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Toyota Motor Corp Ltd Ord (TM)
NYSE:TM
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Toyota Motor
(NYSE:TM)
73Outperform
Toyota Motor (TM) vs. S&P 500 (SPY)
Market Cap
$225.49B
Dividend Yield2.89%
Average Volume (3M)336.07K
Price to Earnings (P/E)6.7
Beta (1Y)0.92
Revenue Growth-0.59%
EPS Growth7.56%
CountryUS
Employees384,338
SectorConsumer Cyclical
Sector Strength46
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)25.22
Shares Outstanding1,579,498,800
10 Day Avg. Volume313,345
30 Day Avg. Volume336,074
Financial Highlights & Ratios
PEG Ratio0.88
Price to Book (P/B)N/A
Price to Sales (P/S)0.84
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
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 ConsensusN/A
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 makes money through a combination of automotive sales, financial services, and other business operations. The primary revenue stream comes from the sale of vehicles, including both new and used cars, with a significant presence in markets across the globe. Toyota also generates income through its financial services division, which offers loans, leases, and insurance products to support vehicle sales. Additionally, the company benefits from strategic partnerships and joint ventures that expand its reach and capabilities in emerging technologies such as electric vehicles and autonomous driving. Factors like a strong global brand, extensive dealership network, and commitment to innovation contribute significantly to Toyota's earnings.
Toyota Motor Financial Statement Overview
Summary
Toyota Motor displays strong financial performance with robust revenue growth and efficient cost management. Despite a decrease in net profit margin and negative free cash flow, the company maintains a solid financial position and operational efficiency.Income Statement
Toyota Motor shows strong financial performance with consistent revenue growth, particularly a 24.8% increase from 2022 to 2023. The gross profit margin stands at 21.1% TTM, indicating efficient cost management. However, the net profit margin decreased from 2023 to TTM to 9.2%, suggesting increased expenses or cost pressures. Overall, Toyota's profitability metrics remain robust, reinforcing its competitive position in the vehicles industry.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.06 TTM, showing moderate leverage. Return on equity is strong at 12.4% TTM, demonstrating effective use of shareholder capital. The equity ratio of 38.5% indicates a solid capital structure, though slightly lower than previous periods, suggesting an increase in liabilities.78
Positive
Cash Flow
Toyota Motor's cash flow statement reveals challenges in free cash flow, which is negative TTM at -1.87 trillion. This is a concern despite positive operating cash flows. The operating cash flow to net income ratio of 0.88 TTM suggests strong operational efficiency. However, the negative trajectory in free cash flow warrants attention to maintain liquidity.70
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 46.40T | 45.10T | 37.15T | 31.38T | 27.21T | 29.93T | Gross Profit |
| 9.80T | 9.37T | 6.31T | 5.97T | 4.83T | 5.41T | EBIT |
| 5.26T | 5.35T | 3.67T | 3.00T | 2.96T | 2.44T | EBITDA |
| 7.45T | 8.39T | 5.19T | 4.82T | 4.61T | 4.13T | Net Income Common Stockholders |
| 4.26T | 4.94T | 2.45T | 2.85T | 2.25T | 2.04T |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.05T | 14.11T | 9.23T | 8.62T | 9.32T | 5.70T | Total Assets |
| 30.35T | 90.11T | 74.30T | 67.69T | 62.27T | 52.68T | Total Debt |
| 12.51T | 36.56T | 29.38T | 26.50T | 25.66T | 20.55T | Net Debt |
| 10.25T | 27.15T | 21.86T | 20.38T | 20.56T | 16.36T | Total Liabilities |
| 19.42T | 54.87T | 45.04T | 40.53T | 37.98T | 31.94T | Stockholders Equity |
| 10.36T | 34.22T | 28.34T | 26.25T | 23.40T | 20.06T |
| Cash Flow | Free Cash Flow | ||||
| -1.86T | -842.02B | -750.76B | -107.63B | -1.04T | -4.49B | Operating Cash Flow |
| 3.75T | 4.21T | 2.96T | 3.72T | 2.73T | 3.59T | Investing Cash Flow |
| -5.43T | -5.00T | -1.60T | -577.50B | -4.68T | -3.15T | Financing Cash Flow |
| 1.65T | 2.50T | -56.18B | -2.47T | 2.74T | 397.14B |
Toyota Motor Technical Analysis
Negative
158.63
Price Trends
184.42
Negative
