Honda Motor CoMEX:HMCN 62 Pretax Margin % is -20.19% as of Mar. 2026. GuruFocus rates MEX:HMCN with a GF Score™ of 62/100 and a GF Value™ of MXN627.27 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,326 Vehicles & Parts companies, Honda Motor Co ranks worse than 80.77% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Honda Motor Co's Pre-Tax Income for the
three
months ended in Mar. 2026 was MXN-133,537 Mil. Honda Motor Co's Revenue for the
three
months ended in Mar. 2026 was MXN661,492 Mil. Therefore, Honda Motor Co's pretax margin for the quarter that ended in Mar. 2026 was -20.19%.
The historical rank and industry rank for Honda Motor Co's Pretax Margin % or its related term are showing as below:
MEX:HMCN'
s Pretax Margin % Range Over the Past 10 Years
Min: -1.85 Med: 6.55 Max: 8.04
Current: -1.85
MEX:HMCN's Pretax Margin % is ranked worse than 80.77% of 1326
companies
in the Vehicles & Parts industry
Industry Median: 4.4
vs MEX:HMCN: -1.85
Honda Motor Co (MEX:HMCN) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Honda Motor Co Pretax Margin % Related Terms
Honda Motor Co Pretax Margin % Historical Data
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The historical data trend for Honda Motor Co's Pretax Margin % 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.
MEX:HMCN vs TSLA, GM, F: Pretax Margin % Comparison
For the Auto Manufacturers subindustry, Honda Motor Co's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Honda Motor Co's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Honda Motor Co's Pretax Margin % 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 (MEX:HMCN) has a Pretax Margin % of -20.19% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Honda Motor Co and its competitors. According to the industry distribution chart, Honda Motor Co ranks #1071 out of 1326 companies in the Vehicles & Parts industry, placing it in the top 80.8%.
Is Honda Motor Co's Pretax Margin % too high?
Honda Motor Co's current Pretax Margin % is -20.19%. Based on the distribution chart, Honda Motor Co ranks #1071 out of 1326 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Honda Motor Co has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Honda Motor Co's Pretax Margin % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Honda Motor Co ranks #1071 out of 1326 companies for Pretax Margin %. This places Honda Motor Co in the lower half of its industry. The industry median Pretax Margin % is 4.40. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Vehicles & Parts company?
The median Pretax Margin % among Vehicles & Parts companies is 4.40, based on 1,326 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Honda Motor Co and its competitors. For the Vehicles & Parts industry, the median Pretax Margin % is 4.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honda Motor Co's current Pretax Margin % is -20.19%. 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 (MEX:HMCN) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN627.27, compared to a current price of MXN455.00 — trading 27.5% below its estimated fair value. The current Pretax Margin % is -20.19%. Honda Motor Co's overall GF Score™ is 62/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Honda Motor Co (MEX:HMCN), the current Pretax Margin % is -20.19% 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 (MEX:HMCN) Overvalued in 2026?
Based on GuruFocus' analysis, Honda Motor Co stock appears to be undervalued.
The current stock price of MXN455.00 is trading 27.5% below its estimated GF Value™ of MXN627.27.
GuruFocus considers Honda Motor Co to be Modestly Undervalued.
Key valuation signals for MEX:HMCN:
Pretax Margin %: -20.19%
GF Value™: MXN627.27 vs. price of MXN455.00 (27.5% below fair value)
No single metric tells the full story. See the MEX:HMCN 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.
62GF Score
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