Honda Motor Co., Ltd. (HMC) Financial Ratios
30 years of historical data (1996–2025) · Consumer Cyclical · Auto - Manufacturers
EV/EBITDA
↓
2.45
+12% vs avg
5yr avg: 2.19
30Y Low1.7·High4.8
P/FCF
↑
N/A
—
5yr avg: 0.15
30Y Low0.0·High0.5
P/B Ratio
↓
0.47
↑+10475% vs avg
5yr avg: 0.00
30Y Low0.0·High0.0
ROE
↓
6.5%
-9% vs avg
5yr avg: 7.2%
30Y Low3%·High18%
Debt/EBITDA
↓
2.26
↓-39% vs avg
5yr avg: 3.73
30Y Low2.1·High5.6
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
HMC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Honda Motor Co., Ltd. trades at 7.0x earnings, 10800% above its 5-year average of 0.1x, sitting at the 100th percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 19.4x, the stock trades at a discount of 64%.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $31.2B | $42.2B | $60.8B | $44.9B | $48.6B | $52.1B | $39.4B | $47.8B | $62.3B | $54.5B | $49.3B |
| Enterprise Value | $30.5B | $-64314126421 | $5.19T | $3.87T | $4.43T | $4.03T | $4.78T | $4.88T | $4.60T | $4.76T | $4.82T |
| P/E Ratio → | 7.03 | 0.05 | 0.05 | 0.07 | 0.07 | 0.08 | 0.09 | 0.08 | 0.06 | 0.09 | 0.14 |
| P/S Ratio | 0.23 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| P/B Ratio | 0.47 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 |
| P/FCF | — | — | 0.44 | 0.03 | 0.04 | 0.10 | 0.10 | 0.28 | 0.15 | 0.22 | 0.09 |
| P/OCF | 16.76 | 0.14 | 0.08 | 0.02 | 0.03 | 0.05 | 0.04 | 0.06 | 0.06 | 0.06 | 0.04 |
P/E links to full P/E history page with 30-year chart
HMC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Honda Motor Co., Ltd.'s enterprise value stands at 2.4x EBITDA, 12% above its 5-year average of 2.2x. The Consumer Cyclical sector median is 11.4x, placing the stock at a 78% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | -0.00 | 0.25 | 0.23 | 0.30 | 0.31 | 0.32 | 0.31 | 0.30 | 0.34 | 0.33 |
| EV / EBITDA | 2.45 | -0.03 | 2.38 | 2.57 | 1.88 | 1.93 | 2.28 | 2.23 | 2.01 | 2.19 | 4.14 |
| EV / EBIT | 3.95 | -0.05 | 3.05 | 4.22 | 5.00 | 6.16 | 5.86 | 4.92 | 4.08 | 4.67 | 7.37 |
| EV / FCF | — | — | 37.45 | 2.58 | 3.60 | 7.74 | 12.63 | 29.04 | 11.09 | 19.21 | 9.28 |
HMC Profitability
Margins and return-on-capital ratios measuring operating efficiency
Honda Motor Co., Ltd. earns an operating margin of 5.6%, above the Consumer Cyclical sector average of 2.9%. ROE of 6.5% is modest. ROIC of 5.9% represents adequate returns on invested capital versus a sector median of 5.8%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 21.5% | 21.5% | 21.6% | 19.7% | 20.5% | 20.7% | 20.6% | 20.8% | 21.9% | 22.4% | 22.4% |
| Operating Margin | 5.6% | 5.6% | 6.8% | 4.6% | 6.0% | 5.0% | 4.2% | 4.6% | 5.4% | 6.0% | 3.4% |
| Net Profit Margin | 3.9% | 3.9% | 5.4% | 3.9% | 4.9% | 5.0% | 3.1% | 3.8% | 6.9% | 4.4% | 2.4% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.5% | 6.5% | 9.0% | 5.8% | 7.0% | 7.4% | 5.4% | 7.3% | 13.4% | 8.4% | 4.9% |
| ROA | 2.8% | 2.8% | 4.1% | 2.7% | 3.1% | 3.1% | 2.2% | 3.1% | 5.5% | 3.3% | 1.9% |
| ROIC | 5.9% | 5.9% | 6.2% | 3.8% | 4.6% | 3.8% | 3.6% | 4.2% | 5.0% | 5.2% | 3.1% |
| ROCE | 5.6% | 5.6% | 7.0% | 4.3% | 5.1% | 4.3% | 4.4% | 5.2% | 6.1% | 6.4% | 3.9% |
HMC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Honda Motor Co., Ltd. carries a Debt/EBITDA ratio of 2.3x, which is manageable (49% below the sector average of 4.4x). The company holds a net cash position — cash of $4.5T exceeds total debt of $4.4T, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 22.1x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.35 | 0.35 | 0.78 | 0.66 | 0.75 | 0.72 | 0.89 | 0.86 | 0.83 | 0.90 | 0.93 |
| Debt / EBITDA | 2.26 | 2.26 | 4.63 | 5.07 | 3.43 | 3.23 | 3.54 | 3.34 | 2.97 | 3.13 | 5.61 |
| Net Debt / Equity | — | -0.01 | 0.39 | 0.33 | 0.41 | 0.42 | 0.57 | 0.56 | 0.55 | 0.62 | 0.68 |
| Net Debt / EBITDA | -0.05 | -0.05 | 2.36 | 2.54 | 1.86 | 1.91 | 2.26 | 2.20 | 1.99 | 2.16 | 4.10 |
| Debt / FCF | — | — | 37.01 | 2.55 | 3.56 | 7.64 | 12.53 | 28.76 | 10.94 | 18.99 | 9.19 |
