Hino Motors (7205) AI Stock Analysis

• Market Cap: $212.62B
• Dividend Yield: N/A
• Average Volume (3M): 3.64M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 6.11%
• EPS Growth: -710.91%
• 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: 2.79
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 2.02
• Enterprise Value/Ebitda: -5.57
• 1Y Price Target: $373.15
• Price Target Upside: 1.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: ¥353.00 ▼(-4.21% 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.

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 facing significant financial challenges, with net losses and high leverage. Despite some revenue growth, profitability and cash flow generation are weak, and the balance sheet reflects high financial risk.

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: Neutral
• Last Price: 368.50
• 50DMA: Negative
• 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 Neutral. The current price of 368.5 is below the 20-day moving average (MA) of 373.98, below the 50-day MA of 382.76, and below the 200-day MA of 429.80, indicating a neutral trend. The MACD of -3.17 indicates Negative momentum. The RSI at 51.46 is Neutral, neither overbought nor oversold. The STOCH value of 65.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7205.

Hino Motors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7202	―	$1.32T	9.75	―	4.76%	-5.66%	-28.73%
7261	―	$680.57B	30.73	1.11%	4.96%	-0.59%	-89.94%
7211	―	$554.20B	44.59	1.30%	3.13%	-0.42%	-90.69%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7222	―	¥155.23B	25.16	―	1.11%	26.05%	―
7201	―	$1.28T	―	-15.23%	―	-3.33%	-356.10%
7205	―	$212.62B	-1.04	-72.36%	―	6.11%	-710.91%

Hino Motors Corporate Events

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.

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

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.

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.

The most recent analyst rating on (JP:7205) stock is a Hold with a Yen373.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

Hino Motors Sets Record Date for Shareholder Meeting on Business Integration

Hino Motors has announced the establishment of a record date for an extraordinary general meeting of shareholders, set for September 30, 2025. This meeting, scheduled for November 2025, will address the business integration with Mitsubishi Fuso Truck and Bus Corporation, a move that could significantly impact the company’s strategic direction and market positioning.

The most recent analyst rating on (JP:7205) stock is a Hold with a Yen372.00 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

Hino Motors has announced the incorporation of a new subsidiary, Toyota Motor Hamura, Inc., as part of a strategic move to transfer its Hamura Plant to Toyota Motor Corporation. This transfer, scheduled for April 1, 2026, involves the establishment of the new company, which will initially be wholly owned by Hino Motors before the shares are transferred to Toyota. The move is part of a broader business integration strategy and is contingent upon regulatory approvals.

The most recent analyst rating on (JP:7205) stock is a Hold with a Yen372.00 price target. To see the full list of analyst forecasts on Hino Motors stock, see the JP:7205 Stock Forecast page.

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 Reports Strong Profit Growth Amid Sales Decline

Hino Motors, Ltd., a prominent player in the automotive industry, specializes in the manufacturing and sale of trucks and buses, serving both domestic and international markets.

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.