Hino Motors (7205) AI Stock Analysis

• Market Cap: ¥225.59B
• Dividend Yield: N/A
• Average Volume (3M): 4.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: 6.11%
• EPS Growth: -710.91%
• Country: JP
• Employees: 34,072
• Sector: Industrials
• Sector Strength: 76
• Industry: Auto - Manufacturers
• EPS (TTM): 23.61
• Shares Outstanding: 574,580,900
• 10 Day Avg. Volume: 4,467,610
• 30 Day Avg. Volume: 4,982,893
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥374.78
• Price Target Upside: -4.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 42 Neutral
• Price Target: ¥372.00 ▼(-5.58% Downside)

Hino Motors' overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. The technical analysis suggests a bearish trend, further weighing on the score. The absence of earnings call insights and corporate events leaves these areas unaddressed.

Hino Motors Business Overview & Revenue Model

Company Description

Hino Motors, Ltd. is a Japanese manufacturer primarily engaged in the production of commercial vehicles and diesel engines. As a subsidiary of Toyota Motor Corporation, Hino Motors operates within the automotive sector and is renowned for its robust lineup of trucks and buses. The company also provides after-sales services, spare parts, and vehicle maintenance solutions, catering to both domestic and international markets.

How the Company Makes Money

Hino Motors generates revenue through the sale of its commercial vehicles, including trucks and buses, which are the core products of its business. The company operates in various regions across the globe, including Asia, North America, and Europe, allowing it to tap into diverse markets for vehicle sales. In addition to new vehicle sales, Hino Motors earns income from offering spare parts and after-sales services, which contribute to a recurring revenue stream. The company also benefits from its association with Toyota Motor Corporation, which enhances its brand credibility and provides synergies in research and development, manufacturing, and distribution. Hino's strategic partnerships and joint ventures in different regions further bolster its market presence and financial performance.

Hino Motors Financial Statement Overview

Summary

Hino Motors is experiencing significant financial challenges, with net losses, high leverage, and negative free cash flow. Despite a moderate revenue growth, the company's profitability and cash flow remain weak, indicating a need for improvements in financial stability.

Income Statement

Hino Motors has shown inconsistent profitability over the years, with a net income loss in recent periods. The gross profit margin for 2025 is approximately 17.4%, showing adequate operational profitability. However, a significant net loss in 2025 results in a negative net profit margin. Revenue growth from 2024 to 2025 was 11.9%, indicating some top-line improvement.

Balance Sheet

The company's balance sheet reflects high leverage, with a debt-to-equity ratio of approximately 2.37 in 2025, indicating significant financial risk. The equity ratio is about 12.1%, suggesting a moderate level of equity financing relative to total assets. Return on equity is negative due to net losses, highlighting challenges in generating returns for shareholders.

Cash Flow

Hino Motors faces cash flow difficulties with negative free cash flow in recent periods, though there was a minimal improvement in operating cash flow in 2025. The free cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. The operating cash flow to net income ratio is significantly positive in 2025, due to a high level of non-cash expenses.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.70T	1.52T	1.51T	1.46T	1.50T
Gross Profit	295.71B	233.58B	239.66B	250.51B	212.83B
EBITDA	-117.73B	111.18B	-25.44B	26.32B	67.00B
Net Income	-217.75B	17.09B	-117.66B	-84.73B	-7.49B
Balance Sheet
Total Assets	1.48T	1.46T	1.36T	1.26T	1.23T
Cash, Cash Equivalents and Short-Term Investments	193.60B	76.95B	82.15B	66.25B	56.19B
Total Debt	422.47B	389.68B	305.78B	170.99B	182.14B
Total Liabilities	1.23T	1.00T	928.33B	742.35B	626.62B
Stockholders Equity	178.47B	392.05B	367.91B	458.17B	554.25B
Cash Flow
Free Cash Flow	-60.86B	-186.21B	-108.06B	45.21B	49.41B
Operating Cash Flow	1.13B	-110.41B	-40.80B	106.71B	108.43B
Investing Cash Flow	-4.60B	39.24B	-60.26B	-62.18B	-56.21B
Financing Cash Flow	29.74B	55.64B	114.21B	-39.15B	-38.41B

Hino Motors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 394.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7205, the sentiment is Positive. The current price of 394 is above the 20-day moving average (MA) of 379.32, above the 50-day MA of 375.13, and below the 200-day MA of 439.44, indicating a neutral trend. The MACD of 4.23 indicates Negative momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 79.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7205.

