Toyota Motor (JP:7203)
:7203
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Toyota Motor
(7203)
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Rating:68Neutral
Price Target:
¥3,831.00
▲(17.84% Upside)
Action:DowngradedDate:03/08/26
The score is driven primarily by solid underlying financial profitability but constrained by weak and volatile cash flow conversion. Valuation is a key positive (low P/E and decent yield), while technicals are a near-term headwind given weak momentum and the price below short-term moving averages.
Positive Factors
Scale & Profitability
Toyota's large scale and sustained operating profitability mean the company can generate meaningful operating cash across cycles and fund product development, platform sharing, and global manufacturing. Healthy margins support reinvestment and resilience versus smaller competitors.
Negative Factors
Weak Cash Conversion
Operating cash flow is modest relative to reported profits and free cash flow has been volatile, limiting internally generated liquidity for capex, EV investments, dividends, or buybacks. Persistent weak cash conversion reduces financial optionality and raises reliance on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Profitability
Toyota's large scale and sustained operating profitability mean the company can generate meaningful operating cash across cycles and fund product development, platform sharing, and global manufacturing. Healthy margins support reinvestment and resilience versus smaller competitors.
Read all positive factors
Toyota Motor (7203) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥42.63T
Dividend Yield2.78%
Average Volume (3M)21.69M
Price to Earnings (P/E)8.7
Beta (1Y)1.50
Revenue Growth6.44%
EPS Growth11.88%
CountryJP
Employees383,853
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)96.48
Shares Outstanding15,794,987,000
10 Day Avg. Volume23,861,439
30 Day Avg. Volume21,690,069
Financial Highlights & Ratios
PEG Ratio-4.17
Price to Book (P/B)0.97
Price to Sales (P/S)0.72
P/FCF Ratio-28.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥4,391.67Price Target Upside35.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)290.64
Revenue Forecast (FY)¥50.86T
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 generates revenue primarily through the sale of vehicles, which includes passenger cars, trucks, and SUVs. The company also earns significant income from its financial services division, which provides financing solutions for customers and ...
Toyota Motor Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 13, 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
84
Very Positive
Balance Sheet
71
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 50.45T | 48.04T | 45.10T | 37.15T | 31.38T | 27.21T |
| Gross Profit | 8.89T | 9.58T | 9.37T | 6.31T | 5.97T | 4.83T |
| EBITDA | 7.27T | 8.27T | 8.39T | 5.19T | 5.30T | 4.27T |
| Net Income | 3.70T | 4.77T | 4.94T | 2.45T | 2.85T | 2.25T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 93.60T | 90.11T | 74.30T | 67.69T | 62.27T |
| Cash, Cash Equivalents and Short-Term Investments | 7.92T | 15.92T | 14.11T | 9.23T | 8.62T | 9.32T |
| Total Debt | 42.13T | 38.79T | 36.56T | 29.38T | 26.50T | 25.66T |
| Total Liabilities | 62.35T | 56.72T | 54.87T | 45.04T | 40.53T | 37.98T |
| Stockholders Equity | 38.97T | 35.92T | 34.22T | 28.34T | 26.25T | 23.40T |
Cash Flow | ||||||
| Free Cash Flow | 334.81B | -1.21T | -842.02B | -750.76B | -107.63B | -1.04T |
| Operating Cash Flow | 4.64T | 3.70T | 4.21T | 2.96T | 3.72T | 2.73T |
| Investing Cash Flow | -5.02T | -4.19T | -5.00T | -1.60T | -577.50B | -4.68T |
| Financing Cash Flow | -5.76B | 197.24B | 2.50T | -56.18B | -2.47T | 2.74T |
Toyota Motor Technical Analysis
Negative
3251.00
Price Trends
3586.18
Negative
3400.82
Negative
3073.87
Positive
Market Momentum
-87.25
Positive
35.11
Neutral
10.20
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7203, the sentiment is Negative. The current price of 3251 is below the 20-day moving average (MA) of 3518.70, below the 50-day MA of 3586.18, and above the 200-day MA of 3073.87, indicating a neutral trend. The MACD of -87.25 indicates Positive momentum. The RSI at 35.11 is Neutral, neither overbought nor oversold. The STOCH value of 10.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥3.69T | 9.91 | 13.26% | 1.85% | 2.99% | 9.99% | |
68 Neutral | ¥42.63T | 8.70 | 12.89% | 2.78% | 6.44% | 11.88% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ¥5.06T | 9.73 | 4.09% | 4.41% | -0.43% | -26.68% | |
58 Neutral | $1.83T | -82.83 | 9.73% | 3.61% | 1.04% | -31.52% | |
55 Neutral | ¥668.29B | 6.29 | 1.72% | 4.52% | -0.83% | -75.20% | |
47 Neutral | ¥1.19T | -12.05 | -16.69% | ― | -3.01% | -755.71% |
* Consumer Cyclical Sector Average
JP:7203
Toyota Motor
3,271.00
482.36
17.30%
JP:7270
SUBARU
2,560.00
-250.66
-8.92%
JP:7267
Honda Motor Co
1,300.50
-136.27
-9.48%
JP:7261
Mazda Motor
1,096.00
59.83
5.77%
JP:7201
Nissan Motor Co
340.00
-79.10
-18.87%
JP:7269
Suzuki Motor
1,918.50
63.69
3.43%
Toyota Motor Corporate Events
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...
Toyota Elevates CFO Kenta Kon to President and CEO in Leadership Reshuffle
Feb 6, 2026
Toyota Motor Corporation announced a reshuffling of its top management, with current President and CEO Koji Sato transitioning to the roles of vice chairman and chief industry officer and Kenta Kon, currently chief financial officer and operating ...
Toyota Flags Broad Risk Factors and Reinforces Insider Trading Restrictions
Feb 6, 2026
Toyota Motor Corporation’s FY2026 third-quarter communication emphasizes that its financial and operational outlook is subject to significant uncertainty, highlighting numerous risk factors ranging from global economic and competitive condit...
Toyota Sales Climb but U.S. Tariffs Slash Profits and FY2026 Outlook
Feb 6, 2026
Toyota Motor reported a 6.8% rise in sales revenue to ¥38.1 trillion for the first nine months of FY2026, but profits declined sharply, with operating income down 13.1% and net income attributable to the company falling 26.1% year on year, dr...
Toyota Lifts Cap on Share Buyback Tender to ¥4.34 Trillion and Updates Pricing Formula
Jan 14, 2026
Toyota Motor Corporation has revised the terms of its planned tender offer for its own shares, adjusting the formula used to set the tender offer price and increasing the ceiling for the total repurchase amount to up to ¥4.34 trillion. The co...
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.