Toyota MotorBUE:TM +0.35%70 ROE % is 8.06% as of Mar. 2026, which is 23% below its 10-year median of 10.45. GuruFocus rates BUE:TM with a GF Score™ of 70/100 and a GF Value™ of ARS21,727.47 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,308 Vehicles & Parts companies, Toyota Motor ranks better than 65.14% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Toyota Motor's annualized net income for the quarter that ended in Mar. 2026 was ARS28,803,536 Mil. Toyota Motor's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ARS357,291,282 Mil. Therefore, Toyota Motor's annualized ROE % for the quarter that ended in Mar. 2026 was 8.06%.
The historical rank and industry rank for Toyota Motor's ROE % or its related term are showing as below:
BUE:TM'
s ROE % Range Over the Past 10 Years
Min: 8.98 Med: 10.45 Max: 15.81
Current: 10.22
During the past 13 years, Toyota Motor's highest ROE % was 15.81%. The lowest was 8.98%. And the median was 10.45%.
BUE:TM's ROE % is ranked better than 65.14% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 6.62
vs BUE:TM: 10.22
Toyota Motor (BUE:TM) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Toyota Motor ROE % Related Terms
Toyota Motor ROE % Historical Data
* Premium members only.
The historical data trend for Toyota Motor's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Toyota Motor's ROE % distribution charts can be found below:
* The bar in red indicates where Toyota Motor's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Toyota Motor (BUE:TM) has a ROE % of 8.06% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Toyota Motor and its competitors. This is 23% below median its historical median of 10.45. Over the past decade, Toyota Motor's ROE % has ranged from 8.98 to 15.81. According to the industry distribution chart, Toyota Motor ranks #456 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 34.9%.
Is Toyota Motor's ROE % too high?
Toyota Motor's current ROE % of 8.06% is 23% below median its 10-year median of 10.45. Over the past 10 years, this metric has ranged from a low of 8.98 to a high of 15.81. The Vehicles & Parts industry median ROE % is 6.62. Toyota Motor's value of 8.06% is 21.8% above this industry median. Based on the distribution chart, Toyota Motor ranks #456 out of 1308 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Toyota Motor has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Toyota Motor's ROE % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Toyota Motor ranks #456 out of 1308 companies for ROE %. This puts Toyota Motor in the upper half of its industry. The industry median ROE % is 6.62. Toyota Motor's value of 8.06% is 21.8% above this benchmark. Historically, Toyota Motor's own ROE % has ranged from 8.98 to 15.81 over the past decade. While the company's 10-year median is 10.45 vs. the industry median of 6.62, 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 ROE % for a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,308 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Toyota Motor's current ROE % of 8.06% is 21.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Toyota Motor and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toyota Motor's current ROE % is 8.06%, which is 23% below median its own 10-year median of 10.45. 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 (BUE:TM) is currently considered Modestly Undervalued. The stock's GF Value™ is ARS21,727.47, compared to a current price of ARS17,360.00 — trading 20.1% below its estimated fair value. The current ROE % is 8.06%, which is 23% below median its 10-year median of 10.45 and 21.8% above the Vehicles & Parts industry median of 6.62. Toyota Motor's overall GF Score™ is 70/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Toyota Motor (BUE:TM), the current ROE % is 8.06% 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 (BUE:TM) Overvalued in 2026?
Based on GuruFocus' analysis, Toyota Motor stock appears to be undervalued.
The current stock price of ARS17,360.00 is trading 20.1% below its estimated GF Value™ of ARS21,727.47.
GuruFocus considers Toyota Motor to be Modestly Undervalued.
Key valuation signals for BUE:TM:
ROE %: 8.06% (23% below median its 10-year median of 10.45)
GF Value™: ARS21,727.47 vs. price of ARS17,360.00 (20.1% below fair value)
Industry Position: 21.8% above the Vehicles & Parts median (#456 of 1308)
No single metric tells the full story. See the BUE: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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