HONDA MOTOR CO LTD-SPONS ADR (HMC) Stock Fundamental Analysis
USA - NYSE:HMC - US4381283088 - ADR
30.565 USD
+0.07 (+0.21%)
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HMC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HMC was profitable.
HMC had a positive operating cash flow in the past year.
HMC had positive earnings in each of the past 5 years.
HMC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HMC (2.14%) is better than 86.11% of its industry peers.
HMC's Return On Equity of 5.41% is fine compared to the rest of the industry. HMC outperforms 77.78% of its industry peers.
With an excellent Return On Invested Capital value of 3.18%, HMC belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HMC is in line with the industry average of 5.46%.
| 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
Looking at the Profit Margin, with a value of 2.95%, HMC belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
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 86.11% of the companies in the same industry.
In the last couple of years the Operating Margin of HMC has grown nicely.
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.
HMC's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HMC is 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.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that HMC is in the distress zone and has some risk of bankruptcy.
HMC's Altman-Z score of 1.66 is fine compared to the rest of the industry. HMC outperforms 75.00% of its industry peers.
HMC has a Debt/Equity ratio of 0.59. This is a neutral value indicating HMC is somewhat dependend on debt financing.
HMC's Debt to Equity ratio of 0.59 is fine compared to the rest of the industry. HMC outperforms 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.66 |
ROIC/WACC1.1
WACC2.89%
2.3 Liquidity
HMC has a Current Ratio of 1.30. This is a normal value and indicates that HMC is financially healthy and should not expect problems in meeting its short term obligations.
HMC has a Current ratio of 1.30. This is in the better half of the industry: HMC outperforms 61.11% of its industry peers.
A Quick Ratio of 1.01 indicates that HMC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.01, HMC is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for HMC have decreased strongly by -38.67% in the last year.
HMC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.21% yearly.
Looking at the last year, HMC shows a small growth in Revenue. The Revenue has grown by 1.96% in the last year.
Measured over the past years, HMC shows a small growth in Revenue. The Revenue has been growing by 7.75% on average per year.
EPS 1Y (TTM)-38.67%
EPS 3Y-20.96%
EPS 5Y-7.21%
EPS Q2Q%-42.79%
Revenue 1Y (TTM)1.96%
Revenue growth 3Y14.23%
Revenue growth 5Y7.75%
Sales Q2Q%-1.2%
3.2 Future
The Earnings Per Share is expected to grow by 5.95% 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 1.17% on average per year.
EPS Next Y-18.42%
EPS Next 2Y3.24%
EPS Next 3Y5.95%
EPS Next 5YN/A
Revenue Next Year-1.38%
Revenue Next 2Y0.27%
Revenue Next 3Y1.17%
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
A Price/Earnings ratio of 10.12 indicates a reasonable valuation of HMC.
Compared to the rest of the industry, the Price/Earnings ratio of HMC indicates a rather cheap valuation: HMC is cheaper than 91.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HMC to the average of the S&P500 Index (26.11), we can say HMC is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.63, the valuation of HMC can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HMC indicates a rather cheap valuation: HMC is cheaper than 88.89% of the companies listed in the same industry.
HMC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 7.63 |
4.2 Price Multiples
HMC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HMC is cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.81 |
4.3 Compensation for Growth
HMC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.24%
EPS Next 3Y5.95%
5. Dividend
5.1 Amount
HMC has a Yearly Dividend Yield of 4.39%, which is a nice return.
Compared to an average industry Dividend Yield of 3.32, 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 2.37, HMC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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 2Y3.24%
EPS Next 3Y5.95%
NYSE:HMC (11/3/2025, 2:54:23 PM)
30.565
+0.07 (+0.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners35.99%
Inst Owner Change-1.28%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap39.66B
Revenue(TTM)21624.18B
Net Income(TTM)637.85B
Analysts74.17
Price Target34.66 (13.4%)
Short Float %0.35%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
Yearly Dividend1.59
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)0%
PT rev (3m)7.99%
EPS NQ rev (1m)-4.93%
EPS NQ rev (3m)-0.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-35.5%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 7.63 | ||
| P/S | 0.28 | ||
| P/FCF | N/A | ||
| P/OCF | 13.32 | ||
| P/B | 0.52 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 7.81 |
EPS(TTM)3.02
EY9.88%
EPS(NY)4.01
Fwd EY13.11%
FCF(TTM)-1.91
FCFYN/A
OCF(TTM)2.29
OCFY7.51%
SpS108.09
BVpS58.97
TBVpS53.66
PEG (NY)N/A
PEG (5Y)N/A
Graham Number63.3
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 | 1.66 |
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)-38.67%
EPS 3Y-20.96%
EPS 5Y-7.21%
EPS Q2Q%-42.79%
EPS Next Y-18.42%
EPS Next 2Y3.24%
EPS Next 3Y5.95%
EPS Next 5YN/A
Revenue 1Y (TTM)1.96%
Revenue growth 3Y14.23%
Revenue growth 5Y7.75%
Sales Q2Q%-1.2%
Revenue Next Year-1.38%
Revenue Next 2Y0.27%
Revenue Next 3Y1.17%
Revenue Next 5YN/A
EBIT growth 1Y-33.91%
EBIT growth 3Y11.68%
EBIT growth 5Y13.88%
EBIT Next Year17952.9%
EBIT Next 3Y511.67%
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 10.12 and the Price/Book (PB) ratio is 0.52.
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 -18.42% in the next year.