# Toyota Motor Corporation (TYT.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Cyclical / Automobiles. Price JPY 2968.50, market value JPY 35.15 trillion.

## Valuation
- **P/E (trailing): 8.5×** (5-yr avg 9.4×, 3-yr avg 9.2×). Toyota Motor Corporation trades at 8.5× trailing earnings, close to its own five-year average of 9.4×. The Consumer Cyclical median in the September 2026 study was 19.5×.
- **Price / sales: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.0×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 7.7×**. Enterprise value is 7.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: -2.6%** (5-yr avg -1.5%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 11.8%**. The inverse of the P/E: 11.8% of the price is earned each year.

## Profitability
- **Gross margin: 16.8%**. Toyota Motor Corporation keeps 16.8% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 7.1%**. 7.1% of revenue is left after running the business.
- **Net margin: 7.6%**. 7.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.6%**. 9.6% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 4.1%**. Return on all capital, debt included, is 4.1%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 4.2%**. Each dollar of assets produces 4.2% of profit.

## Growth
- **Revenue growth (1 yr): 5.5%** (3-yr 10.9%/yr, 5-yr 13.2%/yr). Revenue grew 5.5% over the last year, against 13.2% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -17.9%** (3-yr 18.0%/yr, 5-yr 13.2%/yr). Earnings per share fell 17.9%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 1.08**. Debt is 1.08 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 3.6×**. It would take 3.6 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 10.0×**. Operating profit covers interest 10.0× over, a safe margin.
- **Current ratio: 1.27** (quick 1.12). Current assets cover the next year's liabilities 1.27 times.
- **Altman Z-score: 1.56**. A Z-score of 1.56 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.25%** (JPY 95.00 per share, trailing). Toyota Motor Corporation yields 3.25%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 32%**. 32% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 35.2%/yr** (1-yr 11.8%). The dividend has compounded at 35.2% a year over five years, doubling roughly every 2 years at that pace.

## Price and momentum
- **Total return (1 yr): 10.1%** (YTD -6.3%, 3-mo 8.7%). The shares are up 10.1% over twelve months including dividends.
- **From 52-week high: -24.7%** (9.9% above the low). Trading 25% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 53**. An RSI of 53 is neutral.
- **Beta (1 yr): 0.33** (volatility 31%). Beta of 0.33 against the FTSE All-Share: the shares move much less than the market.

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Not investment advice.