Should I buy Toyota stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of Toyota for more than three years. Each month, hundreds of thousands of users in Canada rely on our expertise to understand market trends and find the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been—and will never be—compensated by Toyota.

What is Toyota?

How much is Toyota stock?

The price of Toyota stock is rising this week. As of today, TM trades at $190.58 USD with a 24-hour decline of 0.33% (-$0.64), but a weekly gain of 2.13%. Toyota’s market capitalization stands at $250.65 billion, with an average daily volume over the past 3 months of 398,388 shares. The stock trades at a price-to-earnings (P/E) ratio of 7.10, features a current dividend yield of 2.73%, and maintains a low beta of 0.24, indicating less volatility compared to the broader market. This combination of strong fundamentals and modest volatility may appeal to Canadian investors seeking stable long-term opportunities in the global automotive sector.

Our full analysis on Toyota stock

We have thoroughly analyzed Toyota Motor Corporation’s latest financial results alongside its stock performance over the past three years, employing a composite approach that integrates fundamental indicators, technical analysis, market sentiment data, and peer comparisons through our proprietary evaluation algorithms. This multifaceted review highlights not only Toyota’s underlying resilience, but also its capability to adapt strategically in a dynamic industry landscape. So, why might Toyota stock once again become a strategic entry point into the global automotive and technology sectors in 2025?

Recent Performance and Market Context

Toyota’s share price, currently trading at $190.58 (NYSE: TM), has demonstrated underlying robustness despite a 16.39% decline over the past year—a period marked by macroeconomic volatility and secular rotation within the auto sector. Notably, the stock has rebounded steadily in recent months, advancing 7.90% over the last six months and climbing 2.13% in the past week alone. This positive momentum is set against a favorable sector backdrop: record North American auto demand, secular shifts towards electrification, and improving supply chain reliability as global disruptions ease.

Recent positive events have reinforced investor confidence. The company’s fresh $88 million investment in West Virginia for hybrid transaxle production underlines Toyota’s ongoing commitment to North American expansion and hybrid leadership. Furthermore, Toyota’s collaboration with Waymo on autonomous vehicle technology and enhanced hydrogen-powered initiatives signal continued innovation, which the market has begun to reward. From a broader economic standpoint, stabilization of global interest rates and growing policy tailwinds for electric vehicle (EV) adoption in North America and Europe further support Toyota’s opportunity set.

Technical Analysis

Technical signals coalesce in favor of a cautiously optimistic stance. Currently, Toyota’s stock price stands above all key moving averages—20-day ($176.73), 50-day ($181.54), 100-day ($183.09), and 200-day ($181.07)—a sustained alignment typically reflective of an established bullish trend. Further, the 14-day Relative Strength Index (RSI) reads 60.16, confirming ample room for upside without suggesting overbought conditions.

While the MACD (12,26,9) at 3.38 produces a tentative sell signal, the ADX (14) at 19.31 generates a buy signal, implying a developing upward trend following recent consolidation. Strong support is identified at $189.27, $187.32, and $186.08, with resistance levels at $192.45, $193.69, and $195.64. In summary, while some oscillators point to short-term consolidation, medium-term momentum and price structure signal that Toyota may be poised for a renewed bullish phase, particularly should the price break decisively above near-term resistance.

Fundamental Analysis

Toyota’s fundamentals remain among the most compelling in global auto manufacturing. Despite certain production headwinds, FY2025 third-quarter sales revenue rose by 4.9% year-over-year to ¥35,673.5 billion, underpinning Toyota’s ability to grow through cyclical pressures. Operating income did decline by 13.2%, primarily reflecting North American market challenges and production pauses, yet net income increased 3.9% to ¥4,100.3 billion, highlighting resilient profitability.

From a structural standpoint:

• Innovation Leadership: Toyota’s hybrid technology leadership remains unmatched and is now complemented by accelerated advances in hydrogen and battery-electric platforms.
• Brand Strength: The Toyota and Lexus brands continue to enjoy global leadership in both mainstream and luxury segments.
• Operational Excellence: The Toyota Production System, renowned for efficiency and continuous improvement, continues to deliver measurable cost and productivity advantages.
• Financial Stability: A robust balance sheet, including ¥8,285.1 billion in cash, positions Toyota for bold strategic moves and weathering of global shocks.

