Honda Motor Co. Ltd. (HMC) intrinsic value & 10-year financials
Honda Motor Co. Ltd. (HMC) has a Graham intrinsic value of ¥3,782.09 per share. Over the last 10 fiscal years revenue grew 4.5% a year to ¥21.7T, with an average return on invested capital of 4.5%.
- Graham intrinsic value
- ¥3,782.09
- Revenue (FY2025)
- ¥21.7T
- Revenue growth (10-yr CAGR)
- 4.5%
- ROIC (10-yr avg)
- 4.5%
- Free cash flow (FY2025)
- -¥218.7B
HMC 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | ¥21.7T | ¥903.0B | ¥178.93 | -¥218.7B | 5.6% | 4.4% |
| FY2024 | ¥20.4T | ¥1.2T | ¥225.88 | ¥398.6B | 6.8% | 5.9% |
| FY2023 | ¥16.9T | ¥717.3B | ¥42.67 | ¥1.7T | 4.6% | 4.2% |
| FY2022 | ¥14.6T | ¥760.7B | ¥45.68 | ¥1.4T | 6.0% | 4.2% |
| FY2021 | ¥13.2T | ¥695.4B | ¥126.92 | ¥754.0B | 5.0% | 3.7% |
| FY2020 | ¥14.9T | ¥509.9B | ¥86.71 | ¥609.2B | 4.2% | 3.1% |
| FY2019 | ¥15.9T | ¥676.3B | ¥115.33 | ¥355.2B | 4.6% | 3.8% |
| FY2018 | ¥15.4T | ¥1.1T | ¥196.93 | ¥572.1B | 5.4% | 6.7% |
| FY2017 | ¥14.0T | ¥679.4B | ¥114.03 | ¥390.9B | 6.0% | 4.6% |
| FY2016 | ¥14.6T | ¥406.4B | ¥63.72 | ¥755.8B | 3.4% | 4.6% |
Source: annual 10-K filings on SEC EDGAR. Figures in JPY.
Executive summary
HONDA MOTOR CO LTD has demonstrated mature, steady growth, with revenue compounding at 4.5% annually over the past decade.
HONDA MOTOR CO LTD has historically struggled to out-earn its cost of capital, averaging just 4.5% ROIC.
Over the decade, HONDA MOTOR CO LTD shows that management has aggressively returned capital to shareholders by retiring 13.6% of outstanding shares.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, HONDA MOTOR CO LTD is modeled at 8.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $3782.09 per share.