Is Honda Stock a Good Investment?

Honda Investment Advice

HMC

To provide specific investment advice or recommendations on Honda Motor Co stock, we recommend investors consider the following general factors when evaluating Honda Motor Co. This will help you to make an informed decision on whether to include Honda in one of your diversified portfolios:

Examine Honda's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Honda's leadership team and their track record. Good management can help Honda navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Automobile Manufacturers space and any emerging trends that could impact Honda's business and its evolving consumer preferences.
Compare Honda's performance and market position to its competitors. Analyze how Honda is positioned in terms of product offerings, innovation, and market share.
Check if Honda pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Honda's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Honda Motor Co stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Honda Motor Co is a good investment.

Sell

Buy

Hold

Our trade recommendations module complements current analysts and expert consensus on Honda Motor Co. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time. To make sure Honda Motor Co is not overpriced, please check out all Honda fundamentals, including its net income, cash flow from operations, and the relationship between the revenue and debt to equity . Given that Honda Motor has a price to book of 0.53 X, we strongly advise you to confirm Honda Motor market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Market Performance	Very Weak	Details
Volatility	Very steady	Details
Hype Condition	Over hyped	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Very Low	Details
Economic Sensitivity	Moves indifferently to market moves	Details
Investor Sentiment	Interested	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Possible Manipulator	Details

Examine Honda Stock

Researching Honda's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company has price-to-book (P/B) ratio of 0.53. Some equities with similar Price to Book (P/B) outperform the market in the long run. Honda Motor last dividend was issued on the 27th of September 2024. The entity had 4:1 split on the 10th of January 2002.

To determine if Honda is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Honda's research are outlined below:

	Honda Motor generated a negative expected return over the last 90 days
	On 11th of December 2024 Honda paid $ 0.6732 per share dividend to its current shareholders
	Latest headline from finance.yahoo.com: How major US stock indexes fared Monday, 12232024

Honda Quarterly Accounts Payable

1.41 Trillion

Honda uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Honda Motor Co. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Honda's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	9th of February 2024 Upcoming Quarterly Report	View
	9th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	9th of May 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of March 2023 Last Financial Announcement	View

Earnings surprises can significantly impact Honda's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Honda's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
1994-06-15	1994-03-31	0.03	0.04	0.01	33
1993-05-19	1993-03-31	0.04	0.03	-0.01	25
1994-08-24	1994-06-30	0.04	0.06	0.02	50
1994-02-22	1993-12-31	0.01	0.03	0.02	200
1992-08-14	1992-06-30	0.05	0.07	0.02	40
2011-11-11	2011-09-30	0.39	0.43	0.04	10
1992-11-14	1992-09-30	0.09	0.04	-0.05	55
2013-04-26	2013-03-31	0.61	0.6849	0.0749	12

Know Honda's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Honda is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Honda Motor Co backward and forwards among themselves. Honda's institutional investor refers to the entity that pools money to purchase Honda's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Clark Capital Management Group Inc	2024-09-30	1.2 M
Bank Of America Corp	2024-09-30	1.2 M
Renaissance Technologies Corp	2024-09-30	992 K
Envestnet Asset Management Inc	2024-09-30	672.6 K
Auto-owners Insurance Co	2024-09-30	655.6 K
Northern Trust Corp	2024-09-30	647.1 K
Brandes Investment Partners & Co	2024-09-30	504.1 K
Millennium Management Llc	2024-09-30	500.4 K
American Century Companies Inc	2024-09-30	468.8 K
Dodge & Cox	2024-09-30	22.1 M
Fisher Asset Management, Llc	2024-09-30	10.3 M

Note, although Honda's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Honda's market capitalization trends

The company currently falls under 'Large-Cap' category with a total capitalization of 42.27 B.

Market Cap

8.42 Trillion

Honda's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.04	0.04
Return On Capital Employed	0.06	0.11
Return On Assets	0.04	0.04
Return On Equity	0.09	0.11

The company has Net Profit Margin of 0.05 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.05 %, which entails that for every 100 dollars of revenue, it generated $0.05 of operating income.

Determining Honda's profitability involves analyzing its financial statements and using various financial metrics to determine if Honda is a good buy. For example, gross profit margin measures Honda's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Honda's profitability and make more informed investment decisions.

Please note, the presentation of Honda's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Honda's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Honda's management manipulating its earnings.

