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 Sponsored ADR |
| Country/Region | Japan |
| GICS Sector | Consumer Discretionary |
| GICS Industry Group | Automobiles & Components |
| GICS Industry | Automobiles |
| GICS Sub-Industry | Automobile Manufacturers |
| Market Capitalization | 42.39 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) | -4.42% | -16.15% |
| Total Return (3Y, Annualized) | 3.15% | -3.72% |
| Total Return (5Y, Annualized) | 4.24% | -4.15% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 28.58% | 46.52% |
| Beta (5Y) | 0.46 | 1.29 |
| Max Drawdown (5Y) | -35.20% | -69.71% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | -0.30 | -0.39 |
| Sortino Ratio (1Y) | -0.44 | -0.60 |
Profitability
ROE (TTM)
Honda Motor (HMC) has negative ROE of -0.76%. 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
-0.76%
Group distribution
- Max
- 45.44%
- Q3
- 11.46%
- Median
- 4.91%
- HMC
- -0.76%
- Q1
- -17.45%
- Min
- -57.52%
Largest peers
- RACE
- 45.44%
- TM
- 12.40%
- HSAI
- 7.49%
- TSLA
- 4.67%
- GM
- 3.16%
- HMC
- -0.76%
- F
- -18.25%
Net Margin (TTM)
Honda Motor (HMC) has negative net margin of -0.75%. 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
-0.75%
Group distribution
- Max
- 15.50%
- Q3
- 4.15%
- Median
- 1.52%
- HMC
- -0.75%
- Q1
- -4.09%
- Min
- -14.37%
Largest peers
- RACE
- 22.25%
- HSAI
- 14.93%
- TM
- 8.63%
- TSLA
- 3.67%
- GM
- 1.05%
- HMC
- -0.75%
- F
- -3.94%
Operating Margin (TTM)
Honda Motor (HMC) turns 8.76% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
HMC
Automobiles & Components industry group
8.76%
Group distribution
- Max
- 18.99%
- Q3
- 8.79%
- HMC
- 8.76%
- Median
- 4.09%
- Q1
- 0.00%
- Min
- -8.96%
Largest peers
- RACE
- 31.07%
- HMC
- 8.76%
- TM
- 7.86%
- GM
- 3.20%
- F
- 1.88%
- TSLA
- 1.41%
- HSAI
- 0.26%
Profitability Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| ROE (TTM) | -0.76% | 4.91% |
| ROA (TTM) | -0.15% | 2.25% |
| Net Margin (TTM) | -0.75% | 1.52% |
| Operating Margin (TTM) | 8.76% | 4.09% |
| Gross Margin (TTM) | 17.45% | 17.76% |
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% | 2.92% |
| Revenue Growth (3Y CAGR) | 8.83% | 5.61% |
| EPS Growth (YoY) | -159.27% | -17.32% |
| EPS Growth (3Y CAGR) | -- | -7.41% |
Financial Strength
Current Ratio (MRQ)
Honda Motor (HMC) has current ratio of 1.29, 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
1.29
Group distribution
- Max
- 4.60
- Q3
- 2.58
- Median
- 1.81
- HMC
- 1.29
- Q1
- 1.14
- Min
- 0.32
Largest peers
- HSAI
- 5.37
- RACE
- 2.43
- TSLA
- 1.94
- HMC
- 1.29
- TM
- 1.17
- GM
- 1.14
- 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
- 2.03
- Q3
- 1.21
- HMC
- 1.14
- Median
- 0.76
- Q1
- 0.30
- Min
- 0.00
Largest peers
- F
- 4.57
- GM
- 2.02
- TM
- 1.15
- HMC
- 1.14
- RACE
- 0.86
- TSLA
- 0.18
- HSAI
- 0.08
Financial Strength Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.29 | 1.81 |
| Debt / Equity (MRQ) | 1.14 | 0.76 |
| Net Debt / EBITDA | 6.92 | 1.84 |
Dividends
Dividend Yield (TTM)
Honda Motor (HMC) has dividend yield of 211.86%, 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
211.86%
Group distribution
- HMC
- 211.86%
- Max
- 4.63%
- Q3
- 1.99%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- HMC
- 211.86%
- TM
- 47.53%
- F
- 4.16%
- RACE
- 0.87%
- GM
- 0.76%
- TSLA
- 0.00%
- HSAI
- 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
- 72.06%
- HMC
- 55.35%
- Q3
- 32.64%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- F
- 64.10%
- HMC
- 55.35%
- RACE
- 38.96%
- GM
- 29.46%
- TM
- 26.38%
- TSLA
- 0.00%
- HSAI
- 0.00%
Dividend Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 211.86% | 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
- 47.33
- Q3
- 34.51
- Median
- 19.78
- Q1
- 15.07
- Min
- 7.31
- HMC
- --
Largest peers
- TSLA
- 321.89
- GM
- 39.18
- RACE
- 38.17
- HSAI
- 37.78
- TM
- 8.91
- HMC
- --
- F
- --
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
- 3.07
- Q3
- 1.50
- Median
- 0.61
- Q1
- 0.36
- HMC
- 0.00
- Min
- 0.00
Largest peers
- TSLA
- 13.50
- RACE
- 9.80
- HSAI
- 7.12
- GM
- 0.43
- F
- 0.31
- TM
- 0.00
- HMC
- 0.00
P/B Ratio (MRQ)
Honda Motor (HMC) trades at 0.54 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
0.54
Group distribution
- Max
- 4.20
- Q3
- 2.35
- Median
- 1.32
- Q1
- 0.82
- HMC
- 0.54
- Min
- -0.56
Largest peers
- RACE
- 17.01
- TSLA
- 16.10
- TM
- 16.03
- HSAI
- 2.22
- F
- 1.63
- GM
- 1.24
- HMC
- 0.54
Valuation Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | -- | 19.78 |
| P/S Ratio (TTM) | 0.00 | 0.61 |
| P/B Ratio (MRQ) | 0.54 | 1.32 |
| Free Cash Flow Yield (TTM) | 631.57% | 6.30% |