Toyota Motor (7203) AI Stock Analysis

• Market Cap: ¥36.60T
• Dividend Yield: 3.15%
• Average Volume (3M): 32.37M
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.56
• Revenue Growth: 4.45%
• EPS Growth: -11.43%
• Country: JP
• Employees: 383,853
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Manufacturers
• EPS (TTM): 64.56
• Shares Outstanding: 15,794,987,000
• 10 Day Avg. Volume: 30,300,640
• 30 Day Avg. Volume: 32,373,249
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,040.56
• Price Target Upside: 6.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 75 Outperform
• Price Target: ¥3,215.00 ▲(12.65% Upside)

Toyota Motor's overall score reflects its solid financial performance and attractive valuation, supported by a robust earnings call. However, the technical analysis highlights potential overbought conditions, and challenges such as decreased future earnings and U.S. tariffs pose risks. The company's commitment to sustained growth in electrified vehicles remains a positive factor.

Positive Factors

Corporate restructuring

Hino's deconsolidation, which was somewhat anticipated by market participants, would be a positive in terms of resolving pending issues.

Product expansion

Positive catalysts for Toyota include 24 new product launches, major product releases in China, and commencement of US battery production.

Strategic investments

Toyota is the market leader for hybrid cars, offering a significant competitive advantage with the largest global automobile market share of 11.5%.

Negative Factors

Currency fluctuations

Weakening USD/EUR against JPY may lead to downside risks for Toyota's earnings due to its 50% revenue exposure in these currencies.

Market demand

Toyota faces demand risks related to China and mass-market sales, along with elevated raw material costs posing headwinds to earnings.

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 hybrid cars under the Prius name, fuel cell vehicles under the MIRAI name; and conventional engine vehicles, including subcompact and compact cars under the Corolla and Raize names. It also provides mini-vehicles, passenger vehicles, commercial vehicles, and auto parts under the Toyota name; mid-size cars; luxury cars; sports cars under the GR Yaris, Corolla Sport, Corolla Cross, and Supra names; and recreational and sport-utility vehicles under the Highlander name. In addition, the company offers pickup trucks under the Tacoma name; minivans; and trucks and buses. Further, it provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards; and designs, manufactures, and sells prefabricated housing. Additionally, the company operates GAZOO.com, a web portal for automobile information. It operates in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. The company was founded in 1933 and is headquartered in Toyota, Japan.

How the Company Makes Money

Toyota makes money primarily through the design, manufacture, and sale of vehicles across multiple global markets. The company's revenue streams are largely derived from its automotive operations, which include the sale of vehicles, parts, and accessories. Additionally, Toyota's financial services arm contributes significantly to its earnings by offering financing, leasing, and insurance services to customers and dealers. The company also invests in new technologies and sustainable mobility solutions, such as hybrid and electric vehicles, which are becoming increasingly important revenue drivers. Strategic partnerships and joint ventures with other automotive and technology firms further bolster Toyota's revenue by enhancing its product offerings and expanding its market reach.

Toyota Motor Financial Statement Overview

Summary

Toyota Motor demonstrates solid financial performance with strong revenue growth and profitability metrics. The balance sheet is robust, showing stability and effective leverage management. However, the negative free cash flow warrants attention, suggesting the need for careful cash management to sustain long-term growth.

Income Statement

Toyota Motor shows a strong income statement with consistent revenue growth, evidenced by a 6.53% increase from 2024 to 2025. The gross profit margin for 2025 is 19.94%, which indicates healthy profitability. The net profit margin remains robust at 9.92%. However, there was a slight decline in EBIT margin from 11.87% to 9.98%, reflecting potential cost pressures.

Balance Sheet

The company maintains a stable balance sheet with a debt-to-equity ratio of 1.08, which is reasonable for the auto industry. The equity ratio is 38.38%, indicating a well-capitalized structure. ROE is strong at 13.27%, showcasing effective management of equity capital. The balance sheet reflects a solid financial foundation despite the increase in total debt.

