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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#162
Positioning
Market Dominance
Manufacturing
Automobiles And Trucks
$287.0B
Akio Toyoda
Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories. It operates in Automotive, Financial Services, and All Other segments. The company offers hybrid cars under the Prius, Prius PHV, C-HR, LC HV, ES, Camry, JPN TAXI, Avalon, Crown, and Century names.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = TM ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$TM TOYOTA MOTOR CORP/ | 68 | 80 | 91 | 63 | - | 2.3x | 58.8% | 22.6% | 58.8% | 6.4% | 5.3% | - | 0.0% | 114.0x | $287.0B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
TOYOTA MOTOR CORP/ (TM) receives a "Buy" rating with a composite score of 67.8/100. It ranks #162 out of 7,333 stocks in our coverage universe and carries a 4-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Akio Toyoda
Chief Executive Officer
Labor Force
372,800
80
32
85
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for TM
Headcount
372.8K
HQ Base
JAPAN, Texas
Outperforming peers — winners tend to keep winning over 3-12 months
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Top-rated overall — multiple factors aligned for strong entry
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for TM.
View All RatingsNet income exceeding cash flow (Accrual bloat detected)
Improving capital utilization rates confirmed
High margin volatility — erratic forensic earnings quality
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 80 | 89 | -9DRAG |
| MOMENTUM | 63 | 58 | +5NEUTRAL |
| VALUATION | 91 | 94 | -3NEUTRAL |
| INVESTMENT | 32 | 42 | -10DRAG |
| STABILITY | 85 | 88 | -3NEUTRAL |
| SHORT INT | 55 | 61 | -6DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 14.4% vs WACC 6.9% (spread +7.5%)
GM 59% vs sector 43%, OM 6% vs sector 1%
Capital turnover 3.13x
Rev growth N/A, 10yr history
Interest coverage N/A, Net debt/EBITDA 3.7x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
TOYOTA MOTOR CORP/ receives a Buy rating with a composite score of 67.8/100 and 4 out of 5 stars, ranking #162 of 7,333 stocks in our universe. TM displays a favorable combination of factors that positions it above the majority of the market. While not without risk, the quantitative profile supports a constructive outlook.
TM earns a quality score of 80/100, indicating above-average business quality. The company reports a return on equity of 58.8% (sector avg: -2.5%), gross margins of 58.8% (sector avg: 42.5%), net margins of 5.3% (sector avg: -0.2%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
From a valuation perspective, TM scores an exceptional 91/100, indicating the stock trades at a deep discount relative to its fundamentals. Key valuation metrics include an EV/EBITDA of 2.27x, a P/B ratio of 1.30x. A value score this high suggests the market may be significantly underpricing the company's earnings power, assets, or cash flow generation.
TOYOTA MOTOR CORP/'s investment score of 32/100 suggests limited reinvestment activity. Key growth metrics include a return on assets of 22.6% (sector: -0.1%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
TM demonstrates moderate momentum with a score of 63/100, suggesting a neutral price trend without strong directional conviction. Revenue growth data is not currently available, while a beta of 0.91 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
TOYOTA MOTOR CORP/ earns an excellent stability score of 85/100, reflecting low price volatility and a conservatively managed balance sheet. Key stability metrics include a beta of 0.91 and a debt-to-equity ratio of 114.00x (sector avg: 0.2x). Stocks with this level of stability tend to act as portfolio anchors, providing downside protection during market corrections while still participating in broad market advances.
The short interest score of 55/100 for TM suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 114.00x). With a $287.0B market cap (mega-cap), TOYOTA MOTOR CORP/ may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
TOYOTA MOTOR CORP/ is a mega-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #162 of 7,333 overall (98th percentile). Key comparisons include ROE of 58.8% exceeding the -2.5% sector median and operating margins of 6.4% above the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
Quant Factor Profile
Key factor gap
Value (91) vs Investment (32) — closing this gap could shift the rating.
EV/EBITDA 80% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 2473% BELOW SECTOR MEDIAN
Gross Margin 38% ABOVE SECTOR MEDIAN (FAVORABLE)
AUDIT DATA AS OF MAR 31, 2025 (Q4 FY2024)
We rate TOYOTA MOTOR CORP/ (TM) as a Buy with a composite score of 67.8/100 at a current price of $239.54. The stock scores above average across the majority of our six quantitative factors and ranks #162 out of 7,333 stocks in our universe, reflecting a favorable risk-reward profile.
The rating is primarily driven by strength in value (91th percentile) and stability (85th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (32th percentile) and momentum (63th percentile) tempers our overall conviction. We assign a Narrow Moat rating (40/100), Medium uncertainty, and Standard capital allocation.
