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Hino MotorsLtd (JP:7205)
:7205

Hino Motors (7205) AI Stock Analysis

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JP:7205

Hino Motors

(7205)

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Underperform 39 (OpenAI - 4o)
Rating:39Underperform
Price Target:
¥353.00
▼(-12.62% 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 (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 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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.65T1.70T1.52T1.51T1.46T1.50T
Gross Profit294.21B295.71B233.58B239.66B250.51B212.83B
EBITDA-106.41B-117.73B111.18B-25.44B26.32B56.98B
Net Income-203.98B-217.75B17.09B-117.66B-84.73B-7.49B
Balance Sheet
Total Assets1.33T1.48T1.46T1.36T1.26T1.23T
Cash, Cash Equivalents and Short-Term Investments92.19B193.60B76.95B82.15B66.25B56.19B
Total Debt407.64B422.47B389.68B305.78B170.99B182.14B
Total Liabilities1.07T1.23T1.00T928.33B742.35B626.62B
Stockholders Equity194.41B178.47B392.05B367.91B458.17B554.25B
Cash Flow
Free Cash Flow0.00-60.86B-186.21B-108.06B45.21B49.41B
Operating Cash Flow0.001.13B-110.41B-40.80B106.71B108.43B
Investing Cash Flow0.00-4.60B39.24B-60.26B-62.18B-56.21B
Financing Cash Flow0.0029.74B55.64B114.21B-39.15B-38.41B

Hino Motors Technical Analysis

Technical Analysis Sentiment
Positive
Last Price404.00
Price Trends
50DMA
384.62
Positive
100DMA
383.52
Positive
200DMA
397.58
Positive
Market Momentum
MACD
3.67
Negative
RSI
60.40
Neutral
STOCH
52.00
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 404 is above the 20-day moving average (MA) of 390.45, above the 50-day MA of 384.62, and above the 200-day MA of 397.58, indicating a bullish trend. The MACD of 3.67 indicates Negative momentum. The RSI at 60.40 is Neutral, neither overbought nor oversold. The STOCH value of 52.00 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥1.83T13.503.74%-5.66%-28.73%
65
Neutral
¥789.22B23.601.72%4.52%-0.83%-75.20%
64
Neutral
$535.25B-79.30-0.65%3.33%-0.87%-105.50%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
56
Neutral
¥143.04B17.431.29%28.98%
49
Neutral
¥1.42T-1.56-16.69%-3.01%-755.71%
39
Underperform
¥231.91B9.5312.52%-0.99%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7205
Hino Motors
404.00
-112.50
-21.78%
JP:7211
Mitsubishi Motors
367.10
-100.36
-21.47%
JP:7202
Isuzu Motors
2,576.00
597.35
30.19%
JP:7261
Mazda Motor
1,253.00
273.31
27.90%
JP:7201
Nissan Motor Co
408.00
-45.40
-10.01%
JP:7222
Nissan Shatai Co., Ltd.
1,056.00
105.57
11.11%

Hino Motors Corporate Events

Hino Motors Reaches NZ$10.9 Million In-Principle Settlement in New Zealand Class Action
Dec 25, 2025

Hino Motors has reached an in-principle agreement to settle a class action in New Zealand relating to losses allegedly suffered by owners of Hino diesel vehicles due to the company’s historic misconduct. The proposed settlement, covering people who acquired certain Hino diesel vehicles in New Zealand between March 2010 and March 2025, amounts to NZD 10.9 million (about JPY 980 million) and will be recorded as a special loss in the company’s third-quarter fiscal 2026 results, subject to approval by the High Court of New Zealand; while the agreement involves no admission of liability, Hino says the move is intended to avoid prolonged litigation and limit the impact of the dispute on its business and stakeholders, and it will disclose any further financial implications once its analysis is complete.

The most recent analyst rating on (JP:7205) stock is a Hold with a Yen390.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Backs SPARX-Led Buyout of Key Supplier SAWAFUJI ELECTRIC
Dec 19, 2025

Hino Motors’ board has approved definitive agreements with ARTS-4 Inc., a SPARX Group–backed vehicle, and SAWAFUJI ELECTRIC under which Hino will not tender its shares in SAWAFUJI ELECTRIC into a takeover bid and SAWAFUJI will instead be taken private and made a wholly owned subsidiary of ARTS-4. The transaction, implemented via share consolidation and a treasury share acquisition following the tender offer, will remove SAWAFUJI ELECTRIC from Hino’s equity-method affiliates, while Hino expects the new ownership structure and SPARX’s support through the Japan Monozukuri Mirai Fund and Toyota Production System know-how to strengthen SAWAFUJI’s production and management systems, accelerate its development of technologies for electrified power sources and fuel cells, and ultimately enhance its corporate value and ability to supply high-quality, cost-competitive products to the Hino group.

The most recent analyst rating on (JP:7205) stock is a Hold with a Yen390.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Motors Transfers Control of Key Sales Subsidiaries to Partners Ahead of Mitsubishi Fuso Integration
Dec 18, 2025

Hino Motors has decided to transfer managerial control of six domestic sales subsidiaries—Higashi Hokkaido Hino Motors, Hokkaido Hino Motors, Miyagi Hino Motors, Fukushima Hino Motors, Minami Kanto Hino Motors, and Shizuoka Hino Motors—by selling majority stakes to long-standing partners HO TAI MOTOR of Taiwan and Aichi Hino Motors. The move, aligned with Hino’s planned business integration with Mitsubishi Fuso Truck and Bus Corporation, is intended to preserve competition in sales operations, address potential competition law concerns, and maintain a healthy commercial environment for commercial vehicle customers. Hino expects to book extraordinary income from gains on the sale of shares from April 2026 onward, and aims to reinforce its management base and long‑term competitiveness with the support of these partners, while also considering related real estate transactions for some Minami Kanto Hino Motors locations.

The most recent analyst rating on (JP:7205) stock is a Hold with a Yen390.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Motors to Transfer Hamura Plant to Toyota
Nov 27, 2025

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.

The most recent analyst rating on (JP:7205) stock is a Hold with a Yen390.00 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 Formation of ARCHION Corporation
Nov 4, 2025

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.

The most recent analyst rating on (JP:7205) stock is a Sell with a Yen353.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Motors Announces Leadership Change Amid Business Integration
Nov 4, 2025

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.

The most recent analyst rating on (JP:7205) stock is a Sell with a Yen353.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Motors Grants Voting Rights Post-Business Integration
Nov 4, 2025

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.

The most recent analyst rating on (JP:7205) stock is a Sell with a Yen353.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Motors Revises Earnings Forecast and Halts Interim Dividend Amid Financial Restructuring
Nov 4, 2025

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.

The most recent analyst rating on (JP:7205) stock is a Sell with a Yen353.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Motors Sees Profit Surge in Q2 Despite Sales Decline
Nov 4, 2025

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.

The most recent analyst rating on (JP:7205) stock is a Sell with a Yen353.00 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 Exchange in Strategic Integration with Mitsubishi Fuso
Oct 20, 2025

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.

The most recent analyst rating on (JP:7205) stock is a Sell with a Yen353.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Motors Announces Extraordinary General Meeting for Strategic Business Integration
Oct 20, 2025

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.

The most recent analyst rating on (JP:7205) stock is a Sell with a Yen353.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

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.Date of analysis: Oct 11, 2025