(HMC) Honda Motor - Ratings and Ratios
Motorcycles, Automobiles, Power Products
EPS (Earnings per Share)
Revenue
| Risk via 10d forecast | |
|---|---|
| Volatility | 27.6% |
| Value at Risk 5%th | 44.8% |
| Relative Tail Risk | -1.31% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.48 |
| Alpha | 6.34 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.256 |
| Beta | 0.814 |
| Beta Downside | 0.757 |
| Drawdowns 3y | |
|---|---|
| Max DD | 35.20% |
| Mean DD | 10.81% |
| Median DD | 10.71% |
Description: HMC Honda Motor September 29, 2025
Honda Motor Co., Ltd. (NYSE:HMC) is a diversified mobility and power equipment company that operates through four primary segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product & Other Businesses.
The Motorcycle Business produces a full range of two-wheel vehicles-from high-performance sport bikes to commuter models-and off-road products such as ATVs and side-by-sides, accounting for roughly 30% of total group revenue in FY 2023.
The Automobile Business sells passenger cars, light trucks, and mini-vehicles worldwide, with a growing emphasis on hybrid and battery-electric models; FY 2023 saw a 5% YoY increase in EV deliveries, driven by stricter emissions standards in China and Europe.
The Financial Services segment provides retail lending, leasing, and dealer financing, contributing about 10% of earnings before interest and taxes (EBIT) and acting as a stabilizing cash-flow source during automotive sales cycles.
The Power Product & Other Businesses manufactures engines, generators, lawn-care equipment, and the HondaJet light business jet; this segment generated roughly ¥500 billion in FY 2023, reflecting modest growth from the aviation niche.
Key economic drivers for Honda include the global chip shortage, which has constrained production capacity, and currency fluctuations-particularly a strong yen that can erode overseas profit margins. The company’s FY 2023 R&D spend of ¥1.2 trillion (≈ 5% of revenue) underscores its commitment to electrification and autonomous-driving technologies, aligning with the broader automotive sector’s shift toward EVs and software-defined vehicles.
Assuming current supply-chain constraints ease and regulatory incentives for EVs remain strong, Honda’s incremental EV margin expansion could lift its operating margin from the FY 2023 level of 6.8% to above 8% within two years; however, this projection is highly sensitive to battery-cost trajectories and competitive pricing pressure.
For a deeper quantitative breakdown of Honda’s valuation metrics, you may find the analysis on ValueRay worth reviewing.
HMC Stock Overview
| Market Cap in USD | 39,371m |
| Sub-Industry | Automobile Manufacturers |
| IPO / Inception | 1957-12-01 |
| Return 12m vs S&P 500 | 1.14% |
| Analyst Rating | 4.67 of 5 |
HMC Dividends
| Metric | Value |
|---|---|
| Dividend Yield | 4.75% |
| Yield on Cost 5y | 5.78% |
| Yield CAGR 5y | 22.53% |
| Payout Consistency | 89.9% |
| Payout Ratio | 45.7% |
HMC Growth Ratios
| Metric | Value |
|---|---|
| CAGR 3y | 11.22% |
| CAGR/Max DD Calmar Ratio | 0.32 |
| CAGR/Mean DD Pain Ratio | 1.04 |
| Current Volume | 1189.6k |
| Average Volume | 983.2k |
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income (652.98b TTM) > 0 and > 6% of Revenue (6% = 1291.43b TTM) |
| FCFTA -0.01 (>2.0%) and ΔFCFTA -0.05pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 16.27% (prev 16.03%; Δ 0.24pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.02 (>3.0%) and CFO 589.32b <= Net Income 652.98b (YES >=105%, WARN >=100%) |
| Net Debt (-4635.27b) to EBITDA (2017.44b) ratio: -2.30 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.41 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (1.40b) change vs 12m ago -11.49% (target <= -2.0% for YES) |
| Gross Margin 20.75% (prev 21.81%; Δ -1.06pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 70.84% (prev 73.89%; Δ -3.04pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 19.61 (EBITDA TTM 2017.44b / Interest Expense TTM 59.26b) >= 6 (WARN >= 3) |
Altman Z'' 2.77
| (A) 0.11 = (Total Current Assets 11974.47b - Total Current Liabilities 8472.08b) / Total Assets 31491.22b |
| (B) 0.36 = Retained Earnings (Balance) 11272.19b / Total Assets 31491.22b |
| (C) 0.04 = EBIT TTM 1162.37b / Avg Total Assets 30382.55b |
| (D) 0.59 = Book Value of Equity 11358.26b / Total Liabilities 19251.84b |
| Total Rating: 2.77 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 54.93
| 1. Piotroski 3.50pt = -1.50 |
| 2. FCF Yield -4.54% = -2.27 |
| 3. FCF Margin -1.20% = -0.45 |
| 4. Debt/Equity 0.37 = 2.43 |
| 5. Debt/Ebitda -2.30 = 2.50 |
| 6. ROIC - WACC (= -0.37)% = -0.46 |
| 7. RoE 5.26% = 0.44 |
| 8. Rev. Trend 78.66% = 5.90 |
| 9. EPS Trend -33.22% = -1.66 |
What is the price of HMC shares?
