Sub-sector: Automotive
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Fundamental View
AS OF 04 Mar 2024Honda continues to post impressive growth in its Automobile segment wholesale volumes and profitability following the normalization of its supply chain. Management expects to lean into the increasing demand for hybrid vehicles by introducing a Civic hybrid this year that it expects to account for about 40% of the models’ sales in the U.S. It is also introducing its first high volume electric vehicles in 2024 under the Honda and Acura brands, along with a fuel cell electric vehicle (FCEV). Like Toyota, Honda’s electrification strategy has been focused primarily on hybrid vehicles, although its introduction of electric and FCEVs is timely even if it lags most competitors.
For additional information on Honda Motor Corporation see Honda Motor.
Business Description
AS OF 04 Mar 2024- Honda Motor Co., Ltd. engages in the manufacture and sale of automobiles, motorcycles, and power products. It operates through the following segments: Automobile, Motorcycle, Financial Services, and Power Product and Other Businesses. The Automobile segment manufactures and sells automobiles and related accessories. The Motorcycle segment handles all-terrain vehicles, motorcycle business, and related parts. The Financial Services segment provides financial and insurance services. The Power Product and Other Businesses segment offers power products and relevant parts.
- American Honda Finance Corporation (AHFC) is a wholly-owned subsidiary of American Honda Motor Co., Inc. (AHM or the Parent). Honda Canada Finance Inc. (HCFI) is a majority-owned subsidiary of AHFC. Non-controlling interest in HCFI is held by Honda Canada Inc. (HCI), an affiliate of AHFC. AHM is a wholly-owned subsidiary and HCI is an indirect wholly-owned subsidiary of Honda Motor Co., Ltd. (HMC). Honda Motor Co. (HMC) maintains Keep Well (support) agreements with its North American finance subsidiaries, AHFC and HCFI. Under the Keep Well agreements, HMC agrees to (1) maintain at least 80% ownership in AHFC and HCFI, (2) ensure AHFC and HCFI maintain a positive net worth, and (3) ensure both AHFC and HCFI have sufficient liquidity to meet their debt payment obligations.
Risk & Catalysts
AS OF 04 Mar 2024AHFC profit and credit metrics stable in F3Q24. AHFC profit increased modestly YoY and sequentially on increased financing volumes owing to greater vehicle availability than the year-ago period. The 60+ days delinquency rate of 0.4% was flat both YoY and sequentially and remains elevated compared to pre-pandemic levels. Charge-offs increased 20 bp YoY and 10 bp sequentially. Credit metrics have stabilized at levels slightly higher than pre-pandemic levels owing to inflationary pressures and higher interest rates.
Key Metrics
AS OF 04 Mar 2024$ mn | FY20 | FY21 | FY22 | FY23 | F3Q24 |
---|---|---|---|---|---|
Total Company Earning Assets | 73,397 | 76,778 | 71,105 | 65,363 | 72,781 |
Cash and Investments | 1,503 | 1,870 | 2,607 | 1,544 | 1,439 |
Excess Liquidity | 8,503 | 8,870 | 9,607 | 8,544 | 8,439 |
Unsecured Debt | 40,399 | 43,037 | 38,026 | 33,410 | 39,182 |
Secured Debt | 9,748 | 8,890 | 8,888 | 6,927 | 8,722 |
Total Debt | 50,147 | 51,927 | 46,914 | 40,337 | 47,904 |
Allowance % Retail Rece. | 1.07% | 0.75% | 0.58% | 0.71% | 0.80% |
Allowance / Net Charge-offs | 1.68x | 2.41x | 3.75x | 2.41x | 2.10x |
Net Charge-offs % Avg. Receivable | 0.63% | 0.33% | 0.15% | 0.29% | 0.39% |
30+ Day Delinquency Rate | 1.2% | 0.7% | 1.1% | 1.2% | 1.5% |
CreditSights View
AS OF 11 Mar 2024We are maintaining our Underperform recommendations on Honda Motor Co. (HMC) and American Honda Finance Corporation (AHFC) based on relative value, the company’s dominant position and resilient performance within the Motorcycle segment, expected sustained improvement within its Automobile segment performance in FY24, its EV strategy that lags most peers, and its excellent liquidity and stable credit rating.
