NYSE · Consumer Cyclical

Toyota Motor Corporation

TM · Auto Manufacturers

$173.94

▲ 1.17 (0.68%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

F⤢

Gross Profit Margin 15.1%

Operating Margin 4.5%

Net Income Margin 6.5%

Fin. Health

D⤢

Years to Pay Off Debt 52.9 yrs

Working Capital vs Long-Term Debt -$15,857.7B

Working Capital $9,219.1B

Valuation

A⤢

Margin of Safety 95.4%

Price-to-Book 0.01x

Cash Flow

C⤢

Free Cash Flow $239.0B

CapEx % of Net Income 179.2%

Owner Earnings $2,928.4B

Profitability

Gross Profit Margin 15.1%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 4.5%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 6.5%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 52.9 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$15,857.7B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $9,219.1B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $239.0B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 179.2%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $2,928.4B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Toyota Motor Corporation

Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, the Middle East, and internationally. The company operates through Automotive, Financial Services, and All Other segments. The company offers subcompact and compact cars; mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks; and buses. It also develops and sells battery and hybrid electric vehicles and batteries. In addition, the company provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards. Further, it operates GAZOO.com, a web portal for automobile information, as well as engages in telecommunications and other businesses. It offers vehicles under the Toyota and Lexus brand names. Toyota Motor Corporation was founded in 1933 and is headquartered in Toyota, Japan.

Market Data

Market Cap $206.0B

Enterprise Value $34,866.0B

P/E (TTM) 9.42

Dividend Yield 54.99%

Exchange NYSE

Key Margins

Gross Profit 15.1%

Operating Margin 4.5%

Net Margin 6.5%

Company Info

Sector Consumer Cyclical

Industry Auto Manufacturers

Employees 390927

Country Japan

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Toyota Motor Corporation at $173.94.

The business passes 4 of 6 of Graham's defensive criteria — adequate but not exceptional.

At $173.94, the stock trades below its Graham Number of $3,741.98 — suggesting a margin of safety exists.

The margin of safety of 95.4% exceeds Graham's recommended 33% threshold — a rare opportunity.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	15.1%▼	17.8%•	N/A
Operating Margin %	4.5%▼	8.9%•	N/A
Net Income %	6.5%▼	9.3%•	N/A
Diluted EPS	N/A•	N/A•	1,658.00

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025
Total Assets	$105,522.3B	$102,344.6B
Total Debt	$43,205.5B▲	$42,127.7B
Working Capital	$9,219.1B▲	$8,474.0B
Years to Pay Debt	52.87	33.50

Cash Flow Highlights

Metric	Q1 2026	Q4 2025
Free Cash Flow	$239.0B▲	-$488.9B
Owner Earnings	$2,928.4B	$3,185.6B
CapEx % of Net Income	179.2%	104.5%

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	32,432,813	78,235,608
Tax Rate For Calcs	0	0
Normalized EBITDA	1,354,747,000	2,036,858,000
Total Unusual Items	254,235,000	325,417,000
Total Unusual Items Excluding Goodwill	254,235,000	325,417,000
Net Income From Continuing Operation Net Minority Interest	817,207,000	1,257,465,000
Reconciled Depreciation	647,030,000	614,075,000
Reconciled Cost Of Revenue	10,689,663,000	11,065,447,000
EBITDA	1,608,982,000	2,362,275,000
EBIT	961,952,000	1,748,200,000
Net Interest Income	12,347,000	101,329,000
Interest Expense	-2,560,000	37,843,000
Interest Income	-120,399,000	139,172,000
Normalized Income	595,404,813	1,010,283,608
Net Income From Continuing And Discontinued Operation	817,207,000	1,257,465,000
Total Expenses	12,027,853,000	12,265,822,000
Total Operating Income As Reported	569,494,000	1,191,030,000
Diluted Average Shares			1,311,321
Basic Average Shares			1,311,321
Diluted EPS			2
Basic EPS			2
Diluted NI Availto Com Stockholders	817,207,000	1,257,465,000
Net Income Common Stockholders	817,207,000	1,257,465,000
Net Income	817,207,000	1,257,465,000
Minority Interests	-24,262,000	-41,693,000
Net Income Including Noncontrolling Interests	841,468,000	1,299,158,000
Net Income Continuous Operations	841,468,000	1,299,158,000
Tax Provision	123,043,000	411,198,000
Pretax Income	964,512,000	1,710,357,000
Other Income Expense	382,672,000	417,997,000
Other Non Operating Income Expenses	13,607,000	-72,708,000
Earnings From Equity Interest	114,830,000	165,288,000
Gain On Sale Of Security	254,235,000	325,417,000
Net Non Operating Interest Income Expense	12,347,000	101,329,000
Interest Expense Non Operating	-2,560,000	37,843,000
Interest Income Non Operating	-120,399,000	139,172,000
Operating Income	569,494,000	1,191,030,000
Operating Expense	1,338,190,000	1,200,375,000
Selling General And Administration	1,338,190,000	1,200,375,000
Gross Profit	1,907,684,000	2,391,405,000
Cost Of Revenue	10,689,663,000	11,065,447,000
Total Revenue	12,597,347,000	13,456,852,000
Operating Revenue	12,597,347,000	13,456,852,000

