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

NYSE:HMC • US4381283088

30.16 USD
+0.04 (+0.13%)
At close: Feb 27, 2026
30.1 USD
-0.06 (-0.2%)
After Hours: 2/27/2026, 7:19:52 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall HMC gets a fundamental rating of 5 out of 10. We evaluated HMC against 35 industry peers in the Automobiles industry. HMC has an excellent profitability rating, but there are concerns on its financial health. HMC has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • HMC had positive earnings in the past year.
  • In the past year HMC had a positive cash flow from operations.
  • Each year in the past 5 years HMC has 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

  • HMC has a Return On Assets of 1.51%. This is in the better half of the industry: HMC outperforms 80.00% of its industry peers.
  • Looking at the Return On Equity, with a value of 3.98%, HMC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
  • HMC has a better Return On Invested Capital (1.97%) than 80.00% of its industry peers.
  • HMC had an Average Return On Invested Capital over the past 3 years of 3.54%. This is in line with the industry average of 5.06%.
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

  • HMC has a Profit Margin of 2.32%. This is amongst the best in the industry. HMC outperforms 82.86% of its industry peers.
  • In the last couple of years the Profit Margin of HMC has grown nicely.
  • HMC has a better Operating Margin (3.12%) than 85.71% of its industry peers.
  • In the last couple of years the Operating Margin of HMC has grown nicely.
  • HMC has a better Gross Margin (20.48%) than 85.71% of its industry peers.
  • HMC's Gross Margin has been stable in the last couple of years.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

3

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.
  • The number of shares outstanding for HMC has been increased compared to 5 years ago.
  • Compared to 1 year ago, HMC has a worse debt to assets ratio.
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 1.50. This is a bad value and indicates that HMC is not financially healthy and even has some risk of bankruptcy.
  • HMC has a better Altman-Z score (1.50) than 77.14% of its industry peers.
  • HMC has a Debt/Equity ratio of 0.67. This is a neutral value indicating HMC is somewhat dependend on debt financing.
  • HMC has a Debt to Equity ratio (0.67) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF N/A
Altman-Z 1.5
ROIC/WACC0.68
WACC2.89%
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.
  • HMC has a Current ratio of 1.36. This is comparable to the rest of the industry: HMC outperforms 57.14% of its industry peers.
  • 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.
  • Looking at the Quick ratio, with a value of 1.09, HMC is in the better half of 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. Growth

3.1 Past

  • The earnings per share for HMC have decreased strongly by -43.19% in the last year.
  • The Earnings Per Share has been growing by 15.59% on average over the past years. This is quite good.
  • HMC shows a decrease in Revenue. In the last year, the revenue decreased by -1.94%.
  • 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

  • HMC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.62% yearly.
  • The Revenue is expected to grow by 1.73% on average over the next years.
EPS Next Y-30.02%
EPS Next 2Y4.78%
EPS Next 3Y8.62%
EPS Next 5YN/A
Revenue Next Year-2.41%
Revenue Next 2Y1.06%
Revenue Next 3Y1.73%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • 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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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • HMC is valuated correctly with a Price/Earnings ratio of 12.57.
  • Based on the Price/Earnings ratio, HMC is valued cheaply inside the industry as 94.29% of the companies are valued more expensively.
  • HMC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.10.
  • With a Price/Forward Earnings ratio of 7.95, the valuation of HMC can be described as very cheap.
  • 91.43% of the companies in the same industry are more expensive than HMC, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 28.06. HMC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.57
Fwd PE 7.95
HMC Price Earnings VS Forward Price EarningsHMC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • HMC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HMC is cheaper than 88.57% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.31
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

  • The excellent profitability rating of HMC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y4.78%
EPS Next 3Y8.62%

More info and screens

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

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 4.43%, HMC is a good candidate for dividend investing.
  • HMC's Dividend Yield is rather good when compared to the industry average which is at 0.90. HMC pays more dividend than 97.14% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, HMC pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.43%

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 2Y4.78%
EPS Next 3Y8.62%
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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Find the best dividend stocksShow peers with best dividend

HONDA MOTOR CO LTD-SPONS ADR

NYSE:HMC (2/27/2026, 7:19:52 PM)

After market: 30.1 -0.06 (-0.2%)

30.16

+0.04 (+0.13%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)02-10
Earnings (Next)05-11
Inst Owners35.96%
Inst Owner Change1.17%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap39.13B
Revenue(TTM)21.34T
Net Income(TTM)496.01B
Analysts73.33
Price Target32.17 (6.66%)
Short Float %0.28%
Short Ratio2.24
Dividend
Industry RankSector Rank
Dividend Yield 4.43%
Yearly Dividend1.47
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)0.43%
PT rev (3m)-4.31%
EPS NQ rev (1m)-52.36%
EPS NQ rev (3m)-56.28%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-23.32%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-1.27%
Valuation
Industry RankSector Rank
PE 12.57
Fwd PE 7.95
P/S 0.29
P/FCF N/A
P/OCF 7.48
P/B 0.49
P/tB 0.53
EV/EBITDA 9.31
EPS(TTM)2.4
EY7.96%
EPS(NY)3.8
Fwd EY12.58%
FCF(TTM)-0.25
FCFYN/A
OCF(TTM)4.03
OCFY13.37%
SpS105.37
BVpS61.56
TBVpS56.45
PEG (NY)N/A
PEG (5Y)0.81
Graham Number57.66
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 1.5
F-Score4
WACC2.89%
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-30.02%
EPS Next 2Y4.78%
EPS Next 3Y8.62%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.94%
Revenue growth 3Y14.23%
Revenue growth 5Y7.75%
Sales Q2Q%-3.4%
Revenue Next Year-2.41%
Revenue Next 2Y1.06%
Revenue Next 3Y1.73%
Revenue Next 5YN/A
EBIT growth 1Y-53.99%
EBIT growth 3Y11.68%
EBIT growth 5Y13.88%
EBIT Next Year17483.2%
EBIT Next 3Y525.3%
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 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 12.57 and the Price/Book (PB) ratio is 0.49.


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.