HONDA MOTOR CO LTD-SPONS ADR (HMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HMC - US4381283088 - ADR
30.3 USD
+0.34 (+1.13%)
30.3 USD
0 (0%)
Overall HMC gets a fundamental rating of 5 out of 10. We evaluated HMC against 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HMC was profitable.
In the past year HMC had a positive cash flow from operations.
HMC had positive earnings in each of the past 5 years.
In the past 5 years HMC always reported a positive cash flow from operatings.
1.2 Ratios
HMC has a better Return On Assets (2.14%) than 83.33% of its industry peers.
The Return On Equity of HMC (5.41%) is better than 77.78% of its industry peers.
HMC has a Return On Invested Capital of 3.18%. This is amongst the best in the industry. HMC outperforms 80.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
The Profit Margin of HMC (2.95%) is better than 86.11% of its industry peers.
HMC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.50%, HMC belongs to the top 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.
With an excellent Gross Margin value of 20.99%, HMC belongs to the best 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
HMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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's Altman-Z score of 1.65 is fine compared to the rest of the industry. HMC outperforms 72.22% 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.
The Current ratio of HMC (1.30) is better than 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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
HMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.93%.
The Earnings Per Share has been decreasing by -7.21% on average over the past years.
Looking at the last year, HMC shows a small growth in Revenue. The Revenue has grown by 6.17% 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)-25.93%
EPS 3Y-20.96%
EPS 5Y-7.21%
EPS Q2Q%35.23%
Revenue 1Y (TTM)6.17%
Revenue growth 3Y14.23%
Revenue growth 5Y7.75%
Sales Q2Q%-1.86%
3.2 Future
Based on estimates for the next years, HMC will show a small growth in Earnings Per Share. The EPS will grow by 6.98% on average per year.
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 reasonably with a Price/Earnings ratio of 9.65.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.15, HMC is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.42, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, HMC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 7.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HMC indicates a rather cheap valuation: HMC is cheaper than 91.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.79 |
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 2Y4.89%
EPS Next 3Y6.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.62%, HMC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.48, HMC pays a better dividend. On top of this HMC pays more dividend than 94.44% 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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
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%
30.3
+0.34 (+1.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners35.99%
Inst Owner Change13.76%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap39.31B
Revenue(TTM)21.69T
Net Income(TTM)637.85B
Analysts74.17
Price Target33.62 (10.96%)
Short Float %0.28%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
Yearly Dividend1.57
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)-2.99%
PT rev (3m)2.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.94%
EPS NY rev (1m)4.15%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 7.42 | ||
| P/S | 0.28 | ||
| P/FCF | N/A | ||
| P/OCF | 13.38 | ||
| P/B | 0.52 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)3.14
EY10.36%
EPS(NY)4.08
Fwd EY13.47%
FCF(TTM)-1.88
FCFYN/A
OCF(TTM)2.27
OCFY7.48%
SpS106.7
BVpS58.21
TBVpS52.97
PEG (NY)N/A
PEG (5Y)N/A
Graham Number64.13
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)-25.93%
EPS 3Y-20.96%
EPS 5Y-7.21%
EPS Q2Q%35.23%
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%-1.86%
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 Year18188.7%
EBIT Next 3Y514.33%
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 9.65 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 -15.04% in the next year.