Recommendation Reviewed: March 11, 2024
Recommendation Changed: January 13, 2023
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Fundamental View
AS OF 04 Mar 2024Honda continues to post impressive growth in its Automobile segment wholesale volumes and profitability following the normalization of its supply chain. Management expects to lean into the increasing demand for hybrid vehicles by introducing a Civic hybrid this year that it expects to account for about 40% of the models’ sales in the U.S. It is also introducing its first high volume electric vehicles in 2024 under the Honda and Acura brands, along with a fuel cell electric vehicle (FCEV). Like Toyota, Honda’s electrification strategy has been focused primarily on hybrid vehicles, although its introduction of electric and FCEVs is timely even if it lags most competitors.
Business Description
AS OF 04 Mar 2024- Honda Motor Co., Ltd. engages in the manufacture and sale of automobiles, motorcycles, and power products. It operates through the following segments: Automobile, Motorcycle, Financial Services, and Power Product and Other Businesses. The Automobile segment manufactures and sells automobiles and related accessories. The Motorcycle segment handles all-terrain vehicles, motorcycle business, and related parts. The Financial Services segment provides financial and insurance services. The Power Product and Other Businesses segment offers power products and relevant parts.
- American Honda Finance Corporation (AHFC) is a wholly-owned subsidiary of American Honda Motor Co., Inc. (AHM or the Parent). Honda Canada Finance Inc. (HCFI) is a majority-owned subsidiary of AHFC. Non-controlling interest in HCFI is held by Honda Canada Inc. (HCI), an affiliate of AHFC. AHM is a wholly-owned subsidiary and HCI is an indirect wholly-owned subsidiary of Honda Motor Co., Ltd. (HMC). Honda Motor Co. (HMC) maintains Keep Well (support) agreements with its North American finance subsidiaries, AHFC and HCFI. Under the Keep Well agreements, HMC agrees to (1) maintain at least 80% ownership in AHFC and HCFI, (2) ensure AHFC and HCFI maintain a positive net worth, and (3) ensure both AHFC and HCFI have sufficient liquidity to meet their debt payment obligations.
Risk & Catalysts
AS OF 04 Mar 2024Management maintained its FY24 wholesale volume guidance but raised its revenue and operating profit guidance. Consolidated revenue is now expected to increase +19% compared to its previous expectation for +18% growth despite modestly lower expectations for automobile and motorcycle unit sales. Management raised its consolidated operating profit guidance by 4% based on favorable pricing and currency effects offsetting higher warranty expense and unfavorable mix. The company’s FY24 forecast now envisions a 160 bp operating margin expansion from 4.6% in FY23 to 6.2%, up from its previous expectation of a 140 bp YoY margin expansion.
On January 18, 2024, American Honda management unveiled its expectations for its calendar year 2024 sales. After posting 33% growth in unit sales in 2023, American Honda is targeting unit sales growth of 10%-15% in 2024. The volume growth is projected to include an increase in hybrid volume, including the Honda Civic hybrid that will comprise about 40% of the models’ sales when it launches this summer.
Key Metrics
AS OF 04 Mar 2024¥ bn | FY20 | FY21 | FY22 | FY23 | LTM F3Q24 |
---|---|---|---|---|---|
Revenue | 12,344 | 10,908 | 11,967 | 14,167 | 16,533 |
EBIT | 578 | 576 | 741 | 671 | 888 |
EBIT Margin | 4.7% | 5.3% | 6.2% | 4.7% | 6.7% |
EBITDA | 1,216 | 1,175 | 1,334 | 1,352 | 1,621 |
EBITDA Margin | 9.8% | 10.8% | 11.1% | 9.5% | 10.7% |
Total Liquidity | 3,611 | 3,717 | 4,612 | 4,926 | 5,432 |
Net Debt | (1,931) | (2,048) | (2,481) | (2,751) | (3,183) |
Total Debt | 532 | 480 | 837 | 803 | 877 |
Gross Leverage | 0.4x | 0.4x | 0.6x | 0.6x | 0.5x |
Net Leverage | -1.6x | -1.7x | -1.9x | -2.0x | -2.0x |
CreditSights View
AS OF 18 Apr 2024We are maintaining our Underperform recommendations on Honda Motor Co. (HMC: A3/A-/A; S/S/S) and American Honda Finance Corporation (AHFC: A3/A-/A; S/S/S) notes based on relative value, the company’s dominant position and resilient performance within the Motorcycle segment, strong improvement within its Automobile segment performance in FY24, its EV strategy that lags most peers, and its excellent liquidity and stable credit rating.
