium
Price to Earnings/Growth
discount
premium
discount
TM 1.05
Peers 0.72
Premium. The PEG ratio is the stocks 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.
Earnings Growth
lower
5
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.
Sales Growth
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.
TM 6.11
Peers 5.91
Average. The P/CF ratio, a stocks 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.
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.
premium
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.
(as of 11/12/2015)
Research Contact: 212-321-5381

Sales Contact: 866-321-8726
premium
Price reflects the closing price as of the date listed, if available
TheStreet Ratings
14 Wall Street, 15th Floor
New York, NY 10005
www.thestreet.com
Price/CashFlow
discount
2014
MOST RECENT RATINGS CHANGES

Date
Price
Action
11/12/13
$127.30 No Change
$121.73
VALUATION
BUY. 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.
$150
$125
52-Week Range
$105.00-$145.80
lower
5
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.
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November 15, 2015

TOYOTA MOTOR CORP

Annual Dividend Rate

Annual Dividend Yield

Sector: Consumer Goods & Svcs

Weekly Price: (US$)

Sub-Industry: Automobile Manufacturers

STOCK PERFORMANCE (%)

RETURN ON EQUITY (%)

EPS ANALYSIS ($)

NA = not available NM = not meaningful

Report Date: November 15, 2015

November 15, 2015

TOYOTA MOTOR CORP

Annual Dividend Yield

PEER GROUP ANALYSIS

Revenue Growth (TTM)

Companies with higher EBITDA margins and

REVENUE GROWTH AND EARNINGS YIELD

EBITDA Margin (TTM)

REVENUE GROWTH AND EBITDA MARGIN*

Earnings Yield (TTM)

Report Date: November 15, 2015

November 15, 2015

TOYOTA MOTOR CORP

Annual Dividend Yield

TOYOTA MOTOR CORP

THESTREET RATINGS RESEARCH METHODOLOGY

Report Date: November 15, 2015

November 15, 2015

TOYOTA MOTOR CORP

Annual Dividend Yield

Consensus EPS Estimates ($)

2 Sum of quarterly figures may not match annual estimates due to

Report Date: November 15, 2015

November 15, 2015

TOYOTA MOTOR CORP

Annual Dividend Yield

RATINGS DEFINITIONS &

39.39% Buy - We believe that this stock has the

Research Contact: 212-321-5381

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

MOST RECENT RATINGS CHANGES

Report Date: November 15, 2015

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