HMC Honda Motor Co., Ltd. - Fundamental Analysis
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HMC Stock | Fundamental Analysis & Investment Insights
NYSE
Consumer Cyclical
Auto Manufacturers
Current Price
Live
$30.85
Analyst Target
$36.39
+18.0%
Upside
52W High
$34.89
52W Low
$24.56
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$40.1B
P/E
10.71
ROE
5.8%
Profit margin
3.0%
Debt/Equity
1.06
Dividend yield
4.47%
AI Analysis
AI-powered fundamental assessment
Confidence
65%
Honda Motor Co. exhibits weak financial health with a Piotroski F-Score of 3/9, indicating significant operational and profitability concerns. Despite a low P/E of 10.71 and forward P/E of 6.22 suggesting undervaluation, poor profit margins, declining revenue, and inconsistent earnings delivery undermine confidence. The 4.47% dividend yield and strong dividend strength score provide support, but weak insider sentiment and bearish technical trend temper optimism. While the stock trades below analyst target and intrinsic value estimates, structural challenges in revenue growth and financial efficiency limit near-term upside.
Key Strengths
Attractive valuation with P/E of 10.71 and forward P/E of 6.22, well below sector average of 37.52
High dividend yield of 4.47% with a sustainable 45.44% payout ratio
Dividend Strength score of 70/100 indicates reliable income profile
Debt/Equity of 1.06 is below sector average of 1.41, suggesting moderate leverage
Recent earnings growth is strong, with YoY EPS growth of 80.9% and Q/Q of 25.0%
Key Risks
Piotroski F-Score of 3/9 signals weak financial health and poor fundamental strength
Revenue growth is negative YoY at -1.90%, indicating top-line contraction
Profit margin (3.03%) and ROE (5.82%) are below sector averages of 2.00% and 14.05% respectively
Poor earnings surprise history: 0/4 beats in last 4 quarters, average miss of -15.65%
Technical Trend score of 0/100 indicates strong bearish momentum
AI Fair Value Estimate
Based on comprehensive analysis
$84.96
+175.4% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
57
Moderate
78
55
40
32
80
AI Verdict
Neutral with value appeal but fundamental weaknesses
Key drivers: Low valuation multiples, Weak Piotroski score, Strong dividend yield, Poor earnings track record, Negative revenue growth
Confidence
68%
Value
78/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 10.71 is significantly below sector average
- Forward P/E of 6.22 implies strong earnings expectations
- Current price ($30.85) below Graham Number ($35.42) and Intrinsic Value ($84.96)
Watchpoints
- Price/Sales at 0.00 may indicate reporting or revenue recognition issues
- EV/Revenue and EV/EBITDA unavailable, limiting full valuation context
Future
55/100
Ref Growth rates
Positives
- Strong YoY EPS growth of 80.9% and Q/Q of 25.0%
- Forward P/E of 6.22 suggests market expects continued earnings improvement
Watchpoints
- Revenue growth is negative at -1.90% YoY
- No PEG ratio available to assess growth-adjusted valuation
Past
40/100
Ref Historical trends
Positives
- 5Y price return of +32.0% shows long-term capital appreciation
- Historical ROA and margins show past operational capability
Watchpoints
- Consistent earnings misses: 0/4 beats in last 4 quarters
- Frequent negative earnings surprises over multiple years
- Revenue growth has turned negative recently
Health
32/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Current Ratio of 1.41 and Quick Ratio of 1.02 indicate short-term liquidity adequacy
- Debt/Equity of 1.06 is manageable and below sector average
Watchpoints
- Piotroski F-Score of 3/9 indicates weak financial health
- ROE of 5.82% and ROA of 1.87% are well below sector averages
- Altman Z-Score unavailable, limiting distress risk assessment
Dividend
80/100
Ref Yield, Payout
Positives
- High dividend yield of 4.47%
- Payout ratio of 45.44% is sustainable
- Dividend Strength score of 70/100 indicates reliability
Watchpoints
- 5-Year Avg Yield unavailable, limiting trend analysis
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$30.85
Analyst Target
$36.39
Upside/Downside
+18.0%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for HMC and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
HMC
Honda Motor Co., Ltd.
Primary
|
+32.0% | +42.1% | +13.1% | +2.8% | +1.6% | +0.7% |
|
YUM
Yum! Brands, Inc.
Peer
|
+56.1% | +28.0% | +11.1% | +1.6% | +3.1% | -0.1% |
|
CMG
Chipotle Mexican Grill, Inc.
Peer
|
+25.2% | +3.6% | -47.3% | -39.7% | -24.4% | +3.2% |
|
EBAY
eBay Inc.
Peer
|
+78.2% | +110.7% | +45.2% | +19.9% | +12.5% | +2.3% |
|
F
Ford Motor Company
Peer
|
+78.9% | +36.3% | +45.9% | +24.9% | +2.2% | -4.2% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
10.71
Forward P/E
6.22
PEG Ratio
N/A
P/B Ratio
1.59
P/S Ratio
0.0
EV/Revenue
0.39
EV/EBITDA
6.06
Market Cap
$40.1B
Profitability
Profit margins and return metrics
Profit Margin
3.03%
Operating Margin
3.67%
Gross Margin
20.75%
ROE
5.82%
ROA
1.87%
Growth
Revenue and earnings growth rates
Revenue Growth
-1.9%
Earnings Growth
+37.9%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+15.1%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.06
Moderate
Current Ratio
1.41
Good
Quick Ratio
1.02
Good
Cash/Share
$1243.99
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-06
$N/A
2014-01-31
$0.85
-2.3% surprise
2013-10-30
$0.68
-19.0% surprise
2013-07-31
$0.69
-25.6% surprise
Consumer Cyclical Sector Comparison
Comparing HMC against 94 companies in the Consumer Cyclical sector
(6 bullish, 47 neutral, 41 bearish)
P/E Ratio
10.71
This Stock
vs
42.78
Sector Avg
-75.0%
(Discount)
Return on Equity (ROE)
5.82%
This Stock
vs
5.87%
Sector Avg
-0.9%
(Below Avg)
Profit Margin
3.03%
This Stock
vs
0.76%
Sector Avg
+301.3%
(Superior)
Debt to Equity
1.06
This Stock
vs
1.65
Sector Avg
-35.9%
(Less Debt)
Revenue Growth
-1.9%
This Stock
vs
7.62%
Sector Avg
-124.9%
(Slower)
Current Ratio
1.41
This Stock
vs
1.88
Sector Avg
-24.8%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
HMC
Honda Motor Co., Ltd.
|
NEUTRAL | $40.1B | 10.71 | 5.8% | 3.0% | $30.85 | |
|
YUM
Yum! Brands, Inc.
|
BULLISH | $41.57B | 29.05 | -% | 18.0% | $149.02 | |
|
CMG
Chipotle Mexican Grill, Inc.
|
BULLISH | $41.74B | 27.94 | 45.0% | 13.0% | $31.57 | |
|
EBAY
eBay Inc.
|
NEUTRAL | $42.51B | 20.63 | 42.4% | 20.4% | $93.03 | |
|
F
Ford Motor Company
|
NEUTRAL | $54.19B | 11.62 | 10.3% | 2.5% | $13.6 |
Past News Coverage
Recent headlines mentioning HMC from our newsroom.
Newest → oldest
No matching news yet.