Toyota Motor Corp. expects its profits to decrease in the coming fiscal year due to increasing material costs and other operating challenges, amidst the COVID-19 pandemic, the war in Ukraine and shortages of semiconductors.
For the fiscal year ending March 31, the automaker’s net profit increased 26.9% annually. Sales rose 15.3%, due to strength in its markets in the United States and Asia.
However, in the quarter ending March, Toyota’s profit fell -31% from the year-ago quarter, even as its revenue rose +6%.
Toyota expects -20% drop in operating profit in the new fiscal year to approximately $17 billion. It anticipates a squeeze in profit due to rising materials costs.
TM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 38 cases where TM's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 61 cases where TM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
TM moved above its 50-day moving average on June 01, 2023 date and that indicates a change from a downward trend to an upward trend.
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 .
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 .
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 .
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 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 (0.941) is normal, around the industry mean (9.576). P/E Ratio (10.953) is within average values for comparable stocks, (96.019). Projected Growth (PEG Ratio) (5.836) is also within normal values, averaging (5.873). Dividend Yield (0.030) settles around the average of (0.042) among similar stocks. P/S Ratio (0.723) is also within normal values, averaging (74.952).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of motor vehicles and parts
A.I.dvisor indicates that over the last year, TM has been closely correlated with HMC. These tickers have moved in lockstep 77% 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.