HONDA MOTOR CO LTD-SPONS ADR (HMC) Stock Fundamental Analysis
NYSE:HMC • US4381283088
30.12 USD
0 (0%)
At close: Feb 26, 2026
30.11 USD
-0.01 (-0.03%)
After Hours: 2/26/2026, 8:04:00 PM
Taking everything into account, HMC scores 5 out of 10 in our fundamental rating. HMC was compared to 35 industry peers in the Automobiles industry. HMC scores excellent on profitability, but there are 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
- 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.
- In the past 5 years HMC always reported a positive cash flow from operatings.
1.2 Ratios
- HMC has a better Return On Assets (1.51%) than 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.
- Looking at the Return On Invested Capital, with a value of 1.97%, HMC is in the better half of the industry, outperforming 80.00% 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 5.06%.
| Industry Rank | Sector 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%
1.3 Margins
- With an excellent Profit Margin value of 2.32%, HMC belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
- In the last couple of years the Profit Margin of HMC has grown nicely.
- Looking at the Operating Margin, with a value of 3.12%, HMC belongs to the top of the industry, outperforming 85.71% 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 20.48%, HMC belongs to the top of the industry, outperforming 85.71% 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 | 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%
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.
- The number of shares outstanding for HMC has been reduced compared to 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 1.50, we must say that HMC is in the distress zone and has some risk of bankruptcy.
- HMC has a better Altman-Z score (1.50) than 80.00% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.5 |
ROIC/WACC0.68
WACC2.89%
2.3 Liquidity
- HMC has a Current Ratio of 1.36. 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 (1.36) which is in line with its industry peers.
- A Quick Ratio of 1.09 indicates that HMC should not have too much problems paying 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- HMC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.19%.
- The Earnings Per Share has been growing by 15.59% on average over the past years. This is quite good.
- Looking at the last year, HMC shows a decrease in Revenue. The Revenue has decreased by -1.94% in the last year.
- HMC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.75% yearly.
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
- Based on estimates for the next years, HMC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.62% on average per year.
- Based on estimates for the next years, HMC will show a small growth in Revenue. The Revenue will grow by 1.73% on average per year.
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
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 12.60, HMC is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of HMC indicates a rather cheap valuation: HMC is cheaper than 94.29% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of HMC to the average of the S&P500 Index (27.21), we can say HMC is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 7.97, 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 91.43% 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 28.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 7.97 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.33 |
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%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.43%, HMC is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.91, HMC pays a better dividend. On top of this HMC pays more dividend than 97.14% 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 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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
- 57.34% of the earnings are spent on dividend by HMC. This is a bit on the high side, but may be sustainable.
DP57.34%
EPS Next 2Y4.78%
EPS Next 3Y8.62%
30.12
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)02-10 2026-02-10/dmh
Earnings (Next)05-11 2026-05-11/bmo
Inst Owners35.96%
Inst Owner Change1.17%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap39.08B
Revenue(TTM)21.34T
Net Income(TTM)496.01B
Analysts73.33
Price Target32.17 (6.81%)
Short Float %0.28%
Short Ratio2.24
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.6 | ||
| Fwd PE | 7.97 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | 7.5 | ||
| P/B | 0.49 | ||
| P/tB | 0.54 | ||
| EV/EBITDA | 9.33 |
EPS(TTM)2.39
EY7.93%
EPS(NY)3.78
Fwd EY12.55%
FCF(TTM)-0.25
FCFYN/A
OCF(TTM)4.02
OCFY13.33%
SpS104.91
BVpS61.3
TBVpS56.21
PEG (NY)N/A
PEG (5Y)0.81
Graham Number57.41
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 Year17559.5%
EBIT Next 3Y526.21%
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 12.6 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.