Lexus Essay

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Lexus (Toyota Motor Corp) is in the automobile industry. The United States has one of the largest automobile markets in the world and is home to 13 auto manufacturers. As of this month, the consensus forecast amongst 27 polled investment analysts covering Toyota Motor Corp advises that the company will outperform the market. The previous consensus forecast advised investors to hold their position in this company. The analyst offering twelve month price targets for Toyota have a median target of 7,975 with a high estimate of 9,000 and low estimate of 6,100. The median estimate presents a 32.67% increase from the last price of 6,011. The top 10 largest automakers in the world and that are also Lexus major competitors, are: BMW, PSA, Honda Motor, …show more content…

Many automobile manufacturers are looking to start producing and releasing their first self-driving car. One development in the company recently is the self-driving technology. A self-driving Lexus undergoes testing on a highway in Tokyo. Investors and driver will be witnessing innovation and change in the automotive industry over the next two decades than what took place over the last century (Miller, Williams, & Rosevear, 2016). There is a lot of money being spent in this development. Once perfected, it has been said that it will be a safety innovation. There will be fewer and fewer good reasons not to use it. I definitely believe that this development will add value to the company. Investors will be intrigued in their …show more content…

The return on equity (ROE) is the amount of net income returned as a percentage of shareholders equity. It measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders invest. TM’s falls below the industry average with a ROE of 13.9%. In the other hand, TM is above the average of the industry with a 4.9% on their ROA. The return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. By observing TM’s net profit margin being significantly above the industry’s with a 8.2% compared to a 5.1%, we can conclude that their revenues remaining after all expenses, interest, taxes and preferred stock dividends, are large which makes this company very

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