Tomtom Nv (NL:TOM2)
:TOM2
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TomTom
(TOM2)
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Rating:60Neutral
Price Target:
€4.50
▼(-22.28% Downside)
Action:ReiteratedDate:04/18/26
The score is driven primarily by improving financial quality (strong gross margins, better profitability, and healthier cash flow/leverage) and a moderately constructive earnings update on margins and balance sheet strength. These positives are tempered by contracting revenues, expected negative full-year free cash flow, and a mixed technical/valuation profile (negative MACD, below key longer-term moving averages, and a ~33x P/E with no dividend support).
Positive Factors
Very high gross margins
Sustained ~90% gross margins reflect a software-like licensing model and highly scalable map/data asset economics. High gross margins provide durable operating leverage, enabling profitability expansion as revenues recover and protecting returns vs. input cost swings over the medium term.
Negative Factors
Contracting revenues
Persistent top-line declines across segments reduce operating leverage and make margins vulnerable despite high gross margins. Reliance on OEM production ramps and the loss/phase-out of customer programs heighten revenue sensitivity to auto industry cycles and currency swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Very high gross margins
Sustained ~90% gross margins reflect a software-like licensing model and highly scalable map/data asset economics. High gross margins provide durable operating leverage, enabling profitability expansion as revenues recover and protecting returns vs. input cost swings over the medium term.
Read all positive factors
TomTom (TOM2) vs. iShares MSCI Netherlands ETF (EWN)
Market Cap
€578.62M
Dividend YieldN/A
Average Volume (3M)159.61K
Price to Earnings (P/E)9.8
Beta (1Y)1.43
Revenue Growth-5.57%
EPS GrowthN/A
CountryNL
Employees3,600
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.03
Shares Outstanding125,000,000
10 Day Avg. Volume146,318
30 Day Avg. Volume159,606
Financial Highlights & Ratios
PEG Ratio1.68
Price to Book (P/B)4.88
Price to Sales (P/S)1.23
P/FCF Ratio15.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.19
Revenue Forecast (FY)€543.79M
TomTom Business Overview & Revenue Model
Company Description
TomTom N.V. develops and sells navigation and location-based products and services worldwide. The company operates in two segments, Location Technology and Consumer. It offers standard definition, advanced driver assistance system (ADAS), high def...
How the Company Makes Money
TomTom makes money primarily by selling and licensing location technology and related software/services, with revenue largely tied to business-to-business customers. Key revenue streams include: (1) Automotive: Supplying automakers (and automotive...
TomTom Earnings Call Summary
Earnings Call Date:Apr 16, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 20, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced message: strong improvements in profitability, margin expansion, cash position and clear strategic progress on Lane Model Maps and partnerships are significant positives. Offsetting these are noticeable top-line declines (group -8%, automotive operational -16%, consumer -21%), lingering uncertainty in 2026 guidance ranges, and an expected negative free cash flow for the year due to transitional investments. Management frames the revenue weakness as largely temporary while emphasizing long‑term investments and positioning for automated driving demand.Positive Updates
Improved Profitability and Margins
Operating result increased to EUR 14 million in Q1 2026 versus EUR 6 million in Q1 2025; operating margin rose to 11% from 4% a year ago. Gross margin improved to 90% (up 2 percentage points from 88% in Q1 2025).
Negative Updates
Group Revenue Decline
Group revenue of EUR 129 million in Q1 2026, down 8% year‑on‑year from EUR 140 million; decline in line with prior guidance but notable top-line contraction.
Read all updates
Q1-2026 Updates
Positive
Negative
Improved Profitability and Margins
Operating result increased to EUR 14 million in Q1 2026 versus EUR 6 million in Q1 2025; operating margin rose to 11% from 4% a year ago. Gross margin improved to 90% (up 2 percentage points from 88% in Q1 2025).
