Business Description
Toyota Motor Corporation is a multinational automotive manufacturer responsible for the design, production, assembly, and sale of a diverse range of passenger vehicles, minivans, commercial vehicles, and their associated components and accessories. The company organizes its operations into distinct segments: Automotive, Financial Services, and various other ventures. Its extensive vehicle portfolio includes environmentally friendly options such as hybrid cars under the Prius brand and advanced fuel cell vehicles like the MIRAI. For conventional engine vehicles, it offers models like the subcompact and compact Corolla and Raize. Under the overarching Toyota brand, the company provides mini-vehicles, general passenger cars, commercial vehicles, and automotive parts. Its offerings also encompass mid-size and luxury automobiles, alongside sports cars such as the GR Yaris, Corolla Sport, Corolla Cross, and Supra, and recreational and sport-utility vehicles like the Highlander. Furthermore, Toyota produces pickup trucks, exemplified by the Tacoma, as well as minivans, heavy-duty trucks, and buses. Beyond vehicle manufacturing, Toyota provides a suite of financial services, including retail and wholesale financing, leasing arrangements, insurance products, and credit cards. It also diversifies into the prefabricated housing sector, handling its design, manufacturing, and sales. For automotive enthusiasts, the company operates GAZOO.com, an informational web portal. Established in 1933 and headquartered in Toyota, Japan, the company boasts a global presence, conducting business across Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East.
Business History
Generated: Jun 27, 2026 3:10amPrice Overview
Last updated: Jun 27, 2026 7:58am (just now)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 3,130.10
Total Equity: $40,091.99B
Shares: 1,303,327,400
Total Debt: $43,392.86B
Cash: $12,714.53B
EBITDA: $8,092.55B
Total Debt: $43,392.86B
Cash: $12,714.53B
Revenue: $53,741.65B
Revenue: $53,741.65B
Revenue: $53,741.65B
Total Equity: $40,091.99B
Tax Rate: 22.7%
Equity: $40,091.99B
Total Debt: $43,392.86B
Cash: $12,714.53B
Current Liabilities: $33,750.77B
Long-Term Debt: $25,735.50B
Total Debt: $43,392.86B
Total Equity: $40,091.99B
Shares: 1,303,327,400
Shares: 1,303,327,400
CapEx: -$5,210.93B
Shares: 1,303,327,400
Stock Price: $171.48
Net Income: $4,080.17B
Industry Benchmarks
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 27, 2026 7:57am (just now)| Metric | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Revenue | $31.4T | $37.2T | $45.1T | $48.0T | $53.7T |
| Cost of Revenue | $25.4T | $30.8T | $35.7T | $38.5T | $44.8T |
| Gross Profit | $6.0T | $6.3T | $9.4T | $9.6T | $9.0T |
| Operating Expenses | $3.0T | $3.6T | $4.0T | $4.8T | $5.0T |
| Operating Income | $3.0T | $2.7T | $5.4T | $4.8T | $4.0T |
| Net Income | $2.9T | $2.5T | $4.9T | $4.8T | $4.1T |
| EBITDA | $5.8T | $5.8T | $9.1T | $8.7T | $8.1T |
| EPS | $2,052.30 | $1,794.70 | $3,659.40 | $3,595.60 | $3,130.10 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 27, 2026 3:06am (4h ago)| Metric | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Cash & Equivalents | $6.1T | $7.5T | $9.4T | $9.0T | $12.7T |
| Total Current Assets | $23.7T | $26.5T | $34.7T | $37.1T | $43.0T |
| Total Assets | $67.7T | $74.3T | $90.1T | $93.6T | $106.0T |
