Toyota (6201) AI Stock Analysis

• Market Cap: $5.16T
• Dividend Yield: 1.6%
• Average Volume (3M): 955.89K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 1.64
• Revenue Growth: 6.57%
• EPS Growth: 16.16%
• Country: JP
• Employees: 77,824
• Sector: Industrials
• Sector Strength: 80
• Industry: Auto - Manufacturers
• EPS (TTM): 330.64
• Shares Outstanding: 325,840,640
• 10 Day Avg. Volume: 1,276,090
• 30 Day Avg. Volume: 955,893
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15,987.70
• Price Target Upside: -5.00% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Toyota's strong financial performance and solid technical indicators contribute positively to its stock evaluation. However, overbought technical conditions and moderate valuation suggest a need for cautious optimism. Key strengths lie in revenue growth and operational efficiency, while challenges include declining equity and cash flow management.

Toyota Business Overview & Revenue Model

Company Description

Toyota Motor Corporation, headquartered in Toyota City, Japan, is a leading global automotive manufacturer. Established in 1937, the company operates in the automotive sector, manufacturing and selling vehicles ranging from petrol and diesel cars to hybrid and electric models. Toyota is renowned for its commitment to quality, innovation, and sustainability, producing popular models such as the Corolla, Camry, and Prius. The company also engages in the production of automotive parts and operates a financial services segment providing vehicle financing and leasing options.

How the Company Makes Money

Toyota makes money primarily through the design, manufacture, and sale of a diverse range of vehicles, including sedans, SUVs, trucks, and hybrids. Revenue is generated from vehicle sales, which make up the majority of the company's income. In addition to automotive sales, Toyota earns money through its financial services division, which offers financing, leasing, and insurance services to customers and dealers, contributing a significant portion to its revenue. The company also benefits from its global manufacturing operations, strategic partnerships, and joint ventures, which enhance its market reach and operational efficiency. Furthermore, Toyota invests in research and development to advance its automotive technologies, which supports its competitive advantage and opens additional revenue streams through innovations in areas such as autonomous vehicles and hydrogen fuel cell technology.

Toyota Financial Statement Overview

Summary

Toyota presents a strong financial position with solid revenue growth and profitability margins, supported by effective cost management. The balance sheet reflects stability, but attention is needed on declining equity and cash flow challenges.

Income Statement

Toyota has demonstrated consistent revenue growth over the past few years, with a notable revenue increase of 6.56% in 2025 compared to 2024. The gross profit margin for 2025 stood at a healthy 23.3%, while the net profit margin improved to 6.42%, indicating strong profitability. The EBIT margin of 5.58% and the EBITDA margin of 16.86% also reflect effective cost management and operational efficiency. The company's consistent performance in these areas highlights its stability and growth trajectory.

Balance Sheet

Toyota maintains a moderate debt-to-equity ratio of 0.35, suggesting a balanced approach to leveraging. The return on equity for 2025 is 5.35%, indicating reasonable profitability relative to shareholder equity. The equity ratio of 52.14% demonstrates a robust financial structure with significant equity backing. However, the decline in stockholders' equity from the previous year poses a potential risk that needs monitoring.

Cash Flow

Toyota's cash flow analysis reveals a decline in free cash flow, with a significant drop from ¥94.66 billion in 2024 to negative ¥39.45 billion in 2025, suggesting challenges in cash generation. The operating cash flow to net income ratio is 0.65, indicating that the company generates a moderate amount of operating cash relative to its net income. The free cash flow to net income ratio has turned negative, needing attention to improve cash management strategies.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
3.83T	3.38T	2.71T	2.12T	2.17T
	Gross Profit
901.15B	756.18B	607.68B	490.41B	506.43B
	EBIT
244.40B	169.90B	159.07B	118.16B	128.23B
	EBITDA
612.24B	427.40B	383.40B	329.48B	338.03B
	Net Income Common Stockholders
228.78B	192.86B	180.31B	136.70B	145.88B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
740.21B	628.30B	588.43B	598.06B	538.63B
	Total Assets
11.08T	7.82T	7.63T	6.50T	5.28T
	Total Debt
1.71T	1.70T	1.39T	1.35T	1.34T
	Net Debt
1.21T	1.50T	1.14T	1.11T	981.63B
	Total Liabilities
4.93T	3.89T	3.61T	3.18T	2.76T
	Stockholders Equity
6.05T	3.84T	3.93T	3.24T	2.44T
Cash Flow		Free Cash Flow
94.66B	-95.01B	83.71B	160.03B	97.20B
	Operating Cash Flow
443.59B	194.96B	321.08B	382.39B	313.20B
	Investing Cash Flow
47.90B	-427.64B	-229.81B	-404.16B	-182.60B
	Financing Cash Flow
-209.49B	183.69B	-92.11B	-105.48B	-7.09B

