Honda Motor Co., Ltd.
Honda Motor Co., Ltd. Fundamental Analysis
Honda Motor Co., Ltd. (HNDAF) shows moderate financial fundamentals with a PE ratio of 4.21, profit margin of 2.32%, and ROE of 4.09%. The company generates $71026.4B in annual revenue with moderate year-over-year growth of 6.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -31.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HNDAF's fundamental strength across five key dimensions:
Efficiency Score
WeakHNDAF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHNDAF trades at attractive valuation levels.
Growth Score
ModerateHNDAF shows steady but slowing expansion.
Financial Health Score
ModerateHNDAF shows balanced financial health with some risks.
Profitability Score
WeakHNDAF struggles to sustain strong margins.
Key Financial Metrics
Is HNDAF Expensive or Cheap?
P/E Ratio
HNDAF trades at 4.21 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HNDAF's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Honda Motor Co., Ltd. at 0.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.82 times EBITDA. This is generally considered low.
How Well Does HNDAF Make Money?
Net Profit Margin
For every $100 in sales, Honda Motor Co., Ltd. keeps $2.32 as profit after all expenses.
Operating Margin
Core operations generate 3.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.09 in profit for every $100 of shareholder equity.
ROA
Honda Motor Co., Ltd. generates $1.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Honda Motor Co., Ltd. generates limited operating cash flow of $2.72T, signaling weaker underlying cash strength.
Free Cash Flow
Honda Motor Co., Ltd. generates weak or negative free cash flow of $-171.17B, restricting financial flexibility.
FCF Per Share
Each share generates $-39.63 in free cash annually.
FCF Yield
HNDAF converts -0.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.21
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How HNDAF Stacks Against Its Sector Peers
| Metric | HNDAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.21 | 24.97 | Better (Cheaper) |
| ROE | 4.09% | 1167.00% | Weak |
| Net Margin | 2.32% | 673.00% | Weak |
| Debt/Equity | 1.06 | 0.66 | Weak (High Leverage) |
| Current Ratio | 1.36 | 4.01 | Neutral |
| ROA | 1.51% | -8477.00% (disorted) | Weak |
HNDAF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Honda Motor Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
63.44%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
106.35%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-66.44%
Industry Style: Cyclical, Growth, Discretionary
Declining