Toyota Motor Corporation (ADR) (NYSE:TM)’s shares are currently trading around $120, though with a price-to-earnings ratio of approximately 17 it is quite expensive compared to its peers. For the 2013 fiscal year, Toyota Motor Corporation (ADR) (NYSE:TM)delivered strong results owing to robust recovery and the improving global economy. On a consolidated basis, net revenues totaled 22 trillion yen, slightly higher than its guidance of 21.8 trillion yen. Vehicle sales increased 1.519 million units to 8.871 million units. Toyota Motor Corporation (ADR) (NYSE:TM)’s price/earnings-to-growth ratio is around 0.8, implying a undervaluation of the stock that should technically lead to an upside movement in the price. While the last few years have been tough for the company because of quality concerns and other issues that cropped up in 2009, it is getting back to a growth path as it registered a growth of 18.7% in the 2013 fiscal year. North America and Asia have been its best-performing markets with the presence of brands like Prius, Camry and next generation Corolla.
Product is in focus now
In May 2013, GM exceeded its IPO price of $33 for the first time in two years, and investors who stayed invested saw some real gain. Company management is committed to increasing its market share across all segments and getting neck-and-neck with its competitors. It is aiming for a 10% share of luxury car market in China by 2020 with the help of its premium Cadillac brand. Apart from China, General Motors Company (NYSE:GM) has also planned on launching around seven or eight new cars under its Chevrolet brand in North America.
Final words
It is quite clear that GM is now getting aggressive with regard to its products. The company has been hugely successful in executing a massive turnaround and now aims to get a major chunk of the market. In my opinion, this is the right time to invest in General Motors Company (NYSE:GM) because it has a solid line-up of products, consistent sales growth in major markets and a dedicated management that is committed to executing planned initiatives.
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Mihir Mehta has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors Company (NYSE:GM). The Motley Fool owns shares of Ford Motor Company (NYSE:F).
The article This Company Is the Phoenix of the Business World! originally appeared on Fool.com.
Mihir is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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