Latest Ratios: P/E Ratio -16.8x · EV/EBITDA N/A · ROE -3.4%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $44.3B | $32.4B | $42.2B | $60.8B | $44.9B | $48.6B | $52.1B | $39.4B | $47.8B | $62.3B | $54.5B |
| Enterprise Value | $98.2B | $8.48T | $-64314126421 | $5.19T | $3.87T | $4.43T | $4.03T | $4.78T | $4.88T | $4.60T | $4.76T |
| P/E Ratio → | -16.83 | — | 0.05 | 0.05 | 0.07 | 0.07 | 0.08 | 0.09 | 0.08 | 0.06 | 0.09 |
| P/S Ratio | 0.32 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| P/B Ratio | 0.58 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.01 | 0.01 | 0.01 |
| P/FCF | 12.53 | 0.06 | — | 0.44 | 0.03 | 0.04 | 0.10 | 0.10 | 0.28 | 0.15 | 0.22 |
| P/OCF | 5.77 | 0.03 | 22.04 | 0.08 | 0.02 | 0.03 | 0.05 | 0.04 | 0.06 | 0.06 | 0.06 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.39 | -0.00 | 0.25 | 0.23 | 0.30 | 0.31 | 0.32 | 0.31 | 0.30 | 0.34 |
| EV / EBITDA | — | — | -0.03 | 2.38 | 2.57 | 1.88 | 1.93 | 2.28 | 2.23 | 2.01 | 2.19 |
| EV / EBIT | — | — | -0.05 | 3.05 | 4.22 | 5.00 | 6.16 | 5.86 | 4.92 | 4.08 | 4.67 |
| EV / FCF | — | 15.29 | — | 37.45 | 2.58 | 3.60 | 7.74 | 12.63 | 29.04 | 11.09 | 19.21 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 16.5% | 16.5% | 21.5% | 21.6% | 19.7% | 20.5% | 20.7% | 20.6% | 20.8% | 21.9% | 22.4% |
| Operating Margin | -1.9% | -1.9% | 5.6% | 6.8% | 4.6% | 6.0% | 5.0% | 4.2% | 4.6% | 5.4% | 6.0% |
| Net Profit Margin | -1.9% | -1.9% | 3.9% | 5.4% | 3.9% | 4.9% | 5.0% | 3.1% | 3.8% | 6.9% | 4.4% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -3.4% | -3.4% | 6.5% | 9.0% | 5.8% | 7.0% | 7.4% | 5.4% | 7.3% | 13.4% | 8.4% |
| ROA | -1.3% | -1.3% | 2.8% | 4.1% | 2.7% | 3.1% | 3.1% | 2.2% | 3.1% | 5.5% | 3.3% |
| ROIC | -1.9% | -1.9% | 5.9% | 6.2% | 3.8% | 4.6% | 3.8% | 3.6% | 4.2% | 5.0% | 5.2% |
| ROCE | -1.8% | -1.8% | 5.6% | 7.0% | 4.3% | 5.1% | 4.3% | 4.4% | 5.2% | 6.1% | 6.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.11 | 1.11 | 0.35 | 0.78 | 0.66 | 0.75 | 0.72 | 0.89 | 0.86 | 0.83 | 0.90 |
| Debt / EBITDA | — | — | 2.26 | 4.63 | 5.07 | 3.43 | 3.23 | 3.54 | 3.34 | 2.97 | 3.13 |
| Net Debt / Equity | — | 0.69 | -0.01 | 0.39 | 0.33 | 0.41 | 0.42 | 0.57 | 0.56 | 0.55 | 0.62 |
| Net Debt / EBITDA | — | — | -0.05 | 2.36 | 2.54 | 1.86 | 1.91 | 2.26 | 2.20 | 1.99 | 2.16 |
| Debt / FCF | — | 15.23 | — | 37.01 | 2.55 | 3.56 | 7.64 | 12.53 | 28.76 | 10.94 | 18.99 |
| Interest Coverage | -3.94 | -3.94 | 25.00 | 28.54 | 25.36 | 52.44 | 5007.45 | 3587.38 | 75.10 | 86.97 | 81.75 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.28 | 1.28 | 1.36 | 1.43 | 1.44 | 1.47 | 1.33 | 1.26 | 1.23 | 1.23 | 1.21 |
| Quick Ratio | 1.03 | 1.03 | 1.07 | 1.13 | 1.11 | 1.15 | 1.06 | 0.99 | 0.96 | 0.96 | 0.96 |
| Cash Ratio | 0.50 | 0.50 | 0.55 | 0.62 | 0.61 | 0.65 | 0.53 | 0.49 | 0.44 | 0.44 | 0.42 |
| Asset Turnover | — | 0.65 | 0.70 | 0.69 | 0.69 | 0.61 | 0.60 | 0.73 | 0.78 | 0.79 | 0.74 |
| Inventory Turnover | 7.16 | 7.16 | 6.89 | 6.56 | 6.26 | 6.03 | 6.75 | 7.59 | 7.93 | 7.88 | 7.97 |
| Days Sales Outstanding | — | 72.78 | 65.91 | 67.87 | 63.89 | 64.98 | 22.22 | 61.41 | 63.06 | 62.76 | 68.91 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.2% | 100.0% | 5.4% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Payout Ratio | — | — | 0.3% | 21.8% | 32.8% | 26.6% | 22.1% | 43.2% | 31.8% | 16.4% | 26.3% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 1978.6% | 1820.1% | 1449.7% | 1454.7% | 1260.8% | 1158.2% | 1276.6% | 1701.1% | 1130.5% |
| FCF Yield | 8.0% | 1712.7% | — | 227.9% | 3330.4% | 2531.4% | 999.6% | 961.0% | 351.8% | 666.7% | 454.0% |
| Buyback Yield | 10.2% | 100.0% | 11.2% | 0.0% | 0.0% | 100.0% | 0.0% | 100.0% | 100.0% | 100.0% | 0.0% |
| Total Shareholder Yield | 14.5% | 100.0% | 16.6% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Shares Outstanding | — | $1.3B | $1.6B | $1.6B | $1.7B | $1.7B | $1.7B | $1.8B | $1.8B | $1.8B | $1.8B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying HMC stock.
