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Tomtom Nv (NL:TOM2)
:TOM2
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TomTom
(OTC:TOM2)
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Rating:51Neutral
Price Target:
€5.50
▼(-5.01% Downside)
TomTom's overall stock score reflects a company with significant challenges but also areas of potential. The most significant factor is the financial performance, which shows profitability issues despite strong cash flow management. The earnings call provided a positive outlook, particularly in the Automotive sector, but technical analysis and valuation remain concerns. The absence of corporate events does not impact the score.
TomTom (TOM2) vs. iShares MSCI Netherlands ETF (EWN)
Market Cap
€628.81M
Dividend YieldN/A
Average Volume (3M)332.76K
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue Growth-1.70%
EPS Growth24.14%
CountryNL
Employees3,600
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.07
Shares Outstanding125,000,000
10 Day Avg. Volume240,223
30 Day Avg. Volume332,763
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€7.38Price Target Upside27.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
TomTom Business Overview & Revenue Model
Company DescriptionTomTom (TOM2) is a global leader in location technology, specializing in providing navigation and mapping products and services. Founded in 1991 and headquartered in Amsterdam, the company operates across various sectors, including automotive, consumer electronics, and enterprise solutions. TomTom's core offerings encompass GPS navigation devices, real-time traffic information, mapping software, and location-based services, which are essential for both personal and commercial usage.
How the Company Makes MoneyTomTom generates revenue through multiple streams, primarily by providing navigation and mapping solutions to automotive manufacturers, which integrate TomTom's technology into vehicles. This includes licensing their maps and traffic data to companies in the automotive sector, resulting in significant recurring revenue. Additionally, TomTom earns income from its consumer products, such as portable GPS devices and smartphone applications. The company also offers location-based services and APIs for businesses, contributing to its earnings. Strategic partnerships with major companies in technology and automotive industries further bolster its revenue capabilities, allowing for collaborative development and distribution of innovative location services.
TomTom Earnings Call Summary
Earnings Call Date:Oct 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in the Automotive sector, with strong revenue growth and strategic partnerships. However, challenges remain in the Enterprise segment, with a notable decline in group revenue and issues with a major customer. Despite these challenges, the company has raised its revenue guidance, reflecting confidence in its future performance.Q3-2025 Updates
Positive Updates
Automotive Navigation Application Launch
TomTom launched its next-generation Automotive Navigation Application, setting a new benchmark for user experience and flexibility in the industry.
Expansion with Hyundai
TomTom expanded its partnership with Hyundai, securing a multiyear agreement to provide real-time traffic and speed camera services across Europe.
Automotive Revenue Growth
Automotive operational revenue increased by 22% year-on-year to EUR 85 million, driven by new vehicle lines and recovery in production volumes.
Gross Margin Improvement
Gross margin improved to 89%, up from 87% last year, due to a greater share of higher margin content and software revenue.
Free Cash Flow Increase
Free cash flow rose to EUR 17 million, compared with EUR 15 million last year.
Positive Outlook and Revenue Guidance Increase
TomTom increased its expectations for full-year group revenue and Location Technology revenue to approach the upper end of the previously communicated guidance range.
Negative Updates
Decline in Group Revenue
Group revenue decreased to EUR 137 million from EUR 141 million in the same period last year.
Slow Enterprise Adoption
Enterprise revenue was stable quarter-on-quarter at EUR 39 million, with currency movements adding pressure and slower than expected growth.
Challenges with a Major Customer
A well-documented decline in revenue from a major customer who is building their own map, affecting the overall Enterprise segment performance.