| Current Liabilities | $21.8T | $24.0T | $29.2T | $29.4T | $33.8T |
| Long-Term Debt | $14.9T | $16.7T | $20.8T | $22.5T | $25.7T |
| Total Liabilities | $40.5T | $45.0T | $54.9T | $56.7T | $64.8T |
| Total Equity | $26.2T | $28.3T | $34.2T | $35.9T | $40.1T |
| Retained Earnings | $26.5T | $28.3T | $32.8T | $35.8T | $38.9T |
Cash Flow (Annual)
Last updated: Jun 27, 2026 7:57am (just now)| Metric | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Operating Cash Flow | $3.7T | $3.0T | $4.2T | $3.7T | $5.8T |
| Capital Expenditure | -$3.8T | -$3.7T | -$5.0T | -$5.3T | -$5.2T |
| Free Cash Flow | -$107.6B | -$750.8B | -$842.0B | -$1.6T | $592.1B |
| Acquisitions (net) | $1.6T | $1.7T | $0 | $0 | $1.5T |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$404.7B | -$431.1B | -$231.1B | -$1.2T | -$42.4B |
| Net Change in Cash | $1.0T | $1.4T | $1.9T | -$429.7B | $3.1T |
Analyst Estimates (Annual)
Last updated: Jun 27, 2026 3:06am (4h ago)| Metric | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|
| Revenue |
$55.3T $51.3T – $57.3T
|
$56.8T $54.2T – $62.9T
|
$60.0T $57.3T – $66.5T
|
$60.1T $57.4T – $66.6T
|
| EBITDA |
$9.7T $9.0T – $10.0T
|
$9.9T $9.5T – $11.0T
|
$10.5T $10.0T – $11.7T
|
$10.5T $10.1T – $11.7T
|
| Net Income |
$4.6T $4.1T – $5.0T
|
$5.0T $4.7T – $5.7T
|
$4.7T $4.5T – $5.4T
|
$6.1T $5.8T – $7.0T
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 27, 2026 7:57am (just now)| Metric | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|
| Revenue Growth | +18.4% | +21.4% | +6.5% | +11.9% |
| Gross Profit Growth | +5.7% | +48.4% | +2.2% | -6.3% |
| Operating Income Growth | -9.0% | +96.4% | -10.4% | -16.7% |
| Net Income Growth | -14.0% | +101.7% | -3.6% | -14.4% |
| EBITDA Growth | -1.5% | +58.4% | -4.0% | -7.5% |
Insider Trading (Recent)
Last updated: Jun 27, 2026 3:12am (4h ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-18 | Ueda Tatsuro | A-Award | 10.00 | $17.38 | $174 |
| 2026-06-18 | Tomoyama Shigeki | A-Award | 36.00 | $17.38 | $626 |
| 2026-06-18 | Oshima Masahiko | A-Award | 9.00 | $17.38 | $156 |
| 2026-06-18 | Osada Hiromi | A-Award | 4.00 | $17.38 | $70 |
| 2026-06-18 | Olcott George Cunningham | A-Award | 8.00 | $17.38 | $139 |
| 2026-06-18 | Okamoto Shigeaki | A-Award | 10.00 | $17.38 | $174 |
| 2026-06-18 | Imura Takahiro | A-Award | 347.00 | $17.38 | $6,031 |
| 2026-06-18 | Fujisawa Kumi | A-Award | 3.00 | $17.38 | $52 |
| 2026-06-18 | Asakura Masashi | A-Award | 350.00 | $17.38 | $6,083 |
| 2026-05-25 | Ueda Tatsuro | A-Award | 101.00 | $19.22 | $1,941 |
| 2026-05-25 | Tomoyama Shigeki | A-Award | 17.00 | $19.22 | $327 |
| 2026-05-25 | Oshima Masahiko | A-Award | 83.00 | $19.22 | $1,595 |
| 2026-05-25 | Osada Hiromi | A-Award | 33.00 | $19.22 | $634 |
| 2026-05-25 | Olcott George Cunningham | A-Award | 84.00 | $19.22 | $1,614 |
| 2026-05-25 | Okamoto Shigeaki | A-Award | 100.00 | $19.22 | $1,922 |
| 2026-05-25 | Kawai Mitsuru | A-Award | 117.00 | $19.22 | $2,249 |
| 2026-05-25 | Imura Takahiro | A-Award | 67.00 | $19.22 | $1,288 |
| 2026-05-25 | Fujisawa Kumi | A-Award | 33.00 | $19.22 | $634 |
| 2026-05-25 | Asakura Masashi | A-Award | 67.00 | $19.22 | $1,288 |
| 2026-04-24 | Ueda Tatsuro | A-Award | 85.00 | $19.61 | $1,667 |
Dividend History (Last 20)
Last updated: Jun 27, 2026 3:06am (4h ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-03-31 | $3.13 | 2026-03-10 | 2026-03-31 | 2026-06-08 |
