Toyota (6201) AI Stock Analysis

• Market Cap: $5.50T
• Dividend Yield: 0.79%
• Average Volume (3M): 401.38K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 1.37
• Revenue Growth: 2.91%
• EPS Growth: -11.26%
• Country: JP
• Employees: 77,824
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 325,840,640
• 10 Day Avg. Volume: 377,800
• 30 Day Avg. Volume: 401,383
• PEG Ratio: 0.91
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.95
• P/FCF Ratio: -98.57
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 6.75
• Enterprise Value/Ebitda: 11.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥19,813.00 ▲(11.31% Upside)

Toyota's strong financial performance and bullish technical indicators are the primary drivers of its stock score. However, the high P/E ratio suggests potential overvaluation, which slightly tempers the overall score. The absence of earnings call data and corporate events does not impact the score due to their exclusion.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Toyota's ability to maintain its market position and expand its customer base, supporting long-term stability.

Cash Flow Improvement

Improved cash flow enhances Toyota's financial flexibility, allowing for strategic investments and debt management, bolstering future growth.

Balance Sheet Health

A strong balance sheet with moderate leverage provides Toyota with stability and the ability to withstand economic fluctuations.

Negative Factors

EBIT Margin Pressure

Declining EBIT margins suggest operational efficiency challenges, which could impact profitability if not addressed.

EPS Growth Decline

Negative EPS growth indicates potential profitability issues, which could affect investor confidence and long-term earnings potential.

Free Cash Flow Conversion

Low free cash flow conversion suggests inefficiencies in translating income into cash, which may limit reinvestment capabilities.

Toyota Business Overview & Revenue Model

Company Description

Toyota Industries Corporation manufactures and sells automobiles, material handling equipment, textile machinery, and others in Japan and internationally. The company operates through Automobile, Materials Handling Equipment, and Textile Machinery segments. It provides vehicles; gas, gasoline, and diesel engines for automobiles, industrial equipment, turbochargers, and foundry parts; car air-conditioning compressors; car electronics comprising DC-DC converters, rear inverters, direct-cooling devices, DC-AC inverters, and charging systems; and stamping dies consists of automotive and lift truck stamping dies. The company also offers counterbalanced lift trucks, electric reach trucks, skid steer loaders, tow tractors, and electric tow tractors; stationary/fixed type racks, nesting pallets, mobile racks, and automated storage and retrieval systems; automatic guided vehicle systems, high speed rail guided vehicle systems, and automatic guided lift and pallet trucks. In addition, it provides spinning machines consisting of ring spinning and roving frames; weaving machinery; and cotton classing and yarn testing instruments, as well as leases materials handling systems and industrial equipment. Further, the company offers aerial work platforms; in-house transporters; software; and funding, loan, and other financial services. Additionally, it is involved in the operation of sports facility and nursing homes; real estate leasing; trucking, warehousing, distribution consulting; building management, construction, and real estate; travel agency, renovation, sale of tube amplifiers, and organizing and running of events; personnel placement, contract office staffing, and patent investigation; management and operation of employee clubs and restaurant management; administrative processing for payroll accounting; and contract manufacturing of electronic devices, as well as sale of hardware. The company was incorporated in 1926 and is headquartered in Kariya, Japan.

How the Company Makes Money

Toyota generates revenue primarily through the sale of vehicles, which includes passenger cars, trucks, and commercial vehicles. The company has a diversified revenue model that includes significant income from its financial services segment, which offers financing options for customers and dealerships, as well as leasing products. Additionally, Toyota earns revenue through parts and accessories sales, and it has established partnerships with various companies to enhance its technology offerings, such as collaborations in autonomous driving and connected vehicle technologies. The company's global presence and strong brand reputation also contribute to its robust sales performance across different markets.

Toyota Financial Statement Overview

Summary

Toyota demonstrates a solid financial position with strong profitability and a conservative balance sheet. However, challenges in revenue growth and cash flow management could pose risks if not addressed. Overall, the company remains financially stable with opportunities for improvement in cash flow efficiency.

Income Statement

Toyota's income statement shows a stable gross profit margin of approximately 23%, indicating efficient production processes. However, the TTM data reveals a slight decline in revenue growth rate, which is a concern. The net profit margin remains healthy at around 6.4%, reflecting strong cost management. The EBIT and EBITDA margins are stable, suggesting consistent operational efficiency.

Balance Sheet

The balance sheet is robust with a debt-to-equity ratio of 0.35, indicating a conservative leverage position. Return on equity is moderate at 5.1%, suggesting decent profitability relative to shareholder equity. The equity ratio is strong, highlighting a solid capital structure and financial stability.

Cash Flow

Cash flow analysis shows challenges with negative free cash flow growth, indicating potential cash management issues. The operating cash flow to net income ratio is low, suggesting limited cash conversion efficiency. However, the company maintains a positive operating cash flow, which is a positive indicator of liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.13T	4.08T	3.83T	3.38T	2.71T	2.12T
Gross Profit	924.40B	951.57B	901.15B	756.18B	607.68B	490.41B
EBITDA	547.14B	691.39B	615.52B	534.71B	477.14B	403.68B
Net Income	206.01B	262.31B	228.78B	192.86B	180.31B	136.70B
Balance Sheet
Total Assets	10.15T	9.40T	11.08T	7.82T	7.63T	6.50T
Cash, Cash Equivalents and Short-Term Investments	506.16B	468.20B	740.21B	628.30B	588.43B	598.06B
Total Debt	1.77T	1.73T	1.71T	1.70T	1.39T	1.35T
Total Liabilities	4.72T	4.39T	4.93T	3.89T	3.61T	3.18T
Stockholders Equity	5.36T	4.90T	6.05T	3.84T	3.93T	3.24T
Cash Flow
Free Cash Flow	159.88B	-39.45B	94.66B	-95.01B	83.71B	160.03B
Operating Cash Flow	362.76B	171.58B	443.59B	194.96B	321.08B	382.39B
Investing Cash Flow	-124.05B	-43.40B	47.90B	-427.64B	-229.81B	-404.16B
Financing Cash Flow	-282.13B	-198.65B	-209.49B	183.69B	-92.11B	-105.48B

Toyota Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17800.00
• 50DMA: Positive
• 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 17800 is above the 20-day moving average (MA) of 17491.75, above the 50-day MA of 17133.70, and above the 200-day MA of 15934.80, indicating a bullish trend. The MACD of 171.71 indicates Negative momentum. The RSI at 61.24 is Neutral, neither overbought nor oversold. The STOCH value of 57.71 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
7203	80 Outperform	¥43.65T	9.45	12.89%	2.84%	6.44%	11.88%
7270	76 Outperform	¥2.56T	9.62	9.73%	3.60%	1.04%	-31.52%
6201	74 Outperform	$5.50T	26.03	3.94%	0.79%	2.91%	-11.26%
7269	72 Outperform	$4.57T	11.50	12.95%	1.84%	2.99%	9.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7267	63 Neutral	¥6.47T	10.57	5.23%	4.47%	-0.43%	-26.68%
7201	49 Neutral	¥1.41T	-1.52	-16.69%	―	-3.01%	-755.71%

Toyota Corporate Events

Toyota Industries Revises FY2026 Financial Forecast Amid Legal and Tariff Challenges

Toyota Industries Corporation has revised its financial forecast for FY2026, maintaining net sales projections but lowering profit expectations due to a settlement payment and customer support expenses related to a U.S. class-action lawsuit and the impact of U.S. tariffs. Despite these adjustments, the company has decided not to change its dividend forecast.

Toyota Industries Reports Decline in FY2026 Q2 Profits Amid Sales Growth

Toyota Industries Corporation reported its consolidated financial results for the second quarter of FY2026, showing a slight increase in net sales but significant declines in operating profit, profit before income taxes, and profit attributable to owners of the parent compared to the previous year. The company has adjusted its forecasts for FY2026, indicating expected decreases in net sales and profits, which may impact stakeholders and reflect ongoing challenges in the automotive sector.

Toyota Industries Updates on Tender Offer Progress

Toyota Industries Corporation announced progress in the tender offer for its shares by Toyota Fudosan Co., Ltd. The offer, initially planned for early December 2025, is now expected to commence in or after February 2026 due to pending regulatory clearances in several jurisdictions. This development could impact the company’s market positioning and shareholder interests.

Toyota Industries Announces Progress on Share Tender Offer

Toyota Industries Corporation announced the progress of a tender offer for its share certificates by Toyota Fudosan Co., Ltd. The tender offer is set to commence in February 2026, pending the completion of regulatory procedures in various jurisdictions. This move is part of Toyota Fudosan’s strategic efforts to consolidate its position within the industry, potentially impacting stakeholders and market dynamics.