Hino Motors (7205) AI Stock Analysis

• Market Cap: ¥222.15B
• Dividend Yield: N/A
• Average Volume (3M): 3.64M
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.84
• Revenue Growth: -0.99%
• EPS Growth: N/A
• Country: JP
• Employees: 34,072
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Manufacturers
• EPS (TTM): 23.61
• Shares Outstanding: 574,580,900
• 10 Day Avg. Volume: 3,536,240
• 30 Day Avg. Volume: 3,638,433
• PEG Ratio: <0.01
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -3.95
• 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: ¥390.15
• Price Target Upside: -1.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: ¥353.00 ▼(-10.63% Downside)

Hino Motors faces significant financial challenges, with high leverage and negative profitability impacting its financial performance score. The technical analysis indicates a bearish trend, and the valuation is poor due to negative earnings. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Growth

The 11.9% revenue growth suggests Hino Motors is expanding its market presence, which could lead to improved financial performance over time.

Strategic Partnerships

The partnership with Toyota offers strategic advantages in R&D and distribution, strengthening Hino's competitive position in the automotive sector.

Market Diversification

Operating in multiple regions allows Hino to mitigate risks associated with economic downturns in any single market, supporting long-term stability.

Negative Factors

High Leverage

High leverage can strain Hino's financial flexibility, increasing vulnerability to interest rate changes and limiting investment in growth opportunities.

Negative Cash Flow

Ongoing negative cash flow indicates inefficiencies in operations and could hinder Hino's ability to invest in future growth or manage debt.

Inconsistent Profitability

Inconsistent profitability challenges Hino's ability to generate sustainable returns, impacting shareholder value and long-term financial health.

Hino Motors Business Overview & Revenue Model

Company Description

Hino 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 Money

Hino Motors generates revenue primarily through the manufacturing and sale of commercial vehicles, including trucks and buses, which comprise a significant portion of its product lineup. The company has multiple revenue streams, including direct vehicle sales, parts sales, and after-sales services. Hino also engages in financing solutions for customers purchasing their vehicles, which adds an additional revenue component. Key partnerships, particularly with Toyota, enhance Hino's market reach and technological capabilities, allowing for collaborative development in areas such as hybrid technology. Furthermore, Hino's focus on expanding its global presence, particularly in emerging markets, contributes to its overall earnings by tapping into new customer bases and increasing market penetration.

Hino Motors Financial Statement Overview

Summary

Hino Motors is experiencing financial difficulties, with significant net losses and high leverage. Despite an 11.9% revenue growth, profitability remains a challenge with negative net profit margins and cash flow issues.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.65T	1.70T	1.52T	1.51T	1.46T	1.50T
Gross Profit	294.21B	295.71B	233.58B	239.66B	250.51B	212.83B
EBITDA	-106.41B	-117.73B	111.18B	-25.44B	26.32B	56.98B
Net Income	-203.98B	-217.75B	17.09B	-117.66B	-84.73B	-7.49B
Balance Sheet
Total Assets	1.33T	1.48T	1.46T	1.36T	1.26T	1.23T
Cash, Cash Equivalents and Short-Term Investments	92.19B	193.60B	76.95B	82.15B	66.25B	56.19B
Total Debt	407.64B	422.47B	389.68B	305.78B	170.99B	182.14B
Total Liabilities	1.07T	1.23T	1.00T	928.33B	742.35B	626.62B
Stockholders Equity	194.41B	178.47B	392.05B	367.91B	458.17B	554.25B
Cash Flow
Free Cash Flow	0.00	-60.86B	-186.21B	-108.06B	45.21B	49.41B
Operating Cash Flow	0.00	1.13B	-110.41B	-40.80B	106.71B	108.43B
Investing Cash Flow	0.00	-4.60B	39.24B	-60.26B	-62.18B	-56.21B
Financing Cash Flow	0.00	29.74B	55.64B	114.21B	-39.15B	-38.41B

Hino Motors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 395.00
• 50DMA: Positive
• 100DMA: Positive
• 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 395 is above the 20-day moving average (MA) of 382.40, above the 50-day MA of 378.14, and below the 200-day MA of 405.20, indicating a neutral trend. The MACD of 0.68 indicates Negative momentum. The RSI at 58.74 is Neutral, neither overbought nor oversold. The STOCH value of 77.44 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	77 Outperform	¥1.73T	12.77	―	3.75%	-5.66%	-28.73%
7261	65 Neutral	$747.65B	22.36	1.72%	4.65%	-0.83%	-75.20%
7211	64 Neutral	¥541.81B	-81.57	-0.65%	3.36%	-0.87%	-105.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7222	56 Neutral	¥137.62B	16.77	―	1.27%	28.98%	―
7201	49 Neutral	¥1.40T	-1.58	-16.69%	―	-3.01%	-755.71%
7205	39 Underperform	¥222.15B	9.31	12.52%	―	-0.99%	―

