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Afternoon Alert: Toyota Motor increases 0.4%, leads market higher
Friday August 23, 2019 12:55 JST

Toyota Motor Corporation (TO:7203) has increased 0.4% to trade at JPY6,933.0 vs. the Nikkei 225 Index which strengthened 44.9 points (or 0.2%) to 20,672.9. Representing a weighting of about 6.8% of the index, the stock accounted for 12.2% of today's gain. The shares have outperformed 81% of the market in the past one year.

Current indications of bullish signals that support the trend in the unusual trading:

+ The 4.3% discount to 12-month high of JPY7,244.0 against the 16.8% premium to 12-month low of JPY5,937.69 suggests the stock continues to push for new highs.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Return on Equity 9.7% [8.0%]

+ Return on Assets 3.8% [3.2%]

Other Bullish Signals include:

+ Tobin's Q Ratio is 0.4. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 7.8% in the last 3 years. This is better than the sector average of 5.4% and suggests a high margin of safety.

+ The Brand Value represents 6.4% of the estimated Enterprise Value of JPY43,470.7 billion (US$408.4 billion).

Note

Bearish Signals:

The price dropped 2.4% in the last month.

Profit growth and EBITDA growth have shown signs of deterioration in recent years.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Sales of 0.8 [0.5]

Price to Book of 1.1 [0.9]

Dividend yield of 3.2% [3.7%]

Toyota Motor Corporation (TO:7203; TYO:7203; T:7203; JP:7203)

ISIN: JP3633400001

Source: www.BuySellSignals.com