Cash Flow

Cash flow analysis reveals challenges, as the free cash flow remains negative, although it improved slightly from the previous year. The operating cash flow to net income ratio is 0.78, suggesting effective cash generation relative to earnings. However, the free cash flow to net income ratio is negative, indicating potential issues in covering capital expenditures.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	48.04T	48.04T	45.10T	37.15T	31.38T	27.21T
Gross Profit	9.58T	9.58T	9.37T	6.31T	5.97T	4.83T
EBITDA	8.27T	8.27T	8.39T	5.19T	5.30T	4.27T
Net Income	4.77T	4.77T	4.94T	2.45T	2.85T	2.25T
Balance Sheet
Total Assets	93.60T	93.60T	90.11T	74.30T	67.69T	62.27T
Cash, Cash Equivalents and Short-Term Investments	8.98T	8.98T	11.58T	7.22T	6.79T	9.32T
Total Debt	38.79T	38.79T	36.56T	29.38T	26.50T	25.66T
Total Liabilities	56.72T	56.72T	54.87T	45.04T	40.53T	37.98T
Stockholders Equity	35.92T	35.92T	34.22T	28.34T	26.25T	23.40T
Cash Flow
Free Cash Flow	-1.27T	-1.21T	-842.02B	-750.76B	-107.63B	-1.04T
Operating Cash Flow	3.70T	3.70T	4.21T	2.96T	3.72T	2.73T
Investing Cash Flow	-4.19T	-4.19T	-5.00T	-1.60T	-577.50B	-4.68T
Financing Cash Flow	197.24B	197.24B	2.50T	-56.18B	-2.47T	2.74T

Toyota Motor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2854.00
• 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:7203, the sentiment is Positive. The current price of 2854 is above the 20-day moving average (MA) of 2732.35, above the 50-day MA of 2611.19, and above the 200-day MA of 2675.77, indicating a bullish trend. The MACD of 64.82 indicates Negative momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 71.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7203.

Toyota Motor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7203	75 Outperform	¥36.60T	8.60	11.91%	3.15%	4.45%	-11.43%
Sector *	63 Neutral	£1.74B	10.54	4.37%	3.49%	0.66%	-39.52%
HNDAF	―	$53.21B	11.16	5.17%	4.28%	―	―
MZDAF	―	$4.08B	32.59	1.11%	5.72%	―	―
NSANF	―	$7.67B	12.42	-15.23%	5.84%	―	―
SZKMF	―	$23.80B	9.12	13.92%	2.16%	―	―
TYIDF	―	$34.39B	19.79	4.89%	1.67%	―	―

Toyota Motor Corporate Events

Toyota Expands Investment in Woven Capital to Boost Mobility Innovations

Toyota Motor Corporation has announced a significant investment in Woven Capital, L.P., a global investment fund established by its subsidiary Woven by Toyota. This move elevates Woven Capital to a specified subsidiary status, reflecting Toyota’s strategy to enhance its investment business and strengthen partnerships in innovative fields such as mobility, automation, and artificial intelligence. The investment is expected to have minimal impact on Toyota’s business performance but aligns with its goal of transforming into a mobility company and producing happiness for all stakeholders.

The most recent analyst rating on (JP:7203) stock is a Buy with a Yen3800.00 price target. To see the full list of analyst forecasts on Toyota Motor stock, see the JP:7203 Stock Forecast page.

Toyota Announces Leadership and Structural Changes

Toyota Motor Corporation announced changes to its board members, executive structure, and senior management, effective July 1, 2025. These changes include new appointments to the board of directors and adjustments in executive roles, which are expected to impact the company’s strategic direction and governance.

The most recent analyst rating on (JP:7203) stock is a Buy with a Yen3800.00 price target. To see the full list of analyst forecasts on Toyota Motor stock, see the JP:7203 Stock Forecast page.

