Honda Motor Co Ltd (JP:7267)
:7267
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Honda Motor Co
(7267)
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Rating:58Neutral
Price Target:
¥1,467.00
▲(12.80% Upside)
Action:Reiterated
Date:06/14/26
The score is held back primarily by the latest profitability collapse and rising leverage despite prior strong growth. Technical signals are neutral with some short-term stabilization but a weaker longer-term trend. A high dividend yield supports the valuation component, but the negative P/E underscores current earnings risk.
Positive Factors
Diversified business model
Honda's revenue mix spans motorcycles, automobiles, power products and financing, providing multiple cashflow streams and geographic diversification. This durable business breadth smooths revenue volatility, supports aftermarket and financing income, and sustains competitiveness over a multi-month horizon.
Negative Factors
Profitability collapse
The swing to negative operating profit and net income signals material margin pressure or significant one-offs that impair earnings power. Persistent profitability weakness undermines retained earnings, limits reinvestment capacity and raises structural questions about cost and pricing resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified business model
Honda's revenue mix spans motorcycles, automobiles, power products and financing, providing multiple cashflow streams and geographic diversification. This durable business breadth smooths revenue volatility, supports aftermarket and financing income, and sustains competitiveness over a multi-month horizon.
Read all positive factors
Honda Motor Co (7267) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.49T
Dividend Yield4.41%
Average Volume (3M)14.47M
Price to Earnings (P/E)―
Beta (1Y)1.18
Revenue Growth0.50%
EPS Growth-159.91%
CountryJP
Employees194,993
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)-107.93
Shares Outstanding4,533,000,000
10 Day Avg. Volume15,290,380
30 Day Avg. Volume14,470,826
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.43
Price to Sales (P/S)0.23
P/FCF Ratio9.61
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,508.67Price Target Upside16.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)73.25
Revenue Forecast (FY)¥22.83T
Honda Motor Co Business Overview & Revenue Model
Company Description
Honda Motor Co., Ltd., founded in 1946 and based in Tokyo, Japan, is a multinational corporation involved in the development, production, and global sale of motorcycles, automobiles, power equipment, and other specialized items. Its market presenc...
How the Company Makes Money
Honda makes money mainly by selling physical products (motorcycles, automobiles, and power products) and by earning finance-related income tied to those sales. (1) Motorcycle business: Revenue is generated from the sale of motorcycles and scooters...
Honda Motor Co Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
Mixed results: Honda demonstrates strong cash generation, a resilient motorcycle business and solid financial services earnings that provide ballast, and management has reduced some downside (tariff outlook) while preserving shareholder returns. However, significant automobile losses driven by one‑time EV charges, tariffs, China volume weakness and supply‑chain/raw‑material risks materially dent profitability and create medium‑term strategic uncertainty around EV investments and alliances.Positive Updates
Strong Motorcycle Sales and Profitability
Motorcycle unit sales reached 16.44 million through Q3 with growth led by India, Pakistan and Brazil; Q3 motorcycle operating profit was JPY 546.5 billion, up JPY 44.8 billion year‑on‑year (≈+8.9%). Honda still targets a record 21.3 million motorcycle units for the full year.
Negative Updates
Large Year‑on‑Year Decline in Operating Profit
Consolidated Q3 operating profit was JPY 591.5 billion, down JPY 548.4 billion year‑on‑year (≈‑48.1%), with quarter profit attributable to owners of JPY 465.4 billion, down JPY 339.8 billion (≈‑42.2%).
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Motorcycle Sales and Profitability
Motorcycle unit sales reached 16.44 million through Q3 with growth led by India, Pakistan and Brazil; Q3 motorcycle operating profit was JPY 546.5 billion, up JPY 44.8 billion year‑on‑year (≈+8.9%). Honda still targets a record 21.3 million motorcycle units for the full year.
