Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, embattled Japanese auto giant Toyota Motor
With that in mind, let's take a closer look at Toyota's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Toyota City, Japan (1933)|
|Market Cap||$134.27 billion|
|Trailing-12-Month Revenue||$229.87 billion|
President/Director Akio Toyoda
Chief Financial Officer Katsuyuki Kusakawa
|Return on Equity (Average Past 3 Years)||1.5%|
|Cash/Debt||$42.26 billion / $143.56 billion|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Late last month, redclaymud tapped the stock as an untimely opportunity:
Toyota is dealing with four problems. The damage caused by the earthquake, a shortage of power to it's Japan factories, a declined auto industry, and still trying to restore confidence in quality control. I would say they will underperform a strong year or so.
Currently, Toyota even sports a P/E of 21. That represents a premium to rivals Ford (9.2), General Motors (10.9), and Honda (4.8).
CAPS member cronycapitalist elaborates on the bear case:
Electricity is scarce, workers are distraut, logistics (road and sea) are a mess, [just-in-time] processes impossible and 3 nuclear reactors are having serious issues with no trustworthy source reporting the facts. It's going to take a significant amount of time to get all of this under control. The contagion from Japan's many setbacks, the tension in the middle east and the probable default by Europe (and the U.S.) on debt obligations (and the contagion) has Black Swan written all over it.
What do you think about Toyota, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. GM is a Motley Fool Inside Value pick. Ford is a selection of Stock Advisor, and the Fool owns shares of it. Try any of our Foolish newsletter services free for 30 days.
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