# Honda Motor Company Ltd. (HMC) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Cyclical / Automobiles. Price $32.67, market value $42.4 billion.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Honda Motor Company Ltd. reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 0.5×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 4.7×**. Enterprise value is 4.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 0.1%**. Free cash flow equals 0.1% of the market value.

## Profitability
- **Gross margin: 17.2%**. Honda Motor Company Ltd. keeps 17.2% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: -0.6%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: -1.9%**. The company reported a net loss over the last twelve months.
- **Return on equity: -3.6%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: -1.1%**. Return on all capital, debt included, is -1.1%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -0.5%**. Each dollar of assets produces -0.5% of profit.

## Growth
- **Revenue growth (1 yr): 0.5%** (3-yr 8.8%/yr, 5-yr 10.6%/yr). Revenue grew 0.5% over the last year, against 10.6% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -277.8%**. Earnings per share fell 277.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -47.6%/yr**. Free cash flow has compounded at -47.6% a year over three years.

## Financial health
- **Debt to equity: 0.42**. Debt is 0.42 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Honda Motor Company Ltd. holds more cash than debt.
- **Interest coverage: -1.4×**. Operating profit covers interest only -1.4×: fragile.
- **Current ratio: 1.28** (quick 1.03). Current assets cover the next year's liabilities 1.28 times.
- **Altman Z-score: 1.21**. A Z-score of 1.21 is in the distress zone, a signal to examine the balance sheet closely.

## Dividends
- **Dividend yield: 4.08%** ($1.33 per share, trailing). Honda Motor Company Ltd. yields 4.08%, an income-level yield.
- **Dividend growth (5 yr): 14.8%/yr** (1-yr -11.4%). The dividend has compounded at 14.8% a year over five years, doubling roughly every 5 years at that pace.

## Price and momentum
- **Total return (1 yr): -4.4%** (YTD 10.8%, 3-mo 22.4%). The shares are down 4.4% over twelve months including dividends.
- **From 52-week high: -5.8%** (40.5% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 62**. An RSI of 62 is neutral.
- **Beta (1 yr): 0.97** (volatility 29%). Beta of 0.97 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=HMC · Page: https://foliofundamentals.com/stocks/hmc

Not investment advice.