Toyota Motor (TM) AI Stock Analysis

• Market Cap: $268.56B
• Dividend Yield: 2.98%
• Average Volume (3M): 304.53K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.99
• 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: 302,950
• 30 Day Avg. Volume: 304,528
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: $235.00 ▲(16.37% 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.

Toyota Motor Business Overview & Revenue Model

Company Description

Toyota 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 Money

Toyota 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 Financial Statement Overview

Summary

Toyota Motor demonstrates strong revenue growth and profitability, supported by a stable balance sheet. However, cash flow challenges, particularly in free cash flow generation, pose potential risks. The company should focus on improving cash conversion to sustain its growth trajectory and maintain financial flexibility.

Income Statement

Toyota Motor's income statement shows strong revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 86.5%, indicating robust sales performance. The gross profit margin of 19.29% and net profit margin of 8.82% reflect solid profitability, although slightly lower than the previous annual report. EBIT and EBITDA margins are healthy at 11.45% and 16.05%, respectively, suggesting efficient operational management. However, the slight decline in margins compared to the previous year indicates potential cost pressures.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 1.07, indicating moderate leverage. The return on equity (ROE) is 12.02%, showcasing effective utilization of shareholder funds. The equity ratio stands at 38.55%, reflecting a balanced capital structure. While the leverage is manageable, the slight increase in debt levels warrants monitoring.

Cash Flow

Cash flow analysis shows challenges with free cash flow, which has experienced significant negative growth. The operating cash flow to net income ratio of 0.17 indicates adequate cash generation relative to earnings. However, the free cash flow to net income ratio is low at 0.036, highlighting potential issues in converting earnings to free cash flow. This could impact future investment capabilities if not addressed.

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	62.27T
Cash, Cash Equivalents and Short-Term Investments	16.92T	15.92T	14.11T	9.23T	8.62T	9.32T
Total Debt	39.86T	38.79T	36.56T	29.38T	26.50T	25.66T
Total Liabilities	59.12T	56.72T	54.87T	45.04T	40.53T	37.98T
Stockholders Equity	37.49T	35.92T	34.22T	28.34T	26.25T	23.40T
Cash Flow
Free Cash Flow	147.79B	-1.56T	-842.02B	-750.76B	-107.63B	-1.04T
Operating Cash Flow	4.82T	3.70T	4.21T	2.96T	3.72T	2.73T
Investing Cash Flow	-4.62T	-4.19T	-5.00T	-1.60T	-577.50B	-4.68T
Financing Cash Flow	124.92B	197.24B	2.50T	-56.18B	-2.47T	2.74T

Toyota Motor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 201.95
• 50DMA: Positive
• 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 Positive. The current price of 201.95 is below the 20-day moving average (MA) of 204.61, above the 50-day MA of 199.70, and above the 200-day MA of 187.49, indicating a neutral trend. The MACD of 1.62 indicates Positive momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 66.73 is Neutral, 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	$268.56B	9.40	12.51%	2.98%	7.30%	12.42%
GM	75 Outperform	$65.79B	14.17	4.44%	0.93%	2.58%	-46.27%
F	74 Outperform	$52.56B	11.31	10.26%	5.69%	3.75%	33.37%
HMC	73 Outperform	$41.13B	9.96	5.23%	4.62%	0.34%	-25.49%
TSLA	73 Outperform	$1.34T	270.18	7.03%	―	-1.56%	-59.09%
LI	65 Neutral	$20.08B	18.77	11.91%	―	7.49%	-21.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

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.