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Tomtom Nv (NL:TOM2)
:TOM2
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TomTom
(OTC:TOM2)
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Rating:55Neutral
Price Target:
€6.00
▲(7.91% Upside)
TomTom's overall stock score reflects a company with significant financial challenges but some positive indicators. The strong gross profit margin and cash flow improvements are key strengths. However, profitability issues, negative revenue growth, and valuation concerns weigh heavily. The technical analysis suggests a positive trend, but caution is advised due to potential overbought conditions. The earnings call provided a mixed outlook, with positive guidance offset by revenue declines and restructuring costs.
TomTom (TOM2) vs. iShares MSCI Netherlands ETF (EWN)
Market Cap
€655.11M
Dividend YieldN/A
Average Volume (3M)193.12K
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth-1.63%
EPS Growth-18.80%
CountryNL
Employees3,600
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.19
Shares Outstanding125,000,000
10 Day Avg. Volume226,849
30 Day Avg. Volume193,123
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
€5.52Price Target Upside-0.77% Downside
Rating ConsensusHold
Number of Analyst Covering2
TomTom Business Overview & Revenue Model
Company DescriptionTomTom 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 definition (HD) maps, and map data, as well as places for map products; traffic and travel information products, including real-time traffic, hazard warning, speed camera, speed profile, road analytics, fuel and weather services, electric vehicle (EV) and parking services, and routing; and navigation products, such as navigation engine, traffic and travel information, navigation user interface, EV routing and range, and maps for automotive. The company also provides AutoStream, a solution that enables fast and efficient map delivery of the TomTom automated driving (AD) and ADAS Maps; RoadCheck, a tool for carmakers to determine when, where, and under what conditions their vehicles can safely activate AD functions; TomTom indigo, a digital cockpit platform; and virtual horizon products. In addition, it offers road analytics solutions, including traffic stats, origin destination analysis, route monitoring, road event reporter, and junction analytics; and shop products, such as navigation devices, accessories, and map updates, as well as support services. The company serves the automotive, fleet management and logistics, mobility and on-demand, road traffic management, and location intelligence industries. TomTom N.V. was founded in 1991 and is headquartered in Amsterdam, the Netherlands.
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:Jul 15, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 14, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant highlights such as improved cash flow, gross margins, and an upgraded financial outlook. However, these were offset by declines in group revenue, automotive, and enterprise segments, alongside restructuring costs.Q2-2025 Updates
Positive Updates
Realignment and Cost Efficiency
TomTom has announced a realignment of its organization, reducing around 300 roles to increase agility and sharpen focus, expecting annualized savings up to EUR 35 million.
Increased Free Cash Flow
Free cash flow improved significantly to EUR 14 million in the second quarter, a sharp improvement from an outflow of EUR 5 million last year.
Strong Gross Margin
Gross margin increased to 88% in the second quarter, up from 80% last year, indicating improved cost efficiency and profitability.
Upgraded Financial Outlook
TomTom raised its full-year group revenue guidance to between EUR 535 million and EUR 565 million and expects free cash flow to be around 5% of group revenue at the midpoint.
Negative Updates
Decline in Group Revenue
Group revenue for the second quarter was EUR 146 million, down from EUR 152 million in the same period last year.
Decrease in Automotive Revenue
Automotive operational revenue saw a year-on-year decrease of 13% to EUR 77 million due to lower car volumes and the ramp down of some car lines.
Enterprise Revenue Decline
Enterprise revenue declined by 4% compared to the same period last year, largely due to the contribution from the Australian government contract in Q2 last year and a weakening U.S. dollar.
Consumer Revenue Fall
Consumer revenue declined by 15% year-on-year to EUR 20 million, continuing a downward trend in this segment.
Restructuring Costs
The second quarter included a EUR 25 million restructuring provision related to organizational realignment, impacting operating expenses.
Company Guidance
In the recent conference call, TomTom provided updated guidance reflecting a positive outlook for the remainder of the fiscal year. Despite some short-term challenges, the company's first-half performance exceeded initial expectations, prompting an upgrade in their full-year group revenue forecast to a range of EUR 535 million to EUR 565 million. The Location Technology revenue is expected to range between EUR 465 million and EUR 490 million. TomTom also raised its free cash flow guidance to approximately 5% of group revenue at the midpoint of the guided range. The restructuring efforts, expected to yield annualized savings of up to EUR 35 million, and a strong cash position of EUR 267 million at the end of the second quarter support the company's transition to a product-led operating model. This strategic shift is anticipated to enhance operational efficiency and position TomTom for long-term success.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
Positive
5.56
Price Trends
5.23
Positive
5.12
Positive
5.01
Positive
Market Momentum
0.08
Negative
62.07
Neutral
64.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:TOM2, the sentiment is Positive. The current price of 5.56 is above the 20-day moving average (MA) of 5.31, above the 50-day MA of 5.23, and above the 200-day MA of 5.01, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 62.07 is Neutral, neither overbought nor oversold. The STOCH value of 64.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:TOM2.
TomTom Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 47.40M | 11.55 | 12.67% | 3.35% | 0.81% | 351.71% | |
67 Neutral | 620.76M | 29.67 | 22.13% | 3.26% | 4.11% | 22.38% | |
64 Neutral | 1.39B | 21.29 | 11.28% | 4.39% | -3.59% | -46.68% | |
55 Neutral | €655.11M | ― | -23.52% | ― | -1.63% | -18.80% | |
49 Neutral | 201.06M | -16.14 | -46.10% | ― | -7.94% | 7.30% | |
44 Neutral | 149.00M | -11.68 | -289.54% | ― | 0.36% | 34.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
NL:TOM2
TomTom
5.56
0.36
7.03%
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96.80
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79.39%
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34.26
-1.33
-3.74%
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4.68
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4.20
-1.60
-27.59%
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.