Volume and Liquidity

A three-month average daily trading volume of 398,388 shares ensures ample liquidity, fostering efficient price discovery and facilitating ease of position entry and exit for both retail and institutional investors. With a public float of approximately 1.31 billion shares and a low beta of 0.24, TM exhibits defensive characteristics, limiting volatility while supporting dynamic yet stable valuation. This healthy turnover profile often signals sustained market confidence and underpins the case for incremental institutional accumulation as technical signals improve.

Catalysts and Positive Outlook

Several upcoming catalysts stand to further enhance Toyota’s stock outlook:

• Accelerated EV Strategy: The company plans to deliver 15 new electric models by 2027 and targets 1 million annual EV sales, aligning with regulatory incentives and evolving consumer preferences in Canada, the U.S., and Europe.
• Autonomous Technology Leap: The collaboration with Waymo grants Toyota unprecedented access to advanced self-driving systems, which could unlock new revenue streams and support higher margins.
• Hydrogen Investment: Toyota’s long-term commitment to hydrogen fuel cell technology positions it to benefit not only from vehicle sales but also from infrastructure expansion and industrial partnerships as hydrogen adoption accelerates.
• Operational Investments: The recent West Virginia investment and continued cost-reduction programs are likely to drive future margin expansion, especially as North American operating income recovers from recent lows.
• ESG Initiatives: Toyota’s ongoing emphasis on sustainability, including circular economy strategies and emissions reduction, is increasingly relevant for ESG-focused investors—a segment growing rapidly in Canada.
• Favorable Regulatory Environment: With policy momentum in favour of EVs and clean tech, Toyota is well-positioned to capture outsized growth as these trends play out across major markets.

Investment Strategies

Toyota’s current technical and fundamental positioning appears attractive across investment horizons:

• Short Term (3-6 months): The stock is consolidating just above robust support levels and key moving averages. A decisive breakout above resistance (~$193-$196 range) could trigger a rapid momentum move, especially as technical oscillators reset and volume remains solid.
• Medium Term (6-18 months): Investors may benefit from anticipated margin recovery, continued revaluation as the company delivers on EV and autonomous vehicle milestones, and growing dividends.
• Long Term (multi-year): The structural shift towards electrification, coupled with Toyota’s diversified approach (hybrid, hydrogen, battery-electric), points to significant potential as global markets evolve. The company’s dominant global footprint, strong balance sheet, and R&D investments suggest that patient investors could see both capital appreciation and sustained income.

Ideal entry points are often found during periods of technical consolidation near strong support, or ahead of material catalysts—such as the rollout of new EV models, milestone reports on the Waymo partnership, or positive updates on North American turnaround strategies.

Is it the Right Time to Buy Toyota?

Toyota’s current market posture is compelling on multiple fronts. The company marries proven innovation capacity with formidable brand strength, operational excellence, and enduring financial stability. Its low valuation metrics relative to global peers, coupled with a robust and growing dividend, position the stock as a genuine opportunity for those seeking an entry into the future of automotive technology.

With clear growth catalysts ahead—ranging from meaningful advances in EV and hydrogen, to unique partnerships in autonomous driving—Toyota appears primed for a new phase of expansion. Resilient fundamentals, favorable momentum, and a consistent track record of both adaptation and execution all contribute to a positive outlook.

In summary, for Canadian investors seeking exposure to the dynamic intersection of automotive and technology, Toyota currently seems to represent an excellent opportunity for both value and growth. The alignment of structural strengths, technical positioning, and strategic catalysts justifies renewed attention and may deliver attractive risk-adjusted returns in the coming cycles.

Toyota stands at the forefront of automotive transformation—and for those focused on long-term innovation and balanced growth, the present market environment may offer an especially timely and strategic entry into this iconic global leader.

How to buy Toyota stock in Canada?

Buying shares of Toyota (TM) online in Canada is straightforward, safe, and accessible—especially when you use a regulated broker. Today, Canadians have two main ways to invest in Toyota through online platforms: you can either buy the shares directly (“spot buying”) or trade them with Contracts for Difference (CFDs). Both methods are secure when you choose an IIROC or CIPF-protected broker. Whether you aim to build long-term wealth or seek to capitalize on short-term price movements, there's a method tailored to your goals. For insights on choosing a broker, check our detailed comparator further down the page.