Read all positive updates
Company Guidance
Honda maintained its FY Mar‑2026 guidance of consolidated operating profit of JPY 550 billion and profit for the year attributable to owners of JPY 300 billion, assuming USD/JPY at JPY 148, a full‑year dividend of JPY 70 per share and cancellation of 747 million treasury shares; group unit‑sale targets remain motorcycles 21.3 million, automobiles 3.34 million and power products 3.67 million. Through Q3 operating profit was JPY 591.5 billion (down JPY 548.4 billion YoY), profit attributable JPY 465.4 billion (down JPY 339.8 billion), investment income (equity method) JPY 24.0 billion (up JPY 51.3 billion), motorcycle 9‑month sales 16.44 million, automobiles 2.561 million and power products 2.507 million. Honda reported operating cash flow after R&D adjustment of JPY 1.8558 trillion, free cash flow excluding financial services JPY 917.4 billion and net cash JPY 3.1707 trillion. Management said tariff impact has been revised down from an initial JPY 450 billion to ~JPY 310 billion, one‑time EV‑related charges hit JPY 267.1 billion (with ~JPY 270 billion booked in 9 months and full‑year write‑off/R&D totaling toward ~JPY 690–700 billion in management’s budget), and excluding EV and tariff impacts consolidated operating profit would be JPY 1.1485 trillion; Q3 operating by segment was motorcycle JPY 546.5 billion, automobile loss JPY 166.4 billion, financial services profit JPY 218 billion and power products loss JPY 6.5 billion.Honda Motor Co Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
60
Neutral
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 21.80T | 21.69T | 20.43T | 16.91T | 14.55T |
| Gross Profit | 3.60T | 4.66T | 4.41T | 3.33T | 2.98T |
| EBITDA | 983.52B | 2.12T | 2.50T | 1.64T | 1.70T |
| Net Income | -423.94B | 835.84B | 1.11T | 651.42B | 707.07B |
Balance Sheet | |||||
| Total Assets | 33.51T | 30.78T | 29.77T | 24.67T | 23.97T |
| Cash, Cash Equivalents and Short-Term Investments | 5.07T | 4.74T | 5.18T | 4.07T | 3.89T |
| Total Debt | 13.48T | 11.77T | 10.08T | 7.62T | 8.05T |
| Total Liabilities | 21.36T | 18.15T | 16.77T | 13.12T | 13.20T |
| Stockholders Equity | 11.82T | 12.33T | 12.70T | 11.23T | 10.47T |
Cash Flow | |||||
| Free Cash Flow | 523.20B | -218.65B | 138.61B | 1.50T | 1.23T |
| Operating Cash Flow | 1.14T | 292.15B | 747.28B | 2.13T | 1.68T |
| Investing Cash Flow | -852.17B | -941.97B | -867.27B | -678.06B | -376.06B |
| Financing Cash Flow | -36.92B | 280.48B | 918.65B | -1.47T | -615.72B |
Honda Motor Co Technical Analysis
Neutral
1300.50
Price Trends
1339.24
Positive
1405.13
Positive
1470.94
Negative
Market Momentum
27.61
Positive
52.05
Neutral
34.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7267, the sentiment is Neutral. The current price of 1300.5 is below the 20-day moving average (MA) of 1416.87, below the 50-day MA of 1339.24, and below the 200-day MA of 1470.94, indicating a neutral trend. The MACD of 27.61 indicates Positive momentum. The RSI at 52.05 is Neutral, neither overbought nor oversold. The STOCH value of 34.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7267.
Honda Motor Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥3.66T | 8.51 | 13.26% | 1.85% | 8.03% | 5.58% | |
66 Neutral | ¥32.86T | 9.74 | 12.89% | 2.78% | 5.51% | -18.10% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ¥1.77T | 19.43 | 9.73% | 3.61% | 2.12% | -72.79% | |
58 Neutral | ¥5.49T | -13.64 | 4.09% | 4.41% | 0.50% | -159.91% | |
58 Neutral | ¥1.13T | 44.65 | 1.38% | 4.17% | 3.06% | -67.47% | |
45 Neutral | ¥1.18T | -2.33 | -16.69% | ― | -4.95% | 20.69% |
* Consumer Cyclical Sector Average
JP:7267
Honda Motor Co
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Honda Motor Co Corporate Events
Honda Puts Ontario EV Value Chain Project on Indefinite Hold
May 14, 2026
Honda Motor Co. has indefinitely suspended its previously announced plan to build a comprehensive electric vehicle value chain in Ontario, Canada, intended to strengthen its EV supply chain in North America. The project, which had already been pos...
Honda Overhauls Board Structure and Leadership to Strengthen Governance
May 14, 2026
Honda Motor Co., Ltd. has revised its slate of director candidates ahead of its June 2026 ordinary shareholders’ meeting, elevating Mahito Shikama from managing officer at Honda RD Co., Ltd. to executive officer and director at the parent co...
Honda Earnings Land Near Upper End of Guidance Despite EV Losses
May 14, 2026
Honda Motor Co., Ltd. reported consolidated results for the year ended March 31, 2026 that came in near the upper end of its previously announced forecast range, with sales revenue rising to ¥21.8 trillion. The performance reflects higher uni...
Honda Swings to Loss but Holds Dividend and Targets Profit Rebound
May 14, 2026
Honda Motor Co. reported flat sales revenue of ¥21.8 trillion for the year ended March 31, 2026, but swung to an operating loss of ¥414.3 billion and a net loss attributable to owners of ¥423.9 billion, largely reversing last year&#...
Honda Rejects Reported Loss Figure as It Confirms Forecast-Range Operating Deficit
May 8, 2026
Honda Motor Co., Ltd. said reports in the Nikkei that it would post a consolidated operating loss of around 400 billion yen for the fiscal year ended March 31, 2026 are not based on any disclosure it has made. The company emphasized that it has no...
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.