Honda Motor
Market Cap
€39.0b
Last Updated
2021/01/24 01:46 UTC
Data Sources
Company Financials +
Executive Summary
Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other products in japan, North America, Europe, Asia, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with mediocre balance sheet.
Similar Companies
Share Price & News
How has Honda Motor's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HDM is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: HDM's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
1.3%
HDM
5.9%
DE Auto
1.6%
DE Market
1 Year Return
-6.1%
HDM
4.3%
DE Auto
3.6%
DE Market
Return vs Industry: HDM underperformed the German Auto industry which returned 4.3% over the past year.
Return vs Market: HDM underperformed the German Market which returned 3.6% over the past year.
Shareholder returns
| HDM | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.3% | 5.9% | 1.6% |
| 30 Day | -2.1% | 3.2% | 3.7% |
| 90 Day | 10.7% | 18.1% | 12.0% |
| 1 Year | -3.2%-6.1% | 8.3%4.3% | 7.0%3.6% |
| 3 Year | -12.3%-20.8% | -6.6%-17.4% | 5.8%-3.5% |
| 5 Year | 2.7%-12.6% | 38.8%14.6% | 42.5%22.5% |
Long-Term Price Volatility Vs. Market
How volatile is Honda Motor's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Honda Motor undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HDM (€22.8) is trading below our estimate of fair value (€65.99)
Significantly Below Fair Value: HDM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HDM is good value based on its PE Ratio (20x) compared to the XE Auto industry average (20.4x).
PE vs Market: HDM is good value based on its PE Ratio (20x) compared to the German market (25x).
Price to Earnings Growth Ratio
PEG Ratio: HDM is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: HDM is good value based on its PB Ratio (0.6x) compared to the DE Auto industry average (0.8x).
Next Steps
Future Growth
How is Honda Motor forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
20.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HDM's forecast earnings growth (20.5% per year) is above the savings rate (0.07%).
Earnings vs Market: HDM's earnings (20.5% per year) are forecast to grow slower than the German market (25% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HDM's revenue (5.1% per year) is forecast to grow slower than the German market (6.1% per year).
High Growth Revenue: HDM's revenue (5.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HDM's Return on Equity is forecast to be low in 3 years time (7.9%).
Next Steps
Past Performance
How has Honda Motor performed over the past 5 years?
-0.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HDM has high quality earnings.
Growing Profit Margin: HDM's current net profit margins (1.9%) are lower than last year (3.3%).
Past Earnings Growth Analysis
Earnings Trend: HDM's earnings have declined by 0.7% per year over the past 5 years.
Accelerating Growth: HDM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HDM had negative earnings growth (-52.8%) over the past year, making it difficult to compare to the Auto industry average (-56.2%).
Return on Equity
High ROE: HDM's Return on Equity (3.4%) is considered low.
Next Steps
Financial Health
How is Honda Motor's financial position?
Financial Position Analysis
Short Term Liabilities: HDM's short term assets (¥7,219.3B) exceed its short term liabilities (¥5,570.6B).
Long Term Liabilities: HDM's short term assets (¥7,219.3B) exceed its long term liabilities (¥6,632.6B).
Debt to Equity History and Analysis
Debt Level: HDM's debt to equity ratio (92.4%) is considered high.
Reducing Debt: HDM's debt to equity ratio has increased from 90.8% to 92.4% over the past 5 years.
Debt Coverage: HDM's debt is not well covered by operating cash flow (14%).
Interest Coverage: HDM earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Honda Motor current dividend yield, its reliability and sustainability?
2.38%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HDM's dividend (2.38%) is higher than the bottom 25% of dividend payers in the German market (0.98%).
High Dividend: HDM's dividend (2.38%) is low compared to the top 25% of dividend payers in the German market (3.49%).
Stability and Growth of Payments
Stable Dividend: HDM's dividends per share have been stable in the past 10 years.
Growing Dividend: HDM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (99.8%), HDM's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.6yrs
Average management tenure
CEO
Takahiro Hachigo (61 yo)
5.58yrs
Tenure
JP¥173,000,000
Compensation
Mr. Takahiro Hachigo has been Chief Executive Officer and President of Honda Motor Co., Ltd. since June 2015. Mr. Hachigo has been the Chief Executive Officer and President of Honda Motor Co., Ltd., holdin...