Balance Sheet

	2026	2025
Treasury Shares Number	2,761,603	2,761,601
Ordinary Shares Number	13,033,384	13,033,387
Share Issued	15,794,987	15,794,987
Net Debt	29,834,834,000	34,208,773,000
Total Debt	43,205,469,000	42,127,680,000
Tangible Book Value	38,526,099,000	37,616,208,000
Invested Capital	82,413,310,000	81,102,371,000
Working Capital	9,219,062,000	8,474,025,000
Net Tangible Assets	38,526,099,000	37,616,208,000
Capital Lease Obligations	711,013,000
Common Stock Equity	39,918,854,000	38,974,691,000
Total Capitalization	64,995,641,000	64,039,607,000
Total Equity Gross Minority Interest	41,020,068,000	39,992,539,000
Minority Interest	1,101,214,000	1,017,848,000
Stockholders Equity	39,918,854,000	38,974,691,000
Other Equity Interest	4,544,018,000	4,749,658,000
Gains Losses Not Affecting Retained Earnings	266,596,000	17,997,000
Other Equity Adjustments	266,596,000	17,997,000
Unrealized Gain Loss	266,596,000
Treasury Stock	4,455,410,000	4,455,402,000
Retained Earnings	38,709,858,000	37,772,680,000
Additional Paid In Capital	456,742,000	492,708,000
Capital Stock	397,050,000	397,050,000
Common Stock	397,050,000	397,050,000
Total Liabilities Net Minority Interest	64,502,263,000	62,352,060,000
Total Non Current Liabilities Net Minority Interest	30,897,244,000	29,798,809,000
Other Non Current Liabilities	2,167,428,000	1,788,153,000
Employee Benefits	1,022,483,000	1,054,229,000
Non Current Pension And Other Postretirement Benefit Plans	1,022,483,000	1,054,229,000
Non Current Deferred Liabilities	1,584,505,000	1,891,511,000
Non Current Deferred Taxes Liabilities	1,584,505,000	1,891,511,000
Long Term Debt And Capital Lease Obligation	25,624,365,000	25,064,916,000
Long Term Capital Lease Obligation	547,578,000
Long Term Debt	25,076,787,000	25,064,916,000
Long Term Provisions	498,463,000
Current Liabilities	33,605,019,000	32,553,251,000
Other Current Liabilities	6,911,533,000	7,738,845,000
Current Debt And Capital Lease Obligation	17,581,104,000	17,062,764,000
Current Capital Lease Obligation	163,435,000
Current Debt	17,417,669,000	17,062,764,000
Other Current Borrowings	17,417,669,000	17,062,764,000
Commercial Paper
Current Provisions	431,191,000
Payables And Accrued Expenses	8,681,191,000	7,751,642,000
Current Accrued Expenses	2,112,571,000	1,980,072,000
Payables	6,568,620,000	5,771,570,000
Other Payable
Total Tax Payable	711,675,000	442,801,000
Income Tax Payable	711,675,000	442,801,000
Accounts Payable	5,856,945,000	5,328,769,000
Total Assets	105,522,331,000	102,344,599,000
Total Non Current Assets	62,698,249,000	61,317,324,000
Other Non Current Assets	814,773,000	919,174,000
Non Current Deferred Assets	555,596,000	559,574,000
Non Current Deferred Taxes Assets	555,596,000	559,574,000
Non Current Accounts Receivable	25,488,182,000	24,849,592,000
Investments And Advances	16,478,347,000	16,476,862,000
Investmentin Financial Assets	11,135,799,000	10,585,882,000
Available For Sale Securities	11,135,799,000	10,585,882,000
Long Term Equity Investment	5,342,548,000	5,890,980,000
Investmentsin Joint Venturesat Cost	1,124,539,000
Investmentsin Associatesat Cost	4,218,009,000
Goodwill And Other Intangible Assets	1,392,755,000	1,358,483,000
Other Intangible Assets	1,392,755,000
Net PPE	17,968,596,000	17,153,639,000
Accumulated Depreciation	-19,504,000,000	-18,999,016,000
Gross PPE	37,472,596,000	36,152,655,000
Construction In Progress	1,719,808,000	1,618,468,000
Other Properties	10,072,666,000	10,086,370,000
Machinery Furniture Equipment	17,509,377,000	17,022,615,000
Buildings And Improvements	6,745,695,000	6,083,681,000
Land And Improvements	1,425,050,000	1,341,521,000
Current Assets	42,824,081,000	41,027,276,000
Other Current Assets	1,520,329,000	1,516,731,000
Assets Held For Sale Current	2,016,804,000	1,203,343,000
Inventory	5,134,996,000	4,622,761,000
Other Inventories	1,000
Finished Goods	3,208,980,000
Work In Process	626,422,000
Raw Materials	1,299,593,000
Receivables	17,509,885,000	17,092,354,000
Receivables Adjustments Allowances	-30,906,000
Other Receivables	1,744,175,000
Taxes Receivable	235,425,000	290,397,000
Accounts Receivable	15,561,191,000	16,801,957,000
Cash Cash Equivalents And Short Term Investments	16,642,067,000	16,592,087,000
Other Short Term Investments	3,982,445,000	8,673,180,000
Cash And Cash Equivalents	12,659,622,000	7,918,907,000
Cash Equivalents	3,582,193,000
Cash Financial	9,077,428,000