Evaluate Honda's management efficiency

Honda Motor has Return on Asset of 0.0313 % which means that on every $100 spent on assets, it made $0.0313 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0833 %, implying that it generated $0.0833 on every 100 dollars invested. Honda's management efficiency ratios could be used to measure how well Honda manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.04. The current year's Return On Capital Employed is expected to grow to 0.11. At present, Honda's Non Current Assets Total are projected to increase significantly based on the last few years of reporting. The current year's Total Current Assets is expected to grow to about 12.5 T, whereas Non Currrent Assets Other are forecasted to decline to about 639.3 B.

	Last Reported	Projected for Next Year
Book Value Per Share	2.7 K	2.8 K
Tangible Book Value Per Share	2.4 K	2.6 K
Enterprise Value Over EBITDA	5.41	5.14
Price Book Value Ratio	0.71	0.68
Enterprise Value Multiple	5.41	5.14
Price Fair Value	0.71	0.68
Enterprise Value	9.4 T	9.9 T

Honda Motor has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.

Dividend Yield

0.0595

Forward Dividend Yield

0.0595

Forward Dividend Rate

1.42

Beta

0.49

Basic technical analysis of Honda Stock

As of the 26th of December, Honda retains the Standard Deviation of 2.4, market risk adjusted performance of 6.33, and Risk Adjusted Performance of (0.07). Honda technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices.

Honda's Outstanding Corporate Bonds

Honda issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Honda Motor uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Honda bonds can be classified according to their maturity, which is the date when Honda Motor Co has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	HNDA 2271 10 MAR 25 Corp Bond US438127AA08	View
	HNDA 2967 10 MAR 32 Corp Bond US438127AC63	View
	HNDA 2534 10 MAR 27 Corp Bond US438127AB80	View

View All Honda Corporate Bonds

Understand Honda's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Honda's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0.07)
	Market Risk Adjusted Performance	6.33
	Mean Deviation	1.41
	Coefficient Of Variation	(1,048)
	Standard Deviation	2.4
	Variance	5.76
	Information Ratio	(0.11)
	Jensen Alpha	(0.24)
	Total Risk Alpha	(0.34)
	Treynor Ratio	6.32
	Maximum Drawdown	10.7
	Value At Risk	(3.39)
	Potential Upside	2.55
	Skewness	1.79
	Kurtosis	13.65

	Risk Adjusted Performance	(0.07)
	Market Risk Adjusted Performance	6.33
	Mean Deviation	1.41
	Coefficient Of Variation	(1,048)
	Standard Deviation	2.4
	Variance	5.76
	Information Ratio	(0.11)
	Jensen Alpha	(0.24)
	Total Risk Alpha	(0.34)
	Treynor Ratio	6.32
	Maximum Drawdown	10.7
	Value At Risk	(3.39)
	Potential Upside	2.55
	Skewness	1.79
	Kurtosis	13.65

Consider Honda's intraday indicators

Honda intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Honda stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	67852.18
	Daily Balance Of Power	1.866667
	Rate Of Daily Change	1.04
	Day Median Price	28.16
	Day Typical Price	28.23
	Price Action Indicator	0.77
	Period Momentum Indicator	1.12

Honda Corporate Filings

	23rd of December 2024 Other Reports	View Verify
6K	18th of December 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify

Honda time-series forecasting models is one of many Honda's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Honda's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Honda Stock media impact

Far too much social signal, news, headlines, and media speculation about Honda that are available to investors today. That information is available publicly through Honda media outlets and privately through word of mouth or via Honda internal channels. However, regardless of the origin, that massive amount of Honda data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Honda news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Honda relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Honda's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Honda alpha.

Honda Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Honda can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Honda Motor Historical Investor Sentiment

Investor biases related to Honda's public news can be used to forecast risks associated with an investment in Honda. The trend in average sentiment can be used to explain how an investor holding Honda can time the market purely based on public headlines and social activities around Honda Motor Co. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Honda's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Honda and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Honda news discussions. The higher the estimate score, the more favorable the investor's outlook on Honda.

Honda Corporate Directors

Hisao Takahashi	Managing Executive Officer, Director of Manufacturing Center in Main Automotive Business Unit	Profile
Mitsugu Matsukawa	Executive Officer, Senior Director of Engine System of Automobiles Production Supervision Unit in Main Automobiles Business Unit	Profile
Hiroko Koide	Independent Director	Profile
Noriaki Abe	Managing Executive Officer, Chief Director of Japan, Chief Director of Popularization of Safe Driving	Profile

When determining whether Honda Motor offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Honda's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Honda Motor Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Honda Motor Co Stock: