(HMC) Honda Motor - Overview
Stock: Motorcycles, Automobiles, Power Products, Financial Services, Aircraft
| Risk 5d forecast | |
|---|---|
| Volatility | 28.6% |
| Relative Tail Risk | -2.84% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.51 |
| Alpha | 4.89 |
| Character TTM | |
|---|---|
| Beta | 0.801 |
| Beta Downside | 0.758 |
| Drawdowns 3y | |
|---|---|
| Max DD | 35.20% |
| CAGR/Max DD | 0.28 |
EPS (Earnings per Share)
Revenue
Description: HMC Honda Motor January 29, 2026
Honda Motor Co., Ltd. (NYSE:HMC) designs, manufactures, and distributes motorcycles, automobiles, and power products worldwide, operating through four segments: Motorcycle, Automobile, Financial Services, and Power Product & Other.
The Motorcycle segment covers sport, business, commuter bikes and off-road vehicles, accounting for roughly 22 % of the global two-wheel market and generating ¥3.1 trillion in FY 2024 revenue, up 4 % YoY on a recovering Asian demand base.
The Automobile segment sells passenger cars, light trucks, and mini-vehicles; FY 2024 sales reached 4.9 million units, with EV deliveries climbing 38 % to 120 k units, reflecting the sector-wide shift toward electrification and tighter emissions standards in North America and Europe.
Financial Services contributes ¥1.2 trillion in FY 2024 profit, driven by a 3.5 % net interest margin on retail leasing and dealer financing, but remains sensitive to Japan’s rising policy rates and credit-risk trends.
The Power Product & Other segment includes engines, generators, and the HondaJet, delivering 12 aircraft in FY 2024 and supporting a modest yet growing niche in business aviation.
Key macro drivers include the global chip supply normalization, which is easing production bottlenecks, and the ongoing shift toward electric mobility that is reshaping both motorcycle and automobile demand curves.
For a deeper quantitative breakdown of Honda’s valuation drivers, see the ValueRay analysis.
Piotroski VR‑10 (Strict, 0-10) 4.0
| Net Income: 498.78b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.00 > 0.02 and ΔFCF/TA 0.12 > 1.0 |
| NWC/Revenue: 15.32% < 20% (prev 15.58%; Δ -0.26% < -1%) |
| CFO/TA 0.02 > 3% & CFO 816.57b > Net Income 498.78b |
| Net Debt (8700.29b) to EBITDA (1675.64b): 5.19 < 3 |
| Current Ratio: 1.36 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.30b) vs 12m ago -16.06% < -2% |
| Gross Margin: 20.48% > 18% (prev 0.21%; Δ 2026 % > 0.5%) |
| Asset Turnover: 66.74% > 50% (prev 69.35%; Δ -2.61% > 0%) |
| Interest Coverage Ratio: 13.63 > 6 (EBITDA TTM 1675.64b / Interest Expense TTM 60.28b) |
Altman Z'' 2.69
| A: 0.10 (Total Current Assets 12376.88b - Total Current Liabilities 9094.05b) / Total Assets 32849.55b |
| B: 0.34 (Retained Earnings 11293.38b / Total Assets 32849.55b) |
| C: 0.03 (EBIT TTM 821.84b / Avg Total Assets 32111.85b) |
| D: 0.71 (Book Value of Equity 14203.38b / Total Liabilities 20071.09b) |
| Altman-Z'' Score: 2.69 = A |
Beneish M -2.58
| DSRI: 1.07 (Receivables 4085.28b/3872.20b, Revenue 21432.16b/21758.03b) |
| GMI: 1.05 (GM 20.48% / 21.49%) |
| AQI: 1.61 (AQ_t 0.52 / AQ_t-1 0.33) |
| SGI: 0.99 (Revenue 21432.16b / 21758.03b) |
| TATA: -0.01 (NI 498.78b - CFO 816.57b) / TA 32849.55b) |
| Beneish M-Score: -2.58 (Cap -4..+1) = A |
What is the price of HMC shares?
