Honda Motor Co Ltd (JP:7267)
:7267
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Honda Motor Co
(7267)
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Rating:56Neutral
Price Target:
¥1,353.00
▲(4.04% Upside)
Action:ReiteratedDate:03/26/26
The score is held back primarily by weakening near-term financial performance (TTM revenue/margin pressure and poor cash conversion) and clearly bearish technical signals. These are partly offset by supportive valuation (low P/E and high yield) and an earnings update that maintained guidance and shareholder returns, though auto/EV-related charges and profitability volatility remain key risks.
Positive Factors
Motorcycle leadership
Honda’s motorcycle franchise is a durable cash engine: high volumes across emerging markets and strong operating profits support steady margins and free cash generation. This segment’s scale and market leadership reduce group earnings volatility and fund investments while auto returns recover.
Negative Factors
Automobile losses & EV charges
Large auto losses and heavy one‑time EV impairments materially weaken long‑term ROIC and strain capital allocation. Sustained high R&D and writeoffs increase breakeven requirements for the auto unit and create strategic uncertainty over future EV competitiveness and partner negotiations.
Read all positive and negative factors
Positive Factors
Negative Factors
Motorcycle leadership
Honda’s motorcycle franchise is a durable cash engine: high volumes across emerging markets and strong operating profits support steady margins and free cash generation. This segment’s scale and market leadership reduce group earnings volatility and fund investments while auto returns recover.
Read all positive factors
Honda Motor Co (7267) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.11T
Dividend Yield4.41%
Average Volume (3M)14.47M
Price to Earnings (P/E)9.7
Beta (1Y)1.19
Revenue Growth-0.43%
EPS Growth-26.68%
CountryJP
Employees194,993
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)39.23
Shares Outstanding4,533,000,000
10 Day Avg. Volume15,290,380
30 Day Avg. Volume14,470,826
Financial Highlights & Ratios
PEG Ratio-0.36
Price to Book (P/B)0.51
Price to Sales (P/S)0.29
P/FCF Ratio-28.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,552.31Price Target Upside19.36% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)40.56
Revenue Forecast (FY)¥21.25T
Honda Motor Co 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 its major business lines. (1) Automobile sales: Revenue is generated from the wholesale and retail sale of Honda- and Acura-branded vehicles through dealer networks, inclu...
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
62
Positive
Balance Sheet
70
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.34T | 21.69T | 20.43T | 16.91T | 14.55T | 13.17T |
| Gross Profit | 4.37T | 4.66T | 4.41T | 3.33T | 2.98T | 2.73T |
| EBITDA | 1.77T | 2.12T | 2.50T | 1.64T | 1.70T | 1.55T |
| Net Income | 496.01B | 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 | 13.24T | 11.77T | 10.08T | 7.62T | 8.05T | 8.04T |
| Total Liabilities | 20.07T | 18.15T | 16.77T | 13.12T | 13.20T | 12.55T |
| Stockholders Equity | 12.47T | 12.33T | 12.70T | 11.23T | 10.47T | 9.08T |
Cash Flow | ||||||
| Free Cash Flow | 112.92B | -218.65B | 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 Co Technical Analysis
Negative
1300.50
Price Trends
1527.82
Negative
1539.35
Negative
1536.86
Negative
Market Momentum
-69.66
Positive
26.12
Positive
11.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7267, the sentiment is Negative. The current price of 1300.5 is below the 20-day moving average (MA) of 1425.27, below the 50-day MA of 1527.82, and below the 200-day MA of 1536.86, indicating a bearish trend. The MACD of -69.66 indicates Positive momentum. The RSI at 26.12 is Positive, neither overbought nor oversold. The STOCH value of 11.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥3.81T | 9.91 | 13.26% | 1.85% | 2.99% | 9.99% | |
68 Neutral | ¥43.51T | 8.70 | 12.89% | 2.78% | 6.44% | 11.88% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | ¥1.85T | -82.83 | 9.73% | 3.61% | 1.04% | -31.52% | |
57 Neutral | ¥1.06T | 69.91 | 1.38% | 4.17% | -1.83% | -89.60% | |
56 Neutral | ¥5.11T | 9.73 | 4.09% | 4.41% | -0.43% | -26.68% | |
47 Neutral | ¥1.22T | -12.05 | -16.69% | ― | -3.01% | -755.71% |
* Consumer Cyclical Sector Average
JP:7267
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Honda Motor Co Corporate Events
Honda Takes Multitrillion-Yen Hit as It Scraps Key North American EV Plans
Mar 12, 2026
Honda Motor Co. has reassessed its automobile electrification strategy amid shifting policies and slowing electric vehicle demand, particularly in North America, and intensifying software-driven competition in China and other Asian markets. The co...
Honda Consolidates Auto and SDV Development in R&D Arm to Boost Agility
Feb 10, 2026
Honda Motor Co. will transfer its automobile product development and software-defined vehicle functions to its wholly owned subsidiary Honda RD via a simplified absorption-type company split effective April 1, 2026. The move will merge production ...
Honda Slashes Profit Outlook as Nine-Month Earnings Slide, Keeps Dividend Plan Intact
Feb 10, 2026
Honda reported consolidated results for the nine months to December 31, 2025 showing sales revenue of ¥15.98 trillion, down 2.2% year on year, with operating profit falling 48.1% to ¥591.5 billion and profit attributable to owners droppi...
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.