Toyota Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16830.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6201, the sentiment is Positive. The current price of 16830 is above the 20-day moving average (MA) of 13723.00, above the 50-day MA of 13184.29, and above the 200-day MA of 11969.80, indicating a bullish trend. The MACD of 1163.18 indicates Negative momentum. The RSI at 81.05 is Negative, neither overbought nor oversold. The STOCH value of 93.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6201.

Toyota Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7270	79 Outperform	$1.93T	4.83	15.47%	4.19%	6.27%	19.66%
7203	78 Outperform	¥36.36T	7.25	13.59%	3.33%	6.94%	15.37%
7269	74 Outperform	$3.49T	9.01	14.33%	2.07%	14.46%	62.35%
6201	73 Outperform	$5.16T	19.41	4.70%	1.60%	6.57%	16.16%
7267	71 Outperform	$7.16T	6.79	8.11%	4.42%	12.25%	15.01%
Sector *	64 Neutral	$4.24B	11.66	5.23%	249.83%	4.08%	-10.45%
7205	45 Neutral	$263.25B	―	-77.14%	―	11.94%	-1374.36%

Toyota Corporate Events

Toyota Industries Continues Strategic Share Repurchase

Toyota Industries Corporation has announced the ongoing repurchase of its treasury stock, with 801,700 shares acquired for a total cost of 9,734,421,500 yen during April 2025. This repurchase is part of a larger plan approved by the Board of Directors to buy back up to 10 million shares by May 2025, reflecting the company’s strategic financial management and potential implications for shareholder value.

Toyota Industries Addresses Buyout Speculations

Toyota Industries Corporation has addressed recent media reports suggesting a buyout by the Toyota group or funding family, stating that no such proposal has been confirmed or publicly announced. The company is exploring various options to enhance its enterprise value, including capital efficiency improvements and potential privatization, but no definitive decisions have been made.

Toyota Industries Board Opposes Shareholder Proposal on Corporate Amendments

Toyota Industries Corporation’s Board of Directors has decided to oppose a shareholder proposal submitted by Longchamp SICAV, which will be presented at the upcoming General Meeting of Shareholders. The proposal includes amendments to the Articles of Incorporation related to capital cost management and the composition of outside directors. The Board believes that the proposed initiatives should be considered in future management strategies rather than being enshrined in the Articles of Incorporation. Toyota Industries emphasizes its commitment to enhancing corporate value through sustainable growth, strategic investments, and shareholder engagement.

Toyota Industries Announces Change in Subsidiary Status for AICHI CORPORATION

Toyota Industries Corporation announced the results of a tender offer by its subsidiary, AICHI CORPORATION, for its own shares. Following the tender offer, AICHI will no longer be a subsidiary of Toyota Industries as of May 14, 2025, marking a significant change in the company’s corporate structure and shareholder composition.

Toyota Industries Announces Strategic Share Transfer and Business Alliance

Toyota Industries Corporation announced the partial transfer of shares of its subsidiary, AICHI Corporation, to ITOCHU Corporation as part of a business alliance agreement. This transaction will result in AICHI ceasing to be a subsidiary and becoming an affiliate, impacting Toyota’s financial statements with significant gains recorded from the sale of shares, reflecting strategic repositioning within the industry.

Toyota Industries Continues Treasury Stock Repurchase

Toyota Industries Corporation has announced the ongoing repurchase of its treasury stock, purchasing 673,700 shares at a total cost of 8,807,971,000 yen during March 2025. This repurchase is part of a larger plan approved by the Board of Directors to buy back up to 10 million shares by May 2025, reflecting the company’s strategy to manage its capital structure and potentially enhance shareholder value.