Analysis of business results & financial statements · Quý 1/2026
▲ Slightly positive
Trailing net profit reached 36.4bn, rose 6.4bn compared with the same period last year. Key positives came from higher gross profit and higher financial income. Offsetting pressure came mainly from higher selling expenses, higher finance costs, higher administrative expenses, and higher tax. Detailed impact is shown below:
See what is changing ↓- P/E
- 8.16x
- P/B
- 0.70x
- EPS
- 1,335
- BVPS
- 15,678
- ROE
- 8.7%
- ROA
- 2.3%
- Market price
- 10,900 19 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q1 basis, HMC is maintaining revenue growth, but margins have not improved proportionally — earnings have been recovering gradually over multiple periods. However, operating cash flow is significantly negative relative to profit — this needs monitoring in coming periods.
Profit bridge
Vs last year · TTM
- Gross profit
- Financial income
- Selling expenses
- Finance costs
- Administrative expenses
- Tax
Across periods
A single data point, or a trajectory?
Latest eight quarters · Quý 1/2026
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2,344.0 | 1,745.7 | 1,402.6 | 1,422.4 | 1,193.9 | 1,257.8 | 1,075.1 | 1,074.0 |
| LNST | 13.2 | 7.3 | 6.9 | 9.0 | 8.0 | 10.2 | 6.2 | 5.6 |
| Net margin | 0.56% | 0.42% | 0.49% | 0.64% | 0.67% | 0.81% | 0.58% | 0.52% |
Revenue
2,344bnNet income
13bnNet margin
0.56%Inside the statements
A closer look at what is happening inside the business
A company's statements are read with the questions that fit its type of business.
Is the profit sustainable?
Margins narrowed but earnings quality remains clean — pressure is mainly operational.
What is driving the margin?
●Net margin stands at 0.53%, broadly flat versus the same period. Supportive factors and pressure points are offsetting one another.
Margin is nearly flat but the underlying components are moving — this is a transitional phase, more time is needed to see the real trend.
- Net Margin
- 0.53% −0.1pp
- Gross Margin
- 2.69% +0.4pp
- SG&A / Revenue
- 1.93% +0.1pp
TTM YoY · 2025Q1 -> 2026Q1
Is capital being used efficiently?
Evaluate capital, asset, and working-capital efficiency.
Is capital being deployed efficiently?
●ROIC stands at 2.91%, broadly flat versus the same period. That translates to 2.91 in after-tax operating profit for every 100 units of operating capital. NOPAT margin steady, but capital turnover rose 1.10x, while invested capital expanded strongly by 212bn — the two factors are offsetting each other, keeping overall ROIC nearly unchanged.
Overall ROIC is flat while internal components are moving — watch which side becomes dominant in coming periods.
ROIC is currently 2.91% — below the typical cost-of-capital threshold; worth tracking whether upcoming periods can rise above this level.
Balance Sheet
▼▼Leverage is very high, with clear pressure on the capital structure — liabilities at 3.16x equity, net debt at 2.04x equity.
Inventory ended the period at 775.0bn, roughly 44.9% of total assets.
Over the last 12 months, working capital absorbed 177.9bn of cash, mainly because of higher receivables and higher inventories. Part of that drag was offset by higher payables.
Working Capital Efficiency
▲Working capital is being managed more efficiently, supporting overall capital efficiency. Cash conversion cycle improved by 6.9 days versus the same period last year. The main moves came from DIO fell 3.2 days, DSO fell 6.4 days, and DPO fell 2.8 days.
Improvement comes mainly from faster receivables collection — reflects the quality of receivables management.
DuPont
What drives ROE?
ROE rose from 7.3% to 8.7% — driven by asset turnover and leverage together, despite net margin moving in the opposite direction.
Is financial risk significant?
High leverage combined with negative operating cash flow — this area needs close monitoring.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at 2.04x and interest coverage only at 0.95x.
At present, short-term debt accounts for 100.0% of total debt, cash equals 8.0% of debt, and total debt stands at 950.6bn.
Net debt / equity stands at 2.04x, increasing balance-sheet pressure.
Interest coverage is 0.95x, leaving limited room to absorb financing costs.
- Net Debt / Equity
- 2.04x +0.24x
- Interest Coverage
- 0.95x −0.42x
- Cash / Debt
- 8.0% +4.2pp
- Short-term Debt / Total Debt
- 100.0% 0.0pp
TTM YoY · 2025Q1 -> 2026Q1
Cash Flow
●High leverage combined with cash flow below reveals the actual liquidity pressure. Operating cash flow reached -0.7bn in 2025, against investing cash flow of -124.7bn.
Post-investment cash flow was negative +125.5bn. Financing cash flow was positive +94.0bn.
CFO / net income was −3,81 lần.
Track how much investment can be funded internally from operating cash flow.
Cash capex or FCF data is incomplete, so the cash-conversion view is only partial.
In summary
Research synthesis
What this reporting period is showing
The business is under real pressure, but the current picture has not turned broadly adverse. A notable area has clearly weakened, making the near-term outlook hard to call bright; even so, other parts of the business are still holding up, with capital efficiency remains weak remaining the main constraint, with ROIC at 2.9%. The next watchpoint is cash generation still needs confirmation. The main offsetting support comes from earnings conversion is confirmed, with CFO/NI at −3.81x.
- Improvement: earnings conversion looks more confirmed, with CFO / net income at −3.81x.
- Watchpoint: Cash generation still needs confirmation.
- Key risk: Capital efficiency remains weak.
What to verify next
Questions for the next period
Durability of revenue growth after the current +50,3% YoY pace.
Ability to hold margins around the current 0.53% level.
Cash-flow quality, with operating cash flow currently at -0.7bn in 2025.
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