| Interest Coverage | 22.10 | 22.10 | 23.18 | 21.62 | 51.65 | 5045.76 | 2790.42 | 54.96 | 64.27 | 67.41 | 27.74 |
Net cash position: cash ($4.53T) exceeds total debt ($4.42T)
HMC Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.36x means Honda Motor Co., Ltd. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has declined from 1.44x to 1.36x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.36 | 1.36 | 1.43 | 1.44 | 1.47 | 1.33 | 1.26 | 1.23 | 1.23 | 1.21 | 1.14 |
| Quick Ratio | 1.07 | 1.07 | 1.13 | 1.11 | 1.15 | 1.06 | 0.99 | 0.96 | 0.96 | 0.96 | 0.90 |
| Cash Ratio | 0.55 | 0.55 | 0.62 | 0.61 | 0.65 | 0.53 | 0.49 | 0.44 | 0.44 | 0.42 | 0.34 |
| Asset Turnover | — | 0.70 | 0.69 | 0.69 | 0.61 | 0.60 | 0.73 | 0.78 | 0.79 | 0.74 | 0.80 |
| Inventory Turnover | 6.89 | 6.89 | 6.56 | 6.26 | 6.03 | 6.75 | 7.59 | 7.93 | 7.88 | 7.97 | 8.63 |
| Days Sales Outstanding | — | 65.91 | 67.87 | 63.89 | 64.98 | 22.22 | 61.41 | 63.06 | 62.76 | 68.91 | 68.81 |
HMC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Honda Motor Co., Ltd. returns 5.9% to shareholders annually primarily through dividends. A payout ratio of 41.6% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 14.2% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.9% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Payout Ratio | 41.6% | 41.6% | 21.8% | 32.8% | 26.6% | 22.1% | 43.2% | 31.8% | 16.4% | 26.3% | 46.0% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 14.2% | 1978.6% | 1820.1% | 1449.7% | 1454.7% | 1260.8% | 1158.2% | 1276.6% | 1701.1% | 1130.5% | 699.2% |
| FCF Yield | — | — | 227.9% | 3330.4% | 2531.4% | 999.6% | 961.0% | 351.8% | 666.7% | 454.0% | 1053.4% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 100.0% | 0.0% | 100.0% | 100.0% | 100.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 5.9% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Shares Outstanding | — | $1.6B | $1.6B | $1.7B | $1.7B | $1.7B | $1.8B | $1.8B | $1.8B | $1.8B | $1.8B |
Peer Comparison
Compare HMC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 HMCYou | $31B | 7.0 | 2.4 | — | 21.5% | 5.6% | 6.5% | 5.9% | 2.3 |
 TM | $247B | 8.3 | 9.7 | — | 19.9% | 10.0% | 13.2% | 5.6% | 5.5 |
 F | $48B | -5.9 | 22.5 | 3.8 | 12.2% | 1.4% | -20.2% | 1.0% | 19.7 |
 GM | $71B | 24.0 | 10.3 | 6.4 | 10.9% | 1.6% | 4.2% | 1.3% | 7.4 |
 STLA | $22B | -0.7 | — | — | -2.7% | -14.5% | -38.6% | -25.3% | — |
 TSLA | $1.5T | 381.3 | 146.4 | 248.4 | 18.0% | 4.6% | 4.8% | 4.5% | 0.8 |
 RIVN | $18B | -4.6 | — | — | 2.7% | -66.5% | -65.4% | -36.7% | — |
 LCID | $2B | -0.5 | — | — | -92.8% | -258.7% | -117.6% | -98.7% | — |
 ALV | $9B | 12.7 | 7.3 | 12.6 | 19.2% | 10.1% | 30.3% | 19.4% | 1.6 |
 BWA | $12B | 45.5 | 6.8 | 10.2 | 18.7% | 9.2% | 4.9% | 12.9% | 2.0 |
 LEA | $7B | 16.6 | 6.1 | 13.0 | 8.2% | 4.4% | 8.9% | 9.7% | 2.5 |
| Consumer Cyclical Median | — | 19.4 | 11.4 | 15.3 | 36.8% | 2.9% | 5.7% | 5.8% | 4.4 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonHMC — Frequently Asked Questions
Quick answers to the most common questions about buying HMC stock.
What is Honda Motor Co., Ltd.'s P/E ratio?
Honda Motor Co., Ltd.'s current P/E ratio is 7.0x. The historical average is 0.1x. This places it at the 100th percentile of its historical range.
What is Honda Motor Co., Ltd.'s EV/EBITDA?
Honda Motor Co., Ltd.'s current EV/EBITDA is 2.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 2.6x.
What is Honda Motor Co., Ltd.'s ROE?
Honda Motor Co., Ltd.'s return on equity (ROE) is 6.5%. The historical average is 10.6%.
Is HMC stock overvalued?
Based on historical data, Honda Motor Co., Ltd. is trading at a P/E of 7.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Honda Motor Co., Ltd.'s dividend yield?
Honda Motor Co., Ltd.'s current dividend yield is 5.92% with a payout ratio of 41.6%.
What are Honda Motor Co., Ltd.'s profit margins?
Honda Motor Co., Ltd. has 21.5% gross margin and 5.6% operating margin.
How much debt does Honda Motor Co., Ltd. have?
Honda Motor Co., Ltd.'s Debt/EBITDA ratio is 2.3x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.