Toyota Motor (TM) AI Stock Analysis

• Market Cap: $255.08B
• Dividend Yield: 2.86%
• Average Volume (3M): 274.77K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.93
• Revenue Growth: 7.30%
• EPS Growth: 12.42%
• Country: US
• Employees: 383,853
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 0.89
• Shares Outstanding: 1,579,498,800
• 10 Day Avg. Volume: 245,788
• 30 Day Avg. Volume: 274,768
• PEG Ratio: -4.18
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.72
• P/FCF Ratio: -22.24
• Enterprise Value/Market Cap: 1.84
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.05
• Enterprise Value/Ebitda: 0.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 17.13
• Revenue Forecast (FY): $326.81B

• Rating: 81 Outperform
• Price Target: $235.00 ▲(16.08% Upside)

Toyota Motor's overall stock score is driven by its strong financial performance and attractive valuation. The company's consistent revenue growth, solid profitability margins, and strategic focus on electrified vehicles and value chain expansion contribute positively. Technical analysis supports a positive trend, while the earnings call provides reassurance despite external challenges.

Positive Factors

Electrified Vehicle Sales

The surge in electrified vehicle sales positions Toyota as a leader in sustainable automotive solutions, enhancing long-term market competitiveness.

U.S. Battery Plant

The new battery plant strengthens Toyota's U.S. manufacturing footprint and supports its strategic shift towards electrification, enhancing future growth.

Value Chain Expansion

Expanding the value chain enhances revenue streams and operational efficiency, supporting sustainable profitability and competitive advantage.

Negative Factors

U.S. Tariffs Impact

Tariff impacts increase costs and pressure margins, potentially affecting Toyota's profitability and pricing strategy in the U.S. market.

Exchange Rate Fluctuations

Exchange rate volatility can erode earnings and complicate financial planning, impacting Toyota's financial stability and international competitiveness.

Vehicle Recall

The recall may damage brand reputation and incur costs, affecting customer trust and long-term brand equity in key markets.

Toyota Motor Business Overview & Revenue Model

Company Description

Toyota Motor Corporation (TM) is a leading global automotive manufacturer based in Japan, renowned for its innovative technology and production efficiency. The company operates in various sectors including passenger vehicles, commercial vehicles, and luxury vehicles through its Lexus brand. Toyota is recognized for its commitment to sustainability and has made significant advancements in hybrid and hydrogen fuel cell technologies, positioning itself as a frontrunner in the automotive industry's transition toward environmentally friendly solutions.

How the Company Makes Money

Toyota generates revenue primarily through the sale of vehicles, which includes a diverse range of models from compact cars to trucks and SUVs. The company also earns significant income from its financial services division, which provides financing options for customers and dealers. Additional revenue streams include the sale of automotive parts and accessories, as well as investments in research and development for future technologies. Strategic partnerships with other companies, such as collaborations in autonomous driving and electric vehicle technology, further bolster Toyota's earnings. Furthermore, the company's global presence allows it to tap into various markets, contributing to its revenue stability and growth.

Toyota Motor Financial Statement Overview

Summary

Toyota Motor exhibits strong financial performance with consistent revenue growth and solid profitability margins. The balance sheet shows moderate leverage and strong return on equity, while cash flow metrics indicate improved free cash flow but highlight the need for better cash flow management relative to net income. Overall, the company is financially stable with room for improvement in cash flow efficiency.

Income Statement

Toyota Motor has demonstrated consistent revenue growth, with a TTM revenue growth rate of 1.93%. The gross profit margin is healthy at 19.29%, and the net profit margin is solid at 8.82%. However, there is a slight decline in EBIT and EBITDA margins compared to previous periods, indicating potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is 1.07, which is manageable but slightly elevated, indicating moderate leverage. Return on equity is strong at 12.02%, reflecting efficient use of equity. The equity ratio is stable, suggesting a balanced capital structure.

Cash Flow

Toyota's free cash flow has shown significant improvement with a growth rate of 232.57% in the TTM period. However, the free cash flow to net income ratio is low at 3.62%, indicating limited cash flow relative to net income. The operating cash flow to net income ratio is moderate at 16.70%.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	49.39T	48.04T	45.10T	37.15T	31.38T	27.21T
Gross Profit	8.88T	9.58T	9.37T	6.31T	5.97T	4.83T
EBITDA	8.47T	8.75T	9.12T	5.76T	5.84T	4.62T
Net Income	4.63T	4.77T	4.94T	2.45T	2.85T	2.25T
Balance Sheet
Total Assets	97.57T	93.60T	90.11T	74.30T	67.69T	67.69T
Cash, Cash Equivalents and Short-Term Investments	16.92T	15.92T	14.11T	9.23T	8.62T	8.62T
Total Debt	39.86T	38.79T	36.56T	29.38T	26.50T	26.50T
Total Liabilities	59.12T	56.72T	54.87T	45.04T	40.53T	40.53T
Stockholders Equity	37.49T	35.92T	34.22T	28.34T	26.25T	26.25T
Cash Flow
Free Cash Flow	147.79B	-1.56T	-842.02B	-750.76B	-107.63B	-7.19B
Operating Cash Flow	4.82T	3.70T	4.21T	2.96T	3.72T	25.71B
Investing Cash Flow	-4.62T	-4.19T	-5.00T	-1.60T	-577.50B	-44.17B
Financing Cash Flow	124.92B	197.24B	2.50T	-56.18B	-2.47T	25.83B

Toyota Motor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 202.44
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TM, the sentiment is Negative. The current price of 202.44 is above the 20-day moving average (MA) of 199.86, above the 50-day MA of 199.35, and above the 200-day MA of 188.36, indicating a neutral trend. The MACD of -0.98 indicates Positive momentum. The RSI at 45.26 is Neutral, neither overbought nor oversold. The STOCH value of 42.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TM.

Toyota Motor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TM	81 Outperform	$255.08B	8.31	12.51%	2.86%	7.30%	12.42%
F	74 Outperform	$51.92B	11.17	10.26%	5.76%	3.75%	33.37%
GM	73 Outperform	$70.94B	15.28	4.44%	0.75%	2.58%	-46.27%
TSLA	73 Outperform	$1.51T	304.02	7.03%	―	-1.56%	-59.09%
HMC	69 Neutral	$39.97B	9.75	5.23%	4.28%	0.34%	-25.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LI	55 Neutral	$18.13B	30.98	6.53%	―	-10.00%	-54.75%

Toyota Motor Corporate Events

Toyota Motor Corp Reports Mixed FY2026 First Half Results

Toyota Motor Corporation, a leading global automotive manufacturer, is known for its extensive range of vehicles, including sedans, SUVs, and trucks, as well as its financial services division. In its latest semi-annual earnings report for the first half of FY2026, Toyota reported a mixed financial performance with increased sales revenues but a decline in operating income. Sales revenues rose by 5.8% to 24.63 trillion yen, driven by a 5% increase in vehicle unit sales. However, operating income fell by 18.6% to 2 trillion yen, primarily due to increased expenses and adverse exchange rate effects.

Toyota’s Earnings Call: Growth Amid Challenges

The recent earnings call for Toyota Motor Corp Ltd Ord painted a generally positive picture, with strong operating income and sales growth taking center stage. The company celebrated significant achievements in electrified vehicle sales and value chain business expansion, alongside a notable increase in dividends for shareholders. While challenges such as U.S. tariffs and exchange rate fluctuations in Japan were acknowledged, the overall sentiment leaned towards optimism, with the positives outweighing the negatives.