Anyone here has a Toyota? How has it been treating you :) ?
I am sure there is a lot of you around.. Why?
Toyota has been the best selling vehicle in 2019 (Corolla), 2020, 2021, 2022, 2025 (RAV4). There are definitely great reasons to own one. What comes across of your mind when thinking of Toyota? Reliability? I agree. Some people could say affordability, some could say good looking too.
Despite being the world's largest automaker by volume, the stock continues to trade at relatively low valuation multiples compared to peers.
P/E ratio currently sits around 9% and more importantly forward P/E is 10ish %. Toyota has strong fundamentals, massive scale, global diversification and solid balance sheet.
TOYOTA motor corp. revenue in numbers
- 2024 300 billion USD
- 2025 310 billion USD
- 2026 320ish billion USD projected (25 billion net income)
From a financial perspective the company continues to deliver strong performance with cash flows and scale advantages yet is being priced like a slow growth cyclical company. Margins have been under pressure due to costs and heavy investment but I actually see that as a positive. The company is investing for the future rather than maximizing short term profits.
Toyota motor corporation operates across multiple machine driven industries:
- Passenger vehicles (core business)
- Commercial trucks and buses
- Industrial equipment
- Robotics and AI - driven automation
This diversification is a risk buffer and growth engine. Toyota delivered well over 9.000.000 units in a single year.
One area where Toyota clearly does better than the rest of the competition is hybrid vehicles. That is exactly where Toyota's real edge lies. The company has sold over 20 million hybrids globally, having a massive lead in this segment. What I especially admire is that unlike many competitors that rushed straight into fully electric vehicles, Toyota focused on hybrids as a practical transition technology.
I believe, this gives Toyota competitive advantage. Hybrids remain highly profitable, widely adopted and way less dependent on charging infrastructure. This strategy of transition allows Toyota to fund its EV development without taking excessive financial risk. While other manufacturers have been burning cash, Toyota has been printing it. The cash funded EV development. And the development is now accelerating more than ever as Toyota is expanding its EV lineup as well investing heavily in their next generation batteries.
MY INVESTMENT VIEW:
- worlds best selling cars tell the story of the entire industry
- it's cheap yet profitable
- downside protection - low valuation and strong cash flows
- scale - over 9.000.000 vehicles sold annualy
- the future is not EV only, it's mixed battlefield
- absolute hybrid leadership - owning the bridge to EV
- expanding into EV sector
- true global operator (Japan, US, EU, Asia)
Happy driving :) !
I am Dodulik, averaged over 27% per year, 6 years in profit, 7th so far too.
$TM (Toyota Motor Corporation-ADR)... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
Great analysis and well written.
Toyota's hybrid leadership is real and the fundamentals are solid. Hard to disagree on that.
A few points worth adding to the picture:
- The stock has dropped ~31% from its February 2026 high of $244. YTD performance is currently -11.84%. So while the business is... Show More
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