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Honda Motor Co Ltd
HMC : NYSE : Consumer Goods

$39.40 -0.84 | -2.09%
Today's Range: 39.08 - 39.52
Avg. Daily Volume: 568,100
05/24/13 - 4:04 PM ET

Financial Analysis


Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not.



Income Statement Q4 FY12 Q4 FY11
Net Sales ($mil)22576.3124439.62
EBITDA ($mil)0.02677.18
EBIT ($mil)0.01205.57
Net Income ($mil)535.34749.02


Balance Sheet Q4 FY12 Q4 FY11
Cash & Equiv. ($mil)0.015188.35
Total Assets ($mil)0.0142953.03
Total Debt ($mil)0.049887.68
Equity ($mil)0.053423.3


Profitability Q4 FY12 Q4 FY11
Gross Profit Margin0.032.29
EBITDA Margin0.010.95
Operating Margin0.04.93
Sales Turnover0.00.67
Return on Assets0.01.79
Return on Equity0.04.8
Debt Q4 FY12 Q4 FY11
Current Ratio0.01.32
Debt/Capital0.00.48
Interest Expense0.028.39
Interest Coverage0.042.47


Share Data Q4 FY12 Q4 FY11
Shares outstanding (mil)1802.31802.3
Div / share0.00.19
EPS0.30.41
Book value / share0.029.64
Institutional Own % n/a n/a
Avg Daily Volume547122.0629348.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 16.95 for the Automobiles industry and a value on par with the S&P 500 average of 19.08. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HMC 18.74 Peers 16.95   HMC NA Peers 7.76

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

HMC is trading at a premium to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HMC 13.46 Peers 15.16   HMC 0.46 Peers 0.80

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

HMC is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

HMC trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HMC NA Peers 3.77   HMC 53.90 Peers 97.69

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

Ratio not available.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, HMC is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HMC 0.70 Peers 1.00   HMC 8.77 Peers 14.45

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

HMC is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

HMC significantly trails its peers on the basis of sales growth

 

 

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