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Toyota Industries Corp (JP:6201)
:6201

Toyota (6201) AI Stock Analysis

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JP

Toyota

(OTC:6201)

Rating:69Neutral
Price Target:
¥17,736.00
▲(8.48%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
Business Growth
Materials Handling Equipment business is expected to drive near-term growth with forklift sales recovery and margin improvement.
Shareholdings
Toyota Industries' potential sale of its Toyota stake is a strong positive catalyst for the share price.
Takeover
The takeover price is regarded as reasonable and the takeover is expected to succeed.
Negative Factors
Industrial Vehicles
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.

Toyota (6201) vs. iShares MSCI Japan ETF (EWJ)

Toyota Business Overview & Revenue Model

Company DescriptionToyota 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 MoneyToyota 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 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
85
Very Positive
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
78
Positive
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
70
Positive
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 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
4.08T3.83T3.38T2.71T2.12T
Gross Profit
951.57B901.15B756.18B607.68B490.41B
EBIT
227.72B244.40B169.90B159.07B118.16B
EBITDA
688.76B612.24B427.40B383.40B329.48B
Net Income Common Stockholders
262.31B228.78B192.86B180.31B136.70B
Balance SheetCash, Cash Equivalents and Short-Term Investments
468.20B740.21B628.30B588.43B598.06B
Total Assets
9.40T11.08T7.82T7.63T6.50T
Total Debt
1.73T1.71T1.70T1.39T1.35T
Net Debt
1.35T1.21T1.50T1.14T1.11T
Total Liabilities
4.39T4.93T3.89T3.61T3.18T
Stockholders Equity
4.90T6.05T3.84T3.93T3.24T
Cash FlowFree Cash Flow
-39.45B94.66B-95.01B83.71B160.03B
Operating Cash Flow
171.58B443.59B194.96B321.08B382.39B
Investing Cash Flow
-43.40B47.90B-427.64B-229.81B-404.16B
Financing Cash Flow
-198.65B-209.49B183.69B-92.11B-105.48B

Toyota Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16350.00
Price Trends
50DMA
15370.80
Positive
100DMA
14092.16
Positive
200DMA
12654.17
Positive
Market Momentum
MACD
112.73
Positive
RSI
46.96
Neutral
STOCH
15.10
Positive
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 16350 is below the 20-day moving average (MA) of 17287.25, above the 50-day MA of 15370.80, and above the 200-day MA of 12654.17, indicating a neutral trend. The MACD of 112.73 indicates Positive momentum. The RSI at 46.96 is Neutral, neither overbought nor oversold. The STOCH value of 15.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6201.

Toyota Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥34.66T7.3913.59%3.78%6.52%-1.27%
75
Outperform
$1.88T5.6112.64%5.01%-0.37%-9.93%
74
Outperform
$6.75T7.796.54%4.86%6.17%-20.72%
72
Outperform
$3.33T7.8915.02%2.22%8.39%55.79%
69
Neutral
¥5.07T19.074.70%1.71%6.57%15.79%
66
Neutral
$4.51B12.225.40%3.63%4.14%-12.01%
51
Neutral
$1.26T12.25-12.13%2.74%-0.41%-269.88%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6201
Toyota
16,390.00
3,413.16
26.30%
JP:7203
Toyota Motor
2,555.00
-461.01
-15.29%
JP:7201
Nissan Motor Co
359.10
-176.80
-32.99%
JP:7269
Suzuki Motor
1,691.00
-122.34
-6.75%
JP:7267
Honda Motor Co
1,393.50
-227.55
-14.04%
JP:7270
SUBARU
2,471.00
-673.09
-21.41%

Toyota Corporate Events

Toyota Industries Considers Investment Unit Reduction Amid Delisting Plans
Jun 4, 2025

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
Jun 4, 2025

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
Jun 4, 2025

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
Jun 3, 2025

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
May 14, 2025

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
May 14, 2025

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
May 7, 2025

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
Apr 26, 2025

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
Apr 25, 2025

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
Apr 18, 2025

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
Apr 18, 2025

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
Apr 2, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.