Hero MotoCorp Limited
Hero MotoCorp Limited Fundamental Analysis
Hero MotoCorp Limited (HEROMOTOCO.NS) shows moderate financial fundamentals with a PE ratio of 21.09, profit margin of 12.26%, and ROE of 27.62%. The company generates $444.0B in annual revenue with moderate year-over-year growth of 8.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HEROMOTOCO.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHEROMOTOCO.NS demonstrates superior asset utilization.
Valuation Score
ModerateHEROMOTOCO.NS shows balanced valuation metrics.
Growth Score
ExcellentHEROMOTOCO.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHEROMOTOCO.NS maintains a strong and stable balance sheet.
Profitability Score
WeakHEROMOTOCO.NS struggles to sustain strong margins.
Key Financial Metrics
Is HEROMOTOCO.NS Expensive or Cheap?
P/E Ratio
HEROMOTOCO.NS trades at 21.09 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HEROMOTOCO.NS's PEG of 6.99 indicates potential overvaluation.
Price to Book
The market values Hero MotoCorp Limited at 5.47 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.98 times EBITDA. This signals the market has high growth expectations.
How Well Does HEROMOTOCO.NS Make Money?
Net Profit Margin
For every $100 in sales, Hero MotoCorp Limited keeps $12.26 as profit after all expenses.
Operating Margin
Core operations generate 12.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.62 in profit for every $100 of shareholder equity.
ROA
Hero MotoCorp Limited generates $16.67 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hero MotoCorp Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Hero MotoCorp Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
HEROMOTOCO.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.59
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How HEROMOTOCO.NS Stacks Against Its Sector Peers
| Metric | HEROMOTOCO.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.09 | 24.97 | Better (Cheaper) |
| ROE | 27.62% | 1167.00% | Weak |
| Net Margin | 12.26% | 673.00% | Weak |
| Debt/Equity | 0.04 | 0.66 | Strong (Low Leverage) |
| Current Ratio | 1.89 | 4.01 | Neutral |
| ROA | 16.67% | -8477.00% (disorted) | Strong |
HEROMOTOCO.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hero MotoCorp Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
39.73%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
20.21%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-22.21%
Industry Style: Cyclical, Growth, Discretionary
Declining