10 Best Japanese Stocks To Buy Now

02. Toyota Motor Corporation (NYSE:TM)

Number of Hedge Fund Holders: 14

Toyota Motor Corporation (NYSE:TM) stands out as a prime candidate for inclusion in the ten best Japanese stocks to buy now due to its consistent financial performance, robust strategic investments, and commitment to innovation in the automotive industry. With a strong track record and a forward-looking approach, Toyota Motor Corporation (NYSE:TM) is perfectly placed to capitalize on future growth opportunities.

For the fiscal year ending March 2024, Toyota reported impressive consolidated vehicle sales of 9.443 million units, reflecting a 7% increase from the previous year. This growth was driven by a surge in hybrid vehicle sales, which accounted for 37.4% of total sales. Additionally, the company’s consolidated revenues reached ¥45.1 trillion, with an operating income of ¥5.35 trillion, underscoring its operational strength despite global challenges like semiconductor shortages.

Financially, Toyota Motor Corporation (NYSE:TM) results illustrate a solid foundation. The operating income was bolstered by strategic marketing efforts that added ¥2 trillion to the bottom line, alongside effective cost management that countered rising material costs. Notably, foreign exchange effects positively impacted operating income by ¥685 billion, showcasing the company’s resilience in navigating international market fluctuations.

Looking ahead, Toyota Motor Corporation (NYSE:TM) forecast for FY 2025 is equally promising, with expectations of sales revenue hitting ¥46 trillion and operating income projected at ¥4.3 trillion. This outlook reflects the company’s commitment to investing ¥2 trillion in future growth, with a significant focus on transforming itself into a comprehensive mobility provider. This includes a commitment of ¥1.7 trillion towards electric vehicle development and digitalization initiatives, positioning the company strategically in the evolving automotive landscape.

Furthermore, Toyota Motor Corporation (NYSE:TM) is enhancing shareholder value through increased dividends, raising the year-end dividend to ¥45 per share, and initiating a share repurchase program valued at up to ¥1 trillion. This commitment to returning capital to shareholders, along with strong profit margins, highlights Toyota’s dedication to maintaining a healthy financial structure. In summary, Toyota Motor Corporation (NYSE:TM) blend of strong operational results, proactive investment strategies, and commitment to shareholder returns makes it an attractive stock for investors looking to capitalize on the growth potential within Japan’s automotive sector.