Latest news for Toyota Boshoku (OTC:TDBOY) Stock

Toyota Boshoku Corp is a manufacturer of automobile parts. The company produces seats, seat frames, door trims, floor carpets, silencers, air induction systems, air and oil filters, seat belts, seat fabrics, fender liners, and airbags for automobiles. Toyota Boshoku also produces aircraft seats and railway seats. The company generates the majority of its revenue in Japan.

TOYOTA BOSHOKU UNSP/ADR by Toyota Boshoku Corp.

Toyota Boshoku Corp

AutoZone (AZO) reported mixed financial results in the third quarter of 2024. While the auto parts retailer's long-term outlook appears bright with strategic acquisitions and store network expansion, it faces decelerating domestic sales growth and rigid competition in the near term. So, should you buy or hold this stock? Read more to find out… AutoZone, Inc. (<a href="https://stocknews.com/stock/AZO/">AZO</a>), a leading retailer and distributor of automotive replacement parts and accessories, reported mixed fiscal 2024 third-quarter results. The company posted revenue of $4.23 billion, an increase of 3.5% compared to the third quarter of 2023. However, domestic same-store sales growth decelerated from 0.3% in the prior quarter to flat in the third quarter.
During the quarter, the company's gross profit, as a percentage of sales, came in at 53.5%, 102 basis points higher than in the prior year's period. AZO reported an EPS of $36.69, surpassing the analysts' estimate of $35.96.
Under the share repurchase program, AZO repurchased 242 thousand shares of its common stock at an average price per share of $3,036, for a total investment of $734.7 million. At the end of the third quarter, the company had $1.4 billion remaining under its current share repurchase authorization.
Furthermore, during the quarter, AutoZone opened 32 new stores in the U.S., 12 in Mexico, and one in Brazil, coming to a total of 45 net new stores. As of May 4, 2024, the company had 6,364 stores in the U.S., 763 in Mexico, and 109 in Brazil, for a total store count of 7,236.
"Our AutoZoners' ongoing commitment to providing customers with Trustworthy Advice and WOW! Customer Service allowed us to deliver stronger than planned bottom line results," said Phil Daniele, President and Chief Executive Officer.
He added, "Conversely, we were pleased with the strong same store sales results we achieved in our international business. As we begin our all-important summer selling season, we are very excited about the initiatives we have in place to enhance our inventory availability, continue to accelerate our domestic Commercial business, and provide great customer service."
Shares of AZO have gained 12.7% over the past year to close its last trading session at $2,777.54. However, the stock has declined 6.5% over the past month.
Let's look at factors that could influence AZO's performance in the upcoming months.
Mixed Financials
For the third quarter that ended May 4, 2024, AZO's net sales increased 3.5% year-over-year to $4.23 billion. Its same-store sales grew just 0.9% year-over-year, while domestic same-store sales were flat. Its <a href="https://www.investopedia.com/terms/g/grossprofit.asp">gross profit</a> rose 5.6% from the prior year's quarter to $2.26 billion. The company's operating profit of $900.18 million indicates growth of 4.9% year-over-year.
Also, the company's net income came in at $651.73 million and $36.69 per share, up marginally and 7.5% from the prior year's quarter, respectively. However, AZO's current liabilities increased to $9.19 billion versus $8.46 billion as of May 6, 2023.
Mixed Historical Growth
AZO's revenue grew at a CAGR of 10% over the past three years, while its EBITDA improved at a CAGR of 10.2%. Its EBIT increased at a CAGR of 10.3% over the same period, while the company's net income and EPS grew at respective CAGRs of 11.9% and 21.7% over the same time frame.
However, the company's levered free cash flow decreased at a CAGR of 12.6% over the same timeframe.
Favorable Analyst Estimates
Analysts expect AZO's revenue for the fourth quarter (ending August 2024) to come in at $6.27 billion, indicating an increase of 10.2% year-over-year. The consensus EPS estimate of $54.58 for the same period reflects a 17.5% year-over-year improvement. Further, the company's revenue is expected to grow 3.8% year-over-year in the fiscal year 2024.
For the fiscal year 2024, the company's revenue and EPS are anticipated to grow 6.5% and 14.9% year-over-year to $18.60 billion and $152.08, respectively. In addition, Street expects its revenue and EPS for the fiscal year 2025 to grow 3.8% and 8.6% from the prior year to $19.30 billion and $165.23, respectively.
High Profitability
AZO's trailing-12-month EBIT margin of 20.60% is 167.2% higher than the 7.71% industry average. Its trailing-12-month net income margin of 14.70% is significantly higher than the industry average of 4.60%. Likewise, the stock's trailing-12-month levered FCF of 7.96% is 46.7% higher than the industry average of 5.43%.
Furthermore, the stock's trailing-12-month ROTC and ROTA of 34.84% and 15.68% are higher than the 6.24% and 4.20% industry averages, respectively.
Elevated Valuation
In terms of forward non-GAAP PEG, AZO is currently trading at 1.23x, 19.4% lower than the industry average of 1.53x. However, the stock's forward EV/Sales and Price/Sales of 3.21x and 2.56x are considerably higher than the industry average of 1.20x and 0.85x, respectively.
Additionally, the stock's forward EV/EBITDA and Price/Cash Flow of 13.55x and 13.88x are 41.6% and 45% higher than the industry averages of 9.57x and 8.86x, respectively.
POWR Ratings Reflect Uncertainty
AZO's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of C, translating to a Neutral in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. AZO has a C grade for Value, consistent with its mixed valuation. Also, the stock has a C grade for Growth, in sync with its mixed financial performance and historical growth.
AZO is ranked #40 among the 60 stocks in the A-rated <a href="https://stocknews.com/category/auto-parts/">Auto Parts</a> industry.
Beyond what I have stated above, we have also given AZO grades for Stability, Momentum, Sentiment, and Quality. Get access to all the AZO ratings <a href="https://stocknews.com/stock/AZO/">here</a>.
Bottom Line
AZO reported solid financial results in the last reported quarter. Further, the company's long-term prospects appear promising, driven by the expansion of its store footprint, strategic acquisitions, and investments. However, it grapples with decelerating domestic sales growth and rising competition from O'Reilly Automotive (<a href="https://stocknews.com/stock/ORLY/">ORLY</a>) and JD.com, Inc. (<a href="https://stocknews.com/stock/JD/">JD</a>).
Given AZO's mixed financials, elevated valuation, and heightened competition, waiting for a better entry point in this stock seems prudent.
Stocks to Consider Instead of AutoZone, Inc. (AZO)
Given its near-term uncertain prospects, the odds of AZO outperforming in the weeks and months ahead are compromised. However, there are many industry peers with much more impressive POWR Ratings. So, consider these A (Strong Buy) or B (Buy) stocks from the <a href="https://stocknews.com/category/auto-parts/">Auto Parts</a> industry instead:
TOYOTA BOSHOKU CORPORATION (<a href="https://stocknews.com/stock/TDBOY/">TDBOY</a>)
Garrett Motion Inc. (<a href="https://stocknews.com/stock/GTX/">GTX</a>)
Allison Transmission Holdings, Inc. (<a href="https://stocknews.com/stock/ALSN/">ALSN</a>)
For exploring more A and B-rated auto parts stocks, <a href="https://stocknews.com/category/auto-parts/">click here</a>.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
<a href="https://report.stocknews.com/sign-up/stock-market-outlook-2024/?formplacement=artbotad_smo24_rep">2024 Stock Market Outlook &gt;</a>

