(HMC) Honda Motor - Overview
Stock: Motorcycles, Automobiles, Power Products, Financial Services, Aircraft
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 4.75% |
| Yield on Cost 5y | 6.30% |
| Yield CAGR 5y | 15.58% |
| Payout Consistency | 89.9% |
| Payout Ratio | 2.9% |
| Risk 5d forecast | |
|---|---|
| Volatility | 26.9% |
| Relative Tail Risk | -1.91% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.35 |
| Alpha | -1.84 |
| Character TTM | |
|---|---|
| Beta | 0.806 |
| Beta Downside | 0.732 |
| Drawdowns 3y | |
|---|---|
| Max DD | 35.20% |
| CAGR/Max DD | 0.33 |
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) 4.5
| Net Income: 652.98b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.01 > 0.02 and ΔFCF/TA -0.72 > 1.0 |
| NWC/Revenue: 16.27% < 20% (prev 16.04%; Δ 0.24% < -1%) |
| CFO/TA 0.02 > 3% & CFO 589.32b > Net Income 652.98b |
| Net Debt (-4635.27b) to EBITDA (2017.44b): -2.30 < 3 |
| Current Ratio: 1.41 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.40b) vs 12m ago -11.49% < -2% |
| Gross Margin: 20.75% > 18% (prev 0.22%; Δ 2054 % > 0.5%) |
| Asset Turnover: 70.84% > 50% (prev 73.84%; Δ -3.00% > 0%) |
| Interest Coverage Ratio: 19.61 > 6 (EBITDA TTM 2017.44b / Interest Expense TTM 59.26b) |
Altman Z'' 2.77
| A: 0.11 (Total Current Assets 11974.47b - Total Current Liabilities 8472.08b) / Total Assets 31491.22b |
| B: 0.36 (Retained Earnings 11272.19b / Total Assets 31491.22b) |
| C: 0.04 (EBIT TTM 1162.37b / Avg Total Assets 30382.55b) |
| D: 0.59 (Book Value of Equity 11358.26b / Total Liabilities 19251.84b) |
| Altman-Z'' Score: 2.77 = A |
Beneish M -2.91
| DSRI: 1.09 (Receivables 3817.14b/3530.54b, Revenue 21523.83b/21617.02b) |
| GMI: 1.04 (GM 20.75% / 21.61%) |
| AQI: 1.02 (AQ_t 0.33 / AQ_t-1 0.32) |
| SGI: 1.00 (Revenue 21523.83b / 21617.02b) |
| TATA: 0.00 (NI 652.98b - CFO 589.32b) / TA 31491.22b) |
| Beneish M-Score: -2.91 (Cap -4..+1) = A |
What is the price of HMC shares?
Over the past week, the price has changed by -0.30%, over one month by +2.40%, over three months by -2.38% and over the past year by +10.75%.
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 | 36.4 | 20% |
| Analysts Target Price | 36.4 | 20% |
| ValueRay Target Price | 34.2 | 12.7% |
HMC Fundamental Data Overview January 25, 2026
P/E Trailing = 10.5625
P/E Forward = 10.582
P/S = 0.0018
P/B = 0.5232
P/EG = 3.6208
Revenue TTM = 21523.83b JPY
EBIT TTM = 1162.37b JPY
EBITDA TTM = 2017.44b JPY
Long Term Debt = 8133.27b JPY (from longTermDebt, last quarter)
Short Term Debt = 4422.24b JPY (from shortTermDebt, last fiscal year)
Debt = 4422.24b JPY (from shortLongTermDebtTotal, last fiscal year)
Net Debt = -4635.27b JPY (from netDebt column, last quarter)
Enterprise Value = 5903.70b JPY (6116.74b + Debt 4422.24b - CCE 4635.27b)
Interest Coverage Ratio = 19.61 (Ebit TTM 1162.37b / Interest Expense TTM 59.26b)
EV/FCF = -22.87x (Enterprise Value 5903.70b / FCF TTM -258.13b)
FCF Yield = -4.37% (FCF TTM -258.13b / Enterprise Value 5903.70b)
FCF Margin = -1.20% (FCF TTM -258.13b / Revenue TTM 21523.83b)
Net Margin = 3.03% (Net Income TTM 652.98b / Revenue TTM 21523.83b)
Gross Margin = 20.75% ((Revenue TTM 21523.83b - Cost of Revenue TTM 17057.18b) / Revenue TTM)
Gross Margin QoQ = 20.37% (prev 20.05%)
Tobins Q-Ratio = 0.19 (Enterprise Value 5903.70b / Total Assets 31491.22b)
Interest Expense / Debt = 0.35% (Interest Expense 15.44b / Debt 4422.24b)
Taxrate = 43.10% (101.32b / 235.09b)
NOPAT = 661.38b (EBIT 1162.37b * (1 - 43.10%))
Current Ratio = 1.41 (Total Current Assets 11974.47b / Total Current Liabilities 8472.08b)
Debt / Equity = 0.37 (Debt 4422.24b / totalStockholderEquity, last quarter 11957.76b)
Debt / EBITDA = -2.30 (Net Debt -4635.27b / EBITDA 2017.44b)
Debt / FCF = 17.96 (negative FCF - burning cash) (Net Debt -4635.27b / FCF TTM -258.13b)
Total Stockholder Equity = 12419.64b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.15% (Net Income 652.98b / Total Assets 31491.22b)
RoE = 5.26% (Net Income TTM 652.98b / Total Stockholder Equity 12419.64b)
RoCE = 5.66% (EBIT 1162.37b / Capital Employed (Equity 12419.64b + L.T.Debt 8133.27b))
RoIC = 4.94% (NOPAT 661.38b / Invested Capital 13392.78b)
WACC = 5.24% (E(6116.74b)/V(10538.98b) * Re(8.88%) + D(4422.24b)/V(10538.98b) * Rd(0.35%) * (1-Tc(0.43)))
Discount Rate = 8.88% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -4.19%
Fair Price DCF = unknown (Cash Flow -258.13b)
EPS Correlation: 19.21 | EPS CAGR: -40.97% | SUE: -0.04 | # QB: 0
Revenue Correlation: 91.05 | Revenue CAGR: 10.10% | SUE: -0.00 | # QB: 0
EPS next Year (2027-03-31): EPS=4.04 | Chg30d=-0.246 | Revisions Net=-1 | Growth EPS=+28.8% | Growth Revenue=+4.6%