Over the past week, the price has changed by -2.36%, over one month by -6.23%, over three months by -12.00% and over the past year by +14.91%.
Is HMC a buy, sell or hold?
- Strong Buy: 2
- Buy: 1
- Hold: 0
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the HMC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 36.4 | 24.1% |
| Analysts Target Price | 36.4 | 24.1% |
| ValueRay Target Price | 31.3 | 6.8% |
HMC Fundamental Data Overview November 16, 2025
P/E Trailing = 10.1932
P/E Forward = 10.7643
P/S = 0.0018
P/B = 0.4991
P/EG = 3.6208
Beta = 0.101
Revenue TTM = 21523.83b JPY
EBIT TTM = 1162.37b JPY
EBITDA TTM = 2017.44b JPY
Long Term Debt = 6953.52b JPY (from longTermDebt, last fiscal year)
Short Term Debt = 4422.24b JPY (from shortTermDebt, last fiscal year)
Debt = 4422.24b JPY (from shortLongTermDebtTotal, last fiscal year)
Net Debt = -4635.27b JPY (from netDebt column, last quarter)
Enterprise Value = 5684.50b JPY (6104.58b + Debt 4422.24b - CCE 4842.31b)
Interest Coverage Ratio = 19.61 (Ebit TTM 1162.37b / Interest Expense TTM 59.26b)
FCF Yield = -4.54% (FCF TTM -258.13b / Enterprise Value 5684.50b)
FCF Margin = -1.20% (FCF TTM -258.13b / Revenue TTM 21523.83b)
Net Margin = 3.03% (Net Income TTM 652.98b / Revenue TTM 21523.83b)
Gross Margin = 20.75% ((Revenue TTM 21523.83b - Cost of Revenue TTM 17057.18b) / Revenue TTM)
Gross Margin QoQ = 20.37% (prev 20.05%)
Tobins Q-Ratio = 0.18 (Enterprise Value 5684.50b / Total Assets 31491.22b)
Interest Expense / Debt = 0.35% (Interest Expense 15.44b / Debt 4422.24b)
Taxrate = 43.10% (101.32b / 235.09b)
NOPAT = 661.38b (EBIT 1162.37b * (1 - 43.10%))
Current Ratio = 1.41 (Total Current Assets 11974.47b / Total Current Liabilities 8472.08b)
Debt / Equity = 0.37 (Debt 4422.24b / totalStockholderEquity, last quarter 11957.76b)
Debt / EBITDA = -2.30 (Net Debt -4635.27b / EBITDA 2017.44b)
Debt / FCF = 17.96 (negative FCF - burning cash) (Net Debt -4635.27b / FCF TTM -258.13b)
Total Stockholder Equity = 12419.64b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.07% (Net Income 652.98b / Total Assets 31491.22b)
RoE = 5.26% (Net Income TTM 652.98b / Total Stockholder Equity 12419.64b)
RoCE = 6.00% (EBIT 1162.37b / Capital Employed (Equity 12419.64b + L.T.Debt 6953.52b))
RoIC = 4.94% (NOPAT 661.38b / Invested Capital 13392.78b)
WACC = 5.31% (E(6104.58b)/V(10526.81b) * Re(9.01%) + D(4422.24b)/V(10526.81b) * Rd(0.35%) * (1-Tc(0.43)))
Discount Rate = 9.01% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -4.19%
Fair Price DCF = unknown (Cash Flow -258.13b)
EPS Correlation: -33.22 | EPS CAGR: -19.78% | SUE: -0.30 | # QB: 0
Revenue Correlation: 78.66 | Revenue CAGR: 6.61% | SUE: -0.00 | # QB: 0
Additional Sources for HMC Stock
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