HONDA MOTOR CO LTD-SPONS ADR (HMC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HMC - US4381283088 - ADR
29.43 USD
-0.23 (-0.78%)
29.43 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. 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.
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.
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
Looking at the Return On Assets, with a value of 2.14%, HMC belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.41%, HMC is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
The Return On Invested Capital of HMC (3.18%) is better than 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 5.86%.
| 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's Profit Margin of 2.95% is amongst the best of the industry. HMC outperforms 86.11% of its industry peers.
In the last couple of years the Profit Margin of HMC has grown nicely.
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.
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
HMC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, HMC has less shares outstanding
The number of shares outstanding for HMC has been increased compared to 5 years ago.
HMC has a worse debt/assets ratio than last year.
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 Altman-Z score of 1.65. This is in the better half of the industry: HMC outperforms 72.22% 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 | 1.65 |
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.
The Current ratio of HMC (1.30) is comparable to the rest of the industry.
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.
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
The earnings per share for HMC have decreased strongly by -25.93% in the last year.
The Earnings Per Share has been decreasing by -7.21% on average over the past years.
HMC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.17%.
HMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.75% yearly.
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 7.36% on average per year.
The Revenue is expected to grow by 1.41% on average over the next years.
EPS Next Y-23.51%
EPS Next 2Y4.97%
EPS Next 3Y7.36%
EPS Next 5YN/A
Revenue Next Year-1.53%
Revenue Next 2Y0.63%
Revenue Next 3Y1.41%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.31 indicates a reasonable valuation of HMC.
Based on the Price/Earnings ratio, HMC is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.49, HMC is valued rather cheaply.
The Price/Forward Earnings ratio is 7.15, which indicates a rather cheap valuation of HMC.
Based on the Price/Forward Earnings ratio, HMC is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.69. HMC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 7.15 |
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 | 7.71 |
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 2Y4.97%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
HMC has a Yearly Dividend Yield of 4.52%, which is a nice return.
Compared to an average industry Dividend Yield of 3.24, 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
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 2Y4.97%
EPS Next 3Y7.36%
29.43
-0.23 (-0.78%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners36.22%
Inst Owner Change13.8%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap38.19B
Revenue(TTM)21.69T
Net Income(TTM)637.85B
Analysts74.17
Price Target33.62 (14.24%)
Short Float %0.28%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Yearly Dividend1.58
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)7.94%
EPS NY rev (1m)-9.97%
EPS NY rev (3m)-3.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 7.15 | ||
| P/S | 0.27 | ||
| P/FCF | N/A | ||
| P/OCF | 12.91 | ||
| P/B | 0.5 | ||
| P/tB | 0.55 | ||
| EV/EBITDA | 7.71 |
EPS(TTM)3.16
EY10.74%
EPS(NY)4.11
Fwd EY13.98%
FCF(TTM)-1.89
FCFYN/A
OCF(TTM)2.28
OCFY7.74%
SpS107.37
BVpS58.57
TBVpS53.3
PEG (NY)N/A
PEG (5Y)N/A
Graham Number64.53
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-23.51%
EPS Next 2Y4.97%
EPS Next 3Y7.36%
EPS Next 5YN/A
Revenue 1Y (TTM)6.17%
Revenue growth 3Y14.23%
Revenue growth 5Y7.75%
Sales Q2Q%-1.86%
Revenue Next Year-1.53%
Revenue Next 2Y0.63%
Revenue Next 3Y1.41%
Revenue Next 5YN/A
EBIT growth 1Y-33.91%
EBIT growth 3Y11.68%
EBIT growth 5Y13.88%
EBIT Next Year17588.4%
EBIT Next 3Y519.11%
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 9.31 and the Price/Book (PB) ratio is 0.5.
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 -23.51% in the next year.