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Toyota Motor Corp Ltd Ord (TM)
NYSE:TM
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Toyota Motor
(NYSE:TM)
Rating:77Outperform
Price Target:
$207.00
▲(5.22% Upside)
Toyota Motor (TM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$256.13B
Dividend Yield2.74%
Average Volume (3M)430.37K
Price to Earnings (P/E)9.1
Beta (1Y)0.93
Revenue Growth4.14%
EPS Growth-12.12%
CountryUS
Employees383,853
SectorConsumer Cyclical
Sector Strength80
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)4.38
Shares Outstanding1,579,498,800
10 Day Avg. Volume329,244
30 Day Avg. Volume430,369
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 Cap1.72
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.05
Enterprise Value/Ebitda0.05
Forecast
1Y Price Target
$207.00Price Target Upside5.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Toyota Motor Business Overview & Revenue Model
Company DescriptionToyota Motor Corporation (TM) is a multinational automotive manufacturer headquartered in Toyota City, Japan. Founded in 1937, the company is one of the largest automobile manufacturers in the world, producing a wide range of vehicles including sedans, SUVs, trucks, and hybrids under brands such as Toyota and Lexus. Toyota is also involved in the development of advanced automotive technologies, including fuel cell vehicles and autonomous driving systems, and operates in various sectors including mobility services and financial services.
How the Company Makes MoneyToyota generates revenue primarily through the sale of vehicles, which include passenger cars, trucks, and hybrids. The company also earns money from its financial services division, which provides financing options for vehicle purchases and leases. Additional revenue streams include sales of spare parts and accessories, as well as revenues from its mobility services, such as car-sharing and ride-hailing platforms. Strategic partnerships with other technology and automotive firms enhance its capabilities in areas like electric and autonomous vehicles, contributing to ongoing innovation and revenue growth. Furthermore, Toyota benefits from global market presence and diversified manufacturing operations, allowing it to optimize production costs and respond to market demands effectively.
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:Aug 07, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlights both significant achievements, such as strong operating income and increased electrified vehicle sales, and challenges, like U.S. tariffs and production issues in North America. While the company remains committed to growth and shareholder returns, uncertainties in the global market impact future outlooks.Q4-2025 Updates
Positive Updates
Strong Operating Income
Operating income for the fiscal year ended March 2025 was JPY4.8 trillion, secured through price revisions and expansion of value chain profits. This was achieved despite challenges such as production suspension in Indiana.
Increase in Electrified Vehicle Sales
The proportion of electrified vehicles was 46.2%, a significant increase from the previous fiscal year, with HEVs increasing by 850,000 units.
Commitment to Shareholder Returns
The full-year dividend for the fiscal year ended March 2025 increased by JPY15 to JPY90, with a forecasted increase to JPY95 for FY2026.
Focus on Sustained Growth
Efforts to strengthen management foundation and develop new profit pillars for sustainable growth, with an emphasis on transforming into a mobility company.
Improved Profitability
Consistent achievement of ROE over 10% with significant improvements in profitability, including increasing marginal profit per unit by approximately 1.6x.
Negative Updates
U.S. Tariff Challenges
The impact of U.S. tariffs estimated at JPY180 billion for April and May 2025, with ongoing uncertainty affecting future forecasts.
Production Challenges in North America
Operating income decreased in North America due to lower production volume caused by a four-month shutdown of Toyota Motor manufacturing in Indiana.
Decreased Operating Income Forecast
Operating income forecast for FY2026 is JPY3.8 trillion, down from JPY4.8 trillion in FY2025, due to factors like foreign exchange rates and material prices.
Challenges in Chinese Market
Decrease in operating income for consolidated subsidiaries in China due to increased sales expenses, highlighting competitive challenges in the region.
Company Guidance
In the call, the company provided guidance for the fiscal year ending March 2026, projecting an operating income of JPY3.8 trillion, which is a decrease from the JPY4.8 trillion achieved in the fiscal year ended March 2025. Despite this anticipated decline in profits, the company plans to increase its full-year dividend to JPY95, up from JPY90 the previous fiscal year. The company expects consolidated vehicle sales to rise to 9.8 million units, a 4.7% increase from the previous year, with Toyota and Lexus vehicle sales projected to reach 10.4 million units, up 1.2%. Electrified vehicle sales are expected to account for 49.8% of total sales, reflecting a continued focus on hybrid and other electrified models. The guidance also factors in a JPY180 billion impact from U.S. tariffs for April and May 2025, alongside a JPY745 billion decrease due to foreign exchange impacts. The company highlighted its strategic focus on reinforcing its operational foundation, developing new profit pillars, and expanding its value chain profits as part of its long-term growth strategy.Toyota Motor Financial Statement Overview
Summary
Toyota Motor displays strong financial health with robust profitability and revenue growth. However, potential liquidity challenges from high capital expenditures and a slight decrease in net income are concerns. The balance sheet is stable, but leverage is significant.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 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 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
Positive
196.74
Price Trends
181.31
Positive
182.09
Positive
182.28
Positive
Market Momentum
4.94
Negative
60.65
Neutral
56.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TM, the sentiment is Positive. The current price of 196.74 is above the 20-day moving average (MA) of 191.35, above the 50-day MA of 181.31, and above the 200-day MA of 182.28, indicating a bullish trend. The MACD of 4.94 indicates Negative momentum. The RSI at 60.65 is Neutral, neither overbought nor oversold. The STOCH value of 56.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $256.13B | 9.15 | 12.05% | 2.74% | 4.14% | -12.12% | |
77 Outperform | $54.44B | 12.03 | 5.17% | 4.06% | 1.68% | -39.28% | |
76 Outperform | $1.13T | 203.65 | 8.43% | ― | -2.73% | -51.64% | |
75 Outperform | $55.49B | 9.25 | 7.07% | 0.87% | 5.34% | -28.29% | |
73 Outperform | $47.12B | 15.08 | 7.11% | 6.30% | 2.72% | -17.58% | |
68 Neutral | $23.84B | 23.35 | 12.22% | ― | 10.28% | -29.75% | |
61 Neutral | $17.75B | 12.56 | -5.49% | 3.02% | 1.43% | -14.12% |
* Consumer Cyclical Sector Average
Performance Comparison
TM
Toyota Motor
196.74
9.07
4.83%
F
Ford Motor
11.91
1.65
16.08%
GM
General Motors
58.75
10.21
21.03%
HMC
Honda Motor Company
33.88
2.60
8.31%
TSLA
Tesla
349.60
143.85
69.91%
LI
Li Auto
22.60
4.80
26.97%
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.