Report Cards for Automakers – Toyota (TM)
Toyota, which produces most of its vehicles in Japan, got a huge boost from a weak yen. However, Toyota has had to contend with recall challenges recently — TM announced on Thursday that it is recalling more than 500,000 vehicles worldwide for three separate problems. That follows a recall of some 6.4 million vehicles in April.
Toyota, which still holds the crown as the world’s largest auto manufacturer, is staking a claim on green energy — and taking aim at Tesla’s (TSLA) Elon Musk in the process. At Fortune’s Brainstorm Green conference this week, Toyota North America CEO Jim Lentz was bullish on growth of electric vehicle sales.
TM stock has been roughed up a little bit this year, and presents investors with the opportunity to buy on the dip. Toyota’s fundamentals are strong and include cash flow of nearly $36 billion. Meanwhile, TM sports a P/E of 8.8 and a low, low PEG ratio of 0.27.