What changed
$TM — ADD 📊 | 6 MONTHS THESIS
🎯 latest | Rev $10.7T | EPS $4.00 vs $2.69 🟢
💡 Consensus had been anchored to a low-margin recovery; the beat reveals sustainably higher mid-cycle earnings power from favorable mix, yen tailwinds, and cost discipline. The variant view: Toyota deserves a higher P/E multiple as it demonstrates consistent execution and shareholder returns.
📉 Reward/risk: 2.42:1
🏢 Business Quality: 7/10/10 - Global scale, unrivaled hybrid profitability, and fortress balance sheet, but auto industry is cyclical, capital-intensive, and faces EV transition risk.
📊 Valuation: fair to slightly cheap — trailing P/E ~11x on annualized $16 EPS vs. 5-year avg 12.5x; EV/EBITDA ~8x vs.
📊 Our read: ADD. Full analysis →
https://stockduty.xyz/s/TM0616