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HMC

Honda MotorNYSE:HMC Stock Report

Last Price

JP¥29.78

Market Cap

JP¥51.2b

7D

-2.8%

1Y

6.5%

Updated

19 Jan, 2022

Data

Company Financials +
HMC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends4/6

HMC Stock Overview

Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other products in Japan, North America, Europe, Asia, and internationally.

Honda Motor Competitors

Tesla

NasdaqGS:TSLA

US$1.0t

General Motors

NYSE:GM

US$81.7b

Ferrari

NYSE:RACE

US$43.9b

Volkswagen

XTRA:VOW3

€118.3b

Price History & Performance

Summary of all time highs, changes and price drops for Honda Motor
Historical stock prices
Current Share PriceJP¥29.78
52 Week HighJP¥33.42
52 Week LowJP¥26.33
Beta1.01
1 Month Change8.85%
3 Month Change-0.47%
1 Year Change6.55%
3 Year Change1.64%
5 Year Change-3.28%
Change since IPO376.48%

Recent News & Updates

Jan 07

Honda - Driving Nowhere Slowly

A reader contacted me after my article/s on German automotives and asked me to review Honda. I don't often review or read on Japanese companies - but Honda's market position in the USA is strong, and the company is potentially interesting. Read my stance on Honda, and why I am not impressed with the company, or the valuation.

Oct 25

Honda Motor Co.: Going Nowhere Without A Change

The automobile industry has been seeing some positive catalysts as they navigate electrification and automation of their motors and technologies. With hype seeming to play a critical role in the success, or lack thereof, of companies' sales growth, Honda is trailing behind and is projected to report slower annual growth. As a result, I believe they currently constitute a poor long-term investment.

Aug 06

Trade Plan: Honda Motor

Auto manufacturer beats sales and earnings estimates in Q1. Momentum is certainly on its side. As an alternative to buying shares, we look at a trade setup which controls risk but also gives strong upside potential.

Shareholder Returns

HMCUS AutoUS Market
7D-2.8%-10.1%-4.6%
1Y6.5%11.2%7.7%

Return vs Industry: HMC underperformed the US Auto industry which returned 16.1% over the past year.

Return vs Market: HMC underperformed the US Market which returned 10.2% over the past year.

Price Volatility

Is HMC's price volatile compared to industry and market?
HMC volatility
HMC Average Weekly Movement3.1%
Auto Industry Average Movement9.9%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: HMC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HMC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1946211,374Toshihiro Mibehttps://www.honda.co.jp

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 four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Life creation and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides.

Honda Motor Fundamentals Summary

How do Honda Motor's earnings and revenue compare to its market cap?
HMC fundamental statistics
Market CapJP¥5.85t
Earnings (TTM)JP¥886.58b
Revenue (TTM)JP¥14.38t

6.6x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HMC income statement (TTM)
RevenueJP¥14.38t
Cost of RevenueJP¥11.35t
Gross ProfitJP¥3.04t
ExpensesJP¥2.15t
EarningsJP¥886.58b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)518.84
Gross Margin21.11%
Net Profit Margin6.16%
Debt/Equity Ratio79.3%

How did HMC perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

16%

Payout Ratio

Valuation

Is Honda Motor undervalued compared to its fair value and its price relative to the market?

6.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HMC ($29.78) is trading above our estimate of fair value ($12.84)

Significantly Below Fair Value: HMC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HMC is good value based on its PE Ratio (6.6x) compared to the US Auto industry average (16.2x).

PE vs Market: HMC is good value based on its PE Ratio (6.6x) compared to the US market (17x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HMC is good value based on its PB Ratio (0.6x) compared to the US Auto industry average (3.5x).


Future Growth

How is Honda Motor forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HMC's forecast earnings growth (6.8% per year) is above the savings rate (2%).

Earnings vs Market: HMC's earnings (6.8% per year) are forecast to grow slower than the US market (13% per year).

High Growth Earnings: HMC's earnings are forecast to grow, but not significantly.

Revenue vs Market: HMC's revenue (5% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: HMC's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HMC's Return on Equity is forecast to be low in 3 years time (7.8%).


Past Performance

How has Honda Motor performed over the past 5 years?

-3.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HMC has high quality earnings.

Growing Profit Margin: HMC's current net profit margins (6.2%) are higher than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: HMC's earnings have declined by 3.8% per year over the past 5 years.

Accelerating Growth: HMC's earnings growth over the past year (259%) exceeds its 5-year average (-3.8% per year).

Earnings vs Industry: HMC earnings growth over the past year (259%) exceeded the Auto industry 210.7%.


Return on Equity

High ROE: HMC's Return on Equity (9.6%) is considered low.


Financial Health

How is Honda Motor's financial position?


Financial Position Analysis

Short Term Liabilities: HMC's short term assets (¥7,158.0B) exceed its short term liabilities (¥5,288.2B).

Long Term Liabilities: HMC's short term assets (¥7,158.0B) exceed its long term liabilities (¥6,864.1B).


Debt to Equity History and Analysis

Debt Level: HMC's net debt to equity ratio (50.5%) is considered high.

Reducing Debt: HMC's debt to equity ratio has reduced from 89.2% to 79.3% over the past 5 years.

Debt Coverage: HMC's debt is not well covered by operating cash flow (11.2%).

Interest Coverage: HMC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Honda Motor current dividend yield, its reliability and sustainability?

3.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HMC's dividend (3.21%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: HMC's dividend (3.21%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.6%), HMC's dividend payments are 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?

5.3yrs

Average management tenure


CEO

Toshihiro Mibe (60 yo)

0.75

Tenure

Mr. Toshihiro Mibe serves as Director at Honda Motor Co., Ltd. since June 2020 and serves as its President since April 1, 2021 and has been its Chief Executive Officer since June 23, 2021 and served as Sen...


Leadership Team

Experienced Management: HMC's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: HMC's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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 employee growth, exchange listings and data sources


Key Information

  • Name: Honda Motor Co., Ltd.
  • Ticker: HMC
  • Exchange: NYSE
  • Founded: 1946
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Implied Market Cap: JP¥5.851t
  • Listing Market Cap: JP¥51.213b
  • Shares outstanding: 1.71b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:33
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.