Honda Motor Co (FRA:HDM) EBIT: €-1,490 Mil (TTM As of Mar. 2026)


FRA:HDM Honda Motor Co Ltd FRA:HDM
72 GF Score
Price €7.58
GF Value €10.29
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Honda Motor Co EBIT?

Honda Motor Co FRA:HDM +1.20% 72 EBIT is €-1,490 Mil as of Mar. 2026. GuruFocus rates FRA:HDM with a GF Score™ of 72/100 and a GF Value™ of €10.29 (Modestly Undervalued). The stock has 5 warning signs investors should review.

Honda Motor Co's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €-6,185 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €-1,490 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Honda Motor Co's annualized ROC % for the quarter that ended in Mar. 2026 was -10.86%. Honda Motor Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -41.86%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Honda Motor Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -5.08%.


Honda Motor Co  (FRA:HDM) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Honda Motor Co's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=-21932.096 * ( 1 - 25.77% )/( (148501.954 + 151278.261)/ 2 )
=-16280.1948608/149890.1075
=-10.86 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=179928.272 - 13445.12 - ( 27575.976 - max(0, 49811.235 - 67792.433+27575.976))
=148501.954

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=182663.463 - 15738.976 - ( 29238.781 - max(0, 55625.945 - 71272.171+29238.781))
=151278.261

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Honda Motor Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-24741.284/( ( (52524.722 + max(-9594.778, 0)) + (52495.334 + max(13202.239, 0)) )/ 2 )
=-24741.284/( ( 52524.722 + 65697.573 )/ 2 )
=-24741.284/59111.1475
=-41.86 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(22361.238 + 13284.404 + 4570.815) - (13445.12 + 0 + 36366.115)
=-9594.778

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(23590.915 + 13797.714 + 4644.761) - (15738.976 + 0 + 13092.175)
=13202.239

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Honda Motor Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=-1489.965/29311.608
=-5.08 %

* 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 EBIT Related Terms


Honda Motor Co EBIT Historical Data

* Premium members only.

The historical data trend for Honda Motor Co's EBIT 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.

Honda Motor Co EBIT Chart

Honda Motor Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8,324.08 6,398.44 10,451.67 8,517.55 -1,742.93

Honda Motor Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 676.08 1,837.64 1,443.57 1,414.15 -6,185.32

FRA:HDM vs TSLA, GM, F: EBIT Comparison

For the Auto Manufacturers subindustry, Honda Motor Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Honda Motor Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Honda Motor Co's EV-to-EBIT falls into.


FRA:HDM
72GF Score
Honda Motor Co Ltd FRA:HDM
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Honda Motor Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €-1,490 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €-1,490 Mil mean?
Honda Motor Co (FRA:HDM) has a EBIT of €-1,490 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Honda Motor Co.
Is Honda Motor Co's EBIT too high?
Honda Motor Co's current EBIT is €-1,490 Mil. Overall, Honda Motor Co has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Honda Motor Co's EBIT compare to TSLA and GM?
Honda Motor Co's EBIT of €-1,490 Mil can be compared against companies in the Vehicles & Parts industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Vehicles & Parts company?
A good EBIT depends on the Vehicles & Parts industry context. However, EBIT 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 EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Honda Motor Co. Honda Motor Co's current EBIT is €-1,490 Mil. 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 (FRA:HDM) is currently considered Modestly Undervalued. The stock's GF Value™ is €10.29, compared to a current price of €7.58 — trading 26.3% below its estimated fair value. The current EBIT is €-1,490 Mil. Honda Motor Co's overall GF Score™ is 72/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Honda Motor Co (FRA:HDM), the current EBIT is €-1,490 Mil as of Mar. 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 (FRA:HDM) Overvalued in 2026?

Based on GuruFocus' analysis, Honda Motor Co stock appears to be undervalued. The current stock price of €7.58 is trading 26.3% below its estimated GF Value™ of €10.29. GuruFocus considers Honda Motor Co to be Modestly Undervalued.

Key valuation signals for FRA:HDM:

  • EBIT: €-1,490 Mil
  • GF Value™: €10.29 vs. price of €7.58 (26.3% below fair value)
  • GF Score™: 72/100 with 5 warning signs

No single metric tells the full story. See the FRA:HDM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Honda Motor Co Business Description

Address Toranomon 2-chome, No.2-3, Minato-ku, Tokyo, JPN, 105-8404
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.
72GF Score

Get the complete analysis for FRA:HDM

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€7.58
Price
€10.29
GF Value