HMC Stock Analysis: Honda Motor | NYSE
Auto Manufacturers | NYSE, USA | Market Cap: 36.357m USD | 12M Return: -2.4% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 54.7M
EPS Trend: 80.8%
Qual. Beats: 0
Rev. Trend: 84.1%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Honda Motor Co., Ltd. is a Japan-based global manufacturer founded in 1946 and headquartered in Tokyo. The company operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses, selling its products in Japan, North America, Europe, Asia, and other international markets. Its product range spans motorcycles (sports, business, commuter, and off-road vehicles), passenger cars, light trucks, and mini vehicles, along with power products such as engines, lawn mowers, generators, and water pumps. The company also manufactures the HondaJet aircraft and supports its products with spare parts and after-sales services through a network of dealers and independent distributors.
Honda trades on the NYSE as an American Depositary Receipt under the ticker HMC and is classified within the Consumer Discretionary sector under Automobile Manufacturers. As a major global automaker, Honda benefits from high barriers to entry in the industry, including significant capital requirements and established distribution networks. Its in-house Financial Services segment reflects a common business model practice among major automakers, which operate captive finance arms to support dealer inventory financing and retail customer lending and leasing, helping to stabilize revenues across economic cycles.
- North America automobile sales and hybrid mix expand margins
- Motorcycle demand in India and Indonesia drives volume growth
- Yen depreciation lifts reported overseas earnings
| Net Income: -438b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 1.69 > 1.0 |
| NWC/Revenue: 13.10% < 20% (prev 14.17%; Δ -1.06% < -1%) |
| CFO/TA 0.03 > 3% & CFO 1059b > Net Income -438b |
| Net Debt (8450b) to EBITDA (982b): 8.60 < 3 |
| Current Ratio: 1.28 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.34b) vs 12m ago -15.46% < -2% |
| Gross Margin: 16.50% > 18% (prev 21.50%; Δ -5.01% > 0.5%) |
| Asset Turnover: 68.29% > 50% (prev 70.47%; Δ -2.18% > 0%) |
| Interest Coverage Ratio: -3.97 > 6 (EBIT TTM -336b / Interest Expense TTM 84.6b) |
| A: 0.09 (Total Current Assets 13131b - Total Current Liabilities 10249b) / Total Assets 33655b |
| B: 0.28 (Retained Earnings 9417b / Total Assets 33655b) |
| C: -0.01 (EBIT TTM -336b / Avg Total Assets 32215b) |
| D: 0.55 (Book Value of Equity 11869b / Total Liabilities 21454b) |
| Altman-Z'' = 1.98 = BBB |
| DSRI: 1.09 (Receivables 4346b/3917b, Revenue 22000b/21689b) |
| GMI: 1.30 (GM 21.50% / 16.50%) |
| AQI: 0.98 (AQ_t 0.32 / AQ_t-1 0.33) |
| SGI: 1.01 (Revenue 22000b / 21689b) |
| TATA: -0.04 (NI -438b - CFO 1059b) / TA 33655b) |
| Beneish M = -2.68 (Cap -4..+1) = A |
As of July 09, 2026, the stock is trading at USD 27.73 with a total of 917,573 shares traded. Over the past week, the price has changed by +2.29%, over one month by +2.82%, over three months by +13.18% and over the past year by -2.38%.
Current recommended Stop Loss: 26.70 (which is 3.7% or 1.4 ATR below the current price).
Honda Motor has received a consensus analysts rating of 4.67. Therefore, it is recommended to buy HMC.
- StrongBuy: 2
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 30.9 | 11.5% |
Market Cap JPY = 5901b (36.4b USD * 162.32 USD.JPY)
P/E Forward = 22.0264
P/S = 0.0017
P/B = 0.4977
P/EG = 3.4538
Revenue TTM = 22000b JPY
EBIT TTM = -336b JPY
EBITDA TTM = 982b JPY
Long Term Debt = 8292b JPY (from longTermDebt, two quarters ago)
Short Term Debt = 5026b JPY (from shortTermDebt, last quarter)
Debt = 13538b JPY (from shortLongTermDebtTotal, last quarter)
Net Debt = 8450b JPY (calculated: Debt 13538b - CCE 5089b)
Enterprise Value = 14351b JPY (5901b + Debt 13538b - CCE 5089b)
Interest Coverage Ratio = -3.97 (Ebit TTM -336b / Interest Expense TTM 84.6b)
EV/FCF = 31.96x (Enterprise Value 14351b / FCF TTM 449b)
FCF Yield = 3.13% (FCF TTM 449b / Enterprise Value 14351b)
FCF Margin = 2.04% (FCF TTM 449b / Revenue TTM 22000b)
Net Margin = -1.99% (Net Income TTM -438b / Revenue TTM 22000b)
Gross Margin = 16.50% ((Revenue TTM 22000b - Cost of Revenue TTM 18370b) / Revenue TTM)
Gross Margin QoQ = 6.39% (prev 20.25%)
Tobins Q-Ratio = 0.43 (Enterprise Value 14351b / Total Assets 33655b)
Interest Expense / Debt = 0.62% (Interest Expense 84.6b / Debt 13538b)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -265b (EBIT -336b * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.28 (Total Current Assets 13131b / Total Current Liabilities 10249b)
Debt / Equity = 1.14 (Debt 13538b / totalStockholderEquity, last quarter 11869b)
Debt / EBITDA = 8.60 (Net Debt 8450b / EBITDA 982b)
Debt / FCF = 18.82 (Net Debt 8450b / FCF TTM 449b)
Total Stockholder Equity = 12155b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.36% (Net Income -438b / Total Assets 33655b)
RoE = -3.60% (Net Income TTM -438b / Total Stockholder Equity 12155b)
RoCE = -1.64% (EBIT -336b / Capital Employed (Equity 12155b + L.T.Debt 8292b))
RoIC = -0.97% (negative operating profit) (NOPAT -265b / Invested Capital 27332b)
WACC = 2.73% (E(5901b)/V(19440b) * Re(7.86%) + D(13538b)/V(19440b) * Rd(0.62%) * (1-Tc(0.21)))
Discount Rate = 7.86% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -88.66 | Cagr: -8.22%
[DCF] Terminal Value 75.44% ; FCFF base≈449b ; Y1≈451b ; Y5≈478b
[DCF] Fair Price = N/A (negative equity: EV 7428b - Net Debt 8450b = -1022b; debt exceeds intrinsic value)
EPS Correlation: 80.84 | EPS CAGR: 194.3% | SUE: -0.27 | # QB: 0
Revenue Correlation: 84.09 | Revenue CAGR: 7.00% | SUE: 0.26 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS next Quarter (2026-09-30): EPS=0.00 | Chg30d=N/A | Revisions=N/A | Analysts=0
EPS current Year (2027-03-31): EPS=0.19 | Chg30d=-89.83% | Revisions=-25% | GrowthEPS=+109.3% | GrowthRev=+421.0%
EPS next Year (2028-03-31): EPS=3.05 | Chg30d=+0.00% | Revisions=+0% | GrowthEPS=+1522.7% | GrowthRev=+2.6%