TOYOTA MOTOR Reports Third Quarter Fiscal Year 2023 Earnings Results for December 31, 2022
March 7, 2023
Earnings Overview
On February 9, 2023, TOYOTA MOTOR ($TSE:7203) reported its earnings results for the third quarter of fiscal year 2023 (ending December 31, 2022). The company experienced a 8.1% decrease in total revenue to JPY 727.9 billion, while net income rose 25.3% to JPY 9754.7 billion compared to the same quarter of the previous year.
Share Price
The company’s stock opened at JP¥1900.0 and closed at JP¥1901.0, up by 0.2% from the previous closing price of 1897.5. The company’s growth was mainly attributed to higher sales and better cost control. Sales volume rose substantially in most of its major markets, such as Japan, China, and the United States.
In addition, TOYOTA MOTOR implemented a number of cost-saving measures to boost its profitability. Overall, TOYOTA MOTOR had a decent quarter, demonstrating its resilience in the face of an ever-changing economic environment. The company is confident that it will continue to perform well in the future and maintain its leadership position in the automobile industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Toyota Motor. More…
| Total Revenues | Net Income | Net Margin |
| 35.58M | 2.43M | 6.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Toyota Motor. More…
| Operations | Investing | Financing |
| 2.91M | -2.27M | -711.48k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Toyota Motor. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 71.58M | 43.13M | 2.02k |
Key Ratios Snapshot
Some of the financial key ratios for Toyota Motor are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.2% | -0.3% | 10.1% |
| FCF Margin | ROE | ROA |
| -2.1% | 8.1% | 3.1% |
Analysis
As GoodWhale, we performed an analysis of TOYOTA MOTOR‘s wellbeing and found that according to our Star Chart, TOYOTA MOTOR has an intermediate health score of 6/10. This is taking into account their cashflows and debt, the company is likely to pay off debt and fund future operations. Furthermore, TOYOTA MOTOR is strong in dividend, and medium in asset, growth, and profitability. The company is also classified as ‘rhino’, which is a type of company that has achieved moderate revenue or earnings growth. Given these factors, it may be of interest to investors who prefer income-focused investments, although there may be other investors who are interested in a company like TOYOTA MOTOR. Investors who are looking for stability and are comfortable with moderate growth may find the company to be a viable investment opportunity. More…
Peers
Toyota Motor Corp is one of the world’s leading automobile manufacturers. It competes in the automotive industry with other major players such as Geely Automobile Holdings Ltd, Honda Motor Co Ltd, and Stellantis NV. All of these companies strive to provide consumers with reliable and innovative vehicles that meet their needs.
– Geely Automobile Holdings Ltd ($SEHK:00175)
Geely Automobile Holdings Ltd is a leading automotive manufacturer and one of the most recognizable names in the auto industry. The company has a market cap of 121.89 billion, making it one of the largest automotive companies in the world. Geely’s Return on Equity (ROE) of 3.03% reflects its strong performance and ability to generate profits for shareholders. The company has a diverse portfolio, producing a range of vehicles including passenger cars, commercial vehicles, and electric vehicles. Geely has a presence in several countries around the world and is committed to providing quality products and services to customers.
– Honda Motor Co Ltd ($TSE:7267)
Honda Motor Co Ltd is a Japanese multinational corporation that specializes in the production of automobiles, motorcycles, and power equipment. Founded in 1948, the company is one of the largest automobile manufacturers in the world. As of 2023, Honda has a market capitalization of 5.19 trillion dollars and a Return on Equity of 5.87%. The company’s strong market position and financial performance suggest that Honda is well-positioned for continued growth and success in the years to come.
– Stellantis NV ($NYSE:STLA)
Stellantis NV is a multinational automotive company based in Europe. It is one of the largest automakers in the world, producing cars and light commercial vehicles under a variety of different brands. As of 2023, Stellantis NV has a market cap of 49.55 billion, making it one of the largest automotive companies in the world. In addition to its impressive market cap, Stellantis NV also boasts a Return on Equity (ROE) of 18.38%, which is significantly higher than its peers in the industry. This indicates that the company has been successful in creating value for shareholders through its operations.
Summary
Toyota Motor has released its third quarter of fiscal year 2023 financial results, showing total revenue of JPY 727.9 billion, a decrease of 8.1% year-on-year. Net income was JPY 9754.7 billion, an increase of 25.3%. This indicates that Toyota Motor is still profitable but experiencing a decline in revenue due to the decrease in sales volumes. Investors should consider the current market conditions and any potential risks before making a decision to invest in Toyota Motor.
Additionally, investors should pay close attention to the company’s future strategies and financial performance to determine if the stock is a good investment option.
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