Toyota Motor Corporation Common Stock (TM)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses priced below intrinsic value. Toyota is a global automaker with 367,990 employees and operations in automotive, financial services, and other segments. In fiscal Q2 2026, the latest quarter, it reported revenue of $13.5T and net income of $1.5T, a 10.92% net margin. That is a real business with scale and a dividend yield of 3.27%, and its beta of 0.34 suggests it has traded less volatilely than the market. At the 2026-10-13 close of $188.71, FairStock calculations show a P/E of 8.38, a PEG of 0.37, and EV/EBITDA of 3.90, which look inexpensive against the stated EPS of $22.52 and profit growth of 22.94%. The Graham Number of $1,263.49 and 85.06% margin of safety are striking, but I am cautious because P/B is 15.34, ROCE is only 2.34%, and D/E is 1.15. The trailing free cash flow is negative $1.2T, with an FCF yield of -481.5%; that is a serious red flag, and the Altman Z-Score of 0.75 points to financial fragility. Piotroski F-Score is a decent 6/9, and ROE is 12.40%, so profitability is not broken. Still, a cyclical carmaker with modest revenue growth of 1.89% and negative cash generation is not a clean Graham bargain. I would want cash flow to turn positive and leverage to fall before trusting the low earnings multiple.

In plain English: Toyota makes and sells cars, trucks, minivans and parts around the world, plus financial services. In its latest reported quarter, it earned $1.5T on $13.5T of sales, a 10.92% net margin, so the core business is profitable. At $188.71 a share, the price looks low against those profits, but the company has heavy debt and negative cash flow, so it is not a clean bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer