Toyota Motor remains the world’s No. 1 automaker, with sales surging 31% in the first six months of 2021 – to a record 5.47 million across all its brands, reports just-auto-com.

Germany’s Volkswagen AG retained second spot in the global sale race. Sales jumped 28% from Jan-June, to 4.98 million globally.

Yes, millions are buying Toyotas, Lexus luxury vehicles and Daihatsus. But as an investor, should you buy Toyota the company?

Erik Foo, a financial analyst and sales specialist at Refinitiv, a financial market data provider, notes that Toyota is one of six highly undervalued blue-chip automakers. His conclusion is based on a complicated formula that takes into account earnings and projected future dividends to arrive at an intrinsic value/fair value for the stock.

Writing in The Globe and Mail, Foo reports that Toyota’s Starmine Intrinsic Value comes in at US$248.40 a share, well above the recent US$175.50 close. Of course, there is no guarantee that Toyota’s shares will suddenly appreciate by nearly 42% overnight.

However, there is evidence to suggest that Toyota, with a market cap of US$290 billion, or less than half Tesla’s US$719.5 billion, is an underappreciated automaker – massively profitable and now resigned to comprehensively competing in the vehicle electrification movement largely triggered by Tesla.

But Toyota is not the most undervalued and underappreciated automaker. That dubious honor goes to Stellantis NV, the newly combined Fiat Chrysler and Groupe PSA based in Amsterdam, which itself has finally – FINALLY – gotten serious about electrification.

The Starmine analysis suggests Stellantis is an absolute steal at US$18.80, given the company’s intrinsic value comes in at US$61.27. Could you triple your money with an investment in Stellantis?

I don’t own any car company shares and I’m not a professional stock picker. But I would suggest that an upside surge in the share price is unlikely, given Stellantis is a new entity with weak fundamentals, poor profitability, lots of debt, and a number of beaten-down brands.

Honda Motor is, arguably, a more compelling case. Honda recently closed at US$31.49/share, but the Starmine analysis points to an intrinsic value of US$88.02. Could an investor earn a 179.5% return in a Honda buy?

Honda itself says sales will jump 15 per cent year-on-year for fiscal 2022, in part on the strength of the all-new Civic now being launched. The Honda brand is strong, its portfolio of products wide and varied, and its 2030 Vision plan projects that two-thirds of revenue by 2030 will come from EVs.

Still, the available analysts’ consensus from Refinitiv says Honda’s shares are going nowhere in the next 12 months.

As for the rest, Ford Motor and General Motors also appear highly undervalued.

Ford recently closed at US$14.03, but the Starmine value suggests the company intrinsic value is almost double that at US$26.82.

GM, recently trading at US$55.77, has a Starmine value rating of US$90.30.

Ford’s earnings are strong, but the company’s fundamentals are weak. The company’s future is tied to an aggressive electrification plan that will be difficult to execute after years of dithering, poor decision-making and execution, not to mention turmoil in the executive ranks and a worrying dependence on a single product for the vast bulk of profits – that Ford F-Series pickup.

GM is, arguably, a more compelling case.

The company boasts an actual one-year return of 125.6%, which means you would have more than doubled your investment if you’d bought GM in the worst months of the pandemic last year.

GM boasts stellar earnings, good fundamentals, and an attractive valuation. GM, under long-time CEO Mary Barra, continues to execute a clear and detailed product plan intended to put the company at the forefront of the EV and artificial intelligence race that now consumes the auto industry. Moreover, GM has quit unprofitable and unstable markets such as Russia, focusing instead on profitable ones such as North America and China.

Finally, Thor Industries. Huh?

Thor makes recreational vehicles, the most visible of which are Airstream trailers of various shapes and sizes. The Airstream brand is very strong, indeed.

Thor recently closed at US$114.28, but the Starmine evaluation suggests an intrinsic value of US$202.09. Thor is poised to prosper with economies opening as pandemic fears and restrictions ease.

But there are risks, including weak fundamentals and worries of a fourth COVID wave that could slow economic recovery.

So, buy the car (or trailer) or buy the company? Now you have a guide to get you started.