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 | 44.32 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) | 8.10% | -21.96% |
| Total Return (3Y, Annualized) | 4.24% | -5.83% |
| Total Return (5Y, Annualized) | 5.53% | -8.05% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 28.58% | 45.60% |
| Beta (5Y) | 0.49 | 1.31 |
| Max Drawdown (5Y) | -35.20% | -73.53% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.13 | -0.57 |
| Sortino Ratio (1Y) | 0.19 | -0.91 |
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
- 11.80%
- Median
- 3.97%
- HMC
- -0.76%
- Q1
- -20.00%
- Min
- -61.53%
Largest peers
- RACE
- 45.44%
- TM
- 12.40%
- GM
- 6.28%
- TSLA
- 3.84%
- HMC
- -0.76%
- F
- -18.25%
- RIVN
- -57.52%
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
- 15.15%
- Q3
- 4.28%
- Median
- 1.28%
- HMC
- -0.75%
- Q1
- -4.17%
- Min
- -14.37%
Largest peers
- RACE
- 22.25%
- TM
- 8.63%
- TSLA
- 3.11%
- GM
- 2.12%
- HMC
- -0.75%
- F
- -3.94%
- RIVN
- -54.96%
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
- 18.53%
- Q3
- 8.80%
- HMC
- 8.76%
- Median
- 4.15%
- Q1
- 0.00%
- Min
- -8.50%
Largest peers
- RACE
- 31.07%
- HMC
- 8.76%
- TM
- 7.86%
- GM
- 7.33%
- TSLA
- 2.56%
- F
- 1.88%
- RIVN
- -50.42%
Profitability Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| ROE (TTM) | -0.76% | 3.97% |
| ROA (TTM) | -0.15% | 2.14% |
| Net Margin (TTM) | -0.75% | 1.28% |
| Operating Margin (TTM) | 8.76% | 4.15% |
| Gross Margin (TTM) | 17.45% | 17.45% |
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% | 3.14% |
| Revenue Growth (3Y CAGR) | 8.83% | 5.69% |
| EPS Growth (YoY) | -159.27% | -17.89% |
| EPS Growth (3Y CAGR) | -- | -6.85% |
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
- 4.16
- Q3
- 2.49
- Median
- 1.77
- HMC
- 1.29
- Q1
- 1.11
- Min
- 0.32
Largest peers
- RACE
- 2.43
- RIVN
- 2.10
- TSLA
- 1.74
- HMC
- 1.29
- TM
- 1.17
- GM
- 1.09
- 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
- 1.24
- HMC
- 1.14
- Median
- 0.78
- Q1
- 0.36
- Min
- 0.01
Largest peers
- F
- 4.57
- GM
- 2.03
- TM
- 1.15
- HMC
- 1.14
- RIVN
- 1.04
- RACE
- 0.86
- TSLA
- 0.18
Financial Strength Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.29 | 1.77 |
| Debt / Equity (MRQ) | 1.14 | 0.78 |
| Net Debt / EBITDA | 6.92 | 1.84 |
Dividends
Dividend Yield (TTM)
Honda Motor (HMC) has dividend yield of 202.43%, 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
202.43%
Group distribution
- HMC
- 202.43%
- Max
- 5.31%
- Q3
- 2.21%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- HMC
- 202.43%
- TM
- 47.93%
- F
- 5.03%
- RACE
- 0.91%
- GM
- 0.89%
- TSLA
- 0.00%
- RIVN
- 0.00%
Dividend Payout Ratio (TTM)
Honda Motor (HMC) has payout ratio of 55.72%, 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
55.72%
Group distribution
- Max
- 72.06%
- HMC
- 55.72%
- Q3
- 34.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- F
- 64.10%
- HMC
- 55.72%
- RACE
- 39.17%
- TM
- 25.85%
- GM
- 15.10%
- TSLA
- 0.00%
- RIVN
- 0.00%
Dividend Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 202.43% | 0.00% |
| Dividend Payout Ratio (TTM) | 55.72% | 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
- 50.13
- Q3
- 29.07
- Median
- 20.74
- Q1
- 12.81
- Min
- 6.05
- HMC
- --
Largest peers
- TSLA
- 409.03
- RACE
- 36.52
- GM
- 16.61
- TM
- 8.65
- 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
- 2.91
- Q3
- 1.36
- Median
- 0.49
- Q1
- 0.24
- HMC
- 0.00
- Min
- 0.00
Largest peers
- TSLA
- 14.21
- RACE
- 9.38
- RIVN
- 2.91
- GM
- 0.34
- F
- 0.25
- TM
- 0.00
- HMC
- 0.00
P/B Ratio (MRQ)
Honda Motor (HMC) trades at 0.57 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
0.57
Group distribution
- Max
- 3.89
- Q3
- 2.18
- Median
- 1.22
- Q1
- 0.67
- HMC
- 0.57
- Min
- -1.31
Largest peers
- RACE
- 16.83
- TSLA
- 16.48
- TM
- 15.81
- RIVN
- 3.16
- F
- 1.29
- GM
- 1.03
- HMC
- 0.57
Valuation Metrics
| Metric | Current stock: HMC | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | -- | 20.74 |
| P/S Ratio (TTM) | 0.00 | 0.49 |
| P/B Ratio (MRQ) | 0.57 | 1.22 |
| Free Cash Flow Yield (TTM) | 604.20% | 6.28% |