Honda Motor (HMC) Stock Analysis
This is a peer-relative look at Honda Motor (HMC): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Automobiles & Components peers, so every number reads in context rather than in isolation.
Company Profile
Honda Motor (HMC) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.
| Profile Item | HMC |
|---|---|
| Name | Honda Motor Co., Ltd. |
| Country/Region | Japan |
| GICS Sector | Consumer Discretionary |
| GICS Industry Group | Automobiles & Components |
| GICS Industry | Automobiles |
| GICS Sub-Industry | Automobile Manufacturers |
| Market Capitalization | 39.86 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 17, 1980 |
| Security Type | ADR |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| Total Return (1Y) | -3.55% | 5.97% |
| Total Return (3Y, Annualized) | 1.62% | -6.77% |
| Total Return (5Y, Annualized) | 2.13% | -4.85% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 28.61% | 47.29% |
| Beta (5Y) | 0.41 | 1.30 |
| Max Drawdown (5Y) | -35.20% | -73.10% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | -0.27 | 0.04 |
| Sortino Ratio (1Y) | -0.39 | 0.08 |
Profitability
ROE (TTM)
Honda Motor (HMC) has negative ROE of -2.85%. That can come from trailing losses or negative book equity, so it is a warning state rather than a clean capital-efficiency measure.
HMC
Automobiles & Components industry group
-2.85%
Group distribution
- Max
- 41.97%
- Q3
- 11.32%
- Median
- 5.13%
- HMC
- -2.85%
- Q1
- -14.13%
- Min
- -49.98%
Largest peers
- RACE
- 41.97%
- TM
- 10.23%
- TSLA
- 4.90%
- GM
- 4.02%
- HMC
- -2.85%
- F
- -14.81%
- RIVN
- -65.69%
Net Margin (TTM)
Honda Motor (HMC) has negative net margin of -1.95%. The trailing period ended in a net loss, so the bottom-line conversion read is a warning rather than a profitability strength.
HMC
Automobiles & Components industry group
-1.95%
Group distribution
- Max
- 15.12%
- Q3
- 4.33%
- Median
- 1.47%
- HMC
- -1.95%
- Q1
- -3.14%
- Min
- -13.87%
Largest peers
- RACE
- 22.19%
- TM
- 7.59%
- TSLA
- 3.95%
- GM
- 1.38%
- HMC
- -1.95%
- F
- -3.22%
- RIVN
- -63.62%
Operating Margin (TTM)
Honda Motor (HMC) has negative operating margin of -16.45%. Core operations were loss-making before interest and taxes over the trailing period.
HMC
Automobiles & Components industry group
-16.45%
Group distribution
- Max
- 29.48%
- Q3
- 8.69%
- Median
- 3.45%
- Q1
- -5.57%
- HMC
- -16.45%
- Min
- -19.36%
Largest peers
- RACE
- 29.48%
- GM
- 9.36%
- F
- 5.74%
- TM
- 4.57%
- TSLA
- 4.20%
- HMC
- -16.45%
- RIVN
- -63.79%
Profitability Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| ROE (TTM) | -2.85% | 5.13% |
| ROA (TTM) | -0.71% | 2.23% |
| Net Margin (TTM) | -1.95% | 1.47% |
| Operating Margin (TTM) | -16.45% | 3.45% |
| Gross Margin (TTM) | 16.75% | 16.76% |
Growth
Revenue Growth
Honda Motor (HMC) grew revenue 0.50%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
Honda Motor (HMC) grew earnings per share -159.27%, in the lower peer quartile. Per-share profits are advancing more slowly than at most peers, so margins, costs, or share count deserve a closer look.
