Toyota Motor Corporation Common Stock (TM)

FairStock Score: 47/100 — MIXED

Key Financials

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 10.0% above cost of capital
• Attractive 2.9% dividend yield providing steady income returns
• Established organization with 3,90,241 employees providing operational scale

Concerns

• Altman Z-Score of 0.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Toyota Motor Corporation Common Stock is a mega-cap consumer cyclical company valued at $254.0 billion. The business generates $50.5 trillion in annual revenue with a 2.5% net margin. From a quality standpoint, Toyota shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 0.8 warrants caution. On valuation, the stock is attractively valued at 11.0x earnings, with offers a 82% margin of safety vs Graham Number of $1095. Growth dynamics show revenue growing at 8.6% and profit growth of -42.7%. The 2.9% dividend yield adds an income component for patient holders. Our composite FairStock Score of 51/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Toyota's dominant market position and scale advantages create a durable moat that supports premium valuation over time. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer