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Toyota Motor Corp Ltd Ord (TM)
:TM
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Toyota Motor
(NYSE:TM)
Rating:70Outperform
Price Target:
$189.00
▲(10.86%Upside)
Toyota Motor (TM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$220.48B
Dividend Yield3.63%
Average Volume (3M)450.54K
Price to Earnings (P/E)7.2
Beta (1Y)0.86
Revenue Growth1.06%
EPS Growth-7.05%
CountryUS
Employees383,853
SectorConsumer Cyclical
Sector Strength65
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)3.56
Shares Outstanding1,579,498,800
10 Day Avg. Volume414,488
30 Day Avg. Volume450,544
Financial Highlights & Ratios
PEG Ratio-1.16
Price to Book (P/B)0.90
Price to Sales (P/S)0.00
P/FCF Ratio-25.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Toyota Motor Business Overview & Revenue Model
Company DescriptionToyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories. It operates in Automotive, Financial Services, and All Other segments. The company offers hybrid cars under the Prius name, fuel cell vehicles under the MIRAI name; and conventional engine vehicles, including subcompact and compact cars under the Corolla and Raize names. It also provides mini-vehicles, passenger vehicles, commercial vehicles, and auto parts under the Toyota name; mid-size cars; luxury cars; sports cars under the GR Yaris, Corolla Sport, Corolla Cross, and Supra names; and recreational and sport-utility vehicles under the Highlander name. In addition, the company offers pickup trucks under the Tacoma name; minivans; and trucks and buses. Further, it provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards; and designs, manufactures, and sells prefabricated housing. Additionally, the company operates GAZOO.com, a web portal for automobile information. It operates in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. The company was founded in 1933 and is headquartered in Toyota, Japan.
How the Company Makes MoneyToyota Motor Corporation generates revenue primarily through the design, manufacture, and sale of vehicles. The company's core revenue streams include the sale of passenger cars, commercial vehicles, and related parts and accessories. Additionally, Toyota earns income through its financial services arm, which provides financing and leasing solutions for customers and dealers. The company benefits from strategic partnerships and joint ventures that enhance its global reach and product offerings. Key factors contributing to Toyota's earnings include its focus on innovation, efficiency in manufacturing processes, and a strong global distribution network.
Toyota Motor Key Performance Indicators (KPIs)
Any
Retail Vehicle Sales
Tracks the number of vehicles sold directly to consumers, providing insight into market demand, brand popularity, and competitive positioning in the automotive industry.
Tracks the number of vehicles sold directly to consumers, providing insight into market demand, brand popularity, and competitive positioning in the automotive industry.
Data provided by:
Main Street Data
Main Street DataToyota Motor Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q4-2025)
| % Change Since: -9.75%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strong achievements in electrified vehicle sales and value chain profits, but challenges remain in terms of declining operating income forecasts, U.S. tariffs, and regional production issues. While the company has made strides in several areas, the forecasted decline and external challenges weigh heavily on future prospects.Q4-2025 Updates
Positive Updates
Strong Operating Income
Operating income for the fiscal year ended March 2025 was JPY4.8 trillion, supported by price revisions and expansion of value chain profits.
Electrified Vehicle Sales Increase
The proportion of electrified vehicles reached 46.2%, a significant increase from the previous fiscal year, with HEVs increasing by 850,000 units.
Dividend Increase
The full-year dividend for the fiscal year ended March 2025 increased by JPY15 to JPY90, with a forecast increase to JPY95 for fiscal year 2026.
Expansion of Value Chain Profits
Value chain profits, including parts and finance, have been steadily expanding at a pace of JPY150 billion annually, with a full-year forecast of over JPY2 trillion.
Recovery in Production Volume
Consolidated vehicle sales are expected to increase to 9.8 million units, a 104.7% increase over the previous fiscal year.
Negative Updates
Decrease in Operating Income Forecast
The operating income forecast for the fiscal year ending March 2026 is JPY3.8 trillion, down from JPY4.8 trillion in FY 2025.
Challenges from U.S. Tariffs
The impact of U.S. tariffs is estimated at JPY180 billion for April and May 2025, with ongoing uncertainty affecting future forecasts.
Production Challenges in North America
Operating income in North America decreased due to lower production volume caused by a 4-month shutdown of Toyota Motor manufacturing in Indiana.
Sales Expenses Increase in China
Operating income in China decreased mainly due to an increase in sales expenses.
