(HMC) Honda Motor - Ratings and Ratios
Motorcycles, Automobiles, Power Products
HMC EPS (Earnings per Share)
HMC Revenue
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 | 39,989m |
| Sub-Industry | Automobile Manufacturers |
| IPO / Inception | 1957-12-01 |
HMC Stock Ratings
| Growth Rating | 64.1% |
| Fundamental | 59.5% |
| Dividend Rating | 76.4% |
| Return 12m vs S&P 500 | -12.9% |
| Analyst Rating | 4.67 of 5 |
HMC Dividends
| Dividend Yield 12m | 4.56% |
| Yield on Cost 5y | 6.94% |
| Annual Growth 5y | 22.53% |
| Payout Consistency | 89.9% |
| Payout Ratio | 48.4% |
HMC Growth Ratios
| Growth Correlation 3m | -56.8% |
| Growth Correlation 12m | 86.1% |
| Growth Correlation 5y | 62.9% |
| CAGR 5y | 13.75% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.39 |
| CAGR/Mean DD 3y (Pain Ratio) | 1.30 |
| Sharpe Ratio 12m | -0.36 |
| Alpha | -5.58 |
| Beta | 0.289 |
| Volatility | 25.93% |
| Current Volume | 993.4k |
| Average Volume 20d | 858.3k |
| Stop Loss | 29.5 (-3.3%) |
| Signal | -0.17 |
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income (637.85b TTM) > 0 and > 6% of Revenue (6% = 1297.45b TTM) |
| FCFTA -0.01 (>2.0%) and ΔFCFTA -0.28pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 11.45% (prev 15.64%; Δ -4.19pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.02 (>3.0%) and CFO 459.07b <= Net Income 637.85b (YES >=105%, WARN >=100%) |
| Net Debt (-4013.76b) to EBITDA (1840.64b) ratio: -2.18 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.30 (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 -12.89% (target <= -2.0% for YES) |
| Gross Margin 20.99% (prev 21.74%; Δ -0.76pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 70.68% (prev 67.73%; Δ 2.95pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 19.56 (EBITDA TTM 1840.64b / Interest Expense TTM 56.59b) >= 6 (WARN >= 3) |
Altman Z'' 2.67
| (A) 0.08 = (Total Current Assets 10825.55b - Total Current Liabilities 8349.85b) / Total Assets 29874.55b |
| (B) 0.37 = Retained Earnings (Balance) 11151.75b / Total Assets 29874.55b |
| (C) 0.04 = EBIT TTM 1107.09b / Avg Total Assets 30593.26b |
| (D) 0.63 = Book Value of Equity 11237.82b / Total Liabilities 17811.75b |
| Total Rating: 2.67 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 59.46
| 1. Piotroski 5.50pt = 0.50 |
| 2. FCF Yield -4.80% = -2.40 |
| 3. FCF Margin -1.42% = -0.53 |
| 4. Debt/Equity 0.37 = 2.43 |
| 5. Debt/Ebitda -2.18 = 2.50 |
| 6. ROIC - WACC (= 1.81)% = 2.26 |
| 7. RoE 5.15% = 0.43 |
| 8. Rev. Trend 87.49% = 6.56 |
| 9. EPS Trend -45.80% = -2.29 |
What is the price of HMC shares?
Over the past week, the price has changed by -3.94%, over one month by -0.16%, over three months by -1.80% and over the past year by +5.48%.
Is Honda Motor a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of HMC is around 32.27 USD . This means that HMC is currently overvalued and has a potential downside of 5.8%.
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 | 37.2 | 21.9% |
| Analysts Target Price | 37.2 | 21.9% |
| ValueRay Target Price | 34.6 | 13.4% |
HMC Fundamental Data Overview October 20, 2025
P/E Trailing = 10.7762
P/E Forward = 10.582
P/S = 0.0018
P/B = 0.4973
P/EG = 3.6208
Beta = 0.289
Revenue TTM = 21624.18b JPY
EBIT TTM = 1107.09b JPY
EBITDA TTM = 1840.64b 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 = -4013.76b JPY (from netDebt column, last quarter)
Enterprise Value = 6402.87b JPY (6152.94b + Debt 4422.24b - CCE 4172.30b)
Interest Coverage Ratio = 19.56 (Ebit TTM 1107.09b / Interest Expense TTM 56.59b)
FCF Yield = -4.80% (FCF TTM -307.39b / Enterprise Value 6402.87b)
FCF Margin = -1.42% (FCF TTM -307.39b / Revenue TTM 21624.18b)
Net Margin = 2.95% (Net Income TTM 637.85b / Revenue TTM 21624.18b)
Gross Margin = 20.99% ((Revenue TTM 21624.18b - Cost of Revenue TTM 17085.76b) / Revenue TTM)
Gross Margin QoQ = 20.05% (prev 21.23%)
Tobins Q-Ratio = 0.21 (Enterprise Value 6402.87b / Total Assets 29874.55b)
Interest Expense / Debt = 0.31% (Interest Expense 13.90b / Debt 4422.24b)
Taxrate = 26.49% (77.44b / 292.33b)
NOPAT = 813.82b (EBIT 1107.09b * (1 - 26.49%))
Current Ratio = 1.30 (Total Current Assets 10825.55b / Total Current Liabilities 8349.85b)
Debt / Equity = 0.37 (Debt 4422.24b / totalStockholderEquity, last quarter 11796.84b)
Debt / EBITDA = -2.18 (Net Debt -4013.76b / EBITDA 1840.64b)
Debt / FCF = 13.06 (negative FCF - burning cash) (Net Debt -4013.76b / FCF TTM -307.39b)
Total Stockholder Equity = 12395.64b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.14% (Net Income 637.85b / Total Assets 29874.55b)
RoE = 5.15% (Net Income TTM 637.85b / Total Stockholder Equity 12395.64b)
RoCE = 5.72% (EBIT 1107.09b / Capital Employed (Equity 12395.64b + L.T.Debt 6953.52b))
RoIC = 6.03% (NOPAT 813.82b / Invested Capital 13501.20b)
WACC = 4.22% (E(6152.94b)/V(10575.18b) * Re(7.08%) + D(4422.24b)/V(10575.18b) * Rd(0.31%) * (1-Tc(0.26)))
Discount Rate = 7.08% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: -100.0 | Cagr: -7.08%
Fair Price DCF = unknown (Cash Flow -307.39b)
EPS Correlation: -45.80 | EPS CAGR: -59.42% | SUE: -1.68 | # QB: 0
Revenue Correlation: 87.49 | Revenue CAGR: 8.60% | SUE: 0.01 | # QB: 0
Additional Sources for HMC Stock
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