Toyota Motor Corporation (TM) AI Stock Analysis

Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans, commercial vehicles, and related parts and accessories. The company operates through three segments: Automotive, Financial Services, and All Other. Its portfolio includes hybrid vehicles under the Prius brand, fuel cell models under MIRAI, conventional vehicles like the Corolla and Raize, luxury and sports cars such as the GR Yaris, Corolla Cross, and Supra, and trucks like the Tacoma. Toyota also delivers retail and wholesale financing, leasing, insurance, and credit cards, alongside prefabricated housing design and its GAZOO.com auto information portal.

Toyota increased annual revenue from $31.38T in FY2022 to $50.68T in FY2026, delivering a 5-year revenue CAGR of 13.2% from FY2021 to FY2026. Net income reached $3.99T in FY2026, compared to $4.77T in FY2025 and $4.94T in FY2024. Operating margin contracted to 7.4% in FY2026 from 10.0% in FY2025 and 11.9% in FY2024. Gross margin stood at 16.7% in FY2026. In the latest quarter ended June 30, 2026, revenue increased 10.4% year-over-year, while quarterly earnings expanded 86.9% year-over-year.

As of June 30, 2026, Toyota held $10.27T in cash and short-term investments against total debt of $43.66T, resulting in net debt of $33.39T. Total assets were $101.96T and shareholders' equity was $37.06T, yielding a debt-to-equity ratio of 1.18 and a current ratio of 1.17. In FY2026, operating cash flow reached $5.47T and free cash flow turned positive at $179.57B after capital expenditures of $5.29T. The company directed cash toward $1.24T in dividends and $39.98B in share buybacks.

Toyota trades at a trailing P/E of 8.6x and a forward P/E of 10.9x, both below the median of its US-listed Consumer Cyclical peers at 18.0x and 14.1x, respectively. Its enterprise value stands at $421.83B, with an EV-to-EBITDA multiple of 7.6x compared to the peer median of 11.1x. Over the past year, the stock returned 2.9%, trailing the S&P 500 (SPY) return of 16.8%. Over a 5-year period, Toyota gained 27.9% compared to 83.0% for the S&P 500.

Toyota pays an annual forward dividend of $6.27 per share, representing a 3.22% dividend yield and a payout ratio of 27.9%. The company has paid dividends for 43 consecutive years and posted a 5-year annualized dividend growth rate of 8.8%. Its last ex-dividend date was September 30, 2026.

Wall Street analysts hold 2 Strong Buy and 2 Buy ratings on Toyota, with zero Hold, Sell, or Strong Sell recommendations. The mean price target is $234.08, representing 20.3% upside relative to the last close of $194.61. For the current fiscal year ending March 31, 2027, consensus estimates project EPS of $18.33 and revenue of $53.97T. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 4, 2026.

This page is an AI-written research summary of Toyota Motor Corporation (TM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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