Recommendation Reviewed: April 18, 2024
Recommendation Changed: January 13, 2023
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Fundamental View
AS OF 04 Mar 2024Nissan remains a turnaround work-in-progress, having made significant progress in improving its automotive profitability in the past few years but falling short of its 5.0% China JV Proportionate Basis operating margin target by FY23 set out in its Nissan NEXT plan. A primary reason for the profit shortfall is its volumes, which remain short of its 4.0 mn target and hinder its fixed cost absorption. While the reasons for the volume shortfall are understandable, including its China strategy revamp due to changing market dynamics in that country along with transitory logistics challenges, we believe improved volumes in FY24 could be key in enabling Nissan to improve automotive profitability in the direction of most OEM peers and reigniting positive ratings momentum.
Business Description
AS OF 04 Mar 2024- Nissan, with headquarters in Yokohama, Japan, is a leading global automotive manufacturer with a market presence in many countries around the globe. The company’s growth investments are focused primarily on Japan, North America, and China, core markets with large profit pools in which Nissan has a meaningful market share. The company’s business in China is conducted through a joint venture with Dongfeng Motor Corporation.
- Nissan’s Sales Financing segment supports the sale of its vehicles by providing financing solutions to its customers and dealers. To enhance their creditworthiness, Nissan maintains keepwell (support) agreements with its wholly owned financial subsidiaries including Nissan Motor Acceptance Corporation (NMAC) in the United States and Nissan Financial Services (NFS) in Japan.
- The Renault-Nissan-Mitsubishi Alliance was established in 1999 to enhance member company scale in product development and raw material purchasing. The alliance includes equity participation, which led to Nissan holding ownership stakes in Renault (15% non-voting) and Mitsubishi (34%) and Renault holding an ownership stake in Nissan (43%). The Alliance’s automobile production volume is the third largest globally behind Toyota and Volkswagen.
Risk & Catalysts
AS OF 04 Mar 2024Nissan once again lowered its FY23 retail sales volume target to 3.55 mn units from a target of 3.70 mn units last quarter and an original FY23 target of 4.00 mn units it unveiled in May 2023. The volume guidance reductions in the first two quarters of FY23 reflected Nissan’s revised Chinese strategy to reduce production and sales targets based on the changing dynamics of the Chinese automotive industry. The company also lowered its sales target in other Asian countries, primarily India, as it reboots is business in that country via its new Renault-Nissan-Mitsubishi Alliance.
Management maintained its FY23 financial guidance for revenue, operating profit, and net income. While the FY23 retail sales volume target was lowered compared to last quarter’s guidance, the volume still represents an expected 8% YoY increase. The guidance reflects improving volume trends in the fourth quarter, resilient pricing, and its revised outlook for a weaker Yen compared to previous expectations. The outlook calls for an FY23 operating margin (equity basis) of 4.8%, or an expected 120 bp margin expansion compared to its FY22 margin of 3.6%.
Key Metrics
AS OF 04 Mar 2024¥ bn | FY19 | FY20 | FY21 | FY22 | LTM F3Q23 |
---|---|---|---|---|---|
Revenue | 8,716 | 6,843 | 7,393 | 9,573 | 11,159 |
EBIT | (183) | (471) | (42) | 242 | 391 |
EBIT Margin | (2%) | (7%) | (1%) | 3% | 2% |
EBITDA | 183 | (199) | 252 | 592 | 750 |
EBITDA Margin | 2.1% | (2.9%) | 3.4% | 6.2% | 5.6% |
Total Liquidity | 2,795 | 4,096 | 3,601 | 3,660 | 3,416 |
Net Debt | (1,065) | (636) | (728) | (1,213) | (1,331) |
Total Debt | 430 | 1,260 | 973 | 687 | 335 |
Gross Leverage | 2.3x | 8.3x | 3.9x | 1.2x | 0.4x |
Net Leverage | -5.8x | -1.2x | -2.9x | -2.0x | -1.8x |
CreditSights View
AS OF 19 Apr 2024We maintain an Outperform recommendation on Nissan (NSANY: Baa3/BB+/BBB-; S/S/S) and Nissan Motor Acceptance Corp. (NMAC) notes based on its Investment Grade status (Moody’s and Fitch), increasing vehicle production and wholesale volume trends, improving automotive profitability, and relative value.
