Toyota Motor Corporation, listed on the NYSE as TM, is a leading global automotive manufacturer known for its innovative vehicles and strong market presence. On November 5, 2025, Toyota reported impressive financial results, with earnings per share of $4.66, surpassing the estimated $3.36. The company also achieved a revenue of approximately $80.69 billion, exceeding the forecasted $79.06 billion.
Toyota's optimistic outlook is evident as it raises its sales and earnings guidance, despite challenges like U.S. tariffs. The company projects a 2.6% increase in group vehicle sales, aiming for a total of 11.3 million units. This positive forecast highlights Toyota's resilience and strategic planning in navigating the current economic landscape.
The company's strong performance is supported by effective cost-reduction strategies and robust sales of hybrid vehicles. These factors are expected to counterbalance the potential negative effects of U.S. import tariffs. Despite anticipated declines in operating profit for the second consecutive quarter due to tariffs and supply-chain challenges, Toyota continues to experience strong global sales of its hybrid vehicles.
Toyota's financial metrics reflect its market position and operational efficiency. The company has a price-to-earnings (P/E) ratio of approximately 9.55 and a price-to-sales ratio of about 0.84. Its enterprise value to sales ratio is around 1.47, while the enterprise value to operating cash flow ratio is approximately 14.53. The earnings yield for Toyota is about 10.47%, indicating a solid return on investment for shareholders.
Toyota maintains a debt-to-equity ratio of approximately 1.07, suggesting a moderate level of debt relative to equity. Additionally, the company has a current ratio of about 1.27, indicating its ability to cover short-term liabilities with short-term assets. These financial metrics underscore Toyota's strong financial health and ability to navigate economic challenges.
