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Hino MotorsLtd (JP:7205)
:7205

Hino Motors (7205) AI Stock Analysis

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Hino Motors

(OTC:7205)

Rating:38Underperform
Price Target:
¥345.00
▼(-6.98%Downside)
Hino Motors struggles with fundamental financial performance, marked by significant net losses and high leverage. The technical analysis points to bearish trends, and valuation metrics are unfavorable due to negative earnings and lack of dividends. These factors heavily influence the low overall stock score.

Hino Motors (7205) vs. iShares MSCI Japan ETF (EWJ)

Hino Motors Business Overview & Revenue Model

Company DescriptionHino Motors, Ltd. manufactures and sells large commercial vehicles under the Hino brand worldwide. It offers trucks and buses; and light commercial vehicles and passenger vehicles, as well as automotive and industrial diesel engines, vehicle parts, and others. The company was founded in 1910 and is headquartered in Hino, Japan. Hino Motors, Ltd. is a subsidiary of Toyota Motor Corporation.
How the Company Makes MoneyHino Motors generates revenue through the manufacturing and sale of commercial vehicles, including trucks and buses, as well as diesel engines. The company operates in various sectors, including transportation, logistics, and public transit, where their vehicles are utilized extensively. In addition to direct vehicle sales, Hino Motors earns income from providing after-sales services, parts, and maintenance solutions. Significant partnerships with global distributors and a strategic relationship with its parent company, Toyota Motor Corporation, further bolster its market presence and revenue streams. The company's earnings are also influenced by its commitment to developing eco-friendly technologies, which align with evolving industry standards and regulatory requirements.

Hino Motors Financial Statement Overview

Summary
Hino Motors is facing significant financial challenges with net losses, high leverage, and negative cash flow. Despite a 11.9% revenue growth, the negative net profit margin and high debt-to-equity ratio of 2.37 indicate financial instability.
Income Statement
40
Negative
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
45
Neutral
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
30
Negative
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
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
1.65T1.70T1.52T1.51T1.46T1.50T
Gross Profit
272.05B295.71B233.58B239.66B250.51B212.83B
EBIT
32.30B57.49B-8.10B17.41B33.81B12.25B
EBITDA
-88.66B-117.73B111.18B-25.44B88.77B67.00B
Net Income Common Stockholders
-238.01B-217.75B17.09B-117.66B-84.73B-7.49B
Balance SheetCash, Cash Equivalents and Short-Term Investments
84.32B193.60B76.95B82.15B66.25B56.19B
Total Assets
1.39T1.48T1.46T1.36T1.26T1.23T
Total Debt
341.60B422.47B389.68B305.78B170.99B182.14B
Net Debt
257.28B228.87B312.73B223.63B104.74B125.95B
Total Liabilities
1.20T1.23T1.00T928.33B742.35B626.62B
Stockholders Equity
126.47B178.47B392.05B367.91B458.17B554.25B
Cash FlowFree Cash Flow
0.00-60.86B-186.21B-108.06B45.21B49.41B
Operating Cash Flow
0.001.13B-110.41B-40.80B106.71B108.43B
Investing Cash Flow
0.00-4.20B39.24B-60.26B-62.18B-56.21B
Financing Cash Flow
0.0029.34B55.64B114.21B-39.15B-38.41B

Hino Motors Technical Analysis

Technical Analysis Sentiment
Negative
Last Price370.90
Price Trends
50DMA
437.34
Negative
100DMA
457.89
Negative
200DMA
455.22
Negative
Market Momentum
MACD
-23.32
Positive
RSI
31.49
Neutral
STOCH
18.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7205, the sentiment is Negative. The current price of 370.9 is below the 20-day moving average (MA) of 427.56, below the 50-day MA of 437.34, and below the 200-day MA of 455.22, indicating a bearish trend. The MACD of -23.32 indicates Positive momentum. The RSI at 31.49 is Neutral, neither overbought nor oversold. The STOCH value of 18.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7205.

Hino Motors Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$4.46B12.115.38%5.02%4.17%-11.82%
38
Underperform
$212.50B-77.14%11.94%-1374.36%
$4.15B13.554.11%3.92%
$8.69B10.899.10%4.70%
$3.81B5.266.30%6.40%
$8.58B12.42-12.13%6.75%
68
Neutral
¥149.27B49.21
1.19%16.42%645.22%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7205
Hino Motors
370.90
-59.40
-13.80%
MMTOF
Mitsubishi Motors
2.55
-0.24
-8.60%
ISUZF
Isuzu Motors
13.07
0.65
5.23%
MZDAF
Mazda Motor
6.25
-2.78
-30.79%
NSANF
Nissan Motor Co
2.55
-0.86
-25.22%
JP:7222
Nissan Shatai Co., Ltd.
1,102.00
128.80
13.23%

Hino Motors Corporate Events

Hino Motors Announces Change in Parent Company Status Amid Business Integration
Jun 19, 2025

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
Jun 10, 2025

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
Jun 10, 2025

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
Jun 10, 2025

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
May 16, 2025

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.

Hino Motors Faces Financial Challenges Amid Certification Issues
Apr 24, 2025

Hino Motors reported a challenging fiscal year ending March 31, 2025, with a significant net loss attributed to issues related to North American certification and legal settlements in Australia. Despite an increase in net sales and operating income due to price revisions and exchange rate effects, the company’s financial standing has been impacted, leading to a degraded equity ratio and a decision to withhold dividends for the fiscal year. The company aims to restore its financial health while forecasting a return to profitability in the next fiscal year.

Hino Motors Posts Extraordinary Loss Amid Improved Earnings
Apr 24, 2025

Hino Motors has announced an extraordinary impairment loss of 6,652 million yen due to signs of impairment at its U.S. subsidiary, impacting the fiscal year ending March 31, 2025. Despite this, the company’s ordinary income exceeded forecasts due to reduced foreign exchange losses and increased operating income, while the profit attributable to owners surpassed expectations due to gains from the sale of non-current assets.

Hino Motors Clarifies Status of Potential Business Integration
Apr 22, 2025

Hino Motors has addressed recent media reports about a potential business integration with Mitsubishi Fuso Truck and Bus Corporation, clarifying that while discussions are ongoing, no final decisions have been made regarding the integration details. The company emphasized that it will make public announcements once concrete decisions are reached, highlighting the current uncertainty surrounding the integration’s specifics.

Hino Motors Faces Legal Claim in New Zealand Over Diesel Engines
Mar 31, 2025

Hino Motors has been named as a defendant in a legal claim filed in the High Court of New Zealand. The claim, brought by several New Zealand companies, alleges that Hino engaged in misleading or deceptive conduct related to diesel engines in vehicles sold between 2010 and 2025. The plaintiffs are seeking damages, although the specific amount is not disclosed. Hino is reviewing the claims and preparing its defense, acknowledging the possibility of similar future claims but unable to determine the financial impact at this time.

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.