Toyota (6201) AI Stock Analysis

• Market Cap: ¥5.05T
• Dividend Yield: 1.72%
• Average Volume (3M): 699.84K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.58
• Revenue Growth: 2.02%
• EPS Growth: 2.58%
• Country: JP
• Employees: 77,824
• Sector: Industrials
• Sector Strength: 86
• Industry: Auto - Manufacturers
• EPS (TTM): 340.91
• Shares Outstanding: 325,840,640
• 10 Day Avg. Volume: 617,000
• 30 Day Avg. Volume: 699,840
• PEG Ratio: 2.56
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -124.48
• 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: ¥17,441.54
• Price Target Upside: 7.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: ¥17,736.00 ▲(8.98%Upside)

Toyota's overall score is driven by strong financial performance with stable revenue growth and profitability. Nevertheless, the high valuation and cash flow challenges present risks. Technical analysis suggests mixed signals, with positive momentum but short-term weakness. The absence of recent earnings call data or corporate events limits the impact of additional insights.

Positive Factors

Financial Performance

The target price for Toyota Industries is raised to ¥16,300 due to an increased discount rate and value of shareholdings.

Growth Drivers

Materials Handling Equipment business is expected to drive near-term growth with forklift sales recovery and margin improvement.

Takeover

The takeover price is regarded as reasonable and the takeover is expected to succeed.

Negative Factors

Industrial Vehicles Segment

The industrial vehicles segment is assigned a discount due to stagnant multiples and lack of visibility in order trends.

Recommendation

The recommendation is downgraded to Neutral from Buy despite the raised target price.

Valuation

Further upside potential in valuations could occur if improved disclosure allows exclusion of net debt from consolidated figures.

Toyota Business Overview & Revenue Model

Company Description

Toyota Motor Corporation is a leading global automotive manufacturer headquartered in Toyota City, Japan. It operates in the automotive industry, focusing on designing, manufacturing, and selling vehicles, including cars, trucks, and commercial vehicles. Toyota is renowned for its innovation in hybrid technology and commitment to sustainable mobility solutions, with popular models such as the Corolla, Camry, and the Prius. The company also engages in the production of automotive components and offers financial services related to vehicle sales.

How the Company Makes Money

Toyota makes money primarily through the sale of its vehicles, which is the largest revenue stream. This includes both retail sales to consumers and fleet sales to businesses. The company also generates revenue from financial services, which involve providing loans and leasing options to customers purchasing Toyota vehicles. Additionally, Toyota earns from its investments in joint ventures and partnerships, which include collaborations with other automobile manufacturers and technology companies to develop new automotive technologies and mobility solutions. Other significant revenue streams include the sale of spare parts and accessories, as well as revenue from its non-automotive operations, such as housing and information technology solutions.

Toyota Financial Statement Overview

Summary

Toyota exhibits strong financial performance with consistent revenue growth and healthy profitability margins. The company maintains a balanced financial structure with a moderate debt-to-equity ratio and a robust equity ratio, despite challenges in cash flow management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.08T	3.83T	3.38T	2.71T	2.12T
Gross Profit	951.57B	901.15B	756.18B	607.68B	490.41B
EBITDA	688.76B	612.24B	427.40B	383.40B	329.48B
Net Income	262.31B	228.78B	192.86B	180.31B	136.70B
Balance Sheet
Total Assets	9.40T	11.08T	7.82T	7.63T	6.50T
Cash, Cash Equivalents and Short-Term Investments	468.20B	740.21B	628.30B	588.43B	598.06B
Total Debt	1.73T	1.71T	1.70T	1.39T	1.35T
Total Liabilities	4.39T	4.93T	3.89T	3.61T	3.18T
Stockholders Equity	4.90T	6.05T	3.84T	3.93T	3.24T
Cash Flow
Free Cash Flow	-39.45B	94.66B	-95.01B	83.71B	160.03B
Operating Cash Flow	171.58B	443.59B	194.96B	321.08B	382.39B
Investing Cash Flow	-43.40B	47.90B	-427.64B	-229.81B	-404.16B
Financing Cash Flow	-198.65B	-209.49B	183.69B	-92.11B	-105.48B

Toyota Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16275.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 16275 is above the 20-day moving average (MA) of 16260.25, below the 50-day MA of 16626.10, and above the 200-day MA of 13537.54, indicating a neutral trend. The MACD of -29.14 indicates Negative momentum. The RSI at 47.60 is Neutral, neither overbought nor oversold. The STOCH value of 57.69 is Neutral, 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
7267	79 Outperform	$7.57T	8.77	6.54%	4.33%	6.17%	-21.69%
7270	76 Outperform	$2.03T	6.07	12.64%	4.06%	-0.37%	-10.12%
7203	75 Outperform	¥35.77T	7.62	13.59%	3.28%	6.52%	-1.47%
7269	73 Outperform	$3.24T	7.68	15.02%	2.32%	8.39%	55.79%
Sector *	71 Outperform	¥269.60B	14.19	8.47%	2.85%	6.33%	12.37%
6201	69 Neutral	¥5.05T	19.47	4.89%	1.72%	2.02%	2.58%
7201	45 Neutral	$1.11T	12.25	-15.23%	8.23%	-3.33%	-356.10%

Toyota Corporate Events

Toyota Industries Reports Decline in Q1 FY2026 Financial Performance

Toyota Industries Corporation reported a decline in its financial performance for the first quarter of FY2026, with net sales and profits decreasing compared to the previous year. The company also announced no changes in its forecast for the fiscal year, despite a significant drop in operating profit and profit before income taxes, reflecting ongoing challenges in the market.

