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1. Company Snapshot

1.a. Company Description

TomTom N.V. develops and sells navigation and location-based products and services worldwide.The company operates in two segments, Location Technology and Consumer.It offers standard definition, advanced driver assistance system (ADAS), high definition (HD) maps, and map data, as well as places for map products; traffic and travel information products, including real-time traffic, hazard warning, speed camera, speed profile, road analytics, fuel and weather services, electric vehicle (EV) and parking services, and routing; and navigation products, such as navigation engine, traffic and travel information, navigation user interface, EV routing and range, and maps for automotive.


The company also provides AutoStream, a solution that enables fast and efficient map delivery of the TomTom automated driving (AD) and ADAS Maps; RoadCheck, a tool for carmakers to determine when, where, and under what conditions their vehicles can safely activate AD functions; TomTom indigo, a digital cockpit platform; and virtual horizon products.In addition, it offers road analytics solutions, including traffic stats, origin destination analysis, route monitoring, road event reporter, and junction analytics; and shop products, such as navigation devices, accessories, and map updates, as well as support services.The company serves the automotive, fleet management and logistics, mobility and on-demand, road traffic management, and location intelligence industries.


TomTom N.V. was founded in 1991 and is headquartered in Amsterdam, the Netherlands.

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1.b. Last Insights on TOM2

TomTom's recent performance was driven by several positive factors. The company's launch of Area Analytics, an advanced traffic analytics tool, enables cities and organizations to analyze traffic over specific days, months, or years with detailed hourly aggregation. This tool is expected to provide more precise traffic insights at scale, enhancing the company's offerings in the traffic management and infrastructure investments space. TomTom's partnership with Miovision, a global leader in intelligent mobility solutions, further improves traffic management and traffic infrastructure investments worldwide. This collaboration combines TomTom's Traffic Analytics portfolio with Miovision's traffic software and hardware technologies to support building safer, more efficient road networks. Additionally, TomTom's integration with Microsoft Azure enhances its maps and navigation products, including the TomTom Automotive Navigation Application and TomTom AI Agent. This integration is expected to provide high-quality ADAS map data for predictive driver assistance systems, accelerating driving automation and regulatory compliance. The company's partnership with CARIAD, the automotive software company of the Volkswagen Group, will use TomTom's advanced Orbis Maps as a core component of automated driving systems developed by CARIAD. TomTom Orbis Maps for automated driving will provide fundamental services for CARIAD's AD systems. TomTom's recent announcements, including the partnership with SoundHound AI and the launch of its ADAS SDK, demonstrate the company's commitment to innovation and its position as a leader in the location technology space.

1.c. Company Highlights

2. TomTom's Q3 2025: A Resilient Performance Amidst Industry Weakness

TomTom reported a revenue of EUR 137 million for Q3 2025, down from EUR 141 million in the same period last year, with Location Technology revenue totaling EUR 118 million. The company's Automotive operational revenue saw a strong year-on-year increase of 22% to EUR 85 million, driven by adoption rates and new customer wins. The gross margin expanded to 89%, up from 87% last year, indicating a positive trend in the company's pricing power and cost management. The actual EPS came out at '-0.19', beating estimates of '-0.21'.

Publication Date: Oct -28

📋 Highlights
  • Automotive Operational Revenue Growth:: Increased by 22% YoY to EUR 85 million, driven by adoption rates and new customer contracts.
  • Gross Margin Improvement:: Rose to 89% in Q3 2025, up from 87% in the prior-year period.
  • Full-Year Revenue Outlook:: Group and Location Technology revenue expected to reach the upper end of guidance range, with EUR 137 million in Q3 revenue (down from EUR 141 million YoY).
  • Restructuring Charges:: EUR 11 million remaining charges to be paid over the next two quarters, with a EUR 267 million net cash position maintained.
  • HD Maps Revenue Timeline:: Expected to generate revenue from H2 2027, with amortization of capitalized R&D starting by end-2027.

Segmental Performance

The Automotive segment was a highlight, with revenue growth driven by adoption rates and new customer wins, as well as some ramp-up of new vehicle lines. According to Taco Titulaer, "the increase in Automotive revenue is mainly attributed to the adoption rate, with some ramp-up of new vehicle lines and new customers, but also some ramp-downs of customer contracts." The Enterprise segment, however, saw slower growth, with revenue declining due to the loss of a larger customer, partially offset by gains from smaller customers.

