HMC
Honda Motor Co Ltd
$29.57
▲ 5.5%Updated Today 12:11 PM ET
HMC at a glance — five pillars scored 0–100 from real filed financials.
Overall: Weak · 14/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 2.1% over the last 12 months
Market Cap
$40.42B
P/E
—
Forward P/E (est.)
—
ROE
-3.5%
Revenue Growth
0.5%
EPS Growth
—
Profit Margin
-1.9%
FCF Yield
—
Debt / Equity
1.14x
ROIC
6.0%
Interest Coverage
59.06x
Current Ratio
1.22x
Dividend Yield
4.4%
Implied Growth (rev. DCF)
—
Rating Score
14/100
Honda Motor Co Ltd (HMC) is a large-cap company in the Automobiles industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $40.42B.
In its latest reported year it generated about $11.84T in revenue and $574.11B in net profit.
Our model rates HMC Weak (14/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what HMC's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. HMC trades near $29.57, above its 50-day average ($25.93) and 200-day average ($28.52). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 75 it is overbought — the recent rally is stretched and can cool off.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. HMC's is $0.62 (~2.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month HMC found buyers near $25.55 (support) and sellers near $29.63 (resistance); its 52-week range is $23.25–$34.89. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.6× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
8.4%
Revenue moved from $12.00T in 2008 to $11.84T in 2014, a -0.2% compound annual growth rate. The most recent year was roughly flat (0.5%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
16.5%
Operating Margin
6.3%
Net Margin
4.8%
ROE
-3.5%
Honda Motor Co Ltd keeps about -1.9% of each sales dollar as net profit, with a 16.5% gross margin and 6.3% operating margin. Return on equity is -3.5% and return on invested capital about 6.0%. The company is currently unprofitable on a net basis.
Total Debt
$4.54T
Net Debt
$3.37T
Net Debt / EBITDA
4.49x
Debt / Equity
1.14x
Leverage: debt-to-equity is 1.1x, and operating profit covers interest about 59.1x, with a current ratio of 1.2x. That is a moderate, manageable debt load for most businesses. It carries roughly $4.54T of total debt against $1.17T of cash.
Operating CF
$1.23T
Free Cash Flow
$455.19B
FCF Margin
3.8%
In the latest year Honda Motor Co Ltd produced about $1.23T of operating cash flow and $455.19B of free cash flow after capital spending. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
—
P/S
0.28x
P/B
0.48x
EV / EBITDA
2.21x
HMC trades at n/a trailing earnings, 0.3x sales, and 0.5x book value. With no positive trailing earnings, value it on sales, cash flow, or growth rather than P/E.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$3,709.62
Current price
$29.57
Starting FCF (latest 10-K)
$455.19B
Growth, years 1–5
0.5%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where HMC sits versus its Consumer Discretionary sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 50 Consumer Discretionary companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How HMC stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.
In the Consumer Discretionary sector (92 S&P 500 companies), HMC ranks #50 of 92 by our overall rating.
P/E vs sector
—
median 25.4x
ROE vs sector
-3.5%
median 24.8%
Growth vs sector
0.5%
median 6.2%
Sector rank
#50
of 92 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 92 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $29.57 today · expected CAGR 176% – 206%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $12.20T | $12.56T | $12.94T | $13.33T | $13.73T |
| Net income | $609.89B | $628.18B | $647.03B | $666.44B | $686.43B |
| EPS | $353.23 | $363.82 | $374.74 | $385.98 | $397.56 |
| Share price (low) | $4,238.73 | $4,365.89 | $4,496.87 | $4,631.78 | $4,770.73 |
| Share price (high) | $7,064.55 | $7,276.49 | $7,494.78 | $7,719.63 | $7,951.22 |
| CAGR (low–high) | 14235% / 23791% | 1115% / 1469% | 434% / 533% | 254% / 302% | 176% / 206% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for HMC:
- Pays a 4.4% dividend on top of any price gains.
- As an established S&P 500 member in Consumer Discretionary, it brings scale and a long operating history.
The case against HMC:
- Revenue growth is slow (0.5%), limiting the upside engine.
- Thin net margins (-1.9%) leave little room for error.
- Our model's overall read is Weak (14/100).
Balance-sheet risk — debt/equity of 1.1x magnifies the impact of higher rates or weaker earnings.
Growth risk — sluggish revenue (0.5%) leaves little margin for execution missteps.
Margin risk — thin profitability (-1.9%) is vulnerable to cost or pricing pressure.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: Honda Motor Co Ltd is a large-cap consumer discretionary business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at n/a earnings, which our model scores Weak (14/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
HMC — frequently asked questions
Is HMC a good stock to buy?
We don't give buy or sell advice. Our model rates Honda Motor Co Ltd Weak (14/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is HMC's rating on The Stocks School?
Honda Motor Co Ltd currently scores 14/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does HMC's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Honda Motor Co Ltd's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for HMC calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this HMC analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell HMC. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.