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TomTom
(TOM2)
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Rating:63Neutral
Price Target:
€4.00
▼(-2.20% Downside)
Action:Reiterated
Date:10/17/26
The score is supported mainly by improved profitability and very strong gross margins alongside a low-leverage balance sheet, reinforced by earnings-call guidance pointing to further margin improvement and cost savings. Offsetting this, revenue remains in decline with contract phase-outs and restructuring impacts, while technical signals show a weak intermediate/long-term trend (price below key moving averages and negative MACD). Valuation is moderate (P/E ~15.2) but lacks dividend support based on the provided data.
Positive Factors
Very strong gross margins
Gross margins near 90% indicate that TomTom’s digital content and software model can generate substantial contribution from each additional unit of revenue. A richer mix of these products can support operating leverage and help sustain profitability even while the company invests in growth initiatives.
Negative Factors
Declining revenue and contract phase-outs
Revenue contraction across the group indicates that TomTom’s current growth base remains under pressure, particularly as contracts phase out in automotive and enterprise. The enterprise phase-out continues for another three quarters, creating a prolonged headwind before new wins can fully offset lost business.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong gross margins
Gross margins near 90% indicate that TomTom’s digital content and software model can generate substantial contribution from each additional unit of revenue. A richer mix of these products can support operating leverage and help sustain profitability even while the company invests in growth initiatives.
Read all positive factors
TomTom (TOM2) vs. iShares MSCI Netherlands ETF (EWN)
Market Cap
€456.42M
Dividend Yield73.03%
Average Volume (3M)259.82K
Price to Earnings (P/E)14.6
Beta (1Y)1.40
Revenue Growth-7.40%
EPS GrowthN/A
CountryNL
Employees3,300
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.25
Shares Outstanding125,000,000
10 Day Avg. Volume334,003
30 Day Avg. Volume259,816
Financial Highlights & Ratios
PEG Ratio1.68
Price to Book (P/B)4.88
Price to Sales (P/S)1.23
P/FCF Ratio15.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.2
Revenue Forecast (FY)€525.00M
TomTom Business Overview & Revenue Model
Company Description
TomTom N.V., a Dutch company established in Amsterdam in 1991, is a global provider of navigation and location-based products and services. The company operates through two primary divisions: Location Technology and Consumer. Its offerings include...
How the Company Makes Money
TomTom primarily makes money by licensing its location technology and selling related services to business customers. A key revenue stream is Automotive, where TomTom provides car manufacturers and automotive suppliers with embedded navigation sof...
TomTom Earnings Call Summary
Earnings Call Date:Oct 15, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 04, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. TomTom reported improved gross margin, operating profitability, stronger cash generation, a solid net cash position, and a higher full-year operating margin outlook. Management also highlighted strategic opportunities in automated driving, enterprise location intelligence, AI integrations, and partnerships with DeepRoute.ai and Microsoft. These positives were tempered by a 6% group revenue decline, declines across automotive, enterprise, and consumer revenue, ongoing customer contract phase-outs, approximately 200 affected roles, and an upcoming EUR 15 million restructuring charge. AI monetization was described as an early-stage opportunity rather than an established revenue contributor.Positive Updates
Strategic Reorganization Focused on Growth Markets
TomTom reorganized around three divisions: automated driving, location intelligence for enterprises, and navigation. The company said the structure is intended to sharpen focus, accelerate innovation, respond faster to customer needs, expand the customer base, and support sustainable growth. Navigation remains the backbone of the business, generating most revenue and supported by a strong backlog.
Negative Updates
Group Revenue Declined Year-on-Year
Third-quarter group revenue was EUR 129 million, down 6% versus last year. Management said the decline was in line with expectations and guidance.
Read all updates
Q3-2026 Updates
Positive
Negative
Strategic Reorganization Focused on Growth Markets
TomTom reorganized around three divisions: automated driving, location intelligence for enterprises, and navigation. The company said the structure is intended to sharpen focus, accelerate innovation, respond faster to customer needs, expand the customer base, and support sustainable growth. Navigation remains the backbone of the business, generating most revenue and supported by a strong backlog.
Read all positive updates
Company Guidance
For 2026, TomTom expects group revenue of EUR 505 million-EUR 530 million, Location Technology revenue of EUR 450 million-EUR 470 million, and an operating margin of around 4%, including a restructuring charge of approximately EUR 15 million expected in the fourth quarter; excluding this one-off charge, operating margin is expected to be around 7% for the full year, with annualized savings for the organizational realignment estimated at approximately EUR 21 million. In the fourth quarter, apart from the EUR 15 million, full OpEx is expected to be slightly lower than what was reported in Q3 sequentially. For 2027, the company reiterates expectations of Location Technology revenue growth, supported by increasing gross margin and a more efficient cost base; the enterprise customer contract phase-out will take another three quarters to be fully phased out, although the exact quantity is not something that can be disclosed.TomTom Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
79
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 523.86M | 554.69M | 574.38M | 584.76M | 536.34M | 506.93M |
| Gross Profit | 471.68M | 490.56M | 487.51M | 495.77M | 449.72M | 407.11M |
| EBITDA | 77.74M | 20.88M | 25.87M | 31.56M | -36.94M | -11.47M |
| Net Income | 31.11M | -6.40M | -17.29M | -21.01M | -102.73M | -94.65M |
Balance Sheet | ||||||
| Total Assets | 704.48M | 716.19M | 724.42M | 795.89M | 807.50M | 890.74M |
| Cash, Cash Equivalents and Short-Term Investments | 239.37M | 262.80M | 263.65M | 315.19M | 303.73M | 355.82M |
| Total Debt | 39.93M | 40.35M | 43.52M | 46.71M | 37.73M | 33.34M |
| Total Liabilities | 542.57M | 576.57M | 585.57M | 614.30M | 607.90M | 608.02M |
| Stockholders Equity | 161.91M | 139.62M | 138.85M | 181.59M | 199.61M | 282.72M |
Cash Flow | ||||||
| Free Cash Flow | 23.01M | 43.59M | -4.22M | 20.84M | -41.57M | 23.51M |
| Operating Cash Flow | 35.75M | 46.91M | 1.35M | 32.70M | -31.41M | 36.78M |
| Investing Cash Flow | -3.83M | -8.61M | 14.35M | -53.55M | -30.77M | -19.98M |
| Financing Cash Flow | -23.64M | -10.27M | -47.89M | -23.46M | -10.32M | -43.66M |
TomTom Technical Analysis
Negative
4.09
Price Trends
3.89
Negative
4.14
Negative
4.61
Negative
Market Momentum
-0.03
Negative
39.18
Neutral
65.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:TOM2, the sentiment is Negative. The current price of 4.09 is above the 20-day moving average (MA) of 3.75, above the 50-day MA of 3.89, and below the 200-day MA of 4.61, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 65.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:TOM2.
TomTom Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | €29.96B | 26.48 | 20.11% | ― | 16.73% | 12.21% | |
63 Neutral | €456.42M | 14.64 | 20.71% | 73.03% | -7.40% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | €211.62M | -30.33 | -26.35% | ― | -5.42% | 83.35% | |
46 Neutral | €105.15M | -8.27 | ― | ― | 0.08% | -2.81% |
* Technology Sector Average
NL:TOM2
TomTom
3.67
-1.76
-32.45%
NL:ADYEN
Adyen
945.40
-560.00
-37.20%
NL:CMCOM
CM.com N.V.
6.37
2.30
56.70%
NL:MTRK
MotorK PLC
2.15
-2.02
-48.44%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.