HONDA MOTOR CO LTD-SPONS ADR (HMC) Stock Fundamental Analysis
USA - NYSE:HMC - US4381283088 - ADR
30.07 USD
+0.34 (+1.14%)
30.07 USD
0 (0%)
Taking everything into account, HMC scores 5 out of 10 in our fundamental rating. HMC was compared to 36 industry peers in the Automobiles industry. While HMC has a great profitability rating, there are some minor concerns on its financial health. HMC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HMC had positive earnings in the past year.
HMC had a positive operating cash flow in the past year.
Each year in the past 5 years HMC has been profitable.
HMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HMC has a Return On Assets of 2.14%. This is amongst the best in the industry. HMC outperforms 83.33% of its industry peers.
HMC has a better Return On Equity (5.41%) than 77.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.18%, HMC belongs to the top of the industry, outperforming 80.56% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HMC is below the industry average of 5.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.14% | ||
| ROE | 5.41% | ||
| ROIC | 3.18% |
ROA(3y)3.02%
ROA(5y)3%
ROE(3y)7.11%
ROE(5y)7.06%
ROIC(3y)3.54%
ROIC(5y)3.3%
1.3 Margins
HMC has a Profit Margin of 2.95%. This is amongst the best in the industry. HMC outperforms 86.11% of its industry peers.
In the last couple of years the Profit Margin of HMC has grown nicely.
With an excellent Operating Margin value of 4.50%, HMC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
HMC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 20.99%, HMC belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Gross Margin of HMC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.5% | ||
| PM (TTM) | 2.95% | ||
| GM | 20.99% |
OM growth 3Y-2.23%
OM growth 5Y5.68%
PM growth 3Y-7.43%
PM growth 5Y4.77%
GM growth 3Y1.59%
GM growth 5Y0.84%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HMC is still creating some value.
HMC has less shares outstanding than it did 1 year ago.
HMC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HMC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.65, we must say that HMC is in the distress zone and has some risk of bankruptcy.
HMC has a better Altman-Z score (1.65) than 69.44% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that HMC is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.59, HMC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.65 |
ROIC/WACC1.1
WACC2.89%
2.3 Liquidity
A Current Ratio of 1.30 indicates that HMC should not have too much problems paying its short term obligations.
HMC's Current ratio of 1.30 is fine compared to the rest of the industry. HMC outperforms 61.11% of its industry peers.
HMC has a Quick Ratio of 1.01. This is a normal value and indicates that HMC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HMC (1.01) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.87% over the past year.
Measured over the past years, HMC shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.21% on average per year.
The Revenue has been growing slightly by 6.17% in the past year.
The Revenue has been growing slightly by 7.75% on average over the past years.
EPS 1Y (TTM)4.87%
EPS 3Y-20.96%
EPS 5Y-7.21%
EPS Q2Q%329.05%
Revenue 1Y (TTM)6.17%
Revenue growth 3Y14.23%
Revenue growth 5Y7.75%
Sales Q2Q%2.04%
3.2 Future
The Earnings Per Share is expected to grow by 6.98% on average over the next years.
HMC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.24% yearly.
EPS Next Y-15.04%
EPS Next 2Y4.89%
EPS Next 3Y6.98%
EPS Next 5YN/A
Revenue Next Year-1.16%
Revenue Next 2Y0.42%
Revenue Next 3Y1.24%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HMC is valuated cheaply with a Price/Earnings ratio of 6.67.
Based on the Price/Earnings ratio, HMC is valued cheaper than 97.22% of the companies in the same industry.
HMC is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.26 indicates a rather cheap valuation of HMC.
88.89% of the companies in the same industry are more expensive than HMC, based on the Price/Forward Earnings ratio.
HMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | 7.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HMC is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.75 |
4.3 Compensation for Growth
The excellent profitability rating of HMC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.89%
EPS Next 3Y6.98%
5. Dividend
5.1 Amount
HMC has a Yearly Dividend Yield of 4.47%, which is a nice return.
Compared to an average industry Dividend Yield of 3.34, HMC pays a better dividend. On top of this HMC pays more dividend than 94.44% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, HMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
5.2 History
The dividend of HMC decreases each year by -7.66%.