| 2025-09-30 | $2.87 | 2025-09-03 | 2025-09-30 | 2025-12-08 |
| 2025-03-31 | $3.46 | 2025-03-04 | 2025-03-31 | 2025-06-05 |
| 2024-09-30 | $2.60 | 2024-09-10 | 2024-09-30 | 2024-12-06 |
| 2024-03-27 | $2.55 | 2024-03-15 | 2024-03-28 | 2024-06-03 |
| 2023-09-28 | $2.00 | 2023-09-06 | 2023-09-29 | 2023-12-04 |
| 2023-03-30 | $2.50 | 2023-03-06 | 2023-03-31 | 2023-06-06 |
| 2022-09-29 | $1.76 | 2022-09-13 | 2022-09-30 | 2022-12-07 |
| 2022-03-30 | $2.20 | 2022-03-08 | 2022-03-31 | 2022-06-06 |
| 2021-09-29 | $2.10 | 2021-09-30 | 2021-12-06 | |
| 2021-03-30 | $2.45 | 2021-03-31 | 2021-06-07 | |
| 2020-09-29 | $2.02 | 2020-09-30 | 2020-12-07 | |
| 2020-03-30 | $2.23 | 2020-03-31 | 2020-06-08 | |
| 2019-09-27 | $1.83 | 2019-09-30 | 2019-12-09 | |
| 2019-03-28 | $2.19 | 2019-03-15 | 2019-03-29 | 2019-06-04 |
| 2018-09-27 | $1.76 | 2018-09-11 | 2018-09-28 | 2018-12-07 |
| 2018-03-28 | $2.19 | 2018-03-14 | 2018-03-29 | 2018-06-04 |
| 2017-09-28 | $1.80 | 2017-09-14 | 2017-09-29 | 2017-12-07 |
| 2017-03-30 | $1.97 | 2017-03-15 | 2017-03-31 | 2017-06-05 |
| 2016-09-29 | $1.77 | 2016-09-15 | 2016-09-30 | 2016-12-09 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Looking at the raw yen-denominated numbers first: FY2026 (ending March 2026) revenue of ¥53.7T grew 11.9% YoY, but net income fell to ¥4.08T from ¥4.77T — a 14% earnings decline, and operating income compressed harder, from ¥4.80T to ¥3.99T (op margin 7.4% vs 10.0% prior year, and 11.9% in FY2024). Gross margin collapsed from 21% in FY2024/25 to 16.7% in FY2026. This is not "trough profitability navigating a transition" — this is active margin erosion in real time, with the most recent quarter (Mar 2026) showing 6.5% net margin, the weakest in the visible series ex the Sept 2024 outlier. The Dec 2024 17.7% margin print is clearly a one-off (likely an asset sale or FX gain) and is anchoring the YoY comps unfavorably, but even normalizing for it, the trend in 2025-2026 quarters (5.4%, 6.9%, 7.5%, 9.3%, 6.5%) is structurally below 2023-2024 levels. FCF of ¥592B against ¥5.2T capex is the real tell: Toyota is spending 97% of operating cash flow on capex to defend its position. That is EV transition cost showing up in cash, not narrative.
The Synthesis verdict claiming a fair value of $59,507 versus $171 price is obvious garbage — it's mixing yen-denominated per-share fundamentals with a dollar ADR price (each ADR = 10 ordinary shares, and the FX is ~150 ¥/$). The "+34,210% undervalued" output should have been auto-rejected; instead it got laundered into a "fully_priced" verdict, which is incoherent on its face. Ignore it. The honest valuation anchors are the canonical ratios: 9.4x TTM P/E, 1.06x P/B, 0.79x P/S, 8.5x EV/EBITDA, 3.1% dividend yield. Those are cheap in absolute terms and roughly in line with Honda, Ford, GM, Stellantis — i.e., the entire legacy auto complex trades at single-digit P/Es because the market doesn't believe the earnings are durable through the EV cycle. Toyota deserves a modest premium for hybrid leadership and balance sheet (¥12.7T cash), but ROIC of 3.25% TTM and ROE of 10.1% don't justify a re-rating to 15-18x historical multiples. The Pre-Flight thesis is directionally right; the Market Forces "trough profitability" framing is too generous given margins are still falling, not bottoming.
