Earnings Review · 06 August 2026
Toyota Beat the Quarter, and Still Fails Our Ethical Screen. Here’s Why We Pass.
The print
Revenue $13525.40B. EPS $7.70 vs $3.94 expected.
Give the business its due
The business itself is genuinely strong: revenue growing about 10%, net margins near 9%, a unknown competitive moat.
The valuation lens
Our framework labels the valuation MODERATE. Fair value lands near $183 against a $186 share price, a margin of safety of about -1%. The trailing multiple sits around 8 times earnings, which only makes sense if the growth holds.
The ethical lens, our differentiator
Fails the principled screen, Debt ratio 41.4%. A strong business is not the same as a suitable one; for a values-conscious book this is a do-not-chase regardless of the print.
The compliant alternative
If the theme is what draws you, Tofas Türk Otomobil Fabrikasi Anonim Sirketi (TOASO.IS) sits in the same industry (Auto Manufacturers) and clears our principled screen, the place to look instead of chasing a name that does not.
The verdict for a values-conscious investor
A beat-and-raise does not change the screen. This is a great company you can admire without owning, protection first. We do not confuse a strong quarter with a suitable holding.
This is analysis, not financial advice. Always manage your risk.