Cash Flow

	2026	2025
Free Cash Flow	238,990,000	-488,899,000
Repayment Of Debt	-3,720,346,000	-2,832,192,000
Issuance Of Debt	3,847,353,000	2,971,036,000
Capital Expenditure	-1,464,191,000	-1,314,029,000
End Cash Position	12,659,622,000	7,918,907,000
Other Cash Adjustment Outside Changein Cash	-24,332,000
Beginning Cash Position	7,918,907,000	8,112,922,000
Effect Of Exchange Rate Changes	91,892,000	219,803,000
Changes In Cash	4,673,155,000	-322,218,000
Financing Cash Flow	138,429,000	-313,023,000
Cash Flow From Continuing Financing Activities	138,430,000	-313,024,000
Net Other Financing Charges	12,185,000	-25,294,000
Cash Dividends Paid	0	-586,528,000
Common Stock Dividend Paid	0	-586,528,000
Net Common Stock Issuance	-8,000	-8,000
Net Issuance Payments Of Debt	126,252,000	298,807,000
Net Short Term Debt Issuance	-755,000	159,963,000
Net Long Term Debt Issuance	127,007,000	138,844,000
Long Term Debt Payments	-3,720,346,000	-2,832,192,000
Long Term Debt Issuance	3,847,353,000	2,971,036,000
Investing Cash Flow	2,831,547,000	-834,326,000
Cash Flow From Continuing Investing Activities	2,831,548,000	-834,327,000
Net Other Investing Changes	3,253,938,000	296,026,000
Net Investment Purchase And Sale	682,205,000	-141,858,000
Sale Of Investment	2,540,502,000	1,057,328,000
Purchase Of Investment	-1,858,297,000	-1,199,186,000
Net Intangibles Purchase And Sale	-142,195,000	-85,114,000
Purchase Of Intangibles	-142,195,000	-85,114,000
Net PPE Purchase And Sale	-962,401,000	-903,380,000
Sale Of PPE	359,595,000	325,535,000
Purchase Of PPE	-1,321,996,000	-1,228,915,000
Operating Cash Flow	1,703,181,000	825,130,000
Cash Flow From Continuing Operating Activities	1,703,178,000	825,130,000
Taxes Refund Paid	-113,255,000	-529,390,000
Interest Received Cfo	716,894,000	704,232,000
Interest Paid Cfo	-443,115,000	-436,855,000
Dividend Received Cfo	7,174,000	127,720,000
Change In Working Capital	285,010,000	-1,029,313,000
Other Non Cash Items	-246,238,000	-170,407,000
Deferred Tax	123,043,000	411,198,000
Deferred Income Tax	123,043,000	411,198,000
Depreciation Amortization Depletion	647,030,000	614,075,000
Depreciation And Amortization	647,030,000	614,075,000
Operating Gains Losses	-114,830,000	-165,288,000
Earnings Losses From Equity Investments	-114,830,000	-165,288,000
Net Income From Continuing Operations	841,468,000	1,299,158,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $12,363.2B ▲ $12,597.3B +1.9%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 18.9% ▼ 15.1% -3.7pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 4.6% ▼ 4.5% -0.1pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 5.4% ▲ 6.5% +1.1pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$12,597.3B/qtr (≈$50,389.4B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.27x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$239.0B

