NEW YORK (TheStreet) -- Toyota Motor Corp. (TM) announced today that it will recall over 430,000 vehicles, including some Lexus GS, Sienna and Highlander models, as it notified the National Highway Traffic Safety Administration, the Wall Street Journal reports.
Last month the automaker recalled 6.39 million vehicles worldwide.
The majority of the issues involved the Sienna due to a problem with the cable on the spare tire carrier stowed under the vehicle.
An issue with the front passenger seat belt has led to the recall of about 50,000 2014 Highlander and 2014 Highlander HV.
The stock is up 1.60% to $109.79
TheStreet Ratings team rates TOYOTA MOTOR CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TOYOTA MOTOR CORP (TM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, good cash flow from operations, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 23.3%. Since the same quarter one year prior, revenues rose by 44.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TOYOTA MOTOR CORP has improved earnings per share by 16.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TOYOTA MOTOR CORP increased its bottom line by earning $11.17 versus $6.46 in the prior year. This year, the market expects an improvement in earnings ($11.95 versus $11.17).
- Net operating cash flow has significantly increased by 61.50% to $9,495.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 43.50%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Automobiles industry and the overall market on the basis of return on equity, TOYOTA MOTOR CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The net income growth from the same quarter one year ago has exceeded that of the Automobiles industry average, but is less than that of the S&P 500. The net income increased by 17.1% when compared to the same quarter one year prior, going from $2,737.00 million to $3,204.00 million.
- You can view the full analysis from the report here: TM Ratings Report