Honda Motor
Market Cap
JP¥6.0t
Last Updated
2021/07/27 16:19 UTC
Data Sources
Company Financials +
Executive Summary
Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other products in Japan, North America, Europe, Asia, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with proven track record.
Similar Companies
Share Price & News
How has Honda Motor's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 7267 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 7267's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
1.4%
7267
2.2%
JP Auto
1.8%
JP Market
1 Year Return
30.4%
7267
39.7%
JP Auto
21.7%
JP Market
Return vs Industry: 7267 underperformed the JP Auto industry which returned 39.7% over the past year.
Return vs Market: 7267 exceeded the JP Market which returned 21.7% over the past year.
Shareholder returns
| 7267 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.4% | 2.2% | 1.8% |
| 30 Day | -4.5% | -2.0% | -1.9% |
| 90 Day | 6.2% | 13.2% | 0.8% |
| 1 Year | 34.8%30.4% | 43.7%39.7% | 24.3%21.7% |
| 3 Year | 11.4%0.4% | 14.9%5.1% | 18.1%10.0% |
| 5 Year | 42.4%21.0% | 53.2%31.2% | 65.0%46.9% |
Long-Term Price Volatility Vs. Market
How volatile is Honda Motor's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Honda Motor undervalued compared to its fair value and its price relative to the market?
9.11x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 7267 (¥3467) is trading above our estimate of fair value (¥3047.75)
Significantly Below Fair Value: 7267 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 7267 is good value based on its PE Ratio (9.1x) compared to the JP Auto industry average (14.8x).
PE vs Market: 7267 is good value based on its PE Ratio (9.1x) compared to the JP market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: 7267 is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: 7267 is good value based on its PB Ratio (0.7x) compared to the JP Auto industry average (0.9x).
Future Growth
How is Honda Motor forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
7.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 7267's forecast earnings growth (7.2% per year) is above the savings rate (0%).
Earnings vs Market: 7267's earnings (7.2% per year) are forecast to grow slower than the JP market (12.3% per year).
High Growth Earnings: 7267's earnings are forecast to grow, but not significantly.
Revenue vs Market: 7267's revenue (5.1% per year) is forecast to grow slower than the JP market (5.3% per year).
High Growth Revenue: 7267's revenue (5.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 7267's Return on Equity is forecast to be low in 3 years time (7.9%).
Past Performance
How has Honda Motor performed over the past 5 years?
-4.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 7267 has high quality earnings.
Growing Profit Margin: 7267's current net profit margins (5%) are higher than last year (3.1%).
Past Earnings Growth Analysis
Earnings Trend: 7267's earnings have declined by 4% per year over the past 5 years.
Accelerating Growth: 7267's earnings growth over the past year (44.3%) exceeds its 5-year average (-4% per year).
Earnings vs Industry: 7267 earnings growth over the past year (44.3%) exceeded the Auto industry 9.1%.
Return on Equity
High ROE: 7267's Return on Equity (7.4%) is considered low.
Financial Health
How is Honda Motor's financial position?
Financial Position Analysis
Short Term Liabilities: 7267's short term assets (¥7,579.1B) exceed its short term liabilities (¥5,715.5B).
Long Term Liabilities: 7267's short term assets (¥7,579.1B) exceed its long term liabilities (¥6,832.7B).
Debt to Equity History and Analysis
Debt Level: 7267's debt to equity ratio (82.4%) is considered high.
Reducing Debt: 7267's debt to equity ratio has reduced from 92.8% to 82.4% over the past 5 years.
Debt Coverage: 7267's debt is not well covered by operating cash flow (13.9%).
Interest Coverage: 7267 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Honda Motor current dividend yield, its reliability and sustainability?
3.17%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 7267's dividend (3.17%) is higher than the bottom 25% of dividend payers in the JP market (1.33%).
High Dividend: 7267's dividend (3.17%) is in the top 25% of dividend payers in the JP market (3%)
Stability and Growth of Payments
Stable Dividend: 7267's dividends per share have been stable in the past 10 years.
Growing Dividend: 7267's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (28.9%), 7267's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Toshihiro Mibe (60 yo)
0.083
Tenure
Mr. Toshihiro Mibe serves as Director at Honda Motor Co., Ltd. since June 2020 and serves as its President since April 1, 2021 and has been its Chief Executive Officer since June 23, 2021 and served as Sen...
Leadership Team
Experienced Management: 7267's management team is considered experienced (4.8 years average tenure).
Board Members
Experienced Board: 7267's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Honda Motor Co., Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Honda Motor Co., Ltd.
- Ticker: 7267
- Exchange: TSE
- Founded: 1946
- Industry: Automobile Manufacturers
- Sector: Automobiles
- Market Cap: JP¥5.986t
- Shares outstanding: 1.73b
- Website: https://www.honda.co.jp
Number of Employees
Location
- Honda Motor Co., Ltd.
- 2-1-1, Minami-Aoyama
- Minato-ku
- Tokyo
- 107-8556
- Japan
Listings
Biography
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 fo...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/27 16:19 |
| End of Day Share Price | 2021/07/27 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2021/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.