DB:HDMA

Stock Analysis Report

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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


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: HDMA is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HDMA's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

HDMA

5.9%

DE Auto

1.6%

DE Market


1 Year Return

-7.4%

HDMA

4.3%

DE Auto

3.6%

DE Market

Return vs Industry: HDMA underperformed the German Auto industry which returned 4.3% over the past year.

Return vs Market: HDMA underperformed the German Market which returned 3.6% over the past year.


Shareholder returns

HDMAIndustryMarket
7 Day0.9%5.9%1.6%
30 Day-3.4%3.2%3.7%
90 Day9.7%18.1%12.0%
1 Year-7.4%-7.4%8.3%4.3%7.0%3.6%
3 Year-20.9%-21.5%-6.6%-17.4%5.8%-3.5%
5 Year-4.0%-7.9%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: HDMA (€22.6) is trading below our estimate of fair value (€65.41)

Significantly Below Fair Value: HDMA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HDMA is good value based on its PE Ratio (20x) compared to the XE Auto industry average (20.4x).

PE vs Market: HDMA is good value based on its PE Ratio (20x) compared to the German market (25x).


Price to Earnings Growth Ratio

PEG Ratio: HDMA is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: HDMA 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: HDMA's forecast earnings growth (20.5% per year) is above the savings rate (0.07%).

Earnings vs Market: HDMA'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: HDMA's revenue (5.1% per year) is forecast to grow slower than the German market (6.1% per year).

High Growth Revenue: HDMA'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: HDMA'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: HDMA has high quality earnings.

Growing Profit Margin: HDMA's current net profit margins (1.9%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: HDMA's earnings have declined by 0.7% per year over the past 5 years.

Accelerating Growth: HDMA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HDMA 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: HDMA'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: HDMA's short term assets (¥7,219.3B) exceed its short term liabilities (¥5,570.6B).

Long Term Liabilities: HDMA's short term assets (¥7,219.3B) exceed its long term liabilities (¥6,632.6B).


Debt to Equity History and Analysis

Debt Level: HDMA's debt to equity ratio (92.4%) is considered high.

Reducing Debt: HDMA's debt to equity ratio has increased from 90.8% to 92.4% over the past 5 years.

Debt Coverage: HDMA's debt is not well covered by operating cash flow (14%).

Interest Coverage: HDMA 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: HDMA's dividend (2.38%) is higher than the bottom 25% of dividend payers in the German market (0.98%).

High Dividend: HDMA'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: HDMA's dividends per share have been stable in the past 10 years.

Growing Dividend: HDMA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.8%), HDMA'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

NamePositionTenureCompensationOwnership
Toshiaki Mikoshiba
Chairman and Director in Charge of Government & Industry Relations1.75yrsJP¥138.00m0.0025%
¥ 970.7k
Takahiro Hachigo
CEO, President & Representative Director5.58yrsJP¥173.00m0.0022%
¥ 857.6k
Seiji Kuraishi
Exec. VP4.58yrsJP¥112.00m0.0022%
¥ 857.6k
Kohei Takeuchi
CFO, Sr. MD7.58yrsno data0.0016%
¥ 608.1k
Takanobu Ito
Advisor and Director20.58yrsJP¥139.00m0.0029%
¥ 1.2m
Michimasa Fujino
Managing Officerno datano datano data
Mitsugu Matsukawa
Managing Officerno datano datano data
Shinji Aoyama
Managing Officer & Chief Officer for Regional Operations of North America1.75yrsno datano data
Noriya Kaihara
Managing Officer & Head of Business Supervisory Unit of Automobile Operations7.75yrsno datano data
Toshihiro Mibe
Senior MD & Director0.58yrno data0.0011%
¥ 428.8k
Noriaki Abe
Managing Officer & Chief Officer for Motorcycle Operations6.75yrsno datano data
Yasuhide Mizuno
Managing Officer & Chief Officer of Automobile Operations6.75yrsno datano data

5.6yrs

Average Tenure

60yo

Average Age

Experienced Management: HDMA's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Toshiaki Mikoshiba
Chairman and Director in Charge of Government & Industry Relations1.75yrsJP¥138.00m0.0025%
¥ 970.7k
Takahiro Hachigo
CEO, President & Representative Director5.58yrsJP¥173.00m0.0022%
¥ 857.6k
Seiji Kuraishi
Exec. VP4.58yrsJP¥112.00m0.0022%
¥ 857.6k
Kohei Takeuchi
CFO, Sr. MD7.58yrsno data0.0016%
¥ 608.1k
Takanobu Ito
Advisor and Director20.58yrsJP¥139.00m0.0029%
¥ 1.2m
Toshihiro Mibe
Senior MD & Director0.58yrno data0.0011%
¥ 428.8k
Takashi Nagai
President of Honda Logistics Inc. - Japan and Director of Honda Logistics Inc. - Japan8.75yrsno datano data
Masahiro Yoshida
Director3.58yrsno data0.0026%
¥ 1.0m
Mayumi Tamura
Independent Outside Director3.58yrsno data0.00012%
¥ 46.8k
Hideo Takaura
Independent Outside Director3.58yrsno data0.00012%
¥ 46.8k
Hiroko Koide
Independent Outside Director1.58yrsno data0.000020%
¥ 7.8k
Masafumi Suzuki
Director3.58yrsno data0.0029%
¥ 1.2m

3.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: HDMA'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: HDMA
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HMCNYSE (New York Stock Exchange)AMERN SHSUSUSDFeb 1977
HMC NBMV (Bolsa Mexicana de Valores)AMERN SHSMXMXNFeb 1977
HDMADB (Deutsche Boerse AG)AMERN SHSDEEURFeb 1977
HNDA.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
7267TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
HDMDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
HMCBASE (Buenos Aires Stock Exchange)CEDEAR REPR 1 ADR (CNV INTO 1 ORD NPV)ARARSAug 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/24 01:46
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.