TomTom (TOM2) AI Stock Analysis

• Market Cap: €622.83M
• Dividend Yield: N/A
• Average Volume (3M): 170.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: -1.70%
• EPS Growth: 24.14%
• Country: NL
• Employees: 3,600
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 125,000,000
• 10 Day Avg. Volume: 144,776
• 30 Day Avg. Volume: 170,004
• PEG Ratio: 2.86
• Price to Book (P/B): 4.46
• Price to Sales (P/S): 1.08
• P/FCF Ratio: -146.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €7.40
• Price Target Upside: 27.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: €5.00 ▼(-13.64% Downside)

TomTom's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces financial challenges with declining revenues and profitability issues, which are reflected in a negative P/E ratio. Technical indicators suggest bearish momentum, adding to the cautious outlook. Despite positive developments in the Automotive sector, the overall risks and valuation concerns weigh heavily on the stock's attractiveness.

Positive Factors

Automotive Revenue Growth

The significant growth in automotive revenue underscores TomTom's strong position in the automotive sector, driven by new vehicle lines and production recovery, which is likely to sustain future revenue streams.

Gross Margin Improvement

An improved gross margin indicates effective cost management and a shift towards higher-margin products, enhancing profitability and financial resilience over the long term.

Positive Outlook and Revenue Guidance Increase

Raising revenue guidance reflects management's confidence in future growth prospects, particularly in the automotive sector, suggesting a robust strategic direction.

Negative Factors

Decline in Group Revenue

The decline in group revenue indicates challenges in maintaining overall sales momentum, potentially impacting long-term growth and necessitating strategic adjustments.

Slow Enterprise Adoption

Stagnant enterprise revenue growth suggests difficulties in expanding this segment, which could limit diversification and resilience against sector-specific downturns.

Challenges with a Major Customer

Losing business from a key customer highlights competitive pressures and the risk of dependency on large clients, potentially affecting future revenue stability.

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 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 Money

TomTom generates revenue through several key streams, primarily from its Automotive, Telematics, and Consumer divisions. In the Automotive sector, the company partners with major automotive manufacturers to provide embedded navigation systems and location services, earning revenue through licensing agreements and software sales. In the Telematics division, TomTom offers solutions for fleet management and transportation, generating income from subscription services and data analytics. The Consumer segment includes sales of standalone GPS devices and mobile applications, contributing to direct product sales revenue. Additionally, partnerships with technology companies and integration of location services into third-party applications further enhance TomTom's revenue potential, allowing the company to monetize its mapping data and traffic information through various licensing agreements.

TomTom Financial Statement Overview

Summary

TomTom faces financial challenges with declining revenues and profitability issues. While the company maintains a strong gross profit margin and a manageable debt level, negative net income and cash flow concerns highlight the need for strategic improvements. The financial stability is moderate, but operational and liquidity risks persist.

Income Statement

TomTom's income statement shows a challenging financial position with declining revenue and negative net income. The TTM data indicates a significant drop in revenue growth rate and negative net profit margin, suggesting operational inefficiencies. However, the gross profit margin remains strong, indicating effective cost management at the production level.

Balance Sheet

The balance sheet reflects moderate financial stability with a manageable debt-to-equity ratio. However, the return on equity is negative, indicating that the company is not generating sufficient profit from its equity base. The equity ratio is relatively stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals a mixed picture. The operating cash flow to net income ratio is positive, indicating some efficiency in converting income into cash. However, the free cash flow growth rate is negative, reflecting potential liquidity challenges. The free cash flow to net income ratio is relatively healthy, suggesting that the company can cover its net income with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	565.73M	574.38M	584.76M	536.34M	506.93M	528.18M
Gross Profit	497.94M	487.51M	495.77M	449.72M	407.11M	423.39M
EBITDA	37.57M	25.87M	31.56M	-36.94M	-11.47M	-7.45M
Net Income	-17.25M	-17.29M	-21.01M	-102.73M	-94.65M	-257.64M
Balance Sheet
Total Assets	698.33M	724.42M	795.89M	807.50M	890.74M	978.02M
Cash, Cash Equivalents and Short-Term Investments	266.94M	263.65M	315.19M	303.73M	355.82M	372.45M
Total Debt	38.62M	43.52M	46.71M	37.73M	33.34M	43.67M
Total Liabilities	566.91M	585.57M	614.30M	607.90M	608.02M	590.40M
Stockholders Equity	131.42M	138.85M	181.59M	199.61M	282.72M	387.62M
Cash Flow
Free Cash Flow	23.40M	-4.22M	20.84M	-41.57M	23.51M	-26.48M
Operating Cash Flow	35.59M	1.35M	32.70M	-31.41M	36.78M	-20.18M
Investing Cash Flow	-32.34M	14.35M	-53.55M	-30.77M	-19.98M	73.51M
Financing Cash Flow	-9.41M	-47.89M	-23.46M	-10.32M	-43.66M	-29.68M

TomTom Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 5.25, above the 50-day MA of 5.33, and above the 200-day MA of 5.14, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 47.93 is Neutral, neither overbought nor oversold. The STOCH value of 29.80 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEDAP	76 Outperform	€581.19M	27.77	29.06%	3.57%	4.11%	22.38%
TWEKA	71 Outperform	€1.45B	22.90	7.75%	4.12%	-3.59%	-46.68%
CTAC	68 Neutral	€45.28M	11.03	13.94%	3.44%	0.81%	351.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MTRK	47 Neutral	€191.63M	-15.37	―	―	-7.94%	7.30%
CMCOM	46 Neutral	€148.77M	-11.11	-57.80%	―	0.36%	34.49%
TOM2	45 Neutral	€622.83M	―	-12.26%	―	-1.70%	24.14%

TomTom Corporate Events

TomTom NV Reports Solid Q3 2025 Results

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

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.