(HMC) Honda Motor - Overview

Sector: Consumer Cyclical | Industry: Auto Manufacturers | Exchange: NYSE (USA) | Market Cap: 33.152m USD | Total Return: -9.7% in 12m

Motorcycles, Automobiles, Power Equipment, Aircraft, Financial Services

Total Rating 32

Safety 58

Buy Signal -0.87

Auto Manufacturers
Industry Rotation: +0.7

Market Cap: 33.2B
Avg Turnover: 42.3M

Risk 3d forecast

Volatility33.5%

VaR 5^th Pctl5.81%

VaR vs Median5.42%

Reward TTM

Sharpe Ratio-0.34

Rel. Str. IBD13.7

Rel. Str. Peer Group37

Character TTM

Beta0.444

Beta Downside0.519

Hurst Exponent0.466

Drawdowns 3y

Max DD35.20%

CAGR/Max DD0.00

CAGR/Mean DD0.01

EPS (Earnings per Share)

EPS CAGR: -43.34%
EPS Trend: 10.8%

Last SUE: 0.00
Qual. Beats: 0

Revenue

Rev. CAGR: 12.36%
Rev. Trend: 87.3%

Last SUE: 0.26
Qual. Beats: 0

Warnings

High Debt/EBITDA (8.4) with thin interest coverage (-3.7)

Interest Coverage Ratio -3.7 is critical

Tailwinds

No distinct edge detected

Description: HMC Honda Motor

Honda Motor Co., Ltd. (HMC) is a diversified global manufacturer operating across four primary segments: Motorcycles, Automobiles, Financial Services, and Power Products. Headquartered in Tokyo, the company maintains a vertically integrated business model that includes the production of internal combustion engines, aircraft, and a wide range of mobility solutions distributed through independent and company-owned channels. Honda is currently the world’s largest manufacturer of motorcycles, a sector characterized by high demand in emerging markets for commuter and utility models.

The company’s Automobile Business focuses on passenger cars and light trucks, supported by an internal Financial Services arm that facilitates retail leasing and dealer financing. Unlike many competitors, Honda’s Power Product division leverages its engine technology to produce generators and lawn equipment, diversifying its revenue streams beyond traditional transportation. Investors should examine the companys valuation metrics on ValueRay to better understand its market position.

Operating in the Automobile Manufacturers sub-industry, Honda faces significant capital expenditure requirements as the sector transitions toward electrification and autonomous driving technologies. The company utilizes a global supply chain to service markets in North America, Europe, and Asia, complemented by a robust after-sales network for spare parts and maintenance.

Headlines to Watch Out For

Hybrid vehicle sales growth offsets slow battery electric vehicle adoption momentum
North American light truck demand dictates quarterly automotive operating margins
Japanese Yen fluctuations significantly impact exported vehicle profitability and earnings
Motorcycle segment dominance in Southeast Asia provides stable emerging market cash flow
Research and development spending on electrification and software scales capital intensity

Piotroski VR‑10 (Strict) 4.0

Net Income: -437.51b TTM > 0 and > 6% of Revenue
FCF/TA: 0.02 > 0.02 and ΔFCF/TA 1.88 > 1.0
NWC/Revenue: 13.10% < 20% (prev 14.17%; Δ -1.06% < -1%)
CFO/TA 0.03 > 3% & CFO 1058.75b > Net Income -437.51b
Net Debt (8449.52b) to EBITDA (1006.92b): 8.39 < 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 0.22%; Δ 1.63k% > 0.5%)
Asset Turnover: 68.29% > 50% (prev 70.47%; Δ -2.18% > 0%)
Interest Coverage Ratio: -3.68 > 6 (EBITDA TTM 1006.92b / Interest Expense TTM 84.55b)

Altman Z'' 2.02

A: 0.09 (Total Current Assets 13131.46b - Total Current Liabilities 10248.74b) / Total Assets 33654.62b
B: 0.28 (Retained Earnings 9416.65b / Total Assets 33654.62b)
C: -0.01 (EBIT TTM -311.43b / Avg Total Assets 32215.24b)
D: 0.59 (Book Value of Equity 12563.80b / Total Liabilities 21453.86b)
Altman-Z'' Score: 2.02 = BBB

Beneish M -2.72

DSRI: 1.09 (Receivables 4346.48b/3916.65b, Revenue 22000.00b/21688.77b)
GMI: 1.30 (GM 16.50% / 21.50%)
AQI: 0.98 (AQ_t 0.32 / AQ_t-1 0.33)
SGI: 1.01 (Revenue 22000.00b / 21688.77b)
TATA: -0.04 (NI -437.51b - CFO 1058.75b) / TA 33654.62b)
Beneish M-Score: -2.72 (Cap -4..+1) = A

What is the price of HMC shares? As of May 19, 2026, the stock is trading at USD 25.21 with a total of 4,380,177 shares traded.
Over the past week, the price has changed by +5.13%, over one month by -0.59%, over three months by -16.31% and over the past year by -9.74%.