Recommendation Reviewed: April 19, 2024
Recommendation Changed: April 26, 2023
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Fundamental View
AS OF 29 Feb 2024Toyota’s slower ramp of battery electric vehicle (BEV) production and sales relative to its peers was a common investor concern a year ago. However, with the recent slowdown in consumer adoption of BEVs in North America and Europe and Toyota’s dominance in the hybrid electric vehicle (HEV) market, those concerns have abated, at least for the time being. Importantly, Toyota management has indicated its profitability of its HEV portfolio is on par with its ICE portfolio profitability. We continue to believe that Toyota’s market leading position in HEVs provides consumers with a more eco-friendly option than traditional ICE vehicles that can serve as a bridge to EVs while the charging infrastructure is built out and the cost of producing EVs is reduced.
Business Description
AS OF 29 Feb 2024- Toyota Motor Corp. (TMC) engages in the manufacture and sale of motor vehicles and parts. The Financial Services segment offers purchase or lease financing to Toyota vehicle dealers and customers. It also provides retail leasing through lease contracts purchased by dealers. The company was founded by Kiichiro Toyoda on August 28, 1937, and is headquartered in Toyota, Japan. In July 2000, the company established Toyota Financial Services Corporation (TFSC), a wholly owned subsidiary, to oversee the management of its finance companies worldwide.
- Toyota Financial Services Corporation (TFSC), a wholly owned subsidiary of TMC, oversees the management of Toyota's finance companies worldwide. Toyota Motor Credit Corporation (TMCC) is the company’s principal financial services subsidiary in the United States and is an indirect wholly owned subsidiary. Under terms of the credit support agreement between TFSC and TMCC, TFSC agrees to: (1) maintain 100% ownership of TMCC; (2) cause TMCC and its subsidiaries to have a tangible net worth of at least $100,000; (3) make sufficient funds available to TMCC so that it will be able to service the obligations arising out of its own bonds, debentures, notes and other investment securities and commercial paper. The terms of the credit support agreement between TMC and TFSC are very similar to the terms of the TFSC and TMCC credit support agreement.
Risk & Catalysts
AS OF 29 Feb 2024Toyota Motor Credit Corporation (TMCC) credit metrics stable. TMCC F3Q24 earnings before taxes increased 50% YoY and 3x sequentially. At F3Q24 the delinquency rate expanded 10 bp YoY to 0.9%, nearly double pre-pandemic levels, while the retail charge-off rate expanded 10bp YoY to 0.7%. The company notes that changes in interest rates or unemployment could increase credit losses and additional provisioning. Additionally, elevated prices and high borrowing costs have impacted some consumers’ ability to make scheduled payments resulting in an increase in consumer delinquencies and charge-offs.
Key Metrics
AS OF 29 Feb 2024¥ bn | FY20 | FY21 | FY22 | FY23 | F3Q24 |
---|---|---|---|---|---|
Total Company Earning Assets | 110,621 | 116,546 | 117,659 | 120,018 | 129,320 |
Cash and Investments | 6,790 | 8,195 | 7,670 | 6,398 | 6,458 |
Total Liquidity | 31,390 | 35,895 | 36,070 | 33,498 | 35,058 |
Unsecured Debt | 83,172 | 85,513 | 82,288 | 78,949 | 85,744 |
Secured Debt | 14,568 | 24,212 | 26,864 | 32,736 | 33,262 |
Total Debt | 97,740 | 109,725 | 109,152 | 111,685 | 119,006 |
Allowance % Retail Rece. | 0.86% | 1.64% | 1.66% | 1.83% | 1.81% |
Allowance / Net Charge-offs | 1.58x | 4.50x | 6.68x | 3.03x | 2.56x |
Net Charge-offs % Avg. Receivable | 0.56% | 0.39% | 0.26% | 0.63% | 0.72% |
30+ Day Delinquency Rate | 1.8% | 1.2% | 1.8% | 2.3% | 3.1% |
CreditSights View
AS OF 18 Mar 2024Our Underperform recommendation on Toyota Motor Co. (TMC) and Toyota Motor Credit Corporation (TMCC) notes is based primarily on relative value. While Toyota’s operating performance and outlook has improved sharply in 2023, we believe Toyota are fairly valued at current levels. However, we expect the Toyota bond complex to underperform the broader market and the A-rated index owing to its high-A credit rating and short duration.
