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Honda Motor Co Ltd ADR HMC

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Stock XNYS Rating as of
$34.57 −0.14 (0.40%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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Honda Continues to Rebound From the Chip Shortage

David Whiston

Honda's products and strong financial position should keep it on solid ground, but the competition is fierce and the U.S. 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 U.S. market, and rising input costs for Honda and suppliers.

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Price vs Fair Value

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HMC is trading at a 11% discount.
Price
$34.71
Fair Value
$21.00
Uncertainty
High
1-Star Price
$45.18
5-Star Price
$52.60
Economic Moat
Fktg
Capital Allocation
Hzrtbrmk

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
$34.71
Day Range
$34.56–34.78
52-Week Range
$25.75–37.88
Bid/Ask
$34.56 / $34.57
Market Cap
$55.57 Bil
Volume/Avg
204,613 / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
8.27
Price/Sales
0.42
Dividend Yield (Trailing)
2.94%
Dividend Yield (Forward)
2.94%
Total Yield
6.41%

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 22.4 million cars and motorcycles in fiscal 2023 (3.7 million of which were autos), and consolidated sales were JPY 16.9 trillion. Automobiles constitute 63% of revenue and motorcycles 17%, 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
197,039
Website
https://global.honda

Competitors

Valuation

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Metric
HMC
MBGAF
VWAGY
Price/Earnings (Normalized)
 8.275.394.00
Price/Book Value
 0.660.830.42
Price/Sales
 0.420.510.22
Price/Cash Flow
 4.563.741.44
Price/Earnings
HMC
MBGAF
VWAGY

Financial Strength

Metric
HMC
MBGAF
VWAGY
Quick Ratio
 1.070.900.92
Current Ratio
 1.451.261.22
Interest Coverage
 27.5329.08—
Quick Ratio
HMC
MBGAF
VWAGY

Profitability

Metric
HMC
MBGAF
VWAGY
Return on Assets (Normalized)
 3.87%5.58%3.21%
Return on Equity (Normalized)
 8.59%16.40%11.99%
Return on Invested Capital (Normalized)
 4.54%8.36%5.26%
Return on Assets
HMC
MBGAF
VWAGY
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Auto Manufacturers Industry Comparables

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Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
TSLA
Tesla IncLkttybtslrGglzbzt$495.1 Bil
TM
Toyota Motor Corp ADRWpfsrvvzvDpcb$318.8 Bil
MBGAF
Mercedes-Benz Group AGRjjkfjwnyLwdgbn$84.5 Bil
STLA
Stellantis NVWggczhgfyYcbd$77.3 Bil
RACE
Ferrari NVSypncrgFpzzp$74.7 Bil
BMWYY
Bayerische Motoren Werke AG ADRYgjysrnjNlbrljb$71.4 Bil
VWAGY
Volkswagen AG ADRDqhxkclpxGgtm$70.7 Bil
VWAPY
Volkswagen AG ADRNnqjdccVcn$70.7 Bil
GM
General Motors CoFvcfbdwDlbz$49.0 Bil

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