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TomTom (NL:TOM2)
:TOM2
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TomTom
(OTC:TOM2)
Rating:67Neutral
Price Target:
€6.00
▲(17.19% Upside)
TomTom (TOM2) vs. iShares MSCI Netherlands ETF (EWN)
Market Cap
$609.09M
Dividend YieldN/A
Average Volume (3M)307.78K
Price to Earnings (P/E)―
Beta (1Y)1.64
Revenue Growth-1.63%
EPS Growth-18.80%
CountryNL
Employees3,600
SectorTechnology
Sector Strength92
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.19
Shares Outstanding125,000,000
10 Day Avg. Volume221,930
30 Day Avg. Volume307,784
Financial Highlights & Ratios
PEG Ratio2.86
Price to Book (P/B)4.46
Price to Sales (P/S)1.08
P/FCF Ratio-146.51
Enterprise Value/Market Cap0.64
Enterprise Value/Revenue0.69
Enterprise Value/Gross Profit0.78
Enterprise Value/Ebitda14.13
Forecast
1Y Price Target
$5.50Price Target Upside7.43% Upside
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, it makes money by selling its GPS navigation devices and providing related services. Additionally, the company licenses its mapping data and location-based services to automotive manufacturers, tech companies, and enterprises. TomTom has significant partnerships with automotive companies to integrate its navigation systems into vehicles, which is a substantial source of income. The company also earns from subscription-based services offering real-time traffic updates and advanced navigation features. These diverse revenue streams enable TomTom to maintain a strong position in the global navigation and mapping market.
TomTom Earnings Call Summary
Earnings Call Date:Jul 15, 2025
(Q2-2025)
| % Change Since: 4.79%|
Next Earnings Date:Oct 14, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed picture with significant improvements in cash flow and strategic engagements, particularly with Chinese OEMs and new AI-driven products. However, this is countered by declines in revenue across several segments and organizational restructuring to cut costs.Q2-2025 Updates
Positive Updates
Strong Engagement with Chinese OEMs
At Auto Shanghai, TomTom had strong engagement with multiple Chinese OEMs, signaling positive future opportunities in the automotive sector.
AI-Driven Product Innovation
TomTom launched the Model Context Protocol Server, which enables AI agents to generate accurate location-aware output, showcasing innovation in product development.
Improved Cash Flow Position
Free cash flow was an inflow of EUR 14 million in the quarter, a sharp improvement from the outflow of EUR 5 million last year.
Raised Guidance for 2025
TomTom upgraded its outlook, expecting full-year group revenue of between EUR 535 million and EUR 565 million, and Location Technology revenue between EUR 465 million and EUR 490 million.
High Gross Margin
Achieved a strong gross margin of 88% in the second quarter, up from 80% last year.
Negative Updates
Revenue Decline
Group revenue for the second quarter was EUR 146 million, down from EUR 152 million in the same period last year.
Decreased Automotive Revenue
Automotive operational revenue saw a year-on-year decrease of 13% to EUR 77 million due to lower car volumes and 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.
Organizational Restructuring
TomTom is reducing around 300 roles as part of organizational realignment to increase agility and focus, reflecting challenges in current operations.
Company Guidance
During the TomTom Second Quarter 2025 Results Conference Call, the company provided updated guidance for the fiscal year. Despite recent challenges impacting the top line, TomTom raised its full-year group revenue expectations to between EUR 535 million and EUR 565 million, with Location Technology revenue forecasted to range from EUR 465 million to EUR 490 million. Additionally, TomTom anticipates free cash flow to be around 5% of group revenue at the midpoint of the guided range. The company reported a second-quarter group revenue of EUR 146 million, a slight decrease from EUR 152 million in the same period last year, and Location Technology revenue of EUR 126 million. Automotive operational revenue fell by 13% to EUR 77 million, while Enterprise revenue was EUR 40 million, and Consumer revenue declined by 15% to EUR 20 million. Despite these declines, TomTom achieved a strong gross margin of 88%, up from 80% the previous year. The company also announced a restructuring plan expected to save up to EUR 35 million annually.TomTom Financial Statement Overview
Summary
TomTom's financials show resilience with strong gross margins and improving cash flows. However, profitability remains a challenge with negative net income and ROE. The stable balance sheet and positive cash flow trends provide a foundation for potential recovery, but the company needs to tackle operational inefficiencies and revenue stagnation to enhance financial health.Income Statement
TomTom's income statement shows mixed performance. The TTM Gross Profit Margin is approximately 85.2%, reflecting strong profitability in its core operations. However, the Net Profit Margin is negative, at around -1.63%, indicating the company is not profitable overall. Revenue growth from 2024 to 2025 is negligible, suggesting stagnation. The EBIT and EBITDA margins are -1.68% and 3.34% respectively for TTM, showing operational challenges but some potential for recovery in EBITDA.60
Neutral
Balance Sheet
The balance sheet presents a stable financial position with a Debt-to-Equity Ratio of 0.29, indicating a conservative use of debt. The TTM Return on Equity is negative at -6.58%, highlighting a need for improving profitability. The Equity Ratio stands at 19.8%, which is on the lower side, suggesting reliance on liabilities for asset financing.65
Positive
Cash Flow
Cash flow analysis reveals positive trends, with a significant improvement in Free Cash Flow to 9.99M in TTM from a negative position in 2024. The Free Cash Flow Growth Rate is strong, and the Operating Cash Flow to Net Income Ratio is 1.67, indicating efficient cash generation relative to reported losses. However, a cautious approach is warranted due to past fluctuations.70
Positive
| 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
Neutral
5.12
Price Trends
5.17
Negative
4.97
Positive
5.01
Positive
Market Momentum
0.01
Positive
46.77
Neutral
10.43
Positive
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 5.12 is below the 20-day moving average (MA) of 5.22, below the 50-day MA of 5.17, and above the 200-day MA of 5.01, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 46.77 is Neutral, neither overbought nor oversold. The STOCH value of 10.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:TOM2.
TomTom Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Performance Comparison
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5.12
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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.