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A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Honda Motor Co's Debt-to-Equity or its related term are showing as below:
HMC'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.29 Med: 0.36 Max: 0.42
Current: 0.4
During the past 13 years, the highest Debt-to-Equity Ratio of Honda Motor Co was 0.42. The lowest was 0.29. And the median was 0.36.
HMC's Debt-to-Equity is ranked better than 54.61% of 1216
companies
in the Vehicles & Parts industry
Industry Median: 0.46
vs HMC: 0.40
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Honda Motor Co Debt-to-Equity Related Terms
Honda Motor Co Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Honda Motor Co's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Manufacturers subindustry, Honda Motor Co's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Honda Motor Co Debt-to-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Honda Motor Co's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Honda Motor Co's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Honda Motor Co (HMC) has a Debt-to-Equity of 0.00 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Honda Motor Co and its competitors. Over the past decade, Honda Motor Co's Debt-to-Equity has ranged from 0.29 to 0.42. According to the industry distribution chart, Honda Motor Co ranks #552 out of 1216 companies in the Vehicles & Parts industry, placing it in the top 45.4%.
Is Honda Motor Co's Debt-to-Equity too high?
Honda Motor Co's current Debt-to-Equity is 0.00. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 0.42. Based on the distribution chart, Honda Motor Co ranks #552 out of 1216 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Honda Motor Co has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Honda Motor Co's Debt-to-Equity compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Honda Motor Co ranks #552 out of 1216 companies for Debt-to-Equity. This puts Honda Motor Co in the upper half of its industry. The industry median Debt-to-Equity is 0.46. Historically, Honda Motor Co's own Debt-to-Equity has ranged from 0.29 to 0.42 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Vehicles & Parts company?
The median Debt-to-Equity among Vehicles & Parts companies is 0.46, based on 1,216 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Honda Motor Co and its competitors. For the Vehicles & Parts industry, the median Debt-to-Equity is 0.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honda Motor Co's current Debt-to-Equity is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honda Motor Co stock overvalued right now?
Based on GuruFocus' analysis, Honda Motor Co (HMC) is currently considered Fairly Valued. The stock's GF Value™ is $33.42, compared to a current price of $31.82 — trading 4.8% below its estimated fair value. The current Debt-to-Equity is 0.00. Honda Motor Co's overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Honda Motor Co (HMC), the current Debt-to-Equity is 0.00 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Honda Motor Co (HMC) Overvalued in 2026?
Based on GuruFocus' analysis, Honda Motor Co stock appears to be undervalued.
The current stock price of $31.82 is trading 4.8% below its estimated GF Value™ of $33.42.
GuruFocus considers Honda Motor Co to be Fairly Valued.
Key valuation signals for HMC:
Debt-to-Equity: 0.00
GF Value™: $33.42 vs. price of $31.82 (4.8% below fair value)
No single metric tells the full story. See the HMC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Incorporated in 1948, Honda Motor was originally a motorcycle manufacturer. Today, the firm makes automobiles, motorcycles, and power products such as boat engines, generators, and lawnmowers. Including joint ventures, Honda sold 3.4 million light vehicles and 22.1 million motorcycles in fiscal 2026, and consolidated sales were JPY 21.8 trillion. Automobiles constitute 64% of revenue and motorcycles 18%, with the rest split between power products and financial services. Honda also makes robots and private jets.
71GF Score
Get the complete analysis for HMC
Debt-to-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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