Tomtom Nv (NL:TOM2)
:TOM2
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TomTom
(TOM2)
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Rating:56Neutral
Price Target:
€4.50
▼(-22.28% Downside)
Action:ReiteratedDate:03/26/26
The score is primarily supported by improving financial trajectory (strong margins and a 2025 free-cash-flow rebound) and constructive strategic progress in the earnings outlook (backlog/order intake and guidance for improving operating results). These positives are tempered by clearly bearish technicals (price below major moving averages with negative MACD) and weaker valuation support due to ongoing losses (negative P/E) alongside expected temporarily negative free cash flow in 2026.
Positive Factors
High Gross Margins
Consistently very high gross margins reflect the licensing and data nature of TomTom's business, with low incremental cost to serve. This creates durable product economics and substantial operating leverage potential as revenue scales, supporting sustainable cash generation once fixed costs are absorbed.
Negative Factors
Near-term Revenue Weakness
Recent top-line declines indicate limited near-term revenue momentum despite strong product economics. Flat-to-down revenues constrain the company’s ability to leverage operating leverage fully and postpone the pace at which high gross margins translate into sustained net profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
Consistently very high gross margins reflect the licensing and data nature of TomTom's business, with low incremental cost to serve. This creates durable product economics and substantial operating leverage potential as revenue scales, supporting sustainable cash generation once fixed costs are absorbed.
Read all positive factors
TomTom (TOM2) vs. iShares MSCI Netherlands ETF (EWN)
Market Cap
€547.51M
Dividend YieldN/A
Average Volume (3M)159.61K
Price to Earnings (P/E)33.2
Beta (1Y)1.55
Revenue Growth-1.70%
EPS Growth24.14%
CountryNL
Employees3,600
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.04
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)0.22
Revenue Forecast (FY)€547.53M
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:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call presents meaningful strategic and commercial progress—most notably the launch and rapid commercial adoption of Orbis Lane Model Maps, record Automotive order intake, a EUR 2.4 billion backlog, improved gross margins and reduced operating expenses—indicating strong medium-term potential. Near-term challenges include modest top-line declines in 2025, Enterprise revenue weakness partly due to USD headwinds and customer phase-outs, a temporary negative free cash flow expectation for 2026 driven by continued investment in lane maps, and delayed revenue recognition from the sizable 2025 order intake (most to be recognized from 2028). On balance, the strategic wins, backlog growth and margin improvement outweigh the short-term revenue and cash flow headwinds, but the company faces a transitional year in 2026 before expected recovery in 2027.Positive Updates
Launch and Commercial Traction of Orbis Lane Model Maps
Introduced Orbis Lane Model Maps (lane-level, AI-powered, urban scale); produced with a more automated map factory enabling fresher, lane-accurate maps. Product secured record new business, notably selected by CARIAD (Volkswagen Group) as a core component for automated driving systems.
Negative Updates
Top-Line Declines in 2025
Group revenue for FY2025 was EUR 555 million, down 3% vs 2024. Q4 Automotive IFRS revenue was EUR 77 million, down 3% YoY; Automotive operational revenue in Q4 was 12% lower YoY.
Read all updates
Q4-2025 Updates
Positive
Negative
Launch and Commercial Traction of Orbis Lane Model Maps
Introduced Orbis Lane Model Maps (lane-level, AI-powered, urban scale); produced with a more automated map factory enabling fresher, lane-accurate maps. Product secured record new business, notably selected by CARIAD (Volkswagen Group) as a core component for automated driving systems.
Read all positive updates
Company Guidance
TomTom guided 2026 group revenue of €495–€555m (Location Technology €435–€485m) with an improving operating result and an operating margin around 3% of group revenue; free cash flow is expected to turn temporarily negative (management expects it to be more than €10m negative but “not much more”); quarterly OpEx entering 2026 is likely a few million euros higher than Q4 (€110m) while full‑year operating expenses should remain below 2025’s €489m, gross margin is expected to move north of 90% (up from 88% in 2025), and the company expects a return to top‑line growth in 2027 — all against a strategic backdrop of a €2.4bn Automotive backlog (up €300m y/y), a book‑to‑bill well above 2, and lane model maps making up roughly half of 2025 order intake.TomTom Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 554.69M | 574.38M | 584.76M | 536.34M | 506.93M |
| Gross Profit | 490.56M | 487.51M | 495.77M | 449.72M | 407.11M |
| EBITDA | 20.88M | 25.87M | 31.56M | -36.94M | -11.47M |
| Net Income | -6.40M | -17.29M | -21.01M | -102.73M | -94.65M |
Balance Sheet | |||||
| Total Assets | 716.19M | 724.42M | 795.89M | 807.50M | 890.74M |
| Cash, Cash Equivalents and Short-Term Investments | 262.80M | 263.65M | 315.19M | 303.73M | 355.82M |
| Total Debt | 72.14M | 43.52M | 46.71M | 37.73M | 33.34M |
| Total Liabilities | 576.57M | 585.57M | 614.30M | 607.90M | 608.02M |
| Stockholders Equity | 139.62M | 138.85M | 181.59M | 199.61M | 282.72M |
Cash Flow | |||||
| Free Cash Flow | 43.59M | -4.22M | 20.84M | -41.57M | 23.51M |
| Operating Cash Flow | 46.91M | 1.35M | 32.70M | -31.41M | 36.78M |
| Investing Cash Flow | -8.61M | 14.35M | -53.55M | -30.77M | -19.98M |
| Financing Cash Flow | -10.27M | -47.89M | -23.46M | -10.32M | -43.66M |
TomTom Technical Analysis
Negative
5.79
Price Trends
4.95
Negative
5.34
Negative
5.32
Negative
Market Momentum
-0.18
Negative
40.33
Neutral
55.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:TOM2, the sentiment is Negative. The current price of 5.79 is above the 20-day moving average (MA) of 4.46, above the 50-day MA of 4.95, and above the 200-day MA of 5.32, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 40.33 is Neutral, neither overbought nor oversold. The STOCH value of 55.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | €519.57M | 24.15 | 29.06% | 3.54% | 4.11% | 22.38% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | €1.62B | 15.43 | 11.04% | 4.11% | -3.59% | -46.68% | |
56 Neutral | €547.51M | 33.21 | -12.26% | ― | -1.70% | 24.14% | |
55 Neutral | €41.60M | 12.03 | 11.31% | 3.49% | 0.81% | 351.71% | |
53 Neutral | €179.69M | -37.50 | -13.96% | ― | 0.36% | 34.49% | |
41 Neutral | €146.87M | -17.52 | ― | ― | -7.94% | 7.30% |
* Technology Sector Average
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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.