The Japanese carmaker reported higher quarterly net profit but said it expects the Middle East conflict to take a toll on its bottom line this fiscal year.
Toyota forecast a 20% decline in profit for the current financial year on Friday, as cost and supply uncertainties stemming from the Middle East conflict weigh on earnings even as robust demand for its hybrid models powers sales growth.
The world's largest automaker by sales volume saw a 1.89% year-on-year rise in revenue during the fourth quarter ended March.
Toyota Motor Corporation (TM) concluded the recent trading session at $189, signifying a -3.1% move from its prior day's close.
Toyota remains the global automotive leader, excelling with a diversified powertrain strategy and best-in-class profitability metrics. TM is rated a Buy for value-oriented investors, supported by a low P/E, robust margins, and enhanced capital returns via dividends and buybacks. BYD is a long-term growth Buy, leveraging advanced battery technology and global expansion despite near-term margin pressure and Chinese market overcapacity.
Toyota Motor Corporation (TM) concluded the recent trading session at $189.38, signifying a -1.68% move from its prior day's close.
I rate Toyota Motor as Hold, citing strong fundamentals but a 14% downside to fair value and macro headwinds. TM maintains industry-leading operating margins and resilient revenue growth but faces tariff impacts and geopolitical risks, particularly from the Middle East. My blended DCF and multiples analysis yields an implied share price of $166.97, below current levels; only the DCF supports a premium.
Toyota Motor said on Monday global vehicle sales fell for a second successive month in March, as a sharp drop in the Middle East and a model changeover for its popular RAV4 sport utility vehicle weighed on deliveries.
Toyota Motor remains a buy, with shares trading at an attractive near-10x P/E despite recent underperformance versus global markets. TM's FY 2026 outlook is robust, with operating income guidance raised to 3.8 trillion yen and anticipated vehicle sales of 9.75 million units. Profitability is strong, but near-term EPS growth is negative; growth is expected to return in the out year, with FY 2028 EPS potentially reaching $25.
In the closing of the recent trading day, Toyota Motor Corporation (TM) stood at $200.43, denoting a -1.74% move from the preceding trading day.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Toyota's Q1 US sales hold steady as strong demand for electrified vehicles helps offset weakness in traditional segments.