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Why the dividend investor may take a look at NYSE:HMC.

By Mill Chart

Last update: Nov 13, 2023

HONDA MOTOR CO LTD-SPONS ADR (NYSE:HMC) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:HMC demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Looking at the Dividend

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:HMC has received a 7 out of 10:

  • HMC has a Yearly Dividend Yield of 7.01%, which is a nice return.
  • Compared to an average industry Dividend Yield of 3.50, HMC pays a better dividend. On top of this HMC pays more dividend than 97.37% of the companies listed in the same industry.
  • HMC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.74.
  • HMC has been paying a dividend for at least 10 years, so it has a reliable track record.
  • HMC pays out 23.36% of its income as dividend. This is a sustainable payout ratio.

Deciphering NYSE:HMC's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:HMC has received a 5 out of 10:

  • Looking at the Altman-Z score, with a value of 1.79, HMC is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
  • The Debt to FCF ratio of HMC (7.69) is better than 84.21% of its industry peers.
  • HMC has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.

Exploring NYSE:HMC's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:HMC scores a 7 out of 10:

  • HMC has a Return On Assets of 3.27%. This is in the better half of the industry: HMC outperforms 78.95% of its industry peers.
  • Looking at the Return On Equity, with a value of 7.21%, HMC is in the better half of the industry, outperforming 76.32% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 3.73%, HMC is doing good in the industry, outperforming 78.95% of the companies in the same industry.
  • The last Return On Invested Capital (3.73%) for HMC is above the 3 year average (3.16%), which is a sign of increasing profitability.
  • The Profit Margin of HMC (4.89%) is better than 81.58% of its industry peers.
  • HMC has a Operating Margin of 5.38%. This is amongst the best in the industry. HMC outperforms 81.58% of its industry peers.
  • With an excellent Gross Margin value of 20.13%, HMC belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of HMC for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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HONDA MOTOR CO LTD-SPONS ADR

NYSE:HMC (2/26/2024, 7:04:00 PM)

Premarket: 35.59 -0.07 (-0.2%)

35.66

-0.16 (-0.45%)

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