vs Positive

Operating Cash Flow

$1,703.2B

Latest quarter · Buffett's cash reality check

ROIC

0.6%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

0.0x

Net Assets: $41,020.1B

Asset Context — Auto Manufacturers

Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.

Peers & Industry Comparison

Auto Manufacturers — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
TM	$173.94	$206.0B	9.42	15.1%	6.5%	$12,597.3B
TSLA Tesla, Inc.	$400.49	$1,504.1B	367.4	19.1%	3.9%	$97.9B
F Ford Motor Company	$14.06	$56.0B	N/A	7.1%	-3.2%	$189.9B
GM General Motors Company	$79.29	$71.5B	28.9	11.1%	1.4%	$184.6B
STLA Stellantis N.V.	$6.34	$18.4B	N/A	5.8%	-13.9%	$155.8B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.00%

Low — management has little skin in the game

Return on Equity (ROE)

2.0%

Weak — poor returns on equity

Return on Assets (ROA)

0.8%

Poor — assets are not generating adequate returns

Debt Trend YoY

+2.6% YoY

Debt is roughly stable

Leadership Team

Koji Sato

Vice Chairman & Chief Industry Officer

Age 56

Pay: $2,365,339

0.000% of net income

Yoichi Miyazaki

CFO, Operating Officer, Executive VP & Director

Age 62

Pay: $1,672,588

0.000% of net income

Kenta Kon

President & CEO

Age 57

Pay: $674,028

0.000% of net income

Gill Pratt

Chief Scientist, CEO & Executive Fellow of Toyota Research Institute, Inc.

Nobuhiko Murakami

Senior Managing Officer & CEO of East Asia, Oceania & Middle East Region

Age 66

Top Institutional Holders

Institution	% Owned	Shares
Fisher Asset Management, LLC	0.45%	7,067,216
Morgan Stanley	0.15%	2,435,144
Goldman Sachs Group Inc	0.08%	1,226,890
Northern Trust Corporation	0.07%	1,075,579
FMR, LLC	0.07%	1,033,159
Blackrock Inc.	0.06%	979,123
Bank of America Corporation	0.06%	926,582
Stifel Financial Corporation	0.03%	455,179

Risk Analysis

Beta (Market Risk)

0.31

Low volatility — more stable than the market

Short Interest

0.1% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

1.07x

Moderate leverage

Current Ratio

1.27x

Adequate liquidity

52-Week Price Range

Low: $167.18 Current: $173.94 High: $248.90

Currently at 8% of 52-week range

Toyota Motor Corporation

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis