Toyota (TM, $122.70) and SoftBank Announce Joint Venture on Driverless Transportation Services
Softbank and Toyota are joining hands for developing driverless technology-based transportation businesses.
In a joint venture called Monet, the two Japanese companies will offer services including mobile convenience stores, delivery vehicles, transportation for the elderly, hospital shuttles and mobile offices – all via autonomous vehicles. SoftBank Group can potentially leverage the data collected from its Internet of Things platform towards developing the venture, while Toyota’s experience in the vehicle industry will add to the partnership.
All of Monet’s services are expected to roll out, phase by phase, over the next decade. For instance, by the second half of the 2020s, the venture will start an on-demand mobility service using Toyota's self-driving electric vehicle called e-Palette for meal deliveries and hospital shuttles.
The companies said that the joint venture will start at 2 billion yen ($17.49 million), and will be raised to 10 billion yen in future. However no timeline has been mentioned as yet. SoftBank will have a 50.25% stake in Monet while Toyota will own 49.75%.
The news comes shortly after Toyota rival Honda announced a $2 billion investment over the next 12 years towards a collaboration with General Motors’s self-driving vehicle subsidiary Cruise for building an apparently one-of-a-kind driverless cars.
TM in downward trend: price dove below 50-day moving average on May 30, 2023
TM moved below its 50-day moving average on May 30, 2023 date and that indicates a change from an upward trend to a downward trend. In of 55 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for TM moved out of overbought territory on May 11, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on May 23, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on TM as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for TM turned negative on May 24, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for TM crossed bullishly above the 50-day moving average on May 10, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TM advanced for three days, in of 310 cases, the price rose further within the following month. The odds of a continued upward trend are .
TM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 182 cases where TM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.929) is normal, around the industry mean (9.572). P/E Ratio (10.811) is within average values for comparable stocks, (95.986). Projected Growth (PEG Ratio) (5.759) is also within normal values, averaging (5.867). Dividend Yield (0.031) settles around the average of (0.041) among similar stocks. P/S Ratio (0.713) is also within normal values, averaging (73.631).
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Industry description
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High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of motor vehicles and parts
Industry MotorVehicles
TM and
Correlation & Price change
A.I.dvisor indicates that over the last year, TM has been closely correlated with HMC. These tickers have moved in lockstep 76% of the time. This A.I.-generated data suggests there is a high statistical probability that if TM jumps, then HMC could also see price increases.
