Fundamentals snapshot
TM · NYQ · Consumer Cyclical · Auto Manufacturers
Current price
$178.45
52-week range
$167.18 - $248.90
Market cap
$232.58B
One-glance verdict
Fair-value range $-121.73 – $-94.54 (cautious → optimistic — tap the ? for the math)
Wall Street consensus: $256.52 (-313.8% lower than our fair-value estimate)
Buy below $-95.98 for a 20% safety cushion
Balance sheet
Net debt $183.22B. Interest coverage shows how many times profit covers the interest bill.
What stands out
Quick scan of the biggest positives and negatives from the detailed checklist below.
What this company does
Toyota is one of the world's largest automakers, selling a wide variety of cars, trucks, and SUVs globally under its Toyota and Lexus brands. While the company makes most of its money from selling vehicles, it also earns significant income from its financial services division, which provides loans and leases to customers. This matters because offering in-house financing makes it easier for people to afford a vehicle, helping Toyota sell more cars while creating a second, reliable source of income.
Toyota began in 1933, not making cars, but as a division of an automatic loom company founded by Sakichi Toyoda. His son, Kiichiro Toyoda, shifted into automobile manufacturing, releasing the first passenger car, the Model AA, in 1936. After World War II, the company studied American manufacturing techniques to improve its own efficiency and began successfully exporting to the U.S. in the 1960s with affordable and reliable cars like the Corolla. Key turning points include the creation of the luxury Lexus brand in 1989 and the launch of the Prius in 1997, the world's first mass-produced hybrid vehicle.
Most people know Toyota for its cars, trucks, and SUVs, sold under brand names like Toyota and the luxury brand Lexus. You would recognize popular models like the Camry, Corolla, RAV4, and the Prius hybrid. The company designs, manufactures, and sells these vehicles all over the world. Beyond just selling cars, Toyota also provides services to help people buy them and take care of them. It also has other, less-known businesses, including making parts, materials handling equipment, and even prefabricated houses in Japan.
This is the largest part of Toyota's business, making up the vast majority of its sales. This segment is responsible for designing, manufacturing, and selling vehicles to customers globally, including passenger cars, trucks, and minivans under the Toyota and Lexus brands. When you buy a Camry or a Lexus RX, you are dealing with this part of the company. This is the core business that generates most of the company's revenue (the total money it brings in from sales).
This part of the company helps people buy or lease (rent long-term) a Toyota or Lexus vehicle. When a customer gets a car loan or a lease from a Toyota dealership, this segment, often called Toyota Financial Services, is the one providing the money. It makes money by charging interest on loans and through lease payments. This segment also offers other related products like insurance and vehicle service agreements to protect your car beyond the standard warranty.
This is a smaller collection of Toyota's other business activities. It includes a variety of ventures such as building and selling houses in Japan, telecommunications, and developing robotics. For example, Toyota has used its manufacturing expertise to produce factory-built homes. While this segment is a very small slice of the company's overall business, it shows Toyota's efforts to expand into areas beyond just making cars.
Toyota is focused on a 'multi-pathway' approach to future cars, meaning it's investing in a variety of technologies, not just one. This includes expanding its lineup of battery electric vehicles (BEVs), while also continuing to develop its popular hybrid cars, plug-in hybrids, and even hydrogen fuel cell vehicles. The company is also investing heavily in new technologies like artificial intelligence (AI) for manufacturing and self-driving features, and developing its own vehicle operating system called 'Arene'. The goal is to transform from just a car company into a broader 'mobility company' that offers many different ways for people to get around.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
Wall Street consensus is the average analyst price target: $256.52 (-313.8% lower than our fair-value estimate).
Buy below $-95.98 for a 20% safety cushion. That means buying at least 20% below our fair value, as a buffer in case our estimate turns out too rosy.
Our most-likely fair value is $-119.97 a share — about 167.2% below today's price of $178.45, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Net debt $183.2B. Interest coverage 43.4x.
Toyota Motor Corporation's profit covers its interest bill about 43.4 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Total debt $269.82B Interest coverage 43.42x This is the baseline the peer rows are being compared against.
Total debt $86.16B Interest coverage 22.10x -49% vs TM Carries about 2.0x less debt cushion than TM.
Total debt $128.77B Interest coverage 4.00x -91% vs TM Carries about 10.9x less debt cushion than TM.
Total debt $159.51B Interest coverage -6.88x -100% vs TM This peer has almost no interest-payment cushion compared with TM.
What you should know
The numbers
Tap any ? icon to learn what it means.
Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know