Toyota Motor stock, pushing to the top!

- Stocks that exceed the Nikkei Average by 60 points, the highest among the 7 presidents since the birth of Toyota.

- It becomes difficult to expect high stock performance in the second year - Mr. BI Yoshida.

Since President Tsuneharu Sato took office, Toyota Motor's stock performance in the first year has been the highest in over 40 years.

Regarding the 7 successive presidents since the birth of the current Toyota in July 1982, which was born from the merger of Toyota Motor Industry and Toyota Motor Sales, Bloomberg aggregated the difference in stock price performance (dividend-adjusted) between Toyota stock and the Nikkei Stock Average. Mr. Sato, who became the 12th president at the age of 53 on April 1, 2023, had the highest stock price increase exceeding the Nikkei Average by 60 points at the closing price on the 29th, in his first year. President Nobuo Fuji, the 9th president, followed with 28 points, highlighting the stock price rise under President Sato.

In 24, the stock price has been accelerating, with the market capitalization becoming the largest in the industry, in contrast to electric automobile manufacturer Tesla. Nonetheless, the financial estimates price-to-earnings ratio (PER) is in the 11x range, while the price-to-book ratio (PBR) is in the 1.5x range, showing no signs of being overvalued.

Okuda Seki, the eighth president who outperformed the Nikkei average by 106 points throughout his tenure as president, is the best. In his second year, President Sato aims to expand the company's value in the rapidly changing automotive industry by taking the helm of the giant Toyota.

In the future, it is difficult to expect an increase in sales volume and price hikes. It is also pointed out that solidifying the foundation is necessary in response to scandals in group companies. Therefore, it was indicated that even if a profit decrease is announced in the May earnings reports for the next fiscal year (ending March 2025), it would not be surprising, and there may be a view that it is unlikely to expect high stock performance like in the first year.