TM

Toyota Motor

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Consumer Cyclical

industry

Auto Manufacturers

Exchange

NYSE

County of HQ

Japan

Next Earnings Date

05/14/26

Business Summary

TM generates cash by manufacturing and selling vehicles at global scale, leveraging supply chain efficiency and brand strength to produce consistent operating margins. Its moat is rooted in manufacturing expertise, production efficiency, and distribution scale that few competitors can replicate economically. The company converts large-scale revenues into operating profit through tight cost control and platform standardization. Capital intensity is high, but scale allows it to sustain global relevance and recurring demand cycles across economic environments.

VALUATION

P/E

11.8

Market Cap ($M USD)

$274,486

Forward P/E

9.5

PEG

24

PRICE TO SALES

0.9

PRICE TO BOOK

1.1

EV / EBITDA

9.3

5-Year Average P/E

DIVIDEND

Yield

3.00%

Annual Payout

$5.73

Payout Ratio

33.20%

Consecutive Years of Dividend Growth

3

5-Year Dividend Growth Rate

7.30%

Financial Health & Profitability

Earnings Per Share

$17.80

Next Year EPS Growth Estimate

$22.16

Next Year Revenue Growth Estimate

4.50%

Return on Equity (ROE)

9.50%

Operating Margin

8.60%

Debt-to-Equity

1.1

Piotroski F-Score

5

Altman Z-Score

1.7

Return on Invested Capital (ROIC)

4.50%%

Current Ratio

1.3

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 11.8x earnings and just 9.5x forward earnings, the market is pricing TM like a no-growth cyclical despite a massive $274,486M market cap and positive forward EPS expansion to $17.80. The valuation looks optically cheap, but the PEG Forward of 24 signals that growth relative to price is not compelling, suggesting either distorted growth expectations or structural earnings volatility. The real concern is the Altman Z-Score of 1.7, which places the company in financial stress territory, meaning balance sheet risk is not trivial. This is a statistically cheap stock with balance sheet fragility—more deep value with risk than clean GARP.

AI Exposure / Tech Reliance

As a Consumer Cyclical Auto Manufacturer, TM operates in one of the most technologically disrupted industries globally. AI integration in manufacturing automation, autonomous systems, and supply chain optimization is becoming table stakes rather than optional. Companies in this sector that fail to digitize operations and product offerings risk margin compression and market share erosion.

The Bull Case

A value-oriented investor could argue this is a classic scale-driven cash flow machine trading at a discount. A Price/Sales ratio of 0.9 and Price/Book of 1.1 imply the market is valuing the company close to its asset base despite 9.50% operating margins, which are respectable in autos. The Piotroski F-Score of 5 indicates operational stability rather than deterioration, and a 4.50% ROIC roughly matching the 4.50% ROE suggests disciplined capital allocation without excessive leverage distortion. Add a 1.1 yield and a 3 five-year average dividend rate, and you have a shareholder-return component layered onto a single-digit forward multiple—an appealing setup if earnings normalize upward.

The Bear Case

The red flags are impossible to ignore. A Debt/Equity ratio of 8.60% may appear manageable in isolation, but the Altman Z-Score of 1.7 contradicts any sense of balance sheet comfort. The PEG Forward of 24 is egregious relative to a 9.5 forward P/E, implying growth quality or sustainability issues beneath the surface. Short interest at 7.30% of float shows a non-trivial bearish presence, and a weak 4.50% ROE signals limited profitability relative to capital employed—hardly what you want in a capital-intensive industry.

Market Sentiment & Smart Money

Short Interest %

0.10%

Analyst Consensus

1.54

Average Analyst Price Target

$248.45

Institutional Ownership %

1.90%

1-Year Beta

1.01

Insider Buying % (6 Mo)

0.00%%

Distance to 52-Week High

84.60%%

Distance to 52-Week Low

127.00%%