Key items to watch: balance sheet deleveraging progress. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
TOYOTA MOTOR CORP/ holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 67.8/100 places it at rank #162 in our full 7,333-stock universe. As a mega-cap company with a $287.0B market capitalization, TOYOTA MOTOR CORP/ benefits from significant scale, distribution networks, and brand recognition that smaller competitors cannot easily replicate.
Momentum indicators (63th percentile) are constructive regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.
The margin cascade tells an important story: gross margins of 59% (+16.3pp vs sector) narrow to operating margins of 6% (+5.1pp vs sector) and net margins of 5.3%, yielding a gross-to-net conversion rate of 9%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $239.54, TOYOTA MOTOR CORP/ appears undervalued relative to its fundamentals. Our value factor score of 91/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The stock screens as attractively priced on a majority of these measures, suggesting the market may be underappreciating the underlying fundamentals.
The stock currently trades at EV/EBITDA of 2.3x (discounted to peers), P/B of 1.3x, P/S of 0.1x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
The stock's Buy rating (composite score 67.8/100) reflects broad-based quantitative strength, placing it in the top 20% of our 7,333-stock universe.
Gross margins of 59% signal strong pricing power and brand/IP advantages — businesses with margins above 40% have historically demonstrated more resilient earnings through economic cycles.
Returns on equity of 58.8% exceed the cost of equity for most companies, indicating genuine shareholder value creation and a reinvestment engine that compounds wealth over time.
A value factor score of 91/100 suggests the market is underpricing these fundamentals, creating a potential margin of safety for new investors.
Return on assets of 22.6% indicates efficient deployment of the full asset base, not just equity capital.
Elevated leverage (114% D/E) amplifies downside risk and limits management's financial flexibility in adverse scenarios.
We assign a Medium uncertainty rating to TOYOTA MOTOR CORP/. The stock presents a balanced risk profile: significant leverage (114% debt-to-equity). While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.
Specific risk factors that inform our assessment include: significant leverage (114% debt-to-equity). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 85th percentile and quality factor at the 80th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: healthy gross margins of 59% provide a buffer against cost pressures; above-average stability (85th percentile) suggests predictable business dynamics; large-cap scale ($287.0B) provides resilience. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate TOYOTA MOTOR CORP/'s capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 58.8%, and the balance sheet is managed within acceptable parameters (D/E: 114%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; TOYOTA MOTOR CORP/ falls short on at least one dimension.
There is room for improvement in optimizing the capital structure or enhancing shareholder returns. Absent a dividend, the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.
In summary, TOYOTA MOTOR CORP/ receives a Buy rating with a composite score of 67.8/100 (rank #162 of 7,333). Our quantitative framework assigns a Narrow Moat (40/100, trend: stable), Medium uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 70/100.
Our analysis supports a constructive view on TOYOTA MOTOR CORP/. The combination of identifiable competitive advantages, medium uncertainty, and standard capital allocation creates a risk-reward profile that favors accumulation at current levels. We recommend investors consider adding this name to portfolios aligned with the stock's risk profile.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign TOYOTA MOTOR CORP/ a Narrow Moat rating with a composite moat score of 40/100. The ROIC-WACC spread of +7.5% is the primary signal of economic value creation. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that TOYOTA MOTOR CORP/ can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being margin superiority at 11.7/20.
The strongest moat sources are margin superiority (11.7/20) and reinvestment efficiency (10/20). GM 59% vs sector 43%, OM 6% vs sector 1%. Capital turnover 3.13x. These pillars form the core of TOYOTA MOTOR CORP/'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include financial resilience (4.5/20) and growth durability (5.7/20). Interest coverage N/A, Net debt/EBITDA 3.7x. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect TOYOTA MOTOR CORP/'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 59% providing a solid profitability foundation, returns on equity of 58.8% driving shareholder value creation. The margin cascade from 59% gross to 6% operating to 5.3% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that the profit engine is high-quality and likely sustainable, with the quality factor at the 80th percentile.
The margin profile shows gross margins of 59%, operating margins of 6%, net margins of 5.3%. Return metrics include ROE of 58.8% and ROA of 22.6%. Relative to the Manufacturing sector, gross margins are 16.3 percentage points above the sector median of 43%, and ROE of 58.8% compares to a sector median of -2.5%.
The balance sheet reflects above-average leverage with D/E of 114%. The sector median D/E is 0%, putting TOYOTA MOTOR CORP/ at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Above 50MA
37.18%
Net New Highs
+51081
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