Honda Approaches Its 10-Year P/B Ratio Low

Company trades at P/B ratio of 0.80; its 10-year low is 0.72

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Jun 23, 2016
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Honda Motor Co. Ltd. (HMC, Financial) is traded at a P/B ratio of 0.80, close to its 10-year low of 0.72. The company is owned by eight gurus.

Honda has a market cap of $47.89 billion; its shares were traded around $26.57 with a P/E ratio of 17.38 and P/S ratio of 0.39. The trailing 12-month dividend yield of Honda stock is 2.89%. Honda's forward dividend yield is 3.25%. Honda had an annual average earnings growth of 3.90% over the past 10 years. GuruFocus rated Honda the business predictability rank of 2.5-star.

Over the past five years, Honda stock prices have declined by 29%. This could be attributed to the company’s declining gross margin.

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GuruFocus has found two severe warning signs for Honda:

  • Declining gross margin.

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  • Faster asset growth than revenue growth.

When Honda reported its 2016 third fiscal quarter results, the company announced sales revenue of $30.0 billion, compared to last third fiscal quarter sales revenue of $90.7 billion.

Recent trades

Ken Fisher (Trades, Portfolio) initiated his position in Honda. He bought 7,261 shares. David Dreman (Trades, Portfolio), HOTCHKIS & WILEY and Charles Brandes (Trades, Portfolio) increased their positions in Honda. Dodge & Cox kept its position unchanged.

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