HMC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-7.66%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
HMC pays out 48.19% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP48.19%
EPS Next 2Y4.89%
EPS Next 3Y6.98%
30.07
+0.34 (+1.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners35.99%
Inst Owner Change-0.68%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap39.02B
Revenue(TTM)21.69T
Net Income(TTM)637.85B
Analysts74.17
Price Target32.88 (9.34%)
Short Float %0.35%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
Yearly Dividend1.6
Dividend Growth(5Y)-7.66%
DP48.19%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-49.22%
Min EPS beat(2)-73.88%
Max EPS beat(2)-24.56%
EPS beat(4)1
Avg EPS beat(4)-36.86%
Min EPS beat(4)-73.88%
Max EPS beat(4)19.29%
EPS beat(8)4
Avg EPS beat(8)-5.4%
EPS beat(12)6
Avg EPS beat(12)-1.13%
EPS beat(16)9
Avg EPS beat(16)2.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.09%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)0.71%
Revenue beat(4)3
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-0.89%
Max Revenue beat(4)1.81%
Revenue beat(8)5
Avg Revenue beat(8)0.21%
Revenue beat(12)6
Avg Revenue beat(12)-0.15%
Revenue beat(16)8
Avg Revenue beat(16)-0.12%
PT rev (1m)-5.12%
PT rev (3m)0.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.46%
EPS NY rev (1m)4.15%
EPS NY rev (3m)-32.83%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | 7.26 | ||
| P/S | 0.28 | ||
| P/FCF | N/A | ||
| P/OCF | 13.08 | ||
| P/B | 0.51 | ||
| P/tB | 0.56 | ||
| EV/EBITDA | 7.75 |
EPS(TTM)4.51
EY15%
EPS(NY)4.14
Fwd EY13.78%
FCF(TTM)-1.91
FCFYN/A
OCF(TTM)2.3
OCFY7.65%
SpS108.32
BVpS59.09
TBVpS53.78
PEG (NY)N/A
PEG (5Y)N/A
Graham Number77.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.14% | ||
| ROE | 5.41% | ||
| ROCE | 4.52% | ||
| ROIC | 3.18% | ||
| ROICexc | 3.94% | ||
| ROICexgc | 4.2% | ||
| OM | 4.5% | ||
| PM (TTM) | 2.95% | ||
| GM | 20.99% | ||
| FCFM | N/A |
ROA(3y)3.02%
ROA(5y)3%
ROE(3y)7.11%
ROE(5y)7.06%
ROIC(3y)3.54%
ROIC(5y)3.3%
ROICexc(3y)4.49%
ROICexc(5y)4.15%
ROICexgc(3y)4.76%
ROICexgc(5y)15%
ROCE(3y)5.42%
ROCE(5y)5.03%
ROICexgc growth 3Y-48.58%
ROICexgc growth 5Y5.67%
ROICexc growth 3Y2.72%
ROICexc growth 5Y5.65%
OM growth 3Y-2.23%
OM growth 5Y5.68%
PM growth 3Y-7.43%
PM growth 5Y4.77%
GM growth 3Y1.59%
GM growth 5Y0.84%
F-Score4
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.08 | ||
| Cap/Depr | 114.57% | ||
| Cap/Sales | 3.89% | ||
| Interest Coverage | 2.21 | ||
| Cash Conversion | 26.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 1.65 |
F-Score4
WACC2.89%
ROIC/WACC1.1
Cap/Depr(3y)92.78%
Cap/Depr(5y)88.03%
Cap/Sales(3y)3.54%
Cap/Sales(5y)3.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.87%
EPS 3Y-20.96%
EPS 5Y-7.21%
EPS Q2Q%329.05%
EPS Next Y-15.04%
EPS Next 2Y4.89%
EPS Next 3Y6.98%
EPS Next 5YN/A
Revenue 1Y (TTM)6.17%
Revenue growth 3Y14.23%
Revenue growth 5Y7.75%
Sales Q2Q%2.04%
Revenue Next Year-1.16%
Revenue Next 2Y0.42%
Revenue Next 3Y1.24%
Revenue Next 5YN/A
EBIT growth 1Y-33.91%
EBIT growth 3Y11.68%
EBIT growth 5Y13.88%
EBIT Next Year17915.7%
EBIT Next 3Y511.25%
EBIT Next 5YN/A
FCF growth 1Y-134.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-73.11%
OCF growth 3Y-44.18%
OCF growth 5Y-21.49%
HONDA MOTOR CO LTD-SPONS ADR / HMC FAQ
What is the fundamental rating for HMC stock?
ChartMill assigns a fundamental rating of 5 / 10 to HMC.
What is the valuation status for HMC stock?
ChartMill assigns a valuation rating of 6 / 10 to HONDA MOTOR CO LTD-SPONS ADR (HMC). This can be considered as Fairly Valued.
What is the profitability of HMC stock?
HONDA MOTOR CO LTD-SPONS ADR (HMC) has a profitability rating of 8 / 10.
What are the PE and PB ratios of HONDA MOTOR CO LTD-SPONS ADR (HMC) stock?
The Price/Earnings (PE) ratio for HONDA MOTOR CO LTD-SPONS ADR (HMC) is 6.67 and the Price/Book (PB) ratio is 0.51.
What is the earnings growth outlook for HONDA MOTOR CO LTD-SPONS ADR?
The Earnings per Share (EPS) of HONDA MOTOR CO LTD-SPONS ADR (HMC) is expected to decline by -15.04% in the next year.