Honda Motor Co., Ltd.'s current P/E ratio is -16.8x. The historical average is 0.1x.
Honda Motor Co., Ltd.'s return on equity (ROE) is -3.4%. The historical average is 10.3%.
Based on historical data, Honda Motor Co., Ltd. is trading at a P/E of -16.8x. Compare with industry peers and growth rates for a complete picture.
Honda Motor Co., Ltd.'s current dividend yield is 4.23%.
Honda Motor Co., Ltd. has 16.5% gross margin and -1.9% operating margin.
Key Metrics
Top Statement Risk
Persistent margin compression and leverage
Margin Compression Below Gross Line
Honda's gross margin held near 20-22% over the past year, but operating margin plunged to -1.9% in 2026Q4, indicating cost pressures concentrated below the gross line, per reported figures.
The gap between gross margin (16.5% in the latest quarter) and operating margin (-1.9%) is unusually wide, suggesting elevated R&D, one-time charges, or production inefficiencies. The sharp recovery in 2027Q1 (op margin 8.8%) may be misleading, as the underlying cost structure remains elevated. Investors should monitor whether the negative operating margin in 2026Q4 is a cyclical trough or a structural shift, especially given the spike in R&D and SG&A expenses.
Return on Capital Decays Sharply
ROIC swung from 3.9% in 2025Q2 to -3.6% in 2026Q4, while ROE turned negative at -3.4%, indicating a severe erosion of capital efficiency, based on reported figures.
The ten-quarter trend shows ROIC oscillating between 0.3% and 3.9%, with the latest quarter's negative reading suggesting that Honda is not generating returns above its cost of capital. The negative ROE in 2026Q4 (-7.1%) and the subsequent recovery to 3.7% in 2027Q1 highlight volatility, but the cumulative effect is a declining trend. This may indicate that the company's heavy investment in EV platforms and R&D is not yet yielding returns, and investors should monitor whether the capital base is being deployed efficiently.
Working Capital Cycle Lengthens
Honda's cash conversion cycle extended from 61 days in 2024Q4 to 80 days in 2027Q1, driven by a sharp increase in DSO from 42 to 65 days, per recent financial statements.
The lengthening CCC suggests deteriorating working capital efficiency, with receivables taking longer to collect. DSO jumped from 41-42 days in 2024Q4 and 2025Q4 to 65-68 days in recent quarters, which may indicate weaker customer payment terms or a shift in sales mix. DIO and DPO have remained relatively stable, so the primary driver is receivables. This could signal increased credit risk or a competitive need to offer financing incentives, which warrants monitoring.
Leverage Doubles Amid Losses
Debt-to-equity rose from 0.78 in 2024Q4 to 1.11 in 2026Q4, with total debt reaching ¥13.5T, while interest coverage turned negative at -28.09, according to reported balance sheet data.
The doubling of leverage over ten quarters indicates that Honda is increasingly relying on debt to fund operations and investments, likely due to negative retained earnings. The negative interest coverage in 2026Q4 suggests that operating income is insufficient to cover interest expenses, a concerning sign. However, the 2027Q1 recovery shows coverage at 31.97, but this is based on a single quarter's rebound. Investors should monitor whether the elevated debt load is sustainable, especially if margins remain under pressure.
Liquidity Buffer Thins Slightly
Honda's current ratio slipped from 1.43 in 2024Q4 to 1.28 in 2027Q1, while cash holdings remained steady at ¥5.1T, indicating a tighter but still adequate short-term position, per reported figures.
The decline in the current ratio suggests that current liabilities are growing faster than current assets, potentially due to increased short-term debt or payables. The quick ratio of 1.03 in 2027Q1 indicates that Honda can cover its current liabilities without relying on inventory, which is a positive sign. However, the negative FCF margin in 2027Q1 (-5.7%) and the elevated capex suggest that liquidity could be strained if losses persist. The stable cash pile provides a cushion, but investors should watch for further deterioration.
Misapplied P/E on Cyclical Losses
The trailing P/E of -15.63 is meaningless given negative earnings, and the forward P/E of 0.09 appears distorted by one-time items, so investors should rely on EV/EBITDA or P/B instead, based on reported figures.
Honda's negative net income in 2026Q4 makes the P/E ratio uninformative, and the forward P/E of 0.09 is likely an artifact of analyst estimates that may not reflect the current cost pressures. The P/B of 0.54 suggests the market is pricing the stock below book value, which could indicate undervaluation or concerns about asset quality. A more appropriate metric is EV/EBITDA, but it is unavailable for the latest quarter; investors should use normalized earnings or cash flow multiples to assess valuation. The negative ROE and margin compression suggest that the market's discount may be justified, but the strong motorcycle segment and hybrid strategy could provide upside if execution improves.