Recommendation Reviewed: March 18, 2024
Recommendation Changed: January 13, 2023
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Fundamental View
AS OF 29 Feb 2024Toyota’s slower ramp of battery electric vehicle (BEV) production and sales relative to its peers was a common investor concern a year ago. However, with the recent slowdown in consumer adoption of BEVs in North America and Europe and Toyota’s dominance in the hybrid electric vehicle (HEV) market, those concerns have abated, at least for the time being. Importantly, Toyota management has indicated its profitability of its HEV portfolio is on par with its ICE portfolio profitability. We continue to believe that Toyota’s market leading position in HEVs provides consumers with a more eco-friendly option than traditional ICE vehicles that can serve as a bridge to EVs while the charging infrastructure is built out and the cost of producing EVs is reduced.
Business Description
AS OF 29 Feb 2024- Toyota Motor Corp. (TMC) engages in the manufacture and sale of motor vehicles and parts. It operates through the following segments: Automotive, Financial Services, and All Other. The Automotive segment designs, manufactures, assembles and sells passenger cars, minivans, trucks, and related vehicle parts and accessories. It is also involved in the development of intelligent transport systems. The Financial Services segment offers purchase or lease financing to Toyota vehicle dealers and customers. It also provides retail leasing through lease contracts purchased by dealers. The company was founded by Kiichiro Toyoda on August 28, 1937, and is headquartered in Toyota, Japan.
- Toyota Financial Services Corporation (TFSC), a wholly owned subsidiary of TMC, oversees the management of Toyota's finance companies worldwide. Toyota Motor Credit Corporation (TMCC) is the company’s principal financial services subsidiary in the United States. Under terms of the credit support agreement between TFSC and TMCC, TFSC agrees to: (1) maintain 100% ownership of TMCC; (2) cause TMCC and its subsidiaries to have a tangible net worth of at least $100,000; (3) make sufficient funds available to TMCC so that it will be able to service the obligations arising out of its own bonds, debentures, notes and other investment securities and commercial paper. The terms of the credit support agreement between TMC and TFSC are very similar to the terms of the TFSC and TMCC credit support agreement.
Risk & Catalysts
AS OF 29 Feb 2024Toyota lowered its FY24 wholesale unit forecast based on a downward revision of expected wholesales in Japan, partially offset by a projected increase in wholesales in North America and Europe. The company now expects to wholesale 9.45 mn units in FY24, a 7% YoY increase, down from its previous projection of 9.60 mn units or a 9% YoY increase. The lower wholesale shipments in Japan is largely due to the suspension of shipments of Daihatsu due concerns regarding side-collision safety tests on its small cars.
Management raised its FY24 revenue and operating income forecasts based on an expected increase in current benefits and cost reduction efforts, partially offset by higher operating expenses. The FY24 revenue forecast was boosted by 1% from its previous forecast and now represents projected revenue growth of 17% YoY. Its FY24 consolidated operating income projection was increased 9% above its previous projection, following a more than 50% projection increase last quarter. The consolidated operating profit improvement represents an expectation for a 400 bp YoY operating profit margin expansion.
Key Metrics
AS OF 29 Feb 2024¥ bn | FY20 | FY21 | FY22 | FY23 | LTM F3Q24 |
---|---|---|---|---|---|
Automotive Revenue | 26,800 | 24,652 | 28,606 | 33,777 | 40,007 |
EBIT | 2,124 | 1,778 | 2,519 | 2,486 | 4,482 |
EBIT Margin | 7% | 7% | 8% | 7% | 13% |
EBITDA | 2,946 | 2,654 | 3,526 | 3,671 | 5,699 |
EBITDA Margin | 9.9% | 9.8% | 11.2% | 9.9% | 15.6% |
Total Liquidity | 9,890 | 11,557 | 15,864 | 17,725 | n/m |
Net Debt | (447) | 597 | (1,719) | (2,825) | (2,825) |
Total Debt | 2,235 | 3,872 | 2,580 | 2,724 | 2,724 |
Gross Leverage | 0.8x | 1.5x | 0.7x | 0.7x | 0.5x |
Net Leverage | -0.2x | 0.2x | -0.5x | -0.8x | -0.5x |
CreditSights View
AS OF 18 Apr 2024Our Underperform recommendation on Toyota Motor Co. (TMC) and Toyota Motor Credit Corporation (TMCC) notes is based primarily on relative value. While Toyota’s operating performance and outlook has improved sharply in 2023, we believe Toyota are fairly valued at current levels. However, we expect the Toyota bond complex to underperform the broader market and the A-rated index owing to its high-A credit rating and short duration.
