Toyota Motor (TM) AI Stock Analysis

• Market Cap: $305.97B
• Dividend Yield: 2.57%
• Average Volume (3M): 280.35K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.92
• Revenue Growth: 7.30%
• EPS Growth: 12.42%
• Country: US
• Employees: 383,853
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 1,579,498,800
• 10 Day Avg. Volume: 270,015
• 30 Day Avg. Volume: 280,352
• 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: 1.54
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: $268.00 ▲(32.38% 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 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 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: Positive
• Last Price: 202.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 202.44 is below the 20-day moving average (MA) of 219.86, below the 50-day MA of 208.88, and above the 200-day MA of 192.66, indicating a bullish trend. The MACD of 5.74 indicates Negative momentum. The RSI at 71.29 is Negative, neither overbought nor oversold. The STOCH value of 83.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$305.97B	9.83	12.51%	2.57%	7.30%	12.42%
TSLA	73 Outperform	$1.46T	292.33	7.03%	―	-1.56%	-59.09%
F	71 Outperform	$55.03B	11.84	10.26%	5.64%	3.75%	33.37%
GM	70 Outperform	$75.48B	16.26	4.44%	0.69%	2.58%	-46.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HMC	58 Neutral	$42.63B	10.31	5.23%	4.19%	0.34%	-25.49%
LI	55 Neutral	$16.63B	27.10	6.53%	―	-10.00%	-54.75%