Toyota Motor (JP:7203)
:7203
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Toyota Motor
(7203)
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Rating:66Neutral
Price Target:
¥3,146.00
▼(-5.89% Downside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by solid underlying financial performance (strong growth and generally resilient profitability, tempered by leverage and historically uneven free cash flow) and an attractive valuation (low P/E and healthy dividend). These positives are partially offset by weak technicals, with the stock trading below key moving averages and bearish momentum despite oversold signals.
Positive Factors
Diversified global revenue streams and captive finance
Toyota's business combines large-scale vehicle manufacturing, parts/aftermarket sales and an in-house finance arm. This diversification stabilizes cash flow across cycles, supports vehicle affordability and repeat parts revenue, and creates a durable competitive moat via integrated distribution and financing.
Negative Factors
Meaningful leverage on the balance sheet
Debt-to-equity near 1.0–1.1 represents elevated leverage for a manufacturing business. This reduces financial flexibility during downturns, increases interest and refinancing risk if rates rise, and limits capacity for opportunistic investments or smoothing cyclical spending over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified global revenue streams and captive finance
Toyota's business combines large-scale vehicle manufacturing, parts/aftermarket sales and an in-house finance arm. This diversification stabilizes cash flow across cycles, supports vehicle affordability and repeat parts revenue, and creates a durable competitive moat via integrated distribution and financing.
Read all positive factors
Toyota Motor (7203) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥39.44T
Dividend Yield2.78%
Average Volume (3M)21.69M
Price to Earnings (P/E)10.7
Beta (1Y)1.47
Revenue Growth5.51%
EPS Growth-18.10%
CountryJP
Employees383,853
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)295.25
Shares Outstanding15,794,987,000
10 Day Avg. Volume23,861,439
30 Day Avg. Volume21,690,069
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)1.03
Price to Sales (P/S)0.81
P/FCF Ratio73.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,890.00Price Target Upside16.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)311.51
Revenue Forecast (FY)¥52.66T
Toyota Motor Business Overview & Revenue Model
Company Description
Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories. It operates in Automotive, Financial Services, and All Other segments. The company offers...
How the Company Makes Money
Toyota primarily makes money through (1) automotive sales and (2) financial services, with additional contributions from parts/accessories and other mobility-related activities.
1) Automotive (vehicle and parts sales): The largest revenue stream ...
Toyota Motor Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong vehicle sales growth, an increase in electrified vehicle sales, and significant shareholder returns. However, challenges such as the impact of U.S. tariffs and certification issues in North America were evident. Despite these challenges, Toyota has shown resilience with growth in other regions and segments.Positive Updates
Strong Vehicle Sales Growth
Consolidated vehicle sales for the first half reached 4,783,000 units, or 105% of the same period last year. Toyota and Lexus vehicle sales totaled 5,267,000 units, or 104.7% compared to the previous fiscal year.
Negative Updates
Impact of U.S. Tariffs
U.S. tariffs impacted operating income by JPY 1.45 trillion, affecting the North American market significantly.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Vehicle Sales Growth
Consolidated vehicle sales for the first half reached 4,783,000 units, or 105% of the same period last year. Toyota and Lexus vehicle sales totaled 5,267,000 units, or 104.7% compared to the previous fiscal year.
Read all positive updates
Company Guidance
In the fiscal year 2026 Q2 financial results briefing, Toyota Motor Corporation (TMC) provided detailed guidance on various metrics. The company reported an operating income of JPY 2 trillion for the first half of the fiscal year, despite challenges such as U.S. tariffs. They forecast a full-year operating income of JPY 3.4 trillion. Toyota's consolidated vehicle sales for the first half of the year reached 4,783,000 units, marking a 105% increase compared to the same period last year. Toyota and Lexus sales totaled 5,267,000 units, up 104.7% from the previous fiscal year. The company also announced a rise in the interim dividend to JPY 45 per share, with a full-year dividend forecast of JPY 95 per share. The electrified vehicle sales ratio rose to 46.9%, driven by strong hybrid electric vehicle (HEV) sales, particularly in North America and China. Toyota's consolidated sales revenues amounted to JPY 24,630.7 billion, with an operating income of JPY 2,005.6 billion, income before taxes of JPY 2,478.1 billion, and net income of JPY 1,773.4 billion. The company plans to maintain its production capacity in Japan at 3 million units annually, emphasizing the importance of local manufacturing as a core component of its global competitiveness. Additionally, Toyota has revised its full-year sales forecast, increasing Toyota and Lexus vehicle sales by 100,000 units to 10.5 million units, supported by strong product competitiveness and robust demand, particularly in North America.Toyota Motor Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
