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TM$183.80

Toyota Motor Corporation

Last Updated
May 28, 202627 days ago
Moat & Trend
Narrow Moat Stable
Management
Competent
AI Impact
+1 Neutral
Competitive Radar

Moat Score

57/100

Executive Summary

Toyota has a real but not impregnable moat built on brand trust, the Toyota Production System, broad global manufacturing scale, and a finance and dealer ecosystem that supports residual values and customer retention. The company’s hybrid leadership and platform-sharing discipline have produced durable profitability through cycles. However, classic moat pillars are only moderate: network effects are weak, switching costs are limited, and the auto industry remains intensely competitive. Toyota’s moat is under pressure from EV software specialists and aggressive Chinese competitors, while its slower battery-electric rollout is a real risk. Overall, the business still earns a Narrow Moat, with the trend Stable as scale and execution offset transition challenges.

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Last Updated
May 12, 2026about 1 month ago
Target Price
$221.00+20.2% Upside
Analyst Consensus
1 analyst
FAIR VALUE
$204.42+11.2% Upside
Financial Strength

Financial Score

71/100

Executive Summary

Toyota Motor Corporation exhibits a robust balance sheet, marked by consistent asset growth, healthy liquidity with current assets comfortably exceeding liabilities, and a strengthening equity base, underpinning its financial stability. While revenue growth has been strong, particularly in FY24, income statement analysis reveals volatile net income growth and inconsistent margins, suggesting challenges in sustained profitability. Operating cash flow has also been volatile, with inconsistent free cash flow generation despite substantial capital expenditures and a commitment to increasing dividends. Key ratios indicate improving liquidity and stable leverage, though asset turnover has slightly declined. Growth forecasts show moderating revenue and volatile EPS, with analyst sentiment shifting towards a 'Hold' despite strong near-term EPS estimates. Overall, Toyota presents a financially sound profile with areas for monitoring regarding profitability consistency and cash flow generation.

Income Statement
Balance Sheet
Cash Flow Statement
Key Ratios
Growth & Forecast
Fair Value Estimation

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Disclaimer: The analysis on this page is generated by AI and is provided for informational purposes only. It does not constitute financial advice, investment recommendations, or an offer to buy or sell any security. Always conduct your own due diligence and consult a qualified financial adviser before making any investment decisions.