The contrarian case the models underweight: Toyota's hybrid bet is actually winning right now — US hybrid demand is surging as BEV adoption stalls, and Toyota's mix advantage should show up in FY2027 margins if input costs stabilize and the yen cooperates. The bull case isn't narrative; it's that 7.4% operating margin is a cyclical/transition low and reverts to 9-10%, which on ¥55T revenue is ¥5T+ operating income and earnings power closer to ¥4.5-5T — putting forward P/E at ~7-8x. That's genuinely cheap. But the contrarian-to-the-contrarian point: Chinese OEMs (BYD, Geely) are structurally lower cost, and Toyota's China JV revenue is bleeding share; if hybrid is a 5-year bridge rather than a 15-year moat, the terminal value math gets ugly fast. The insider data is useless (tiny award grants, no open-market buying or selling signal), and the "No Insider Transactions" tag is misleading — Japanese disclosure norms differ.
Where I land: the synthesis "fully_priced" verdict is wrong on math but accidentally close to right on conclusion — Toyota is fairly valued to modestly cheap, not a screaming buy. At $171 with a 3.1% yield, 1.06x book, and visible margin compression, you're being paid to wait but not compensated for the transition risk. Fair value range is $165-195 depending on whether you believe FY2027 op margins recover to 9% (upper) or stay at 7-8% (lower). I dissent from "Market Headwinds = meaningful upside" framing — the upside is real but requires margin recovery that the most recent quarter (6.5% net margin) actively contradicts. I'd want to see one more quarter confirming margin stabilization
GPT Critique
In my independent analysis of Toyota Motor Corporation, several key data points stand out. The company's revenue growth is robust, with a recent annual revenue of ¥53.7 trillion, marking an 11.9% year-over-year increase. However, net income has declined to ¥4.08 trillion from ¥4.77 trillion, indicating a 14% drop, which highlights a troubling trend of shrinking margins. Operating income also decreased significantly, with margins compressing from 10.0% in the previous year to 7.4% in FY2026. Gross margins have similarly fallen from 21% in FY2024/25 to 16.7% in FY2026. The most concerning aspect is the free cash flow of only ¥592 billion against a massive capex of ¥5.2 trillion, suggesting Toyota is heavily investing in maintaining its competitive position amidst the industry shift towards electric vehicles (EVs).
Claude Opus's findings indicate skepticism towards the valuation synthesis that claims Toyota is "fully priced," which I agree with. The erroneous valuation synthesis that places Toyota at $59,507 per share is clearly flawed due to the currency and ADR conversion issues. Opus rightly points out that the canonical ratios (P/E of 9.4x, P/B of 1.06x, and EV/EBITDA of 8.5x) provide a more realistic valuation context, suggesting Toyota trades cheaply in absolute terms but in line with other legacy automakers. Opus's acknowledgment of Toyota's hybrid leadership and strong balance sheet, with ¥12.7 trillion in cash, supports the notion that Toyota deserves some premium in its valuation. I concur with the assessment that Toyota's current valuation does not warrant a re-rating to historical multiples given the current ROIC and ROE figures.
I diverge from Opus's view that the "Market Forces" framing is too generous. While it's true that Toyota is not at trough profitability, the notion that the hybrid strategy is winning in the short term, particularly in the US market, should not be dismissed. The potential for margins to recover to 9-10% by FY2027, as Opus suggests, offers a plausible upside scenario if cost pressures stabilize. However, I share Opus's concern about the competitive threat from Chinese manufacturers and the potential for Toyota's hybrid strategy to be a temporary advantage rather than a long-term moat.
A careful skeptic might argue that both our views underestimate the potential impact of macroeconomic headwinds and the aggressive competition in the EV market, which could further pressure Toyota's margins and market share. They might also question the sustainability of Toyota's hybrid strategy in the face of rapid technological advancements and regulatory changes favoring full EVs.