Honda Motors (HMC)
NYSE:HMC
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Honda Motor Company
(NYSE:HMC)
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Rating:59Neutral
Price Target:
$26.00
▼(-15.83% Downside)
Action:ReiteratedDate:03/02/26
The score is held back primarily by weakened cash-flow trends and soft technical momentum (price below key moving averages with negative MACD). These are partly offset by an attractive valuation (moderate P/E and high dividend yield) and an earnings-call backdrop that maintains guidance and emphasizes liquidity and motorcycle strength, despite significant auto/EV and tariff-related headwinds.
Positive Factors
Motorcycle business strength
Honda's high-volume, profitable motorcycle franchise is a durable cash and profit engine. Record-targeted volumes and broad geographic demand (India, Pakistan, Brazil) provide stable margins and recurring parts/service revenues, insulating overall earnings from automobile cyclicality.
Negative Factors
Large EV-related charges and strategic uncertainty
Significant impairments and heavy EV R&D indicate stalled returns on prior investments and elevated capital intensity. This raises long-term execution risk, compresses future free cash flow, and forces strategic reassessment that could delay profitable BEV scale or require additional write-downs.
Read all positive and negative factors
Positive Factors
Negative Factors
Motorcycle business strength
Honda's high-volume, profitable motorcycle franchise is a durable cash and profit engine. Record-targeted volumes and broad geographic demand (India, Pakistan, Brazil) provide stable margins and recurring parts/service revenues, insulating overall earnings from automobile cyclicality.
Read all positive factors
Honda Motor Company (HMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.20B
Dividend Yield4.19%
Average Volume (3M)1.47M
Price to Earnings (P/E)9.6
Beta (1Y)0.70
Revenue Growth0.32%
EPS Growth-25.51%
CountryUS
Employees194,993
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)0.77
Shares Outstanding1,511,000,000
10 Day Avg. Volume2,086,448
30 Day Avg. Volume1,472,521
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)0.51
Price to Sales (P/S)0.29
P/FCF Ratio-11.41
Enterprise Value/Market Cap420.94
Enterprise Value/Revenue0.63
Enterprise Value/Gross Profit3.09
Enterprise Value/Ebitda8.09
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.72
Revenue Forecast (FY)$134.68B
Honda Motor Company Business Overview & Revenue Model
Company Description
Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobi...
How the Company Makes Money
Honda primarily makes money by selling products and related services across several major business lines. (1) Vehicle sales (Automobiles): Revenue is generated from the manufacture and wholesale/retail sale of Honda-branded automobiles to distribu...
Honda Motor Company Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows revenue contributions from each business area, indicating which segments are growing, stable, or declining, and providing insight into the company's strategic focus and market positioning.
Shows revenue contributions from each business area, indicating which segments are growing, stable, or declining, and providing insight into the company's strategic focus and market positioning.
Data provided by:
The Fly
The FlyHonda Motor Company Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
Balanced: the company shows strong cash generation, resilient motorcycle operations (record-targeted volumes), maintained guidance and shareholder actions, but faces significant near-term headwinds from large one-time EV charges, tariff-related profit losses, automobile segment weakness and emerging material supply risks. Management is taking steps to revisit EV strategy and control costs, but uncertainty remains.Positive Updates
Strong Motorcycle Performance and Record Sales Target
Motorcycle unit sales through Q3 were 16.44 million (growth led by India, Pakistan and Brazil) and management reiterated a full-year motorcycle target of 21.3 million units — the highest on record. Motorcycle operating profit rose JPY 44.8 billion YoY to JPY 546.5 billion (≈+8.9% YoY).
Negative Updates
Large YoY Decline in Reported Operating Profit
Consolidated operating profit for the third quarter was JPY 591.5 billion, down JPY 548.4 billion YoY (approximately a 48.1% decline versus the prior-year period).
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Motorcycle Performance and Record Sales Target
Motorcycle unit sales through Q3 were 16.44 million (growth led by India, Pakistan and Brazil) and management reiterated a full-year motorcycle target of 21.3 million units — the highest on record. Motorcycle operating profit rose JPY 44.8 billion YoY to JPY 546.5 billion (≈+8.9% YoY).