Read all positive updates
Company Guidance
TomTom reiterated full‑year 2026 guidance of group revenue EUR 495–555m, Location Technology revenue EUR 435–485m, an operating margin around 3% and an expected negative free cash flow for the year; management said Q1 was in line with this outlook despite transitional headwinds. Q1 actuals: group revenue EUR 129m (‑8% YoY), Automotive IFRS revenue EUR 76m (‑5%), Automotive operational revenue EUR 70m (‑16%), Enterprise revenue EUR 38m (‑8%, marginally up on constant currency), Location Technology revenue EUR 114m (‑6%), Consumer revenue EUR 15m (‑21%). Profitability improved: gross margin 90% (vs 88% a year ago), operating expenses EUR 103m (down EUR 15m YoY), operating result EUR 14m (vs EUR 6m), operating margin 11%; Q1 free cash flow was +EUR 1m excluding restructuring (vs ‑EUR 3m in Q1 2025). Balance sheet and capital actions: cash EUR 248m with no debt, share buybacks completed EUR 11m of the EUR 15m program, and higher capitalized investment in Lane Model Maps (intangible investments noted, expected to normalize below EUR 10m going forward); management expects new automotive ramps and product traction to drive higher revenues and a longer‑term step‑up in operating margin.TomTom Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
64
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 543.44M | 554.69M | 574.38M | 584.76M | 536.34M | 506.93M |
| Gross Profit | 483.84M | 490.56M | 487.51M | 495.77M | 449.72M | 407.11M |
| EBITDA | 28.86M | 20.88M | 25.87M | 31.56M | -36.94M | -11.47M |
| Net Income | 4.25M | -6.40M | -17.29M | -21.01M | -102.73M | -94.65M |
Balance Sheet | ||||||
| Total Assets | 710.53M | 716.19M | 724.42M | 795.89M | 807.50M | 890.74M |
| Cash, Cash Equivalents and Short-Term Investments | 248.06M | 262.80M | 263.65M | 315.19M | 303.73M | 355.82M |
| Total Debt | 42.33M | 72.14M | 43.52M | 46.71M | 37.73M | 33.34M |
| Total Liabilities | 565.10M | 576.57M | 585.57M | 614.30M | 607.90M | 608.02M |
| Stockholders Equity | 145.43M | 139.62M | 138.85M | 181.59M | 199.61M | 282.72M |
Cash Flow | ||||||
| Free Cash Flow | 39.56M | 43.59M | -4.22M | 20.84M | -41.57M | 23.51M |
| Operating Cash Flow | 50.56M | 46.91M | 1.35M | 32.70M | -31.41M | 36.78M |
| Investing Cash Flow | -16.62M | -8.61M | 14.35M | -53.55M | -30.77M | -19.98M |
| Financing Cash Flow | -20.63M | -10.27M | -47.89M | -23.46M | -10.32M | -43.66M |
TomTom Technical Analysis
Neutral
5.79
Price Trends
4.80
Negative
5.31
Negative
5.31
Negative
Market Momentum
-0.10
Negative
47.65
Neutral
66.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:TOM2, the sentiment is Neutral. The current price of 5.79 is above the 20-day moving average (MA) of 4.41, above the 50-day MA of 4.80, and above the 200-day MA of 5.31, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 47.65 is Neutral, neither overbought nor oversold. The STOCH value of 66.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:TOM2.
TomTom Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | €548.11M | 24.15 | 29.06% | 3.54% | 11.21% | 32.21% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | €578.62M | 9.81 | -12.26% | ― | -5.57% | ― | |
59 Neutral | €1.74B | 15.43 | 11.04% | 4.11% | 2.83% | -8.11% | |
55 Neutral | €41.32M | 12.03 | 11.31% | 3.49% | 1.11% | -7.93% | |
53 Neutral | €200.95M | -37.50 | -13.96% | ― | -5.42% | 83.35% | |
41 Neutral | €142.55M | -17.52 | ― | ― | 1.51% | 15.61% |
* Technology Sector Average
NL:TOM2
TomTom
4.65
-0.07
-1.48%
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2.92
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NL:NEDAP
Nedap N.V
84.50
24.91
41.81%
NL:TWEKA
TKH Group N.V.
43.52
8.83
25.44%
NL:CMCOM
CM.com N.V.
6.05
-0.81
-11.81%
NL:MTRK
MotorK PLC
2.97
-1.58
-34.73%
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.