HONDA MOTOR CO LTD's gross profit margin for the third quarter of its fiscal year 2015 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. HONDA MOTOR CO LTD has weak liquidity. Currently, the Quick Ratio is 0.82 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 6.32% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||29841.98||22796.32|
|Net Income ($mil)||1022.55||915.44|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||13581.55||11441.5|
|Total Assets ($mil)||154554.3||148726.19|
|Total Debt ($mil)||56937.18||57749.67|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||31.8||25.83|
|Return on Assets||2.8||3.55|
|Return on Equity||7.21||9.33|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||1802.29||1802.29|
|Div / share||0.18||0.18|
|Book value / share||33.39||31.4|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||652659.0||545697.0|
HOLD. This stock's P/E ratio indicates a discount compared to an average of 10.53 for the Automobiles industry and a discount compared to the S&P 500 average of 20.18. Conducting a second comparison, its price-to-book ratio of 0.74 indicates a significant discount versus the S&P 500 average of 2.40 and a discount versus the industry average of 2.18. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, HONDA MOTOR CO LTD proves to trade at a discount to investment alternatives within the industry.
|HMC 10.31||Peers 10.53||HMC 5.08||Peers 4.41|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
HMC is trading at a valuation on par with its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
HMC is trading at a premium to its peers.
|HMC 8.31||Peers 12.49||HMC 0.95||Peers 0.80|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
HMC is trading at a discount to its peers.
Premium. 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 premium to its peers.
|HMC 0.74||Peers 2.18||HMC -18.03||Peers 35.14|
Discount. 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.
HMC is trading at a significant discount to its peers.
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.
|HMC 0.36||Peers 0.81||HMC 13.80||Peers 4.14|
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.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
HMC has a sales growth rate that significantly exceeds its peers.
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