Honda Motor Co., Ltd. (NYSE:HMC) Surpasses Earnings Expectations

Honda Motor Co., Ltd. (NYSE:HMC) is a prominent player in the automotive industry, known for manufacturing automobiles, motorcycles, and power equipment. The company competes with other major automakers like Toyota and Ford. On February 14, 2025, Honda reported impressive financial results, with earnings per share of $1.30, surpassing the estimated $0.94.

Honda’s revenue reached approximately $36.12 billion, exceeding the forecasted $34.99 billion. This strong performance reflects the company’s effective strategies and market presence. As highlighted by Seeking Alpha, during the Q3 2025 earnings call, key figures like Shinji Aoyama and Eiji Fujimura discussed Honda’s financial achievements and future plans.

Honda’s financial metrics provide further insights into its market valuation. With a price-to-earnings (P/E) ratio of 6.72, the market values Honda’s earnings relatively low compared to its peers. The price-to-sales ratio of 0.31 indicates a low market valuation in relation to its sales, while the enterprise value to sales ratio of 0.58 reflects the company’s total valuation against its sales.

The enterprise value to operating cash flow ratio of 28.71 highlights Honda’s valuation in relation to its cash flow from operations. An earnings yield of 14.88% offers a perspective on the return on investment for shareholders. Honda’s debt-to-equity ratio of 0.85 suggests a moderate level of leverage, while a current ratio of 1.43 indicates a solid liquidity position to cover short-term liabilities.