Company Guidance
In the financial results meeting for the fiscal year ending March 2025, Toyota provided comprehensive guidance on their performance metrics and future projections. The company reported an operating income of JPY4.8 trillion, supported by price revisions and value chain profit expansion, despite supply constraints and production suspension in the U.S. Looking ahead, they forecast an operating income of JPY3.8 trillion for fiscal 2026, reflecting a focus on strengthening their management foundation and investing in future profit pillars. Vehicle sales projections include 9.8 million consolidated units, with Toyota and Lexus sales expected to reach 10.4 million units, driven by a recovery in production volume. Electrified vehicles are anticipated to comprise 49.8% of total sales. The full-year dividend for fiscal 2025 was JPY90, with an increase to JPY95 forecasted for fiscal 2026. Toyota's efforts to bolster their operational base, reduce costs, and adapt to changing market demands underscore their commitment to sustainable growth and transformation into a mobility company.Toyota Motor Financial Statement Overview
Summary
Toyota Motor demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is solid, although high leverage requires careful management. Cash flow indicates potential liquidity challenges due to high capital expenditures.Income Statement
Toyota Motor's income statement reveals strong profitability with a consistent increase in gross profit and net income over the years. The gross profit margin remains robust, reflecting efficient cost management. Notably, the revenue growth rate from 2024 to 2025 is approximately 6.5%, indicating steady expansion. The EBIT and EBITDA margins are healthy, showcasing operational efficiency. However, a slight decrease in net income from 2024 to 2025 suggests potential challenges affecting net profitability.85
Very Positive
Balance Sheet
The balance sheet of Toyota Motor demonstrates financial stability with a substantial stockholders' equity, contributing to a solid equity ratio of approximately 38.4%. The debt-to-equity ratio is around 1.08, signifying a balanced leverage position. Return on equity has been consistent, showcasing effective utilization of shareholder funds. However, the high total debt level requires careful management to mitigate financial risk.80
Positive
Cash Flow
Toyota Motor's cash flow statement shows a decline in free cash flow, posing a concern for liquidity. The operating cash flow remains positive, indicating ongoing operational cash generation. However, the free cash flow to net income ratio is negative, reflecting high capital expenditures which could impact future cash availability. The operating cash flow to net income ratio suggests efficient cash conversion from profits.70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 46.75T | 48.04T | 45.10T | 37.15T | 31.38T | 27.21T |
| Gross Profit | 9.50T | 9.58T | 9.37T | 6.31T | 5.97T | 4.83T |
| EBITDA | 8.62T | 8.75T | 8.39T | 5.19T | 5.84T | 4.61T |
| Net Income | 5.10T | 4.77T | 4.94T | 2.45T | 2.85T | 2.25T |
Balance Sheet | ||||||
| Total Assets | 94.67T | 93.60T | 90.11T | 74.30T | 67.69T | 62.27T |
| Cash, Cash Equivalents and Short-Term Investments | 13.88T | 15.92T | 14.11T | 9.23T | 8.62T | 9.32T |
| Total Debt | 39.58T | 38.79T | 36.56T | 29.38T | 26.50T | 25.66T |
| Total Liabilities | 57.82T | 56.72T | 54.87T | 45.04T | 40.53T | 37.98T |
| Stockholders Equity | 35.91T | 35.92T | 34.22T | 28.34T | 26.25T | 23.40T |
Cash Flow | ||||||
| Free Cash Flow | -1.60T | -1.56T | -842.02B | -750.76B | -107.63B | -1.04T |
| Operating Cash Flow | 4.24T | 3.70T | 4.21T | 2.96T | 3.72T | 2.73T |
| Investing Cash Flow | -4.29T | -4.19T | -5.00T | -1.60T | -577.50B | -4.68T |
| Financing Cash Flow | 391.01B | 197.24B | 2.50T | -56.18B | -2.47T | 2.74T |
Toyota Motor Technical Analysis
Negative
170.48
Price Trends
179.90
Negative
180.99
Negative
180.26
Negative
Market Momentum
-2.61
Negative
42.81
Neutral
44.30
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 170.48 is below the 20-day moving average (MA) of 171.42, below the 50-day MA of 179.90, and below the 200-day MA of 180.26, indicating a bearish trend. The MACD of -2.61 indicates Negative momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 44.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TM.
Toyota Motor Risk Analysis
Toyota Motor disclosed 11 risk factors in its most recent earnings report. Toyota Motor reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Regulatory, Legal, Political and Other Risks Q1, 2023
2.
Toyota's operations are dependent on securing, retaining and developing talented, diverse employees. Q1, 2023
3.
Financial Market and Economic Risks Q1, 2023
Toyota Motor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $44.70B | 8.93 | 11.47% | 5.34% | 3.03% | 28.54% | |
74 Outperform | $28.89B | 29.71 | 12.22% | ― | 10.28% | -29.75% | |
73 Outperform | $50.68B | 7.59 | 8.88% | 1.13% | 7.76% | -14.17% | |
72 Outperform | $49.60B | 8.75 | 6.54% | 3.60% | 0.83% | -26.70% | |
72 Outperform | $999.63B | 176.90 | 9.16% | ― | 1.03% | -53.71% | |
70 Outperform | $220.48B | 7.23 | 13.36% | 3.63% | 1.06% | -7.05% | |
63 Neutral | $16.78B | 10.88 | -7.08% | 3.04% | 1.73% | -25.15% |
* Consumer Cyclical Sector Average
Performance Comparison
TM
Toyota Motor
170.48
-26.67
-13.53%
F
Ford Motor
11.15
-1.81
-13.97%
GM
General Motors
53.21
5.41
11.32%
HMC
Honda Motor Company
30.36
0.15
0.50%
TSLA
Tesla
319.41
80.21
33.53%
LI
Li Auto
31.36
11.72
59.67%
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.