Toyota Motor Corporation Case Analysis

Toyota Motor Corporation is an automobile maker based in Japan that was created in 1933. They sell vehicles in more than 170 countries worldwide under the names of Toyota and Lexus (Value Line Report). In addition to the gas automobiles they sell, Toyota has began to focus its attention to hybrid cars such as the Prius and Crown (Value Line Report).

With more short term appeal and a solid outlook for the future, I choose Toyota over its competitors in the automobile market which include General Motors, Ford, and Tesla. One reason for the decision to select Toyota was its current financial strength. Value Line gave the company an A, while the other three companies could not muster a score higher than a B++ (Value Line Report). In addition,

A primary reason for its selection is its proficiency in key areas. For one, Value Line gave them score of 1 for timeliness, the highest possible score for the section, while the United Parcel Service (UPS), Southwest Airlines, and Delta Airlines each scored a 3 (Value Line Report). In an age where people demand everything to happen quickly, especially the delivery of certain packages and documents, Fedex stands apart from the rest. In addition, its earning per share is projected to be 13.50 in 2018, up from 12.30 in 2017, a figure that nearly doubles the next closest competitor (Value Line Report). Not only that, but its earnings per share projects to increase to 16.90 in 2019 and then 20.00 in 2021-2023 (Value Line Report). The data clearly shows that Fedex is the best of the bunch at the moment, and that will continue to be the case over the next five years. Its financial strength of A++ and projected revenue per share of 240.65 in 2018 far surpass its competitors as well. With a clear advantage in the short term and bright prospects in the future, Fedex is the obvious selection for the

stock. Even with the acknowledged risks that come along with purchasing stock, it is apparent that Visa performs well each year and is primed to continue to do so. The company has figured out how to overcome adversity and perform well each and every year, taking advantage of people’s increased reliance on technology by offering more products and services. As analyst Sharif Abdou of Value Line noted: “We believe the company’s stellar financial performance, bright long-term prospects, and the global economic expansion have been the primary drivers behind the equity’s run-up” (Value Line Report). Therein lies the reason why I recommend the purchase of Visa stock: short term success coupled with the potential for long term prosperity. Visa can boast something that few other companies can: they will succeed in both the present and the