182.27
Negative
183.29
Negative
Market Momentum
-1.29
Positive
34.88
Neutral
7.69
Positive
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 158.63 is below the 20-day moving average (MA) of 183.78, below the 50-day MA of 184.42, and below the 200-day MA of 183.29, indicating a bearish trend. The MACD of -1.29 indicates Positive momentum. The RSI at 34.88 is Neutral, neither overbought nor oversold. The STOCH value of 7.69 is Positive, 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 0 New Risks
Toyota Motor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $25.14B | 21.99 | 12.29% | ― | 15.50% | -32.48% | |
73 Outperform | $225.49B | 6.66 | 14.59% | 2.89% | -0.59% | 7.56% | |
73 Outperform | $43.88B | 6.12 | 8.11% | 4.59% | 4.37% | 6.93% | |
72 Outperform | $37.94B | 6.52 | 13.42% | 7.86% | 5.00% | 35.92% | |
72 Outperform | $45.67B | 7.21 | 9.44% | 1.04% | 9.08% | -15.25% | |
66 Neutral | $859.71B | 117.47 | 10.52% | ― | 0.95% | -52.81% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% |
* Consumer Cyclical Sector Average
Performance Comparison
TM
Toyota Motor
158.63
-85.58
-35.04%
F
Ford Motor
9.58
-2.88
-23.11%
GM
General Motors
44.18
0.28
0.64%
HMC
Honda Motor Company
25.00
-10.57
-29.72%
TSLA
Tesla
239.43
66.45
38.41%
LI
Li Auto
23.07
-8.19
-26.20%
Toyota Motor Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -15.42% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were positive developments such as increased dividends, strong performance in electrified vehicle sales, and strategic investments, these were counterbalanced by challenges like decreased vehicle sales, significant currency-related net income losses, and market-specific issues in North America and China.Highlights
Increased Interim and Forecasted Dividends
The company announced an increase in the interim dividend by JPY10 to JPY40 per share, with a forecasted full-year dividend increased by JPY15 to JPY90 per share.
Strong Electrified Vehicle Performance
The proportion of electrified vehicles increased to 44.4%, mainly due to the strong performance of HEV sales in North America, Europe, Asia, and other regions.
Investment in Human Resources and Growth Areas
The company is increasing investment in human resources and growth areas to JPY830 billion for the full year, with JPY180 billion already spent in the first half.
Resumption of Production in Indiana Plant
The Indiana plant in the United States, which had partially halted operations, has restarted, contributing to a return to an annual global production pace of 10 million units.
Lowlights
Decrease in Consolidated Vehicle Sales
Consolidated vehicle sales were 96% of the same period of the previous fiscal year, impacted by production halts and certification issues.
Significant Decrease in Net Income
Net income decreased significantly from the previous year, primarily due to valuation losses in foreign currency denominated assets caused by exchange rate fluctuations.
Challenges in North America
Operating income in North America decreased due to deterioration in sales volume and sales mix and increasing labor costs.
Issues in Chinese Market
Sales in China were about 90% of the previous year, with the company enduring strong competition and changing consumer preferences.
Company Guidance
In the recent earnings call for Q2 2025, Toyota provided detailed guidance on various financial metrics and strategic initiatives. The company reported an operating income of JPY2.4642 trillion, with a full-year forecast unchanged at JPY4.300 trillion. Despite challenges like production halts and foreign exchange losses, Toyota plans to increase investments in human resources and growth areas to JPY830 billion for the full year. Vehicle sales reached 4.556 million units, representing 96% of the previous year's figure, while electrified vehicles accounted for 44.4% of sales. The company aims to recover production volumes in the second half, targeting 9.400 million units for the full year. Toyota also announced a dividend increase to JPY40 per share for the interim period and JPY90 for the full year. Key efforts include reducing incentives, expanding value chain earnings, and strengthening foundation work to enhance flexibility and production efficiency.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.