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AZO shares were trading at $2,778.01 per share on Friday morning, up $0.47 (+0.02%). Year-to-date, AZO has gained 7.44%, versus a 11.21% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/azo-jd-orly-tdboy-gtx-alsn-autozone-azo-earnings-analysis-growth-or-value-opportunity/>AutoZone (AZO) Earnings Analysis: Growth or Value Opportunity?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

AutoZone (AZO) Earnings Analysis: Growth or Value Opportunity?

QuantumScape's (QS) solid-state lithium-metal battery technology is poised to capitalize on the booming EV industry, but the company has yet to introduce its technology. It incurred huge losses in the last reported quarter and will likely report significant expenses and losses in the upcoming quarters. So, should you consider QS to charge up your portfolio? Read on to find out… With a $4.57 billion market cap, QuantumScape Corporation (<a href="https://stocknews.com/stock/QS/">QS</a>), a research and development stage business, engages in the development and commercialization of solid-state lithium-metal batteries for use in electric vehicles (EVs) and other applications.
As the demand for EVs is increasing considerably globally, so is the need for lithium batteries. The global EV battery market is projected to reach $508.8 billion by 2033, <a href="https://www.marketsandmarkets.com/Market-Reports/electric-vehicle-battery-market-100188347.html">growing at a 14.4% CAGR</a>. One of the key reasons driving the global adoption of EVs is the government's increasing emphasis on electrification to combat climate change and reduce reliance on fossil fuels.
However, the EV battery market is highly competitive, with new technological advancements by rivals, such as <a href="https://stocknews.com/stock/ENVX/">Enovix Corporation (ENVX)</a>, Sila Nanotechnologies, and Electrovaya Inc., which may overshadow QuantumScape's progress.
On July 11, QS announced a <a href="https://ir.quantumscape.com/resources/press-releases/news-details/2024/PowerCo-and-QuantumScape-Announce-Landmark-Agreement-to-Industrialize-Solid-State-Batteries/default.aspx">groundbreaking agreement</a> to industrialize QuantumScape's next-generation solid-state lithium-metal battery technology with Volkswagen Group's battery company PowerCo. QS will grant PowerCo the license to mass-produce battery cells based on its technology platform upon satisfactory technical progress and certain royalty payments.
"Combining our cutting-edge technology with PowerCo's expertise in manufacturing and industrialization, this deal establishes a blueprint for a capital-light business approach and positions us at the forefront of energy storage innovation. Working closely with PowerCo as our first customer will help us accelerate commercialization and adoption of these game-changing batteries together," said Siva Sivaram, CEO and president of QS.
In 2022, QS demonstrated the capabilities of its solid-state electrolyte-separator and battery technology in single-layer and multilayer cell cycling data and shipped its first 24-layer A0 prototype battery cells to various automotive OEMs for testing. Since then, the company continued to advance its R&amp;D efforts on subsequent generations of prototype samples.
Last year, the company launched its first targeted commercial product, the QSE-5, a cell with an approximate capacity of 5 amp-hours.
While QS' next-generation battery technology for EVs has robust potential, the company has generated no revenue to date as it has yet to commercialize its product. This pre-revenue company incurred an accumulated deficit of approximately $3 billion from its inception in 2010 through March 31, 2024.
Shares of QS have plunged 13.1% over the past year to close the last trading session at $8.92.
Here are some factors that could influence QS' performance in the upcoming months:
Bleak Financials
For the first quarter that ended March 31, 2024, QS' loss from operations widened 19.9% year-over-year to $131.90 million. The company's net loss attributable to common stockholders worsened by 15.3% over the prior-year quarter to $120.65 million, and its net loss per share was $0.24.
Also, as of March 31, 2024, the company's <a href="https://www.investopedia.com/terms/t/total-liabilities.asp#:~:text=Total%20liabilities%20are%20the%20combined%20debts%20that%20an%20individual%20or,equity%20must%20equal%20total%20assets.">total liabilities</a> increased to $204.32 million, compared to $161.80 million as of December 31, 2023.
Unfavorable Analyst Estimates
Analysts expect QS to report a loss per share of $0.19 for the second quarter (ended June 2024). Moreover, the company failed to surpass the consensus EPS estimates in three of the trailing four quarters, which is disappointing.
For the fiscal year ending December 2024, Street expects QuantumScape to incur a loss per share of $0.79, and the company's loss per share for the fiscal year 2025 is expected to be $0.82.
Low Profitability
QS' trailing-12-month ROCE of negative 36.67% is unfavorably compared to the industry average of 11.79%. Likewise, its trailing-12-month ROTC and ROTA of negative 23% and negative 31.50% are lower than the industry averages of 6.26% and 4.22%, respectively.
POWR Ratings Show Uncertainty
QS has an overall F rating, equating to a Strong Sell in our proprietary <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> system. The POWR Ratings are calculated considering 118 distinct factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. QS has a D grade for Sentiment, in sync with its disappointing analyst expectations. In addition, the stock has a D grade for Quality, consistent with its lower-than-industry profitability.
Also, the stock has a D grade for Stability. Its 60-month beta of 4.62 justifies its Stability grade.
QS is ranked last among 61 stocks in the <a href="https://stocknews.com/category/auto-parts/">Auto Parts</a> industry.
Beyond what I have stated above, we have also given QS grades for Value, Growth, and Momentum. Get all QS ratings <a href="https://stocknews.com/stock/QS/">here</a>.
Bottom Line
The rapid global shift toward EVs is driving a surge in demand for high-performance, long-lasting lithium batteries. Although QS is well-positioned to capitalize on this expanding EV market, the company has not yet launched its batteries commercially. The solid-state battery maker has incurred massive losses since its inception and has not generated any revenue.
Given QS' disappointing financials, poor profitability, high debt, and bleak outlook, it could be wise to avoid this stock now.
Stocks to Consider Instead of QuantumScape Corporation (QS)
The odds of QS outperforming in the weeks and months ahead are significantly compromised. However, there are many industry peers with impressive POWR Ratings. So, consider these three stocks rated A (Strong Buy) from the <a href="https://stocknews.com/category/auto-parts/">Auto Parts</a> industry instead:
Allison Transmission Holdings, Inc. (<a href="https://stocknews.com/stock/ALSN/">ALSN</a>)
Garrett Motion Inc. (<a href="https://stocknews.com/stock/GTX/">GTX</a>)
TOYOTA BOSHOKU CORPORATION (<a href="https://stocknews.com/stock/TDBOY/">TDBOY</a>)
To explore more A and B-rated auto parts stocks, <a href="https://stocknews.com/category/auto-parts/">click here</a>.
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
<a href="https://report.stocknews.com/sign-up/stock-market-outlook-2024/?formplacement=artbotad_smo24_rep">2024 Stock Market Outlook &gt;</a>

<hr />
QS shares were trading at $9.09 per share on Thursday morning, up $0.17 (+1.91%). Year-to-date, QS has gained 30.79%, versus a 18.25% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Mangeet Kaur Bouns</h2> <img src='https:/wp-content/uploads/2022/01/Mangeet-Kaur-Bouns_Image-4.jpg' style="float:left; padding:5px;width:125px;">Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.<a href="https://stocknews.com/authors/?author=mangeet-kaurbouns">More...</a>The post <a href=https://stocknews.com/news/qs-alsn-gtx-tdboy-envx-is-quantumscape-ready-to-charge-up-your-portfolio/>Is QuantumScape Ready to Charge up Your Portfolio?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

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