Toyota MotorTM -0.75%81 Pretax Margin % is 7.66% as of Mar. 2026, which is 24% below its 10-year median of 10.02. GuruFocus rates TM with a GF Score™ of 81/100 and a GF Value™ of $209.97 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,326 Vehicles & Parts companies, Toyota Motor ranks better than 77.68% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Toyota Motor's Pre-Tax Income for the
three
months ended in Mar. 2026 was $6,078 Mil. Toyota Motor's Revenue for the
three
months ended in Mar. 2026 was $79,387 Mil. Therefore, Toyota Motor's pretax margin for the quarter that ended in Mar. 2026 was 7.66%.
The historical rank and industry rank for Toyota Motor's Pretax Margin % or its related term are showing as below:
TM'
s Pretax Margin % Range Over the Past 10 Years
Min: 7.56 Med: 10.02 Max: 15.45
Current: 10.17
TM's Pretax Margin % is ranked better than 77.68% of 1326
companies
in the Vehicles & Parts industry
Industry Median: 4.4
vs TM: 10.17
Toyota Motor (NYSE:TM) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Toyota Motor Pretax Margin % Related Terms
Toyota Motor Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Toyota Motor's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Manufacturers subindustry, Toyota Motor's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Toyota Motor Pretax Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Toyota Motor's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Toyota Motor's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Toyota Motor (TM) has a Pretax Margin % of 7.66% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Toyota Motor and its competitors. This is 24% below median its historical median of 10.02. Over the past decade, Toyota Motor's Pretax Margin % has ranged from 7.56 to 15.45. According to the industry distribution chart, Toyota Motor ranks #296 out of 1326 companies in the Vehicles & Parts industry, placing it in the top 22.3%.
Is Toyota Motor's Pretax Margin % too high?
Toyota Motor's current Pretax Margin % of 7.66% is 24% below median its 10-year median of 10.02. Over the past 10 years, this metric has ranged from a low of 7.56 to a high of 15.45. The Vehicles & Parts industry median Pretax Margin % is 4.40. Toyota Motor's value of 7.66% is 74.1% above this industry median. Based on the distribution chart, Toyota Motor ranks #296 out of 1326 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Toyota Motor has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Toyota Motor's Pretax Margin % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Toyota Motor ranks #296 out of 1326 companies for Pretax Margin %. This places Toyota Motor in the top 22% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 4.40. Toyota Motor's value of 7.66% is 74.1% above this benchmark. Historically, Toyota Motor's own Pretax Margin % has ranged from 7.56 to 15.45 over the past decade. While the company's 10-year median is 10.02 vs. the industry median of 4.40, Toyota Motor has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Vehicles & Parts company?
The median Pretax Margin % among Vehicles & Parts companies is 4.40, based on 1,326 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Toyota Motor's current Pretax Margin % of 7.66% is 74.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Toyota Motor and its competitors. For the Vehicles & Parts industry, the median Pretax Margin % is 4.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toyota Motor's current Pretax Margin % is 7.66%, which is 24% below median its own 10-year median of 10.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toyota Motor stock overvalued right now?
Based on GuruFocus' analysis, Toyota Motor (TM) is currently considered Modestly Undervalued. The stock's GF Value™ is $209.97, compared to a current price of $166.50 — trading 20.7% below its estimated fair value. The current Pretax Margin % is 7.66%, which is 24% below median its 10-year median of 10.02 and 74.1% above the Vehicles & Parts industry median of 4.40. Toyota Motor's overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Toyota Motor (TM), the current Pretax Margin % is 7.66% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Toyota Motor (TM) Overvalued in 2026?
Based on GuruFocus' analysis, Toyota Motor stock appears to be undervalued.
The current stock price of $166.50 is trading 20.7% below its estimated GF Value™ of $209.97.
GuruFocus considers Toyota Motor to be Modestly Undervalued.
Key valuation signals for TM:
Pretax Margin %: 7.66% (24% below median its 10-year median of 10.02)
GF Value™: $209.97 vs. price of $166.50 (20.7% below fair value)
Industry Position: 74.1% above the Vehicles & Parts median (#296 of 1326)
No single metric tells the full story. See the TM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1937, Toyota is one of the world's largest automakers, with 11.3 million units sold at retail in fiscal 2026, including 10.5 million across the Toyota and Lexus brands. Brands include Toyota, Lexus, Daihatsu, and truck maker Hino; market share in Japan is about 50% excluding mini-vehicles, while US share is around 14%. The firm also owns stakes in Denso, a parts supplier, about 20% of Subaru, and holds investments in many other firms, including shares of Uber Technologies, Joby Aviation, Aurora Innovation, Isuzu Motors, and about 5% in each of Mazda and Suzuki. Fiscal 2026 sales excluding financial services were JPY 46.1 trillion. Toyota also has a financing arm and manufactures homes and boats.
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