59
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 50.68T | 48.04T | 45.10T | 37.15T | 31.38T |
| Gross Profit | 8.46T | 9.58T | 9.37T | 6.31T | 5.97T |
| EBITDA | 6.16T | 8.27T | 8.39T | 5.19T | 5.30T |
| Net Income | 3.85T | 4.77T | 4.94T | 2.45T | 2.85T |
Balance Sheet | |||||
| Total Assets | 10.00T> | 93.60T | 90.11T | 74.30T | 67.69T |
| Cash, Cash Equivalents and Short-Term Investments | 12.66T | 15.92T | 14.11T | 9.23T | 8.62T |
| Total Debt | 43.21T | 38.79T | 36.56T | 29.38T | 26.50T |
| Total Liabilities | 64.50T | 56.72T | 54.87T | 45.04T | 40.53T |
| Stockholders Equity | 39.92T | 35.92T | 34.22T | 28.34T | 26.25T |
Cash Flow | |||||
| Free Cash Flow | 558.38B | -1.21T | -842.02B | -750.76B | -107.63B |
| Operating Cash Flow | 5.47T | 3.70T | 4.21T | 2.96T | 3.72T |
| Investing Cash Flow | -1.52T | -4.19T | -5.00T | -1.60T | -577.50B |
| Financing Cash Flow | -536.66B | 197.24B | 2.50T | -56.18B | -2.47T |
Toyota Motor Technical Analysis
Neutral
3343.00
Price Trends
3190.39
Negative
3355.58
Negative
3141.15
Negative
Market Momentum
-69.19
Negative
46.46
Neutral
63.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7203, the sentiment is Neutral. The current price of 3343 is above the 20-day moving average (MA) of 3003.20, above the 50-day MA of 3190.39, and above the 200-day MA of 3141.15, indicating a neutral trend. The MACD of -69.19 indicates Negative momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 63.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7203.
Toyota Motor Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥3.74T | 8.24 | 13.26% | 1.85% | 8.03% | 5.58% | |
66 Neutral | ¥39.44T | 10.71 | 12.89% | 2.78% | 5.51% | -18.10% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ¥1.76T | 19.79 | 9.73% | 3.61% | 2.12% | -72.79% | |
56 Neutral | ¥5.48T | -11.86 | 4.09% | 4.41% | 0.50% | -159.91% | |
54 Neutral | ¥686.87B | 18.67 | 1.72% | 4.52% | -2.01% | -69.28% | |
45 Neutral | ¥1.31T | -2.18 | -16.69% | ― | -4.95% | 20.69% |
* Consumer Cyclical Sector Average
JP:7203
Toyota Motor
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Toyota Motor Corporate Events
Toyota warns of broad risk factors and reiterates insider trading rules
May 8, 2026
Toyota Motor released a cautionary statement outlining numerous risks that could materially affect its future financial performance and operations, ranging from macroeconomic shifts and competitive pressures to currency fluctuations and changes in...
Toyota lifts dividend as FY2026 profit falls and signals tougher year ahead
May 8, 2026
Toyota Motor reported FY2026 consolidated sales revenue of ¥50.68 trillion, up 5.5% year on year, but operating income dropped 21.5% to ¥3.77 trillion and net income attributable to the company fell 19.2% to ¥3.85 trillion as profit...
Toyota to Dispose of Treasury Stock for Expanded Restricted Share Plan
May 8, 2026
Toyota Motor Corporation’s board has approved the disposal of 634,900 shares of its treasury stock at ¥2,978 per share, totaling about ¥1.89 billion, to be allocated on June 30, 2026, under its restricted stock compensation plan. T...
Toyota Completes Share Buyback and Sets Date to Retire Treasury Stock
Apr 28, 2026
Toyota Motor Corporation has completed a tender offer to repurchase its own common shares, conducted between March 31 and April 27, 2026, at a price of 3,067 yen per share. The transaction, authorized by written board-equivalent resolutions under ...
Toyota Motor Revises Terms of Massive Share Buyback Amid Wider Group Tender Moves
Mar 6, 2026
Toyota Motor Corporation has revised the terms of its previously approved share repurchase program, which is being executed via a tender offer for its own common shares. The company had already decided to link the tender offer price to a 10% disco...
Toyota Overhauls Executive Lineup and Board Structure Ahead of New Fiscal Year
Mar 5, 2026
Toyota Motor Corporation announced a wide-ranging reshuffle of its executive and senior management structure, effective April 1, including the appointment of Takefumi Shiga as chief production officer and adjustments across production, branding an...
Toyota Ties 2026 Shareholder Benefits to Wallet Credits and Long-Term Holdings
Feb 25, 2026
Toyota Motor will grant shareholder benefits to investors holding at least 100 common shares as of March 31, 2026, awarding TOYOTA Wallet digital payment credits scaled by holding size and duration to promote long-term ownership. The program, whic...
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.