Outlook and Valuation

TomTom is increasing its expectations for full-year group revenue and Location Technology revenue to approach the upper end of its previously communicated guidance range. Analysts estimate next year's revenue growth at 1.5%. With a P/S Ratio of 1.19, the stock appears reasonably valued relative to its revenue. The EV/EBITDA ratio of 23.96 suggests that the market is pricing in significant improvement in profitability. The company's net cash position of EUR 267 million provides a comfortable liquidity buffer.

Growth Prospects

The company's HD Maps are expected to play a crucial role in the development of self-driving applications, with revenue expected to start coming in from H2 2027. Harold Goddijn noted that "we see carmakers preparing for the next generation of level of self-driving, and our maps will provide an extra data source to the self-driving robots, improving reliability and safety." This positions TomTom well for long-term growth, albeit with some uncertainty around the timing and magnitude of HD Maps revenue.

3. NewsRoom

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AECOM to leverage TomTom’s location tech

Feb -18

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AECOM Taps TomTom Data And Sydney Metro West To Shape Growth

Feb -14

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TomTom and AECOM partner to deliver enhanced global infrastructure planning and road traffic management

Feb -12

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TomTom NV (TMOAF) Q4 2025 Earnings Call Highlights: Navigating Revenue Challenges with ...

Feb -04

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TomTom sees lower to steady revenue in 2026, followed by growth in 2027

Feb -04

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TomTom says ramp-down of old contracts will weigh on 2026 sales, shares tumble

Feb -04

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I can see a darts board in every UK home thanks to the 'Luke Littler effect'

Feb -02

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Is Visteon (VC) Quietly Redefining Its Auto-Tech Edge With Local AI Navigation?

Jan -23

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.68%)

6. Segments

Location Technology

Expected Growth: 5%

TomTom's Location Technology segment growth is driven by increasing demand for autonomous driving, electrification, and connected cars. OEMs' need for high-precision mapping and navigation fuels growth. Additionally, the rise of ride-hailing and logistics services boosts demand for location-based services. TomTom's strategic partnerships and investments in AI and cloud-based technologies further support its growth momentum.

Consumer

Expected Growth: 3%

TomTom N.V.'s 3% growth in the Consumer segment is driven by increasing demand for GPS navigation devices, particularly in the automotive and outdoor recreation markets. Additionally, the company's focus on innovation, such as its real-time traffic information and driver behavior analysis, has contributed to its growth.

7. Detailed Products

GPS Navigation Devices

Personal navigation devices for cars, trucks, and motorcycles

Fleet Management Solutions

Telematics and fleet management systems for businesses and governments

GPS Watches and Fitness Trackers

Wearable devices for athletes and fitness enthusiasts

Maps and Location-Based Services

Digital maps and location-based services for developers and businesses

Autonomous Driving Solutions

HD maps and software for autonomous vehicles

Traffic and Travel Information

Real-time traffic information and travel updates

8. TomTom N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

TomTom N.V. faces moderate threat from substitutes, as there are alternative navigation systems available in the market, but TomTom's strong brand recognition and high-quality products help to mitigate this threat.

Bargaining Power Of Customers

TomTom N.V. has a large customer base, but individual customers do not have significant bargaining power, as they are not large enough to influence prices or product offerings.

Bargaining Power Of Suppliers

TomTom N.V. relies on a few key suppliers for components and manufacturing, giving them some bargaining power, but TomTom's strong relationships and diversified supply chain help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low for TomTom N.V., as the navigation systems market has high barriers to entry, including significant research and development costs and the need for established distribution channels.

Intensity Of Rivalry

The navigation systems market is highly competitive, with several established players, including Garmin and Google, which creates a high level of rivalry and competition for TomTom N.V.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 20.46%
Debt Cost 3.95%
Equity Weight 79.54%
Equity Cost 10.12%
WACC 8.86%
Leverage 25.72%

11. Quality Control: TomTom N.V. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 2.9/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.24$

Current Price

5.24$

Potential

-0.00%

Expected Cash-Flows