Spot Buying

Spot buying means purchasing Toyota shares outright in your name on the stock market, typically via a Canadian dollar-denominated brokerage account. This method gives you full shareholder rights, including dividend payments (Toyota’s yield is about 2.7%). Canadian brokers usually charge a flat commission per trade—generally $5 to $10 per order, plus a possible small currency conversion fee if you’re buying Toyota on the NYSE in USD.

Example

Suppose Toyota stock trades at $190.58 USD (approx. $261 CAD with currency conversion). With a $1,000 CAD investment, including a typical $5 commission, you could buy about 3.8 Toyota shares.
✔️ Gain scenario:
If the share price rises by 10%, your holdings are now worth ~$1,100 CAD.
Result: That’s a $100 gross gain, or +10% on your investment (before any currency differences).

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on Toyota’s price movements without owning the actual shares. Using CFDs, you can apply leverage—amplifying gains (and potential losses) with a smaller upfront deposit. Canadian brokers offering CFDs typically charge a spread (the difference between buy/sell price) and overnight financing if you hold positions for more than a trading day.

Example

You stake $1,000 on Toyota CFDs with 5x leverage, giving you $5,000 in market exposure.
✔️ Gain scenario:
If Toyota’s stock price rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a $400 gain on your $1,000 margin (excluding spreads and overnight fees).

Final Advice

Before you invest, always compare brokerages regarding fees, available markets, and investor protection. Our broker comparator (see below) will help you find one that matches your needs. Remember, spot buying is ideal for long-term wealth building and dividend collection, while CFD trading may suit those looking for short-term opportunities with higher risk and reward potential. Ultimately, the right method depends on your personal financial objectives and risk tolerance.

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Our 7 tips for buying Toyota stock

The latest news about Toyota

Toyota stock has gained over 2% this week, outpacing major auto peers and reflecting improving sentiment.

An upward move of 2.13% in the last seven days, alongside a bullish signal from all key moving averages, stands out as a constructive indicator amid global market volatility. This momentum is supported by continued investor confidence, robust trading liquidity, and a positive earnings outlook, all of which are relevant for Canadian institutional and retail investors with exposure to global automotive equities.

Toyota has reaffirmed its leadership in hybrid and alternative powertrains, a segment resonating strongly in Canada’s eco-conscious auto market.

The company’s announcement to further expand its hydrogen technology initiatives and its ongoing dominance in hybrid vehicle sales underscore a technological edge that aligns closely with Canadian provincial and federal policies incentivizing low-emission vehicles. As Canada ramps up its own net-zero initiatives and infrastructure, Toyota’s model portfolio and innovation pipeline present an advantage for growth and brand positioning within the Canadian market.

An additional $88 million US investment in hybrid transaxle production signals Toyota’s resolve to meet North American—and by extension, Canadian—demand for electrified vehicles.

Although this specific capital expenditure is directed at the West Virginia plant, the resulting boost to regional supply chains and capacity is set to support Toyota’s extensive Canadian dealership network, notably for popular models such as the RAV4 Hybrid and Corolla Hybrid. This reinforces Toyota’s ability to sustain market share and address pent-up demand as Canadian consumers shift toward greener transportation options.

Canadian analysts and diversified investors are watching Toyota’s dividend profile, with a 2.73% yield and 11% dividend growth rate over five years.

A forward payout of $5.20 per share and a notably conservative payout ratio of 17.1% provide a solid income anchor and defensive characteristics, which are highly attractive for Canadian income-focused portfolios in a period of interest rate uncertainty and persistent market turbulence. Toyota’s dividend stability sets it apart from more volatile or less established global automotive peers.

Toyota’s strategic partnership with Waymo on autonomous driving technology has positive long-term implications for its Canadian operations.

With Canada’s regulatory authorities and urban mobility programs increasingly supportive of autonomous and connected vehicle testing, this collaboration enhances Toyota’s readiness to capture market opportunities as provincial governments and major cities (such as Toronto and Montreal) invest in smart mobility and innovation clusters, thus strengthening prospects for future product launches and regional competitive advantage.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.