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Honda Motor Company
(NYSE:HMC)
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Rating:51Neutral
Price Target:
$32.00
▲(13.64% Upside)
Action:Reiterated
Date:08/10/26
The score is held back primarily by weak financial performance (profitability swing into losses, higher leverage, and volatile/weaker recent free cash flow). Technicals are supportive with a clear uptrend and positive MACD, but overbought readings add near-term risk. Valuation is mixed—an attractive dividend yield is offset by a negative P/E tied to current losses—while the earnings call improved the outlook via raised guidance and strong Q1 execution, tempered by China, EV-loss, cost, and disruption risks.
Positive Factors
Motorcycle business profitability and scale
A high-margin, record-performing motorcycle segment provides durable earnings and geographic diversification (strong demand in India and Brazil). Its scale and steady demand reduce overall cyclical exposure from autos and generate recurring aftermarket and financing revenue that supports long-term cash flow.
Negative Factors
Profitability deterioration and margin compression
The swing to negative net income and compressed gross margins indicates structural pressure on pricing or cost absorption. Sustained unprofitability erodes equity, lowers ROE, constrains reinvestment ability, and increases the risk that operational fixes will be needed to restore durable shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Motorcycle business profitability and scale
A high-margin, record-performing motorcycle segment provides durable earnings and geographic diversification (strong demand in India and Brazil). Its scale and steady demand reduce overall cyclical exposure from autos and generate recurring aftermarket and financing revenue that supports long-term cash flow.
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
$40.64B
Dividend Yield4.27%
Average Volume (3M)1.51M
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth0.81%
EPS Growth-128.78%
CountryUS
Employees195,109
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-129.93
Shares Outstanding1,511,000,000
10 Day Avg. Volume904,663
30 Day Avg. Volume1,511,264
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.43
Price to Sales (P/S)0.24
P/FCF Ratio21.63
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.42
Revenue Forecast (FY)$146.53B
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:Aug 05, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call reported strong, record first-quarter results (record operating profit, robust motorcycle performance, upgraded full-year guidance and a very strong net cash position), but these positives are offset by several significant and ongoing risks: meaningful China auto-market weakness, large and uncertain EV-related losses tied to supplier compensation (with FX exposure), material cost inflation driven by geopolitical uncertainty, and production disruptions from the Kumamoto earthquake. Management has raised guidance and emphasized financial resilience, yet material downside risks remain. The balance of meaningful near-term achievements and clear medium-term uncertainties results in a mixed but stable outlook.Positive Updates
Record Quarterly Operating Profit
Operating profit for Q1 reached a record JPY 530.7 billion (up JPY 286.5 billion year-on-year). Quarterly profit attributable to owners increased to JPY 450.9 billion (up JPY 254.2 billion YoY). Adjusted operating profit (ex-EV losses) was JPY 530.7 billion, up JPY 164.5 billion YoY.
Negative Updates
China Automobile Market Weakness
Automobile sales decreased overall (group auto units 786,000). Honda's China retail units in Q1 were ~80,000, roughly 50% below last year, as ICE/hybrid segments shrank ~40% YoY. Guidance for China (initially ~480,000 units) is behind schedule and recovery is expected to take time despite a joint-venture contract extension with GAC.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Quarterly Operating Profit
Operating profit for Q1 reached a record JPY 530.7 billion (up JPY 286.5 billion year-on-year). Quarterly profit attributable to owners increased to JPY 450.9 billion (up JPY 254.2 billion YoY). Adjusted operating profit (ex-EV losses) was JPY 530.7 billion, up JPY 164.5 billion YoY.
Read all positive updates
Company Guidance
Honda maintained FY Mar‑31, 2027 guidance assuming JPY155/USD and raised operating profit to JPY650.0 billion (up JPY150.0b), adjusted operating profit (ex‑EV losses) to JPY1.17 trillion (up JPY170.0b), and profit attributable to owners to JPY400.0 billion (up JPY140.0b) while revising EV‑related losses to JPY520.0 billion; group unit sales were unchanged at Motorcycles 22.8 million, Automobiles 3.39 million and Power Products 3.65 million. Q1 results beat expectations with record operating profit JPY530.7 billion, Q1 profit attributable JPY450.9 billion, motorcycle operating profit JPY233.9 billion, automobile operating profit JPY192.1 billion, financial services JPY105.8 billion and power products/other loss JPY1.1 billion; Q1 adjusted operating profit (ex‑EV) was JPY530.7 billion (up JPY164.5b YoY) with foreign exchange and tariff effects positive (FX +JPY90.8b, tariffs +JPY78.1b). Financial position and cash metrics stayed strong: net cash of non‑financial services JPY3,331.8 billion, non‑financial free cash flow JPY128.3 billion and operating cash flow after R&D adjustment JPY737.1 billion, and shareholder returns were unchanged at JPY70 per share (targeting DOE ~3%).Honda Motor Company Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
46
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.52T | 21.80T | 21.69T | 20.43T | 16.91T | 14.55T |
| Gross Profit | 3.88T | 3.60T | 4.66T | 4.41T | 3.33T | 2.98T |
| EBITDA | 1.30T | -329.49B | 2.12T | 2.50T | 1.64T | 2.36T |
| Net Income | -169.70B | -423.94B | 835.84B | 1.11T | 651.42B | 707.07B |
Balance Sheet | ||||||
| Total Assets | 33.51T | 33.65T | 30.78T | 29.77T | 24.67T | 23.97T |
| Cash, Cash Equivalents and Short-Term Investments | 5.07T | 5.09T | 4.74T | 5.18T | 4.07T | 3.89T |
| Total Debt | 0.00 | 13.54T | 4.42T | 10.08T | 7.62T | 8.05T |
| Total Liabilities | 21.36T | 21.45T | 18.15T | 16.77T | 13.17T | 13.20T |
| Stockholders Equity | 11.82T | 11.87T | 12.33T | 12.70T | 11.18T | 10.47T |
Cash Flow | ||||||
| Free Cash Flow | 7.21B | 237.72B | -555.28B | 138.61B | 1.50T | 1.23T |
| Operating Cash Flow | 1.34T | 1.14T | 292.15B | 747.28B | 2.13T | 1.68T |
| Investing Cash Flow | -1.04T | -852.17B | -941.97B | -867.27B | -678.06B | -376.06B |
| Financing Cash Flow | 538.64B | -36.92B | 280.48B | 918.65B | -1.47T | -615.72B |
Honda Motor Company Technical Analysis
Positive
28.16
Price Trends
28.30
Positive
26.57
Positive
28.18
Positive
Market Momentum
0.98
Negative
63.62
Neutral
76.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HMC, the sentiment is Positive. The current price of 28.16 is below the 20-day moving average (MA) of 29.96, below the 50-day MA of 28.30, and below the 200-day MA of 28.18, indicating a bullish trend. The MACD of 0.98 indicates Negative momentum. The RSI at 63.62 is Neutral, neither overbought nor oversold. The STOCH value of 76.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 0 New Risks
Honda Motor Company Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $222.78B | 8.51 | 11.67% | 3.38% | 3.88% | 4.59% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.29T | 288.10 | 4.58% | ― | 11.75% | -37.64% | |
56 Neutral | $76.13B | 43.20 | 3.04% | 0.80% | -1.11% | -67.59% | |
54 Neutral | $55.15B | -7.48 | -18.90% | 4.18% | 1.47% | -315.47% | |
51 Neutral | $40.64B | -42.35 | -1.40% | 4.73% | 0.81% | -128.78% | |
46 Neutral | $12.92B | -47.88 | -2.49% | ― | -23.38% | -123.25% |
* Consumer Cyclical Sector Average
HMC
Honda Motor Company
31.58
-1.13
-3.45%
F
Ford Motor
14.37
3.44
31.47%
GM
General Motors
86.77
30.97
55.50%
TSLA
Tesla
342.27
11.71
3.54%
TM
Toyota Motor
191.11
-2.55
-1.32%
LI
Li Auto
12.26
-11.93
-49.32%
Honda Motor Company Corporate Events
Honda Extends GAC Honda Joint Venture in China Through 2038
Jul 20, 2026
On July 20, 2026, Honda Motor Co., Ltd. announced that it has signed an agreement with Guangzhou Automobile Group Co., Ltd. to extend the term of their GAC Honda Automobile Co., Ltd. joint venture in China through 2038. The deal cements a long-sta...
Honda Wins Strong Shareholder Backing for Board Slate at 102nd AGM
Jul 1, 2026
Honda Motor Co., Ltd. reported that its 102nd Ordinary General Meeting of Shareholders was held on June 26, 2026, resulting in the election of eleven directors, including President and Representative Executive Officer Toshihiro Mibe. The company d...
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...
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.