Growth Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 0.50% | 3.03% |
| Revenue Growth (3Y CAGR) | 8.83% | 5.75% |
| EPS Growth (YoY) | -159.27% | -16.76% |
| EPS Growth (3Y CAGR) | -- | -6.85% |
Financial Strength
Current Ratio (MRQ)
Honda Motor (HMC) has current ratio of 1.28, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
HMC
Automobiles & Components industry group
1.28
Group distribution
- Max
- 4.97
- Q3
- 2.67
- Median
- 1.83
- HMC
- 1.28
- Q1
- 1.12
- Min
- 0.06
Largest peers
- RACE
- 2.57
- RIVN
- 2.10
- TSLA
- 2.04
- HMC
- 1.28
- TM
- 1.27
- GM
- 1.15
- F
- 1.09
Debt / Equity (MRQ)
Honda Motor (HMC) has debt-to-equity ratio of 1.14, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
HMC
Automobiles & Components industry group
1.14
Group distribution
- Max
- 2.53
- Q3
- 1.19
- HMC
- 1.14
- Median
- 0.72
- Q1
- 0.26
- Min
- 0.00
Largest peers
- F
- 4.26
- GM
- 1.99
- RIVN
- 1.18
- HMC
- 1.14
- TM
- 1.07
- RACE
- 0.72
- TSLA
- 0.19
Financial Strength Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.28 | 1.83 |
| Debt / Equity (MRQ) | 1.14 | 0.72 |
| Net Debt / EBITDA | 8.44 | 1.73 |
Dividends
Dividend Yield (TTM)
Honda Motor (HMC) has dividend yield of 228.16%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.
HMC
Automobiles & Components industry group
228.16%
Group distribution
- HMC
- 228.16%
- Max
- 4.30%
- Q3
- 1.80%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- HMC
- 228.16%
- TM
- 53.21%
- F
- 4.29%
- RACE
- 0.97%
- TSLA
- 0.00%
- GM
- 0.00%
- RIVN
- 0.00%
Dividend Payout Ratio (TTM)
Honda Motor (HMC) has payout ratio of 55.35%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
HMC
Automobiles & Components industry group
55.35%
Group distribution
- Max
- 82.28%
- HMC
- 55.35%
- Q3
- 33.54%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- F
- 64.10%
- HMC
- 55.35%
- RACE
- 33.21%
- TM
- 31.40%
- GM
- 22.99%
- TSLA
- 0.00%
- RIVN
- 0.00%
Dividend Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 228.16% | 0.00% |
| Dividend Payout Ratio (TTM) | 55.35% | 0.00% |
Valuation
P/E Ratio (TTM)
No usable P/E ratio is available for Honda Motor (HMC) this period, so the trailing-earnings valuation read is skipped.
HMC
Automobiles & Components industry group
--
Group distribution
- Max
- 48.85
- Q3
- 30.60
- Median
- 21.90
- Q1
- 13.74
- Min
- 5.99
- HMC
- --
Largest peers
- TSLA
- 344.48
- RACE
- 36.24
- GM
- 27.71
- TM
- 9.79
- HMC
- --
- F
- --
- RIVN
- --
P/S Ratio (TTM)
Honda Motor (HMC) trades at 0.00 on P/S ratio, in the lower sales-valuation quartile for its industry. That points to a cheaper revenue stream than most peers, with margin quality still doing the heavy lifting.
HMC
Automobiles & Components industry group
0.00
Group distribution
- Max
- 4.13
- Q3
- 1.94
- Median
- 0.61
- Q1
- 0.30
- HMC
- 0.00
- Min
- 0.00
Largest peers
- TSLA
- 14.54
- RACE
- 9.03
- RIVN
- 4.65
- GM
- 0.39
- F
- 0.30
- TM
- 0.00
- HMC
- 0.00
P/B Ratio (MRQ)
Honda Motor (HMC) trades at 0.55 on P/B ratio, in the lower book-value quartile for its industry. Investors are paying less for the balance-sheet equity than they pay for most peers, with returns on that equity still central to the read.
HMC
Automobiles & Components industry group
0.55
Group distribution
- Max
- 4.22
- Q3
- 2.21
- Median
- 1.33
- Q1
- 0.69
- HMC
- 0.55
- Min
- -1.46
Largest peers
- TSLA
- 16.92
- TM
- 15.26
- RACE
- 14.12
- RIVN
- 5.08
- F
- 1.52
- GM
- 1.18
- HMC
- 0.55
Valuation Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | -- | 21.90 |
| P/S Ratio (TTM) | 0.00 | 0.61 |
| P/B Ratio (MRQ) | 0.55 | 1.33 |
| Free Cash Flow Yield (TTM) | 475.57% | 5.01% |