Honda Motor CoFRA:HDM +2.09%77 Return-on-Tangible-Equity is -31.60% as of Mar. 2026. GuruFocus rates FRA:HDM with a GF Score™ of 77/100 and a GF Value™ of €10.54 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,284 Vehicles & Parts companies, Honda Motor Co ranks worse than 82.63% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Honda Motor Co's annualized net income for the quarter that ended in Mar. 2026 was €-19,392 Mil. Honda Motor Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €61,378 Mil. Therefore, Honda Motor Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -31.60%.
The historical rank and industry rank for Honda Motor Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:HDM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -3.83 Med: 8.1 Max: 15.45
Current: -3.83
During the past 13 years, Honda Motor Co's highest Return-on-Tangible-Equity was 15.45%. The lowest was -3.83%. And the median was 8.10%.
FRA:HDM's Return-on-Tangible-Equity is ranked worse than 82.63% of 1284
companies
in the Vehicles & Parts industry
Industry Median: 7.48
vs FRA:HDM: -3.83
Honda Motor Co (FRA:HDM) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Honda Motor Co Return-on-Tangible-Equity Related Terms
Honda Motor Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Honda Motor Co's Return-on-Tangible-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.
FRA:HDM vs TSLA, GM, F: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, Honda Motor Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-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 Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Honda Motor Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Honda Motor Co's Return-on-Tangible-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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -31.60% mean?
Honda Motor Co (FRA:HDM) has a Return-on-Tangible-Equity of -31.60% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Honda Motor Co and its competitors. According to the industry distribution chart, Honda Motor Co ranks #1061 out of 1284 companies in the Vehicles & Parts industry, placing it in the top 82.6%.
Is Honda Motor Co's Return-on-Tangible-Equity too high?
Honda Motor Co's current Return-on-Tangible-Equity is -31.60%. Based on the distribution chart, Honda Motor Co ranks #1061 out of 1284 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Honda Motor Co has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Honda Motor Co's Return-on-Tangible-Equity compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Honda Motor Co ranks #1061 out of 1284 companies for Return-on-Tangible-Equity. This places Honda Motor Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.48. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.48, based on 1,284 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Honda Motor Co and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honda Motor Co's current Return-on-Tangible-Equity is -31.60%. 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 €10.54, compared to a current price of €8.49 — trading 19.4% below its estimated fair value. The current Return-on-Tangible-Equity is -31.60%. Honda Motor Co's overall GF Score™ is 77/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Honda Motor Co (FRA:HDM), the current Return-on-Tangible-Equity is -31.60% 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 €8.49 is trading 19.4% below its estimated GF Value™ of €10.54.
GuruFocus considers Honda Motor Co to be Modestly Undervalued.
Key valuation signals for FRA:HDM:
Return-on-Tangible-Equity: -31.60%
GF Value™: €10.54 vs. price of €8.49 (19.4% below fair value)
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.
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.
77GF Score
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