Hino Motors Corporate Events

Hino Motors to Transfer Hamura Plant to Toyota

Hino Motors has announced the execution of an agreement to transfer its Hamura Plant to Toyota Motor Corporation through a simplified absorption-type company split. This strategic move involves establishing Toyota Motor Hamura, Inc. as a wholly owned subsidiary, which will succeed the Hamura Plant, with the transfer of shares to Toyota scheduled for April 1, 2026. This transfer is part of a broader business integration strategy and may impact Hino’s operational focus and market positioning.

Hino Motors and Mitsubishi Fuso Announce Formation of ARCHION Corporation

Hino Motors has announced a significant step in its business integration with Mitsubishi Fuso Truck and Bus Corporation, forming a new entity named ARCHION Corporation. This integration aims to streamline operations and enhance market positioning, with the new management structure set to commence on April 1, 2026, potentially impacting stakeholders by consolidating resources and expertise within the commercial vehicle sector.

Hino Motors Announces Leadership Change Amid Business Integration

Hino Motors has announced a change in its Representative Directors as part of a business integration with Mitsubishi Fuso Truck and Bus Corporation, effective April 2026. This integration will make Hino a wholly-owned subsidiary of ARCHION Corporation, aiming to enhance global operations and leverage group synergies under a new management structure.

Hino Motors Grants Voting Rights Post-Business Integration

Hino Motors, Ltd. announced the granting of voting rights to shareholders acquiring shares in the newly formed holding company, ARCHION Corporation, following its business integration with Mitsubishi Fuso Truck and Bus Corporation. This integration, effective from April 1, 2026, aims to streamline operations and enhance market positioning by consolidating resources and expertise from both companies.

Hino Motors Revises Earnings Forecast and Halts Interim Dividend Amid Financial Restructuring

Hino Motors has revised its earnings forecast for the fiscal year ending March 2026, projecting higher operating, ordinary, and net incomes despite a decline in unit sales. This revision is attributed to factors such as yen depreciation and cost reductions. Additionally, Hino Motors announced that it will not pay an interim dividend as it focuses on strengthening its financial foundation, which has been impacted by an engine certification issue.

Hino Motors Sees Profit Surge in Q2 Despite Sales Decline

Hino Motors reported its financial results for the second quarter of the fiscal year ending March 31, 2026, showing a significant improvement in profitability despite a decline in net sales. Operating income increased by 58% and ordinary income by 87.9% compared to the same period last year, indicating a strong recovery from previous losses. The company’s equity ratio also improved, reflecting a more robust financial position, which could positively impact its stakeholders and market positioning.

Hino Motors Announces Share Exchange in Strategic Integration with Mitsubishi Fuso

Hino Motors has announced the execution of a share exchange agreement as part of its business integration with Mitsubishi Fuso Truck and Bus Corporation. This strategic move, resulting in the formation of ARCHION Corporation as the holding company, aims to enhance operational efficiencies and strengthen market positioning. The integration is expected to be effective by April 1, 2026, pending regulatory approvals and resolution of engine certification issues.

Hino Motors Announces Extraordinary General Meeting for Strategic Business Integration

Hino Motors has announced the convocation of an Extraordinary General Meeting of Shareholders, scheduled for November 28, 2025, to discuss several key resolutions, including a partial amendment to the Articles of Incorporation and the issuance of new shares. This meeting is significant as it involves a proposed business integration with AIB, LTD., which will lead to the formation of ARCHION Corporation in 2026, indicating a strategic move to strengthen its market presence.

Hino Motors and Mitsubishi Fuso Integrate to Form ARCHION

Hino Motors, Ltd. has announced a business integration with Mitsubishi Fuso Truck and Bus Corporation to form a new company named ARCHION. This integration aims to enhance the competitiveness of Japanese truck manufacturers by promoting environmentally friendly vehicles and improving operational efficiencies. The collaboration involves equal integration in commercial vehicle development, procurement, and production, with Daimler Truck and Toyota each owning 25% of the new entity. The initiative is expected to strengthen the foundation of the Japanese and Asian automotive industries, contributing to a prosperous society through advanced mobility solutions.