Honda Motor Co Stock Profit Margin
| HMC Stock | USD 34.55 0.41 1.20% |
Honda Motor Co fundamentals help investors to digest information that contributes to Honda's financial success or failures. It also enables traders to predict the movement of Honda Stock. The fundamental analysis module provides a way to measure Honda's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Honda stock.
| Last Reported | Projected for Next Year | ||
| Net Profit Margin | 0.03 | 0.03 |
Honda | Profit Margin |
Honda Motor Co Company Profit Margin Analysis
Honda's Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Current Honda Profit Margin | 0.05 % |
Most of Honda's fundamental indicators, such as Profit Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Honda Motor Co is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Honda Profit Margin Driver Correlations
Understanding the fundamental principles of building solid financial models for Honda is extremely important. It helps to project a fair market value of Honda Stock properly, considering its historical fundamentals such as Profit Margin. Since Honda's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Honda's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Honda's interrelated accounts and indicators.
Honda Profit Margin Historical Pattern
Today, most investors in Honda Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Honda's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's profit margin growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Honda profit margin as a starting point in their analysis.
Honda Profit Margin |
| Timeline |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
| Competition |
Honda Pretax Profit Margin
Pretax Profit Margin |
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Based on the latest financial disclosure, Honda Motor Co has a Profit Margin of 0.0484%. This is 98.08% lower than that of the Automobiles sector and 95.93% lower than that of the Consumer Discretionary industry. The profit margin for all United States stocks is 103.81% lower than that of the firm.
Honda Profit Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Honda's direct or indirect competition against its Profit Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Honda could also be used in its relative valuation, which is a method of valuing Honda by comparing valuation metrics of similar companies.Honda is currently under evaluation in profit margin category among related companies.
Honda Current Valuation Drivers
We derive many important indicators used in calculating different scores of Honda from analyzing Honda's financial statements. These drivers represent accounts that assess Honda's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Honda's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 12.7T | 17.3T | 17.9T | 18.0T | 16.2T | 17.0T | |
| Enterprise Value | 17.4T | 22.3T | 22.3T | 21.8T | 19.6T | 20.6T |
Honda Fundamentals
| Return On Equity | 0.0849 | ||||
| Return On Asset | 0.0272 | ||||
| Profit Margin | 0.05 % | ||||
| Operating Margin | 0.07 % | ||||
| Current Valuation | 5.44 T | ||||
| Shares Outstanding | 1.61 B | ||||
| Shares Owned By Institutions | 5.00 % | ||||
| Number Of Shares Shorted | 1.48 M | ||||
| Price To Earning | 10.96 X | ||||
| Price To Book | 0.74 X | ||||
| Price To Sales | 0 X | ||||
| Revenue | 16.91 T | ||||
| Gross Profit | 2.98 T | ||||
| EBITDA | 1.7 T | ||||
| Net Income | 938.19 B | ||||
| Cash And Equivalents | 3.8 T | ||||
| Total Debt | 7.67 T | ||||
| Debt To Equity | 0.74 % | ||||
| Current Ratio | 1.47 X | ||||
| Book Value Per Share | 2,486 X | ||||
| Cash Flow From Operations | 2.13 T | ||||
| Short Ratio | 1.15 X | ||||
| Earnings Per Share | 3.70 X | ||||
| Price To Earnings To Growth | 3.62 X | ||||
| Target Price | 38.55 | ||||
| Number Of Employees | 197.04 K | ||||
| Beta | 0.61 | ||||
| Market Capitalization | 54.88 B | ||||
| Total Asset | 24.67 T | ||||
| Retained Earnings | 10.02 T | ||||
| Working Capital | 2.97 T | ||||
| Current Asset | 6.24 T | ||||
| Current Liabilities | 5.47 T | ||||
| Annual Yield | 0.03 % | ||||
| Five Year Return | 3.35 % | ||||
| Net Asset | 24.67 T | ||||
| Last Dividend Paid | 49.0 |
About Honda Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Honda Motor Co's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Honda using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Honda Motor Co based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Honda Investors Sentiment
The influence of Honda's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Honda. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Honda's public news can be used to forecast risks associated with an investment in Honda. The trend in average sentiment can be used to explain how an investor holding Honda can time the market purely based on public headlines and social activities around Honda Motor Co. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Honda's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Honda's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Honda's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Honda.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Honda in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Honda's short interest history, or implied volatility extrapolated from Honda options trading.
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Try AI Portfolio ArchitectCheck out Honda Piotroski F Score and Honda Altman Z Score analysis. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Complementary Tools for Honda Stock analysis
When running Honda's price analysis, check to measure Honda's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Honda is operating at the current time. Most of Honda's value examination focuses on studying past and present price action to predict the probability of Honda's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Honda's price. Additionally, you may evaluate how the addition of Honda to your portfolios can decrease your overall portfolio volatility.
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Is Honda's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Honda. If investors know Honda will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Honda listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.081 | Dividend Share 49 | Earnings Share 3.7 | Revenue Per Share 11.8 K | Quarterly Revenue Growth 0.214 |
The market value of Honda Motor is measured differently than its book value, which is the value of Honda that is recorded on the company's balance sheet. Investors also form their own opinion of Honda's value that differs from its market value or its book value, called intrinsic value, which is Honda's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Honda's market value can be influenced by many factors that don't directly affect Honda's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Honda's value and its price as these two are different measures arrived at by different means. Investors typically determine if Honda is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Honda's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.