Honda Motor (HMC) Stock Analysis

June 13, 2026

Here is a fundamental analysis of Honda Motor (HMC), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

HMC

GSPC

Honda Motor (HMC) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…

Trailing total returns for Honda Motor (HMC) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Honda Motor (HMC) metric values compared with Automobiles & Components industry-group medians
Metric	Current stock: HMC	Industry group median
1-Year Return	-9.39%	18.96%

Risk

Drawdown

HMC

GSPC

Honda Motor (HMC) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Honda Motor (HMC) metric values compared with Automobiles & Components industry-group medians
Metric	Current stock: HMC	Industry group median
1-Year Volatility	30.78%	45.17%
Beta	0.44	1.24

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.

Company profile fields for Honda Motor (HMC)
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	34.31 billion USD
Currency	USD
Exchange	NYSE
Listing Date	March 17, 1980
Security Type	ADR

Valuation

Price-to-Earnings 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: 49.81
Q3: 34.42
Median: 20.26
Q1: 13.70
Min: 6.98
HMC: --

Largest peers

TSLA: 369.48
RACE: 34.26
GM: 29.74
TM: 9.51
HMC: --
F: --
RIVN: --

Honda Motor (HMC) doesn’t report P/E ratio this period; the box shows the Automobiles & Components group’s distribution and the dots its largest members.

Price-to-Sales 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: 2.80
Q3: 1.54
Median: 0.58
Q1: 0.31
HMC: 0.00
Min: 0.00

Largest peers

TSLA: 15.60
RACE: 8.67
RIVN: 4.07
GM: 0.40
F: 0.31
TM: 0.00
HMC: 0.00

Where Honda Motor (HMC) stands on P/S ratio within its Automobiles & Components peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Honda Motor (HMC) trades at 0.47 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

0.47

Group distribution

Max: 4.80
Q3: 2.41
Median: 1.43
Q1: 0.67
HMC: 0.47
Min: -1.76

Largest peers

TSLA: 18.56
TM: 14.66
RACE: 13.42
RIVN: 4.80
F: 1.58
GM: 1.17
HMC: 0.47

Where Honda Motor (HMC) stands on P/B ratio within its Automobiles & Components peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Honda Motor (HMC) metric values compared with Automobiles & Components industry-group medians
Metric	Current stock: HMC	Industry group median
Price-to-Earnings Ratio (TTM)	--	20.26
Price-to-Sales Ratio (TTM)	0.00	0.58
Price-to-Book Ratio (MRQ)	0.47	1.43
Free Cash Flow Yield	-3,689.98%	4.21%

Profitability

Return on Equity (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%

Where Honda Motor (HMC) stands on ROE within its Automobiles & Components peer group — the box is the group’s distribution and the dots its largest members.

Net Profit 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: 4.34%
Median: 1.53%
HMC: -1.95%
Q1: -3.18%
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%

Where Honda Motor (HMC) stands on net margin within its Automobiles & Components peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Honda Motor (HMC) has negative operating margin of -17.28%. Core operations were loss-making before interest and taxes over the trailing period.

HMC

Automobiles & Components industry group

-17.28%

Group distribution

Max: 18.83%
Q3: 8.71%
Median: 3.75%
Q1: -1.25%
Min: -14.77%
HMC: -17.28%

Largest peers

RACE: 29.48%
GM: 9.36%
F: 5.74%
TM: 4.57%
TSLA: 4.20%
HMC: -17.28%
RIVN: -63.79%

Where Honda Motor (HMC) stands on operating margin within its Automobiles & Components peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Honda Motor (HMC) metric values compared with Automobiles & Components industry-group medians
Metric	Current stock: HMC	Industry group median
Return on Equity (TTM)	-2.85%	5.13%
Return on Assets (TTM)	-0.81%	2.25%
Net Profit Margin (TTM)	-1.95%	1.53%
Operating Profit Margin (TTM)	-17.28%	3.75%
Gross Profit Margin (TTM)	16.53%	17.66%

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: 2.69
Median: 1.85
HMC: 1.28
Q1: 1.14
Min: 0.38

Largest peers

RACE: 2.57
RIVN: 2.10
TSLA: 2.04
HMC: 1.28
TM: 1.27
GM: 1.15
F: 1.09

Where Honda Motor (HMC) stands on current ratio within its Automobiles & Components peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (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

Where Honda Motor (HMC) stands on debt-to-equity ratio within its Automobiles & Components peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Honda Motor (HMC) metric values compared with Automobiles & Components industry-group medians
Metric	Current stock: HMC	Industry group median
Current Ratio (MRQ)	1.28	1.85
Debt-to-Equity Ratio (MRQ)	1.14	0.72
Net Debt / EBITDA	9.49	1.92

Dividends

Dividend Yield (TTM)

Honda Motor (HMC) has dividend yield of 5.04%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

HMC

Automobiles & Components industry group

5.04%

Group distribution

HMC: 5.04%
Max: 5.04%
Q3: 2.06%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

HMC: 5.04%
F: 4.04%
TM: 3.58%
RACE: 1.19%
GM: 0.88%
TSLA: 0.00%
RIVN: 0.00%

Where Honda Motor (HMC) stands on dividend yield within its Automobiles & Components peer group — the box is the group’s distribution and the dots its largest members.

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: 84.24%
HMC: 55.35%
Q3: 33.71%
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%

Where Honda Motor (HMC) stands on payout ratio within its Automobiles & Components peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Honda Motor (HMC) metric values compared with Automobiles & Components industry-group medians
Metric	Current stock: HMC	Industry group median
Dividend Yield (TTM)	5.04%	0.00%
Dividend Payout Ratio (TTM)	55.35%	0.00%