HMC
Honda Motor Co., Ltd. (HMC)
Last Price$27.5(1.0%)
Market Cap$43.7B
LTM Rule of 40 (EBIT margin)
18.9%
5Y avg
12.1%
Auto - Manufacturers industry median
(5.3%)
Stock quality & Intrinsic value
6/10
3.1% undervalued

Honda Motor Co., Ltd. Rule of 40 (EBIT margin)

Annual
Quarterly
LTM
Industry median
Company stand-alone
HMC
Consumer Cyclical
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Mar'05Mar'06Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Rule of 40 (EBIT margin)
13.4%
23.2%
19.6%
15.9%
(14.5%)
(10.1%)
10.5%
(8.2%)
29.8%
26.2%
11.9%
18.9%
1.9%
15.2%
8.0%
(1.8%)
(6.8%)
16.5%
21.1%
27.6%
HMC
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Honda Motor Co., Ltd. (HMC) Rule of 40 (EBIT margin) comparison analysis

HMC key stats

USD
JPY
Millions
Billions
Annual
Quarterly
Trailing
Key stats
Income statement
Balance sheet
Cash Flow Statement
Valuation
Ratios
Per share
Per employee
Dividends & Yields
Mar'05Mar'06Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
% growth
80,600.7
11.5%
87,266.9
8.3%
94,486.9
8.3%
104,489.2
10.6%
99,557.6
(4.7%)
92,035.5
(7.6%)
104,062.1
13.1%
100,257.5
(3.7%)
119,232.9
18.9%
118,037.7
(1.0%)
115,548.0
(2.1%)
121,689.0
5.3%
129,411.4
6.3%
138,626.1
7.1%
143,322.9
3.4%
137,321.5
(4.2%)
124,204.1
(9.6%)
129,562.8
4.3%
125,050.2
(3.5%)
141,594.7
13.2%
Cost of Goods Sold (COGS)56,263.261,745.667,027.874,372.073,784.668,815.875,650.174,670.488,660.687,324.786,358.694,446.5100,446.1108,298.8113,486.2109,000.598,451.1102,989.4100,409.6112,086.4
% margin
24,337.5
30.2%
25,521.3
29.2%
27,459.1
29.1%
30,117.2
28.8%
25,773.0
25.9%
23,219.8
25.2%
28,412.0
27.3%
25,587.1
25.5%
30,572.3
25.6%
30,713.0
26.0%
29,189.4
25.3%
27,242.5
22.4%
28,965.3
22.4%
30,327.3
21.9%
29,836.7
20.8%
28,321.0
20.6%
25,753.0
20.7%
26,573.5
20.5%
24,640.6
19.7%
29,508.3
20.8%
Operating Expenses18,459.117,868.520,199.021,820.123,887.019,317.321,777.522,668.623,996.123,234.723,235.323,047.221,193.622,804.923,284.522,493.419,526.918,816.918,432.421,002.5
Research & Development Expenses (R&D)4,358.44,495.64,702.95,118.85,600.84,970.85,677.66,557.06,762.86,320.66,054.05,471.46,391.76,785.17,278.77,395.66,968.17,007.26,515.35,329.0
Selling, General & Administrative Expenses (SG&A)14,100.814,589.115,495.116,702.218,286.314,346.516,099.916,111.617,233.316,914.117,181.317,575.814,801.916,019.816,005.915,097.812,558.811,809.711,917.114,600.7
5,878.4
7.3%
7,652.8
8.8%
7,260.1
7.7%
8,297.1
7.9%
1,885.9
1.9%
3,902.5
4.2%
6,634.5
6.4%
2,918.4
2.9%
6,576.2
5.5%
7,478.3
6.3%
5,954.1
5.2%
4,195.2
3.4%
7,771.7
6.0%
7,522.4
5.4%
6,552.2
4.6%
5,827.6
4.2%
6,226.1
5.0%
7,756.6
6.0%
6,208.2
5.0%
9,578.7
6.8%
Interest Income0.00.00.00.0410.1195.6274.5422.1310.7239.5234.1237.3299.4371.7438.6454.4186.8228.2540.41,203.9
Interest Expense0.00.00.00.0224.2134.798.7130.9146.7126.6151.6151.2115.3117.0119.2227.1130.9150.2267.1413.3
Pre-tax Income6,120.17,174.86,757.17,798.31,608.43,606.77,342.23,246.95,901.27,265.66,300.75,296.09,308.810,062.08,834.47,264.98,619.99,527.96,938.910,615.5
% effective tax rate
2,484.8
40.6%
2,794.2
38.9%
2,418.7
35.8%
3,372.5
43.2%
1,092.3
67.9%
1,575.6
43.7%
2,408.3
32.8%
(1,712.2)
(52.7%)
2,160.3
36.6%
2,518.4
34.7%
2,286.4
36.3%
1,909.3
36.1%
3,028.3
32.5%
(123.3)
(1.2%)
2,734.0
30.9%
2,575.1
35.4%
2,061.6
23.9%
2,755.4
28.9%
1,309.4
18.9%
3,186.9
30.0%
% margin
4,530.1
5.6%
5,258.7
6.0%
5,048.2
5.3%
5,223.2
5.0%
1,362.5
1.4%
2,879.3
3.1%
6,219.0
6.0%
2,667.6
2.7%
4,431.7
3.7%
5,722.3
4.8%
4,776.3
4.1%
2,871.4
2.4%
5,699.7
4.4%
9,559.9
6.9%
5,505.3
3.8%
4,191.5
3.1%
6,199.8
5.0%
6,295.0
4.9%
4,817.9
3.9%
7,674.0
5.4%
EPS7.288.578.288.672.254.7610.334.447.389.527.954.789.4915.993.132.393.593.662.844.70
Diluted EPS7.288.578.288.672.254.7610.334.447.389.527.954.789.4915.993.132.393.593.662.844.70
% margin
7,981.7
9.9%
9,962.8
11.4%
10,425.8
11.0%
12,810.0
12.3%
8,173.7
8.2%
10,496.3
11.4%
14,004.0
13.5%
10,072.8
10.0%
13,175.3
11.1%
18,956.8
16.1%
17,519.9
15.2%
16,121.1
13.2%
21,778.1
16.8%
23,301.7
16.8%
22,201.9
15.5%
20,932.6
15.2%
19,618.3
15.8%
21,024.0
16.2%
17,714.3
14.2%
21,976.4
15.5%

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FAQ

1) What is Honda Motor Co., Ltd.'s Rule of 40 (EBIT margin)?

As of today, Microsoft Corp's last 12-month Rule of 40 (EBIT margin) is 18.9%, based on the financial report for Dec 31, 2024 (Q4’2024). The average annual Rule of 40 (EBIT margin) for Honda Motor Co., Ltd. have been 20.1% over the past three years, and 12.7% over the past five years.

2) Is Honda Motor Co., Ltd.'s Rule of 40 (EBIT margin) Good?

As of today, Honda Motor Co., Ltd.'s Rule of 40 (EBIT margin) is 18.9%, which is higher than industry median of (5.3%). It indicates that Honda Motor Co., Ltd.'s Rule of 40 (EBIT margin) is Good.

3) How does Honda Motor Co., Ltd.'s Rule of 40 (EBIT margin) compare to its peers?

As of today, Honda Motor Co., Ltd.'s Rule of 40 (EBIT margin) is 18.9%, which is higher than peer median of 12.0%. The list of peers includes XPEV, LI, RACE, TM, GM, TSLA, F, STLA, RIVN, LCID.