Stock Price & Analysis

Based on the recent price action and fundamental analysis, Toyota Motor Corporation (TM) shows mixed signals. The stock has experienced a decline of -1.98% in the latest regular market session [Relevant Data], with technical indicators suggesting near-term weakness.

Technical Analysis

• The stock is currently trading at $177.18, showing downward momentum from recent highs
• Volume has increased during the decline, indicating stronger selling pressure
• The stock has pulled back from its recent high of $235.76 reached on February 23rd

Fundamental Factors

• Toyota maintains its position as the global market leader with 10.7% market share
• Recent Q3 FY2025 results showed:
  • 4% YoY decline in global vehicle unit sales
  • 10% decline in Japan unit sales
  • 2.1% decline in overseas units
  • However, total sales increased by 5%

Market Sentiment

• Macquarie recently upgraded TM from Neutral to Outperform
• However, Zacks currently ranks TM as a Strong Sell (#5) due to earnings estimate revisions trending downward
• The company faces challenges from proposed tariffs and EV infrastructure funding pause

Based on the current technical weakness and mixed fundamental picture, selling TM stock at current levels may be prudent for short-term traders. However, long-term investors might consider holding positions given Toyota's market leadership and potential production stabilization ahead.

Based on the provided data and market analysis, here is Toyota Motor Corporation (TM) stock price prediction for 2025:

Toyota's stock price is expected to reach $215-220 by end of 2025. This projection is supported by several key factors:

1. Strong Market Position and Growth:

• Toyota maintained its position as world's top automaker with 10.8 million vehicle sales in 2024
• The company is expanding into EV market with new Lexus EV production facility in Shanghai starting 2027
• Global light vehicle sales projected to grow 1.3% in 2025 reaching 85.1 million units

2. Financial Performance:

• Company raised FY2025 operating income forecast by 400 billion yen to 4.7 trillion yen
• Operating margin expected to improve to 10% from previous 9.3% forecast
• Maintained dividend forecast at 90 yen, up from 75 yen last year

3. Technical Analysis: The stock is currently trading around $177, showing signs of consolidation after recent pullback. RSI at 38.81 indicates oversold conditions, suggesting potential upside from current levels.

The $215-220 target represents ~20-24% upside from current levels, driven by:

• Improving margins and earnings outlook
• Strategic expansion in EV segment
• Strong market leadership position
• Technical indicators suggesting oversold conditions

The stock is currently trading at attractive valuations compared to peers, with an A grade on value metrics, providing additional support for upside potential.

The S1 support level for TM Stock is $177.32 ,The R1 resistant level for TM Stock is $185.16.

As of the end of day on 2025-02-26, the price of TM Stock was $181.5.

The market cap of TM is $2.8T.

Based on the provided data and references, I'll analyze whether TM (Toyota) is overvalued.

Valuation Analysis Toyota currently trades at a P/E ratio of 7.7x, which is significantly lower than the industry average and particularly compared to competitors like Tesla trading at 175x TTM P/E. This suggests Toyota is undervalued from a pure earnings multiple perspective.

Financial Performance Toyota has demonstrated strong operational execution. The company maintains its position as the global leader with a 10.7% market share in 2024, showing market dominance and operational stability. The company has also increased its full-year dividend forecast and operating income projection by 400 billion yen to 4.7 trillion yen.

Growth Initiatives Toyota is strategically expanding into the EV market with plans to establish a wholly-owned company in Shanghai for Lexus EV production, targeting 100,000 units annually by 2027. This shows forward-thinking investment in future growth areas while maintaining its current market leadership.

Conclusion Based on the comprehensive analysis, Toyota (TM) appears to be undervalued rather than overvalued, trading at a significant discount to both its peers and the broader market while maintaining strong operational performance and making strategic investments in future growth areas.

Toyota Motor Corp is a Japan-based company engaged in the automobile business, finance business and other businesses. The Company operates in three business segments. The Automotive segment is engaged in the design, manufacture, and sale of automobiles, including sedans, minivans, compacts, sport utility vehicles, and trucks, as well as related parts and accessories. The Finance segment is engaged in finance and vehicle leasing business. The Other segment is engaged in the design, manufacture and sale of houses, as well as conduct information communication business. The Company is also engaged in the control of manufacturing and sales companies, as well as public relations and research activities business in North American and Europe.

Based on the provided data and market research, here's a projection for Toyota Motor Corporation (TM) stock price by 2030:

Toyota's stock is projected to reach approximately $345 by 2030, representing a 94.99% increase from the current price of $177.11. This forecast is supported by several key factors:

Growth Drivers:

1. Market Leadership & Innovation

• Maintains global leadership with 10.7% market share
• Strong focus on hybrid vehicles which aligns with market trends showing increasing hybrid adoption vs pure EVs
• Strategic investments in software-defined vehicles and autonomous driving technology through new partnerships

2. Financial Strength

• Solid fundamentals with PE ratio of 9.94x and EV/EBITDA of 9.25x
• Healthy dividend yield of 1.79%
• Strong balance sheet with manageable debt-to-equity ratio

Key Growth Catalysts:

1. Hybrid Vehicle Strategy

• Market research indicates hybrid vehicle sales expected to grow at 14.9% CAGR through 2030
• Toyota's hybrid-focused approach appears well-positioned as EV adoption faces challenges

2. Production & Innovation

• Record-breaking production of 10.8 million vehicles in 2024
• Continued investment in new technologies and manufacturing capabilities
• Plans for expanding software-defined vehicle development

Risk Factors:

• Global economic uncertainties
• Potential trade tensions
• Competition in the hybrid/EV space
• Supply chain disruptions

This price target assumes:

• Continued leadership in hybrid vehicle market
• Successful execution of technology initiatives
• Stable global economic conditions
• Maintenance of current market share

TM has a total of 380793 employees.