Honda Motors (HMC)
NYSE:HMC
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Honda Motor Company
(NYSE:HMC)
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Rating:55Neutral
Price Target:
$27.00
▼(-12.59% Downside)
Action:Reiterated
Date:06/13/26
The score is driven primarily by weakened financial performance: FY2026 swung to operating and net losses and leverage increased, despite improved operating/free cash flow. Technical signals are neutral with the stock still below key long-term averages. Valuation is helped by a high dividend yield, but a negative P/E reflects loss-making results and tempers the outlook.
Positive Factors
Diversified business model
Honda's revenue mix spans automobiles, motorcycles, power products and captive finance. This diversified model cushions earnings cyclicality, supports cross-selling and recurring finance interest income, and gives enduring scale advantages across geographies and product cycles.
Negative Factors
Profitability deterioration
Turning to operating and net losses signals structural margin pressure or one-time writedowns. Persistent negative operating profits would erode retained earnings, constrain investment capacity, and pressure returns, making recovery dependent on durable cost cuts or revenue re-mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
Honda's revenue mix spans automobiles, motorcycles, power products and captive finance. This diversified model cushions earnings cyclicality, supports cross-selling and recurring finance interest income, and gives enduring scale advantages across geographies and product cycles.
Read all positive factors
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 (HMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.12B
Dividend Yield4.19%
Average Volume (3M)2.15M
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth1.63%
EPS Growth-158.78%
CountryUS
Employees194,993
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-337.05
Shares Outstanding1,511,000,000
10 Day Avg. Volume2,103,848
30 Day Avg. Volume2,145,415
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.43
Price to Sales (P/S)0.22
P/FCF Ratio9.27
Enterprise Value/Market Cap405.67
Enterprise Value/Revenue0.63
Enterprise Value/Gross Profit3.81
Enterprise Value/Ebitda14.09
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.39
Revenue Forecast (FY)$142.98B
Honda Motor Company Business Overview & Revenue Model
Company Description
Honda Motor Co., Ltd. is a global enterprise that designs, manufactures, and markets a diverse array of products, primarily motorcycles, automobiles, and power equipment, reaching customers across Japan, North America, Europe, Asia, and other inte...
How the Company Makes Money
Honda primarily makes money by selling mobility and power products and by earning income from financing those purchases. The largest revenue streams generally come from (1) Automotive: sale of passenger vehicles and light trucks/SUVs to end custom...
Honda 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
48
Neutral
Balance Sheet
54
Neutral
Cash Flow
62
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.11T | 21.69T | 20.43T | 16.91T | 14.55T |
| Gross Profit | 3.82T | 4.66T | 4.41T | 3.33T | 2.98T |
| EBITDA | 1.04T | 2.12T | 2.50T | 1.64T | 2.36T |
| Net Income | -449.51B | 835.84B | 1.11T | 651.42B | 707.07B |
Balance Sheet | |||||
| Total Assets | 33.65T | 30.78T | 29.77T | 24.67T | 23.97T |
| Cash, Cash Equivalents and Short-Term Investments | 5.09T | 4.74T | 5.18T | 4.07T | 3.89T |
| Total Debt | 13.54T | 4.42T | 10.08T | 7.62T | 8.05T |
| Total Liabilities | 21.45T | 18.15T | 16.77T | 13.17T | 13.20T |
| Stockholders Equity | 11.87T | 12.33T | 12.70T | 11.18T | 10.47T |
Cash Flow | |||||
| Free Cash Flow | 554.75B | -1.43B | 138.61B | 1.50T | 1.23T |
| Operating Cash Flow | 1.20T | 1.92B | 747.28B | 2.13T | 1.68T |
| Investing Cash Flow | -903.56B | -6.18B | -867.27B | -678.06B | -376.06B |
| Financing Cash Flow | -39.14B | 1.84B | 918.65B | -1.47T | -615.72B |
Honda Motor Company Technical Analysis
Negative
30.89
Price Trends
25.44
Positive
26.73
Negative
28.81
Negative
Market Momentum
0.27
Positive
49.73
Neutral
17.93
Positive
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 26.75, above the 50-day MA of 25.44, and above the 200-day MA of 28.81, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 49.73 is Neutral, neither overbought nor oversold. The STOCH value of 17.93 is Positive, 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $205.05B | 9.43 | 10.10% | 2.57% | 6.73% | -16.97% | |
62 Neutral | $1.50T | 334.15 | 4.79% | ― | 2.25% | -39.81% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $71.49B | 28.70 | 3.96% | 0.69% | -2.03% | -63.41% | |
55 Neutral | $34.12B | ― | -3.53% | 4.19% | 1.63% | -158.78% | |
55 Neutral | $56.02B | -9.18 | -14.72% | 5.64% | 3.82% | -209.77% | |
50 Neutral | $13.37B | -50.70 | -2.49% | ― | -23.38% | -123.25% |
* Consumer Cyclical Sector Average
HMC
Honda Motor Company
26.26
-2.28
-8.00%
F
Ford Motor
14.06
3.97
39.32%
GM
General Motors
79.29
31.53
66.01%
TSLA
Tesla
400.49
78.33
24.31%
TM
Toyota Motor
173.94
1.54
0.89%
LI
Li Auto
13.21
-12.80
-49.21%
Honda Motor Company Corporate Events
Honda Motor Convenes 102nd Shareholders Meeting, Plans Election of 11 Directors
Jun 3, 2026
Honda Motor Co., Ltd. has filed a Form 6-K for June 2026 announcing the convocation of its 102nd Ordinary General Meeting of Shareholders in Tokyo. The meeting, set for June 26, 2026, will report on business and financial results for the fiscal ye...
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.