Toyota Motor TM
Global automobile manufacturer with a strong presence in hybrids and electric vehicles. Toyota shows exceptional earnings growth (86.9%) typical of a cyclical peak, but its financial health is weak (ND/EBITDA 5.46) and cash conversion is very negative (-64.28%), contrasting with an apparently cheap valuation (P/E 8.60).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Global automobile manufacturer with a strong presence in hybrids and electric vehicles. Toyota shows exceptional earnings growth (86.9%) typical of a cyclical peak, but its financial health is weak (ND/EBITDA 5.46) and cash conversion is very negative (-64.28%), contrasting with an apparently cheap valuation (P/E 8.60).
Score by category
| Category | Score |
|---|---|
| Financial health | 3.3 |
| Quality / Moat | 2.6 |
| Valuation | 6.5 |
| Growth | 7.1 |
| Dividend | 7.1 |
| Momentum | 5.1 |
| Risk & Context | 8.5 |
OVERALL SCORE: 5.4/10
Context and risks
Toyota has significant exposure to Japan, a country with moderate governance risk. Additionally, its large scale and global presence expose it to geopolitical and tariff tensions, although its geographic diversification mitigates the impact.
News considered in the analysis
- Toyota’s $6.4 Billion Factory Bet Could Reshape its Manufacturing Future — Inversión transformadora en capacidad de producción, probablemente para vehículos eléctricos y baterías, que refuerza la estrategia a largo plazo.
- Toyota Motor (TSE:7203) Plans 400,000 Humanoid Robots Across Global Plants — Iniciativa de automatización que podría mejorar la eficiencia a largo plazo, pero es un plan a futuro con incertidumbre sobre su ejecución y retorno.
- Honda Motor Eyes First New North American Factory in Nearly 20 Years With $2.5 Billion Ohio Hybrid Plant: Report — Noticia sobre un competidor directo, sin impacto directo en los fundamentales de Toyota.
- Joby Stock Has a Futuristic Story. Here’s My Long-Term Price Prediction — Artículo de opinión sobre una empresa de movilidad aérea, sin relevancia para Toyota.
- GM and Ford Just Got a Troubling New Signal From U.S. Car Buyers — Noticia sobre la demanda en EE. UU. que afecta a competidores, pero no proporciona información específica sobre Toyota.
Verdict: Hold. The cheap valuation and dividend are attractive, but high debt and poor earnings quality warrant caution.
Main risk: The main risk is the high debt (ND/EBITDA 5.46) and negative cash conversion, which could limit financial flexibility if the auto cycle deteriorates.
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