HONDA MOTOR CO LTD's gross profit margin for the first quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. 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.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.91% 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||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||30342.03||29505.12|
|Net Income ($mil)||1523.65||1446.6|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||13521.16||11321.18|
|Total Assets ($mil)||154778.9||152920.81|
|Total Debt ($mil)||56934.5||57694.84|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||22.11||25.1|
|Return on Assets||2.79||3.78|
|Return on Equity||7.18||9.8|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||1802.29||1802.29|
|Div / share||0.18||0.21|
|Book value / share||33.38||32.75|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||612495.0||728523.0|
BUY. This stock's P/E ratio indicates a premium compared to an average of 11.82 for the Automobiles industry and a discount compared to the S&P 500 average of 19.47. For additional comparison, its price-to-book ratio of 0.92 indicates a significant discount versus the S&P 500 average of 2.59 and a significant discount versus the industry average of 4.75. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
|HMC 12.74||Peers 11.82||HMC 6.58||Peers 5.39|
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 10.55||Peers 9.45||HMC 3.63||Peers 1.09|
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.
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 significant premium to its peers.
|HMC 0.92||Peers 4.75||HMC -24.93||Peers -11.82|
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 0.49||Peers 1.34||HMC -3.45||Peers -2.35|
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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