HONDA MOTOR CO LTD-SPONS ADR (HMC) Fundamental Analysis & Valuation

NYSE:HMC • US4381283088

Current stock price

24.12 USD
-0.49 (-1.99%)
At close:
24.35 USD
+0.23 (+0.95%)
After Hours:

This HMC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. HMC Profitability Analysis

1.1 Basic Checks

  • HMC had positive earnings in the past year.
  • In the past year HMC had a positive cash flow from operations.
  • In the past 5 years HMC has always been profitable.
  • Each year in the past 5 years HMC had a positive operating cash flow.
HMC Yearly Net Income VS EBIT VS OCF VS FCFHMC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500B -500B 1T 1.5T 2T

1.2 Ratios

  • The Return On Assets of HMC (1.51%) is better than 82.86% of its industry peers.
  • HMC has a better Return On Equity (3.98%) than 82.86% of its industry peers.
  • HMC has a better Return On Invested Capital (1.97%) than 82.86% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for HMC is in line with the industry average of 5.29%.
Industry RankSector Rank
ROA 1.51%
ROE 3.98%
ROIC 1.97%
ROA(3y)3.02%
ROA(5y)3%
ROE(3y)7.11%
ROE(5y)7.06%
ROIC(3y)3.54%
ROIC(5y)3.3%
HMC Yearly ROA, ROE, ROICHMC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • The Profit Margin of HMC (2.32%) is better than 85.71% of its industry peers.
  • In the last couple of years the Profit Margin of HMC has grown nicely.
  • The Operating Margin of HMC (3.12%) is better than 85.71% of its industry peers.
  • In the last couple of years the Operating Margin of HMC has grown nicely.
  • HMC has a Gross Margin of 20.48%. This is amongst the best in the industry. HMC outperforms 85.71% of its industry peers.
  • In the last couple of years the Gross Margin of HMC has remained more or less at the same level.
Industry RankSector Rank
OM 3.12%
PM (TTM) 2.32%
GM 20.48%
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%
HMC Yearly Profit, Operating, Gross MarginsHMC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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3

2. HMC Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HMC is creating some value.
  • Compared to 1 year ago, HMC has less shares outstanding
  • Compared to 5 years ago, HMC has more shares outstanding
  • HMC has a worse debt/assets ratio than last year.
HMC Yearly Shares OutstandingHMC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
HMC Yearly Total Debt VS Total AssetsHMC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10T 20T 30T

2.2 Solvency

  • HMC has an Altman-Z score of 1.47. This is a bad value and indicates that HMC is not financially healthy and even has some risk of bankruptcy.
  • HMC's Altman-Z score of 1.47 is fine compared to the rest of the industry. HMC outperforms 77.14% of its industry peers.
  • A Debt/Equity ratio of 0.67 indicates that HMC is somewhat dependend on debt financing.
  • The Debt to Equity ratio of HMC (0.67) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF N/A
Altman-Z 1.47
ROIC/WACC0.68
WACC2.88%
HMC Yearly LT Debt VS Equity VS FCFHMC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2T 4T 6T 8T 10T

2.3 Liquidity

  • A Current Ratio of 1.36 indicates that HMC should not have too much problems paying its short term obligations.
  • The Current ratio of HMC (1.36) is comparable to the rest of the industry.
  • HMC has a Quick Ratio of 1.09. This is a normal value and indicates that HMC is financially healthy and should not expect problems in meeting its short term obligations.
  • With a decent Quick ratio value of 1.09, HMC is doing good in the industry, outperforming 65.71% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.09
HMC Yearly Current Assets VS Current LiabilitesHMC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2T 4T 6T 8T 10T