CEO Compensation Analysis
Compensation vs Market: Takahiro's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD5.42M).
Compensation vs Earnings: Takahiro's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman and Director in Charge of Government & Industry Relations | 1.75yrs | JP¥138.00m | 0.0025% ¥ 970.7k | |
| CEO, President & Representative Director | 5.58yrs | JP¥173.00m | 0.0022% ¥ 857.6k | |
| Exec. VP | 4.58yrs | JP¥112.00m | 0.0022% ¥ 857.6k | |
| CFO, Sr. MD | 7.58yrs | no data | 0.0016% ¥ 608.1k | |
| Advisor and Director | 20.58yrs | JP¥139.00m | 0.0029% ¥ 1.2m | |
| Managing Officer | no data | no data | no data | |
| Managing Officer | no data | no data | no data | |
| Managing Officer & Chief Officer for Regional Operations of North America | 1.75yrs | no data | no data | |
| Managing Officer & Head of Business Supervisory Unit of Automobile Operations | 7.75yrs | no data | no data | |
| Senior MD & Director | 0.58yr | no data | 0.0011% ¥ 428.8k | |
| Managing Officer & Chief Officer for Motorcycle Operations | 6.75yrs | no data | no data | |
| Managing Officer & Chief Officer of Automobile Operations | 6.75yrs | no data | no data |
5.6yrs
Average Tenure
60yo
Average Age
Experienced Management: HDM's management team is seasoned and experienced (5.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman and Director in Charge of Government & Industry Relations | 1.75yrs | JP¥138.00m | 0.0025% ¥ 970.7k | |
| CEO, President & Representative Director | 5.58yrs | JP¥173.00m | 0.0022% ¥ 857.6k | |
| Exec. VP | 4.58yrs | JP¥112.00m | 0.0022% ¥ 857.6k | |
| CFO, Sr. MD | 7.58yrs | no data | 0.0016% ¥ 608.1k | |
| Advisor and Director | 20.58yrs | JP¥139.00m | 0.0029% ¥ 1.2m | |
| Senior MD & Director | 0.58yr | no data | 0.0011% ¥ 428.8k | |
| President of Honda Logistics Inc. - Japan and Director of Honda Logistics Inc. - Japan | 8.75yrs | no data | no data | |
| Director | 3.58yrs | no data | 0.0026% ¥ 1.0m | |
| Independent Outside Director | 3.58yrs | no data | 0.00012% ¥ 46.8k | |
| Independent Outside Director | 3.58yrs | no data | 0.00012% ¥ 46.8k | |
| Independent Outside Director | 1.58yrs | no data | 0.000020% ¥ 7.8k | |
| Director | 3.58yrs | no data | 0.0029% ¥ 1.2m |
3.6yrs
Average Tenure
61.5yo
Average Age
Experienced Board: HDM's board of directors are considered experienced (3.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Honda Motor Co., Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Honda Motor Co., Ltd.
- Ticker: HDM
- Exchange: DB
- Founded: 1946
- Industry: Automobile Manufacturers
- Sector: Automobiles
- Market Cap: JP¥4.925t
- Listing Market Cap: JP¥38.984b
- Shares outstanding: 1.73b
- Website: https://www.honda.co.jp
Number of Employees
Location
- Honda Motor Co., Ltd.
- 2-1-1, Minami-Aoyama
- Minato-ku
- Tokyo
- 107-8556
- Japan
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HMC | NYSE (New York Stock Exchange) | AMERN SHS | US | USD | Feb 1977 | |
| HMC N | BMV (Bolsa Mexicana de Valores) | AMERN SHS | MX | MXN | Feb 1977 | |
| HDMA | DB (Deutsche Boerse AG) | AMERN SHS | DE | EUR | Feb 1977 | |
| HNDA.F | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Jan 1992 |
| 7267 | TSE (The Tokyo Stock Exchange) | Yes | Common Stock | JP | JPY | Jan 1992 |
| HDM | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1992 |
| HMC | BASE (Buenos Aires Stock Exchange) | CEDEAR REPR 1 ADR (CNV INTO 1 ORD NPV) | AR | ARS | Aug 2007 |
Biography
Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other products in japan, North America, Europe, Asia, and internationally. It operates through fo...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/24 01:46 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.