Read all positive updates
Company Guidance
Honda maintained its FY Mar‑2026 guidance of consolidated operating profit JPY 550 billion and profit attributable to owners JPY 300 billion, kept the full‑year dividend at JPY 70/share and approved cancellation of 747 million treasury shares, while assuming USD/JPY ≈ ¥148 and unchanged unit‑sale targets of motorcycles 21.3m, automobiles 3.34m and power products 3.67m; Q3/YTD results showed operating profit JPY 591.5bn (down JPY 548.4bn YoY), profit attributable JPY 465.4bn (down JPY 339.8bn), equity‑method income JPY 24.0bn (+JPY 51.3bn), 9‑month unit sales motorcycles 16.44m, autos 2.561m, power products 2.507m, net cash JPY 3.1707trn, free cash flow ex‑financial services JPY 917.4bn and operating cash flow after R&D JPY 1.8558trn; management said tariff headwinds were revised down from ~JPY 450bn to ~JPY 310bn, one‑time EV‑related charges YTD ~JPY 270–290bn (total BEV‑related budgeted charges ~JPY 650–700bn including R&D), and that excluding one‑offs and tariffs operating profit would be ~JPY 1.1485trn, while FY operating‑profit swing assumptions include sales −JPY 162bn, price/cost +JPY 230bn, expenses −JPY 106.5bn, R&D −JPY 166bn and FX −JPY 149bn.Honda Motor Company Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
58
Neutral
Cash Flow
35
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.43T | 21.69T | 20.43T | 16.91T | 14.55T | 13.17T |
| Gross Profit | 4.39T | 4.66T | 4.41T | 3.33T | 2.98T | 2.73T |
| EBITDA | 1.68T | 2.12T | 2.50T | 1.64T | 2.36T | 2.08T |
| Net Income | 498.78B | 835.84B | 1.11T | 651.42B | 707.07B | 657.42B |
Balance Sheet | ||||||
| Total Assets | 32.85T | 30.78T | 29.77T | 24.67T | 23.97T | 21.92T |
| Cash, Cash Equivalents and Short-Term Investments | 5.03T | 4.74T | 5.18T | 4.07T | 3.89T | 3.05T |
| Total Debt | 13.55T | 4.42T | 10.08T | 7.62T | 8.05T | 6.74T |
| Total Liabilities | 20.07T | 18.15T | 16.77T | 13.17T | 13.20T | 12.55T |
| Stockholders Equity | 12.47T | 12.33T | 12.70T | 11.18T | 10.47T | 9.08T |
Cash Flow | ||||||
| Free Cash Flow | 11.83B | -555.28B | 138.61B | 1.50T | 1.23T | 521.24B |
| Operating Cash Flow | 816.57B | 292.15B | 747.28B | 2.13T | 1.68T | 1.07T |
| Investing Cash Flow | -840.87B | -941.97B | -867.27B | -678.06B | -376.06B | -796.88B |
| Financing Cash Flow | -145.77B | 280.48B | 918.65B | -1.47T | -615.72B | -283.98B |
Honda Motor Company Technical Analysis
Negative
30.89
Price Trends
29.21
Negative
29.60
Negative
30.44
Negative
Market Momentum
-1.45
Positive
27.51
Positive
28.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HMC, the sentiment is Negative. The current price of 30.89 is above the 20-day moving average (MA) of 26.76, above the 50-day MA of 29.21, and above the 200-day MA of 30.44, indicating a bearish trend. The MACD of -1.45 indicates Positive momentum. The RSI at 27.51 is Positive, neither overbought nor oversold. The STOCH value of 28.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HMC.
Honda Motor Company Risk Analysis
Honda Motor Company disclosed 22 risk factors in its most recent earnings report. Honda Motor Company reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
3. Laws and Regulations Concerning Human Rights Q1, 2023
2.
1. Economic Security Q1, 2023
3.
Geopolitical Risk Q1, 2023
Honda Motor Company Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $272.78B | 8.55 | 9.96% | 2.57% | 7.28% | 12.41% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $1.40T | 432.45 | 4.83% | ― | -2.93% | -47.22% | |
59 Neutral | $32.20B | 9.64 | 4.09% | 4.19% | 0.32% | -25.51% | |
55 Neutral | $17.99B | 4,652.09 | 1.55% | ― | -9.99% | -54.75% | |
51 Neutral | $68.34B | 27.72 | 5.13% | 0.69% | -1.29% | -49.96% | |
48 Neutral | $46.28B | -6.38 | -18.91% | 5.64% | 3.75% | 33.37% |
* Consumer Cyclical Sector Average
HMC
Honda Motor Company
24.58
-3.04
-11.00%
F
Ford Motor
11.60
2.18
23.19%
GM
General Motors
75.60
28.88
61.80%
TSLA
Tesla
372.11
98.98
36.24%
TM
Toyota Motor
209.93
25.95
14.10%
LI
Li Auto
17.58
-8.56
-32.75%
Honda Motor Company Corporate Events
Honda and Sony Halt AFEELA EV Launches as Honda Overhauls Electrification Strategy
Mar 25, 2026
On March 25, 2026, Honda said its equity-method affiliate Sony Honda Mobility will discontinue development and launch of its first EV model AFEELA1 and a second planned model, prompting Sony, Honda and the JV to conduct a broad review of the ventu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.