Over the past week, the price has changed by -4.75%, over one month by -0.10%, over three months by +6.29% and over the past year by +16.33%.
Is HMC a buy, sell or hold?
- StrongBuy: 2
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the HMC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 32.6 | 7.8% |
| Analysts Target Price | 32.6 | 7.8% |
HMC Fundamental Data Overview February 21, 2026
P/E Trailing = 12.3837
P/E Forward = 10.582
P/S = 0.0018
P/B = 0.4827
P/EG = 3.6208
Revenue TTM = 21432.16b JPY
EBIT TTM = 821.84b JPY
EBITDA TTM = 1675.64b JPY
Long Term Debt = 8292.27b JPY (from longTermDebt, last quarter)
Short Term Debt = 4943.48b JPY (from shortTermDebt, last quarter)
Debt = 13546.81b JPY (from shortLongTermDebtTotal, last quarter)
Net Debt = 8700.29b JPY (from netDebt column, last quarter)
Enterprise Value = 14800.85b JPY (6100.56b + Debt 13546.81b - CCE 4846.52b)
Interest Coverage Ratio = 13.63 (Ebit TTM 821.84b / Interest Expense TTM 60.28b)
EV/FCF = 1000.0x (Enterprise Value 14800.85b / FCF TTM 11.83b)
FCF Yield = 0.08% (FCF TTM 11.83b / Enterprise Value 14800.85b)
FCF Margin = 0.06% (FCF TTM 11.83b / Revenue TTM 21432.16b)
Net Margin = 2.33% (Net Income TTM 498.78b / Revenue TTM 21432.16b)
Gross Margin = 20.48% ((Revenue TTM 21432.16b - Cost of Revenue TTM 17043.54b) / Revenue TTM)
Gross Margin QoQ = 20.25% (prev 20.37%)
Tobins Q-Ratio = 0.45 (Enterprise Value 14800.85b / Total Assets 32849.55b)
Interest Expense / Debt = 0.10% (Interest Expense 14.06b / Debt 13546.81b)
Taxrate = 30.21% (75.15b / 248.78b)
NOPAT = 573.59b (EBIT 821.84b * (1 - 30.21%))
Current Ratio = 1.36 (Total Current Assets 12376.88b / Total Current Liabilities 9094.05b)
Debt / Equity = 1.09 (Debt 13546.81b / totalStockholderEquity, last quarter 12465.66b)
Debt / EBITDA = 5.19 (Net Debt 8700.29b / EBITDA 1675.64b)
Debt / FCF = 735.3 (Net Debt 8700.29b / FCF TTM 11.83b)
Total Stockholder Equity = 12269.12b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.55% (Net Income 498.78b / Total Assets 32849.55b)
RoE = 4.07% (Net Income TTM 498.78b / Total Stockholder Equity 12269.12b)
RoCE = 4.00% (EBIT 821.84b / Capital Employed (Equity 12269.12b + L.T.Debt 8292.27b))
RoIC = 4.33% (NOPAT 573.59b / Invested Capital 13242.26b)
WACC = 2.80% (E(6100.56b)/V(19647.37b) * Re(8.87%) + D(13546.81b)/V(19647.37b) * Rd(0.10%) * (1-Tc(0.30)))
Discount Rate = 8.87% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -10.35%
[DCF Debug] Terminal Value 80.82% ; FCFF base≈11.83b ; Y1≈7.77b ; Y5≈3.54b
Fair Price DCF = N/A (negative equity: EV 112.92b - Net Debt 8700.29b = -8587.37b; debt exceeds intrinsic value)
EPS Correlation: 20.97 | EPS CAGR: 9.25% | SUE: 0.01 | # QB: 0
Revenue Correlation: 88.02 | Revenue CAGR: 9.46% | SUE: 0.04 | # QB: 0
EPS next Year (2027-03-31): EPS=3.48 | Chg30d=-0.560 | Revisions Net=-1 | Growth EPS=+49.3% | Growth Revenue=+4.3%