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. HMC Growth Analysis

3.1 Past

  • The earnings per share for HMC have decreased strongly by -43.19% in the last year.
  • Measured over the past years, HMC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.59% on average per year.
  • The Revenue has decreased by -1.94% in the past year.
  • The Revenue has been growing slightly by 7.75% on average over the past years.
EPS 1Y (TTM)-43.19%
EPS 3Y9.3%
EPS 5Y15.59%
EPS Q2Q%-40.9%
Revenue 1Y (TTM)-1.94%
Revenue growth 3Y14.23%
Revenue growth 5Y7.75%
Sales Q2Q%-3.4%

3.2 Future

  • The Earnings Per Share is expected to grow by 4.77% on average over the next years.
  • Based on estimates for the next years, HMC will show a small growth in Revenue. The Revenue will grow by 1.83% on average per year.
EPS Next Y-34.73%
EPS Next 2Y0.51%
EPS Next 3Y4.77%
EPS Next 5YN/A
Revenue Next Year-2.17%
Revenue Next 2Y1.24%
Revenue Next 3Y1.83%
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 decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
HMC Yearly Revenue VS EstimatesHMC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5T 10T 15T 20T
HMC Yearly EPS VS EstimatesHMC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200 400 600

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6

4. HMC Valuation Analysis

4.1 Price/Earnings Ratio

  • HMC is valuated reasonably with a Price/Earnings ratio of 10.22.
  • Compared to the rest of the industry, the Price/Earnings ratio of HMC indicates a rather cheap valuation: HMC is cheaper than 91.43% of the companies listed in the same industry.
  • HMC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.23.
  • With a Price/Forward Earnings ratio of 7.03, the valuation of HMC can be described as very cheap.
  • HMC's Price/Forward Earnings ratio is rather cheap when compared to the industry. HMC is cheaper than 91.43% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.28, HMC is valued rather cheaply.
Industry RankSector Rank
PE 10.22
Fwd PE 7.03
HMC Price Earnings VS Forward Price EarningsHMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, HMC is valued cheaper than 88.57% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 8.63
HMC Per share dataHMC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80 100

4.3 Compensation for Growth

  • HMC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.66
EPS Next 2Y0.51%
EPS Next 3Y4.77%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. HMC Dividend Analysis

5.1 Amount

  • HMC has a Yearly Dividend Yield of 4.83%, which is a nice return.
  • Compared to an average industry Dividend Yield of 1.01, HMC pays a better dividend. On top of this HMC pays more dividend than 97.14% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, HMC pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.83%

5.2 History

  • The dividend of HMC decreases each year by -7.66%.
  • HMC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-7.66%
Div Incr Years0
Div Non Decr Years0
HMC Yearly Dividends per shareHMC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80 100

5.3 Sustainability

  • HMC pays out 57.34% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP57.34%
EPS Next 2Y0.51%
EPS Next 3Y4.77%
HMC Yearly Income VS Free CF VS DividendHMC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500B -500B 1T
HMC Dividend Payout.HMC Dividend Payout, showing the Payout Ratio.HMC Dividend Payout.PayoutRetained Earnings

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HMC Fundamentals: All Metrics, Ratios and Statistics

HONDA MOTOR CO LTD-SPONS ADR

NYSE:HMC (3/20/2026, 8:04:00 PM)

After market: 24.35 +0.23 (+0.95%)