Toyota Announces Strategic Business Integration with Hino and Mitsubishi Fuso

Toyota Motor Corporation has announced a significant business integration involving its subsidiary, Hino Motors, and Mitsubishi Fuso Truck and Bus Corporation, a subsidiary of Daimler Truck AG. This integration will result in the formation of a new holding company, leading to Hino ceasing to be a consolidated subsidiary of Toyota. This strategic move is expected to reshape Toyota’s operations and influence its market positioning, potentially impacting stakeholders and the broader automotive industry.

The most recent analyst rating on (JP:7203) stock is a Buy with a Yen3800.00 price target. To see the full list of analyst forecasts on Toyota Motor stock, see the JP:7203 Stock Forecast page.

Toyota Announces Share Repurchase Plan to Boost Shareholder Value

Toyota Motor Corporation announced its intention to conduct a share repurchase through a tender offer for its own shares, as part of its strategy to enhance shareholder returns and corporate value. This move is aligned with Toyota’s broader goal of investing in future growth, particularly in environmental and safety technologies, to maintain competitiveness and support stakeholders including employees, business partners, and local communities.

The most recent analyst rating on (JP:7203) stock is a Buy with a Yen3800.00 price target. To see the full list of analyst forecasts on Toyota Motor stock, see the JP:7203 Stock Forecast page.

Toyota Addresses Media Speculation on Privatization Move

Toyota Motor Corporation has addressed media reports regarding a potential decision on the privatization of Toyota Industries Corporation. The reports suggested a significant financial transaction, which Toyota clarified was not disclosed by them. The company plans to make an official decision soon and will announce it promptly, highlighting the importance of accurate information dissemination for stakeholders.

The most recent analyst rating on (JP:7203) stock is a Buy with a Yen3800.00 price target. To see the full list of analyst forecasts on Toyota Motor stock, see the JP:7203 Stock Forecast page.

Toyota Submits Third Progress Report on Certification Compliance

Toyota Motor Corporation has submitted its third quarterly progress report to Japan’s Ministry of Land, Infrastructure, Transport and Tourism, detailing measures to prevent recurrence of model certification application issues. The report highlights Toyota’s commitment to strengthening its operational foundations, improving its manufacturing processes, and enhancing human resource development to ensure compliance and efficiency. These efforts are aimed at addressing past regulatory challenges and reinforcing Toyota’s position as a responsible industry leader.

The most recent analyst rating on (JP:7203) stock is a Buy with a Yen3800.00 price target. To see the full list of analyst forecasts on Toyota Motor stock, see the JP:7203 Stock Forecast page.

Toyota Motor Corporation FY2025 Financial Results Overview

Toyota Motor Corporation’s FY2025 financial results highlight the company’s ongoing efforts to adapt to changing economic conditions, market demands, and regulatory environments across its global operations. The release underscores the potential impacts of various factors such as currency fluctuations, supply chain dependencies, and geopolitical instabilities on Toyota’s performance, emphasizing the company’s strategic focus on maintaining production efficiencies and market competitiveness.

Toyota Proposes Amendments to Strengthen Governance Structure

Toyota Motor Corporation has announced a proposal to amend its Articles of Incorporation, transitioning from a company with an Audit and Supervisory Board to one with an Audit and Supervisory Committee. This change aims to enhance board discussions, promote faster decision-making, and strengthen the monitoring functions of the Board of Directors, potentially impacting the company’s governance and operational efficiency.

Toyota’s FY2025 Financial Results: Sales Up, Profits Down

Toyota Motor Corporation reported its consolidated financial results for FY2025, showing a 6.5% increase in sales revenues but a decline in operating income and net income compared to the previous year. Despite the increase in sales, the company faced challenges with a decrease in comprehensive income by 43.7% and a reduction in earnings per share. The results indicate a challenging year for Toyota, with implications for its financial stability and market positioning, as it navigates through a competitive automotive industry landscape.

Toyota Announces Treasury Stock Disposal to Boost Corporate Value

Toyota Motor Corporation has announced a decision to dispose of its treasury stock under a restricted stock compensation plan aimed at enhancing corporate value and aligning management’s interests with those of shareholders. This move reflects Toyota’s strategic focus on long-term growth and governance improvements, potentially impacting its corporate structure and shareholder relations.