Is HMC a buy, sell or hold? 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

What are the forecasts/targets for the HMC price?

Analysts Target Price	28.3	12.2%

Honda Motor (HMC) - Fundamental Data Overview as of 19 May 2026

P/E Forward = 8.0257
P/S = 0.0015
P/B = 0.3993
P/EG = 3.4538
Revenue TTM = 22000.00b USD
EBIT TTM = -311.43b USD
EBITDA TTM = 1006.92b USD
Long Term Debt = 8292.27b USD (from longTermDebt, two quarters ago)
Short Term Debt = 5026.42b USD (from shortTermDebt, last quarter)
Debt = 13538.33b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 8449.52b USD (from netDebt column, last quarter)
Enterprise Value = 8482.68b USD (33.15b + Debt 13538.33b - CCE 5088.80b)
Interest Coverage Ratio = -3.68 (Ebit TTM -311.43b / Interest Expense TTM 84.55b)
EV/FCF = 16.56x (Enterprise Value 8482.68b / FCF TTM 512.21b)
FCF Yield = 6.04% (FCF TTM 512.21b / Enterprise Value 8482.68b)
FCF Margin = 2.33% (FCF TTM 512.21b / Revenue TTM 22000.00b)
Net Margin = -1.99% (Net Income TTM -437.51b / Revenue TTM 22000.00b)
Gross Margin = 16.50% ((Revenue TTM 22000.00b - Cost of Revenue TTM 18370.45b) / Revenue TTM)
Gross Margin QoQ = 6.39% (prev 20.25%)
Tobins Q-Ratio = 0.25 (Enterprise Value 8482.68b / Total Assets 33654.62b)
Interest Expense / Debt = 0.30% (Interest Expense 41.14b / Debt 13538.33b)
Taxrate = 21.0% (US default 21%)
NOPAT = -246.03b (EBIT -311.43b * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.28 (Total Current Assets 13131.46b / Total Current Liabilities 10248.74b)
Debt / Equity = 1.14 (Debt 13538.33b / totalStockholderEquity, last quarter 11868.77b)
Debt / EBITDA = 8.39 (Net Debt 8449.52b / EBITDA 1006.92b)
Debt / FCF = 16.50 (Net Debt 8449.52b / FCF TTM 512.21b)
Total Stockholder Equity = 12154.68b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.36% (Net Income -437.51b / Total Assets 33654.62b)
RoE = -3.60% (Net Income TTM -437.51b / Total Stockholder Equity 12154.68b)
RoCE = -1.52% (EBIT -311.43b / Capital Employed (Equity 12154.68b + L.T.Debt 8292.27b))
RoIC = -2.04% (negative operating profit) (NOPAT -246.03b / Invested Capital 12073.42b)
WACC = 0.26% (E(33.15b)/V(13571.48b) * Re(7.54%) + D(13538.33b)/V(13571.48b) * Rd(0.30%) * (1-Tc(0.21)))
Discount Rate = 7.54% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares (quarterly) Correlation: -88.66 | Cagr: -8.22%
[DCF] Terminal Value 80.82% ; FCFF base≈512.21b ; Y1≈336.29b ; Y5≈153.79b
[DCF] Fair Price = N/A (negative equity: EV 4881.65b - Net Debt 8449.52b = -3567.87b; debt exceeds intrinsic value)
EPS Correlation: 10.79 | EPS CAGR: -43.34% | SUE: -0.00 | # QB: 0
Revenue Correlation: 87.31 | Revenue CAGR: 12.36% | SUE: 0.26 | # QB: 0
EPS current Year (2027-03-31): EPS=0.19 | Chg30d=-89.83% | Revisions=-20% | GrowthEPS=+109.3% | GrowthRev=+406.6%
EPS next Year (2028-03-31): EPS=3.05 | Chg30d=+0.00% | Revisions=-20% | GrowthEPS=+1522.7% | GrowthRev=+3.2%