Hino Motors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7202	75 Outperform	$1.35T	10.33	9.10%	4.61%	-5.66%	-28.73%
Sector *	71 Outperform	¥266.69B	15.10	8.31%	2.75%	6.08%	11.04%
7261	65 Neutral	$623.25B	28.14	1.11%	5.58%	-0.59%	-89.94%
7211	64 Neutral	$598.53B	48.16	1.30%	3.71%	-0.42%	-90.69%
7222	61 Neutral	¥155.50B	25.49		1.13%	26.05%	―
7201	49 Neutral	$1.22T	12.25	-15.23%	8.23%	-3.33%	-356.10%
7205	42 Neutral	¥225.59B	―	-72.36%	―	6.11%	-710.91%

Hino Motors Corporate Events

Hino Motors Reports Strong Profit Recovery Despite Sales Decline

Hino Motors announced the completion of an independent auditor’s review of its consolidated financial statements for the first quarter ending March 31, 2026. Despite a decline in net sales by 11.4% compared to the previous year, the company reported a significant increase in operating and ordinary income, highlighting a strong recovery in profitability. The results indicate a positive shift in financial health, with comprehensive income showing a substantial rise, which could strengthen Hino Motors’ position in the market.

The most recent analyst rating on (JP:7205) stock is a Hold with a Yen380.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Motors Shows Strong Profit Growth Despite Sales Decline

Hino Motors reported its financial results for the first quarter of the fiscal year ending March 31, 2026, showing a decline in net sales by 11.4% compared to the previous year. However, the company experienced significant growth in operating and ordinary income, with increases of 165.4% and 279.5%, respectively. This indicates improved operational efficiency and profitability despite the drop in sales. The equity ratio also improved from 12.1% to 14.6%, reflecting a stronger financial position. These results suggest a positive outlook for stakeholders, with the company maintaining its financial health and operational effectiveness.

The most recent analyst rating on (JP:7205) stock is a Hold with a Yen420.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Motors Announces Change in Parent Company Status Amid Business Integration

Hino Motors announced that Toyota Motor Corporation, which currently holds a 50.2% voting stake in Hino, will transition from being its parent company to a major shareholder following a business integration with Mitsubishi Fuso Truck and Bus Corporation, effective April 1, 2026. This integration will result in the formation of a new holding company, impacting Hino’s operational dynamics and its relationship with Toyota. Despite the close ties and financial support from Toyota, Hino maintains a significant level of independence through its HINO brand, which represents the majority of its sales.

The most recent analyst rating on (JP:7205) stock is a Hold with a Yen420.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Motors Transfers Hamura Plant to Toyota to Boost Competitiveness

Hino Motors has announced the transfer of its Hamura Plant to Toyota Motor Corporation as part of a strategic move to enhance competitiveness in the commercial vehicle industry. This transfer is aligned with Hino’s business integration with Mitsubishi Fuso Truck and Bus Corporation, aiming to optimize role-sharing with Toyota and contribute to a sustainable mobility society. The Hamura Plant, with its long history of manufacturing expertise, will continue to play a crucial role in Toyota’s mission to produce high-quality vehicles.

The most recent analyst rating on (JP:7205) stock is a Hold with a Yen420.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Motors Announces Share Issuance for Business Integration

Hino Motors has announced a third-party allotment of common and class A shares to Toyota Motor Corporation to fund its business integration with Mitsubishi Fuso Truck and Bus Corporation. This move aims to improve Hino’s financial condition by strengthening its capital and equity ratio, facilitating a smooth integration process.

The most recent analyst rating on (JP:7205) stock is a Hold with a Yen420.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Motors and Mitsubishi Fuso Announce Business Integration

Hino Motors has announced the execution of a business integration agreement with Mitsubishi Fuso Truck and Bus Corporation, supported by their parent companies, Toyota Motor Corporation and Daimler Truck AG. This integration aims to enhance the competitiveness of Japanese truck manufacturers by promoting environmentally friendly vehicles and improving operational efficiencies in development and production. The integration is expected to strengthen the foundation of the Japanese and Asian automotive industries, with a scheduled completion date of April 1, 2026.

The most recent analyst rating on (JP:7205) stock is a Hold with a Yen420.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Motors Revises Financial Results Amid North American Certification Settlements

Hino Motors has announced corrections to its previously released financial results for the fiscal year ending March 31, 2025, specifically regarding the extraordinary loss related to North American certification issues. The corrections reflect a revised extraordinary loss of ¥252,528 million, down from the initially reported ¥260,478 million, due to settlements related to emission certification issues in the U.S. and Canada. This adjustment underscores the company’s ongoing efforts to address legal and regulatory challenges, which include implementing environmental measures and extending vehicle warranties.

The most recent analyst rating on (JP:7205) stock is a Hold with a Yen420.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.