The most recent analyst rating on (JP:6201) stock is a Hold with a Yen12500.00 price target. To see the full list of analyst forecasts on Toyota stock, see the JP:6201 Stock Forecast page.

Toyota Industries Highlights Relationship with Toyota Motor Corporation

Toyota Industries Corporation announced its operational relationship with Toyota Motor Corporation, highlighting that 41.1% of its net sales are attributed to TMC. Despite TMC’s 24.61% voting rights, Toyota Industries maintains its independence in business operations, negotiating prices annually based on arm’s-length transactions. This relationship underscores the potential impact of TMC’s vehicle sales on Toyota Industries’ business results, while also ensuring a degree of independence in its operations.

The most recent analyst rating on (JP:6201) stock is a Hold with a Yen16300.00 price target. To see the full list of analyst forecasts on Toyota stock, see the JP:6201 Stock Forecast page.

Toyota Industries Considers Investment Unit Reduction Amid Delisting Plans

Toyota Industries Corporation has announced a strategic move to potentially increase stock liquidity by reducing investment units to less than 500,000 yen. However, due to a planned transaction with Toyota Fudosan Co., Ltd., which involves delisting the company’s shares through a tender offer, there are currently no specific plans to implement this reduction.

The most recent analyst rating on (JP:6201) stock is a Buy with a Yen14000.00 price target. To see the full list of analyst forecasts on Toyota stock, see the JP:6201 Stock Forecast page.

Toyota Industries Amends Dividend Forecast Amid Tender Offer

Toyota Industries Corporation has announced an amendment to its dividend forecast for the fiscal year ending March 2026, deciding not to pay any interim or year-end dividends. This decision aligns with the tender offer by Toyota Fudosan Co., Ltd., which aims to make Toyota Industries a wholly-owned subsidiary and delist its shares, impacting shareholder returns and the company’s market positioning.

The most recent analyst rating on (JP:6201) stock is a Buy with a Yen14000.00 price target. To see the full list of analyst forecasts on Toyota stock, see the JP:6201 Stock Forecast page.

Toyota Industries Supports Tender Offer by Toyota Fudosan

Toyota Industries Corporation announced its support for a tender offer for its shares by Toyota Fudosan Co., Ltd. The company has resolved to express a supportive opinion on the tender offer, while leaving the decision to tender shares up to individual shareholders. This move indicates a strategic alignment with Toyota Fudosan, potentially impacting the company’s market positioning and shareholder dynamics. The tender offer is subject to various regulatory approvals across multiple countries, with an anticipated commencement around December 2025.

The most recent analyst rating on (JP:6201) stock is a Buy with a Yen14000.00 price target. To see the full list of analyst forecasts on Toyota stock, see the JP:6201 Stock Forecast page.

Toyota Industries Addresses Going-Private Speculations

Toyota Industries Corporation has addressed recent media reports suggesting it might go private, stating that no definitive decision has been made yet. The company plans to discuss the matter at its board meeting and will disclose any decisions promptly, highlighting its commitment to transparency with stakeholders.

The most recent analyst rating on (JP:6201) stock is a Buy with a Yen14000.00 price target. To see the full list of analyst forecasts on Toyota stock, see the JP:6201 Stock Forecast page.

Toyota Industries Completes Share Repurchase

Toyota Industries Corporation has completed the repurchase of 123,300 shares of its common stock at a total cost of 2,099,698,500 yen. This repurchase is part of a larger plan approved by the board to buy back up to 10 million shares, enhancing shareholder value and potentially impacting stock market positioning.

The most recent analyst rating on (JP:6201) stock is a Buy with a Yen14000.00 price target. To see the full list of analyst forecasts on Toyota stock, see the JP:6201 Stock Forecast page.

Toyota Industries Completes Significant Share Repurchase

Toyota Industries Corporation has completed the repurchase of 123,300 shares of its common stock, costing approximately 2.1 billion yen, as part of a broader initiative authorized by the board in May 2024. This strategic move, involving nearly 10 million shares and a total expenditure of around 120.9 billion yen, underscores the company’s commitment to optimizing its capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (JP:6201) stock is a Buy with a Yen14000.00 price target. To see the full list of analyst forecasts on Toyota stock, see the JP:6201 Stock Forecast page.

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.