24.12

-0.49 (-1.99%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)02-10
Earnings (Next)05-11
Inst Owners42.04%
Inst Owner Change1.3%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap31.30B
Revenue(TTM)21.34T
Net Income(TTM)496.01B
Analysts72.31
Price Target31.7 (31.43%)
Short Float %0.28%
Short Ratio1.82
Dividend
Industry RankSector Rank
Dividend Yield 4.83%
Yearly Dividend1.43
Dividend Growth(5Y)-7.66%
DP57.34%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.11%
Min EPS beat(2)-19.91%
Max EPS beat(2)42.13%
EPS beat(4)1
Avg EPS beat(4)-19.06%
Min EPS beat(4)-73.88%
Max EPS beat(4)42.13%
EPS beat(8)4
Avg EPS beat(8)-2.53%
EPS beat(12)6
Avg EPS beat(12)-0.48%
EPS beat(16)8
Avg EPS beat(16)0.72%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-0.64%
Max Revenue beat(2)1.32%
Revenue beat(4)2
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-0.89%
Max Revenue beat(4)1.32%
Revenue beat(8)5
Avg Revenue beat(8)0.25%
Revenue beat(12)6
Avg Revenue beat(12)-0.15%
Revenue beat(16)8
Avg Revenue beat(16)0.12%
PT rev (1m)-1.45%
PT rev (3m)-5.7%
EPS NQ rev (1m)-299.47%
EPS NQ rev (3m)-240.83%
EPS NY rev (1m)-6.73%
EPS NY rev (3m)-20.56%
Revenue NQ rev (1m)-0.87%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.64%
Valuation
Industry RankSector Rank
PE 10.22
Fwd PE 7.03
P/S 0.23
P/FCF N/A
P/OCF 6.09
P/B 0.4
P/tB 0.43
EV/EBITDA 8.63
EPS(TTM)2.36
EY9.78%
EPS(NY)3.43
Fwd EY14.23%
FCF(TTM)-0.25
FCFYN/A
OCF(TTM)3.96
OCFY16.43%
SpS103.54
BVpS60.49
TBVpS55.48
PEG (NY)N/A
PEG (5Y)0.66
Graham Number56.68
Profitability
Industry RankSector Rank
ROA 1.51%
ROE 3.98%
ROCE 2.8%
ROIC 1.97%
ROICexc 2.5%
ROICexgc 2.64%
OM 3.12%
PM (TTM) 2.32%
GM 20.48%
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 Turnover0.65
Health
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF N/A
Debt/EBITDA 5.47
Cap/Depr 102.04%
Cap/Sales 4.07%
Interest Coverage 1.44
Cash Conversion 53.87%
Profit Quality N/A
Current Ratio 1.36
Quick Ratio 1.09
Altman-Z 1.47
F-Score4
WACC2.88%
ROIC/WACC0.68
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)-43.19%
EPS 3Y9.3%
EPS 5Y15.59%
EPS Q2Q%-40.9%
EPS Next Y-34.73%
EPS Next 2Y0.51%
EPS Next 3Y4.77%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.94%
Revenue growth 3Y14.23%
Revenue growth 5Y7.75%
Sales Q2Q%-3.4%
Revenue Next Year-2.17%
Revenue Next 2Y1.24%
Revenue Next 3Y1.83%
Revenue Next 5YN/A
EBIT growth 1Y-53.99%
EBIT growth 3Y11.68%
EBIT growth 5Y13.88%
EBIT Next Year17656.3%
EBIT Next 3Y531.36%
EBIT Next 5YN/A
FCF growth 1Y-116.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2.56%
OCF growth 3Y-44.18%
OCF growth 5Y-21.49%

HONDA MOTOR CO LTD-SPONS ADR / HMC Fundamental Analysis FAQ

What is the fundamental rating for HMC stock?

ChartMill assigns a fundamental rating of 5 / 10 to HMC.


Can you provide the valuation status for HONDA MOTOR CO LTD-SPONS ADR?

ChartMill assigns a valuation rating of 6 / 10 to HONDA MOTOR CO LTD-SPONS ADR (HMC). This can be considered as Fairly Valued.


Can you provide the profitability details for HONDA MOTOR CO LTD-SPONS ADR?

HONDA MOTOR CO LTD-SPONS ADR (HMC) has a profitability rating of 8 / 10.


What is the valuation of HONDA MOTOR CO LTD-SPONS ADR based on its PE and PB ratios?

The Price/Earnings (PE) ratio for HONDA MOTOR CO LTD-SPONS ADR (HMC) is 10.22 and the Price/Book (PB) ratio is 0.4.


What is the financial health of HONDA MOTOR CO LTD-SPONS ADR (HMC) stock?

The financial health rating of HONDA MOTOR CO LTD-SPONS ADR (HMC) is 3 / 10.