Company Guidance
During the third quarter 2025 results conference call, TomTom provided a detailed overview of its financial and operational performance. The company reported a group revenue of EUR 137 million, down from EUR 141 million in the same period last year, with Location Technology revenue totaling EUR 118 million. Automotive operational revenue saw a significant year-on-year increase of 22% to EUR 85 million. The gross margin improved to 89%, up from 87% the previous year. Operating expenses decreased to EUR 114 million, reflecting strong cost discipline and lower amortization charges. Free cash flow was an inflow of EUR 17 million, excluding EUR 14 million in restructuring charges. The net cash position remained stable at EUR 267 million. Looking ahead, TomTom expects full-year group revenue and Location Technology revenue to approach the upper end of its previously communicated guidance range, with free cash flow estimated at around 5% of group revenue. The company remains optimistic about its long-term growth prospects, particularly in the automotive sector, where it has secured new partnerships and is seeing increasing interest in its products.TomTom Financial Statement Overview
Summary
TomTom's financial performance shows mixed results. The company has a strong gross profit margin of 87.37%, indicating efficient cost management. However, the negative net profit margin and revenue growth highlight ongoing profitability challenges. Improvements in cash flow management are a positive sign, but the negative return on equity suggests inefficiencies.Income Statement
TomTom's income statement shows a mixed performance. The company has a strong gross profit margin of 87.37% TTM, indicating efficient cost management. However, the net profit margin is negative at -5.39% TTM, reflecting ongoing losses. Revenue growth is also negative at -1.04% TTM, suggesting challenges in expanding sales. The EBIT and EBITDA margins are low, with EBIT being negative, highlighting profitability issues.45
Neutral
Balance Sheet
The balance sheet indicates moderate leverage with a debt-to-equity ratio of 0.34 TTM, which is manageable. However, the return on equity is negative at -22.65% TTM, pointing to inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.50
Neutral
Cash Flow
Cash flow analysis reveals a significant improvement in free cash flow growth at 185.74% TTM, indicating better cash management. The operating cash flow to net income ratio is 0.17 TTM, suggesting that operating activities are generating cash despite net losses. The free cash flow to net income ratio is 0.69 TTM, showing a positive cash flow relative to net income.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 569.52M | 574.38M | 584.76M | 536.34M | 506.93M | 528.18M |
| Gross Profit | 497.60M | 487.51M | 495.77M | 449.72M | 407.11M | 423.39M |
| EBITDA | 27.63M | 25.87M | 31.56M | -36.94M | -11.47M | -7.45M |
| Net Income | -30.72M | -17.29M | -21.01M | -102.73M | -94.65M | -257.64M |
Balance Sheet | ||||||
| Total Assets | 705.55M | 724.42M | 795.89M | 807.50M | 890.74M | 978.02M |
| Cash, Cash Equivalents and Short-Term Investments | 266.53M | 263.65M | 315.19M | 303.73M | 355.82M | 372.45M |
| Total Debt | 41.10M | 43.52M | 46.71M | 37.73M | 33.34M | 43.67M |
| Total Liabilities | 585.85M | 585.57M | 614.30M | 607.90M | 608.02M | 590.40M |
| Stockholders Equity | 119.70M | 138.85M | 181.59M | 199.61M | 282.72M | 387.62M |
Cash Flow | ||||||
| Free Cash Flow | 28.53M | -4.22M | 20.84M | -41.57M | 23.51M | -26.48M |
| Operating Cash Flow | 41.50M | 1.35M | 32.70M | -31.41M | 36.78M | -20.18M |
| Investing Cash Flow | -27.59M | 14.35M | -53.55M | -30.77M | -19.98M | 73.51M |
| Financing Cash Flow | -9.49M | -47.89M | -23.46M | -10.32M | -43.66M | -29.68M |
TomTom Technical Analysis
Negative
5.79
Price Trends
5.45
Negative
5.30
Negative
5.04
Positive
Market Momentum
-0.04
Positive
38.73
Neutral
7.08
Positive
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 5.57, above the 50-day MA of 5.45, and above the 200-day MA of 5.04, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.73 is Neutral, neither overbought nor oversold. The STOCH value of 7.08 is Positive, 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 |
|---|---|---|---|---|---|---|---|
| ― | €660.33M | 31.56 | 29.06% | 3.10% | 4.11% | 22.38% | |
| ― | €1.53B | 24.13 | 7.75% | 3.89% | -3.59% | -46.68% | |
| ― | €47.54M | 11.59 | 13.94% | 3.30% | 0.81% | 351.71% | |
| ― | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
| ― | €628.81M | ― | -12.26% | ― | -1.70% | 24.14% | |
| ― | €199.23M | ― | ― | ― | -7.94% | 7.30% | |
| ― | €137.75M | ― | -57.80% | ― | 0.36% | 34.49% |
* Technology Sector Average
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TomTom Corporate Events
TomTom NV Reports Solid Q3 2025 Results
Oct 15, 2025
TomTom NV is a leading provider of location data and technology, specializing in navigation systems and mapping solutions for the automotive industry. Headquartered in Amsterdam, the company has been at the forefront of mobility innovation for over 30 years.
TomTom’s Earnings Call: Optimism Amid Challenges
Oct 15, 2025
TomTom’s recent earnings call painted a picture of optimism tempered by challenges. The company celebrated substantial achievements in its Automotive sector, marked by robust revenue growth and strategic alliances. However, the Enterprise segment faced hurdles, including a decline in group revenue and issues with a major customer. Despite these obstacles, TomTom’s decision to raise its revenue guidance underscores its confidence in future performance.
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.