HMCCAUTIOUS

HMC Return on Equity (ROE) Analysis

-0.8%

Updated 1094h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity, so a -2.8% value means HMC is currently losing money relative to its equity base rather than earning a return.

Sector Performance

17th percentile

HMC

-0.8%

Sector Median

13.2%

Sector Avg

16.4%

Prior Period

-2.8%(Aug 2026)

↑ Improving
📊

Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity, so a -2.8% value means HMC is currently losing money relative to its equity base rather than earning a return.

That figure sits far below the sector median of 13.8%, placing HMC in the 13th percentile among sector peers, meaning roughly 87% of comparable companies achieve a higher ROE. The trend data is not available: the year-over-year change is N/A and the quarter-over-quarter change is N/A, so there is no historical sequence to confirm whether this loss-making level is improving or deteriorating. The combination of a negative ROE with no available trend creates clear risk, since investors cannot verify any momentum toward profitability from this metric alone. This directly supports the overall CAUTIOUS verdict: a company generating -2.8% ROE while peers sit at a 13.8% median is underperforming materially, and the missing trend adds uncertainty rather than reassurance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about HMC?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

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HMC

-0.8%

Sector Median

13.2%

Sector Avg

16.4%

How HMC's Return on Equity (ROE) compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.