Recommendation Reviewed: April 18, 2024
Recommendation Changed: January 13, 2023
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Fundamental View
AS OF 15 Nov 2023Hyundai continued to post strong results in 3Q23 and reaffirmed FY23 guidance for double-digit consolidated operating profit growth. We expect the company to finish FY23 with strong 4Q23 results, we believe the profit growth in FY24 will be more challenging, owing to increased availability of light vehicles and rising incentive costs. However, we expect Hyundai to benefit from a broad array of affordable vehicle offerings that are more affordable than vehicles offered by most of its OEM competitors, along with a healthy supply of EV offerings. While both GM and Ford have recently announced a slowing trajectory of its EV transition plans, Hyundai plans to begin EV production at their U.S. plant in 2H24 to help take advantage of IRA tax credits that should help with customer affordability.
Business Description
AS OF 15 Nov 2023- Hyundai Motor Co., Ltd. engages in the manufacture and distribution of motor vehicles and parts. It operates through the following business areas: Vehicle, Financial and Others. The Vehicle division offers motor vehicles. The Financial division provides financing, leasing and credit cards. The Other division includes manufacture of railways. The company was founded on December 29, 1967, and is headquartered in Seoul, South Korea.
- Hyundai Capital America benefits from a support agreement with Hyundai Motor (HMC). HCA investor relations confirmed its support (keepwell) agreement contains a fixed charge coverage provision that it views as particularly strong compared to other peers. HCA’s support agreement stipulates that HMC will make cash contributions to HCA if the fixed charge coverage is below 1.1x, allowing the company to mitigate the impact on capital from losses. Key provisions of the support agreement listed in the business update include (1) HMC agrees it, its controlled subsidiaries, and entities subject to joint control, will own 100% of HCA, (2) HMC will cause HCA and its subsidiaries to maintain positive consolidated tangible net worth, (3) HMC will take all necessary actions to ensure HCA maintains a minimum Fixed Charge Coverage of 1.1x, and (4) Third-party enforceability rights.
Risk & Catalysts
AS OF 15 Nov 2023Hyundai management indicated it expects to achieve annual results near the upper end of its FY23 guidance for revenue and operating profit, both of which it previously raised with its 2Q23 earnings release. It expects consolidated revenue growth of 14% -15% and consolidated operating margin of 8% – 9%, which would represent margin expansion of 210 – 310 bp compared to FY22. Management expects its 4Q23 operating results to be driven by continued growth in key markets and product mix improvement, partially offset by modestly higher incentive spending.
Key Metrics
AS OF 15 Nov 2023KRW bn | FY19 | FY20 | FY21 | FY22 | LTM 3Q23 |
---|---|---|---|---|---|
Revenue | 82,487 | 80,577 | 94,143 | 113,718 | 128,310 |
EBIT | 3,161 | 890 | 5,459 | 8,950 | 15,190 |
EBIT Margin | 3.8% | 1.1% | 5.8% | 7.9% | 11.8% |
EBITDA | 6,993 | 5,076 | 10,015 | 13,998 | 20,339 |
EBITDA Margin | 8.5% | 6.3% | 10.6% | 12.3% | 15.7% |
Total Liquidity | 15,975 | 17,082 | 19,745 | 26,639 | 26,407 |
Net Debt | (6,749) | (4,453) | (5,202) | (11,035) | (15,082) |
Total Debt | 7,628 | 10,920 | 12,569 | 12,940 | 8,685 |
Gross Leverage | 1.1x | 2.2x | 1.3x | 0.9x | 0.4x |
Net Leverage | -1.0x | -0.9x | -0.5x | -0.8x | -0.7x |
CreditSights View
AS OF 18 Apr 2024We maintain an Outperform recommendations on Hyundai Capital America notes based on relative value, expectations of growing market share in developed markets, improved automotive profitability, its innovative EV product offerings that we believe should fuel further share gains, solid free cash flow generation, resilient automotive profit margins, and positive rating momentum.
Recommendation Reviewed: April 18, 2024
Recommendation Changed: December 20, 2023