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Honda Motor Co Ltd ADR HMC

Morningstar Rating
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Stock XNYS Rating as of
$32.40 −0.46 (1.40%)
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As of Delayed Price Pre-Open: $32.10 −0.20
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Company Report

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Honda Continues to Invest in New Powertrains and Technology

David Whiston

Honda's products and strong financial position should keep it on solid ground, but the competition is fierce and the US market's increased move to light trucks—where Honda's lineup is not as complete as competitors'—may be permanent. Ongoing risks include foreign-exchange volatility, a highly competitive US market, and rising input costs for Honda and suppliers.

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Price vs Fair Value

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HMC is trading within a range we consider fairly valued.
Price
$32.40
Fair Value
$12.00
Uncertainty
High
1-Star Price
$68.80
5-Star Price
$91.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The popularity of Honda's vehicles usually allow it to use fewer incentives than the Detroit Three, boosting the firm's profits and improving the resale value of its vehicles.

Bears

Environmental laws are becoming stricter, which will make cars more expensive to produce and more expensive for consumers to buy. Honda, for now, is lagging in battery electric vehicle offerings relative to other firms.

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Trading Information

Previous Close Price
$32.86
Day Range
$32.28–32.43
52-Week Range
$29.05–37.90
Bid/Ask
$32.00 / $32.39
Market Cap
$52.08 Bil
Volume/Avg
461 / 858,698

Key Statistics

Price/Earnings (Normalized)
6.66
Price/Sales
0.37
Dividend Yield (Trailing)
4.13%
Dividend Yield (Forward)
4.13%
Total Yield
7.47%

Company Profile

Incorporated in 1948, Honda Motor was originally a motorcycle manufacturer. Today, the firm makes automobiles, motorcycles, and power products such as boat engines, generators, and lawnmowers. Including joint ventures, Honda sold 22.9 million light vehicles and motorcycles in fiscal 2024 (4.1 million of which were autos), and consolidated sales were JPY 20.4 trillion. Automobiles constitute 66% of revenue and motorcycles 16%, with the rest split between power products and financial services. Honda also makes robots and private jets.
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Stock Style Box
Large Value
Total Number of Employees
194,993
Website
https://global.honda

Competitors

Valuation

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Metric
HMC
TSLA
TM
Price/Earnings (Normalized)
 6.6684.718.14
Price/Book Value
 0.6211.461.23
Price/Sales
 0.378.520.89
Price/Cash Flow
 4.0756.174.92
Price/Earnings
HMC
TSLA
TM

Financial Strength

Metric
HMC
TSLA
TM
Quick Ratio
 1.081.041.00
Current Ratio
 1.431.721.19
Interest Coverage
 25.6338.06101.57
Quick Ratio
HMC
TSLA
TM

Profitability

Metric
HMC
TSLA
TM
Return on Assets (Normalized)
 4.35%9.74%6.15%
Return on Equity (Normalized)
 9.81%16.96%16.12%
Return on Invested Capital (Normalized)
 5.15%13.43%7.17%
Return on Assets
HMC
TSLA
TM
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Auto Manufacturers Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Tesla Inc
TSLA
VnrpghwdsvZwxmzm$737.5 Bil
 Toyota Motor Corp ADR
TM
NqtbkspkmMshl$278.0 Bil
 Mercedes-Benz Group AG
MBGAF
HnfyjqhrPtcwrz$74.3 Bil
 Ferrari NV
RACE
RzyhqpqnwYln$73.6 Bil
 Bayerische Motoren Werke AG ADR
BMWYY
YfpwychjCkbtxbc$60.0 Bil
 Volkswagen AG ADR
VWAGY
SqvbgtftdZttk$58.6 Bil
 Volkswagen AG ADR
VWAPY
YbkdvnxVjr$58.6 Bil
 Stellantis NV
STLA
QlfpgxvffPfzq$57.5 Bil
 General Motors Co
GM
PrfgmfcqWdt$53.5 Bil

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