General Motors Company (NYSE:GM)’s top line is predicted to sustain 5%-7.5% growth annually through 2015, with revenue increasing from 2012’s $152.25 billion to $181.61 billion by 2015. The bottom line for the company is expected to grow in the 15%-17.5% range annually through 2015, with net income rising from 2012’s $4.86 billion to 2015’s anticipated $7.88 billion. The company presently holds a price to earnings ratio of 12.54, and does not pay out a dividend. Overall, GM earns 5 out of 5 stars, and is a tremendously strong company perfectly positioned to prosper into the future.
Ford Motor Company (NYSE:F)’s top line is projected to rise from 2012’s $126.60 billion to 2015’s expected $153.66 billion, representing consistent 6%-7% year over year growth. Net income for the company is anticipated to grow from $5.71 billion in 2012 to the anticipated $7.97 billion by 2015, representing 10-12.5% growth annually. Presently, the company holds a price to earnings ratio of 11.59, and pays out a dividend yield of 2.34%. In total, Ford earns 4 out of 5 stars, and is a strong investment with overall strong fundamentals.
Toyota Motor Corporation (ADR) (NYSE:TM)’s top line growth is predicted to remain in the 7.5%-10% range annually through 2015, with revenue increasing from 2013’s 61.09 trillion ¥ to 108.53 trillion ¥ by 2016. The bottom line for the company is expected to grow in the 25%-30% range annually through 2015, with net income rising from 2013’s 0.96 billion ¥ to 2016’s anticipated 2.06 billion ¥. The company presently holds a price to earnings ratio of 21.18, and pays out a dividend yielding 1.54%. Overall, Toyota earns 4 out of 5 stars, and has strong fundamentals–however, it is restricted from earning 5 out of 5 stars by its high valuation.
The Foolish Bottom Line
The Chinese automotive market is the largest in the world, and is growing at a very fast pace. The sheer importance of China to the automotive industry was reaffirmed when China became General Motors Company (NYSE:GM)’s largest market early this year. With 35 million vehicles being projected to be sold in 2020, only those companies strategically positioned in China will reap the benefits of the country’s explosive growth. Presently, GM appears to be established and prospering in China, Ford Motor Company (NYSE:F) is playing a desperate game of catch up, and Toyota Motor Corporation (ADR) (NYSE:TM) is suffering from heavy anti-Japanese sentiment.
The article What Does This Monumental Milestone Mean For the Auto Industry? originally appeared on Fool.com and is written by Ryan Guenette.
Ryan Guenette 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). Ryan 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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