Honda Motor Co Ltd 7267

Morningstar Rating
¥‎1,621.50 +6.50 (0.40%)
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Company Report

Honda's Light Truck Strength Is in Crossovers

Honda's products and strong financial position should keep it on solid ground, but the competition is fierce and the US market's increased move to light trucks—where Honda's lineup is not as complete as competitors'—may be permanent. Ongoing risks include foreign-exchange volatility, highly competitive US and China markets, and rising input costs for Honda and suppliers.

Price vs Fair Value

7267 is trading at a 695% premium.
Price
¥‎1,621.50
Fair Value
¥‎9,511.00
Uncertainty
High
1-Star Price
¥‎9,141.00
5-Star Price
¥‎2,898.00
Economic Moat
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Capital Allocation
Tvgynrb

Bulls Say, Bears Say

Bulls

The popularity of Honda's vehicles usually allow it to use fewer incentives than the Detroit Three, boosting the firm's profits and improving the resale value of its vehicles.

Bears

Environmental laws are becoming stricter, which will make cars more expensive to produce and more expensive for consumers to buy. Honda, for now, is lagging in battery electric vehicle offerings relative to other firms.

News

Trading Information

Previous Close Price
¥‎1,615.00
Day Range
¥‎1,573.501,627.50
52-Week Range
¥‎1,239.001,959.50
Bid/Ask
¥‎1,621.00 / ¥‎1,626.50
Market Cap
¥‎7.65 Tril
Volume/Avg
21.9 Mil / 23.6 Mil

Key Statistics

Price/Earnings (Normalized)
6.67
Price/Sales
0.37
Dividend Yield (Trailing)
4.50%
Dividend Yield (Forward)
4.19%
Total Yield
7.16%

Company Profile

Incorporated in 1948, Honda Motor was originally a motorcycle manufacturer. Today, the firm makes automobiles, motorcycles, and power products such as boat engines, generators, and lawnmowers. Including joint ventures, Honda sold 22.9 million light vehicles and motorcycles in fiscal 2024 (4.1 million of which were autos), and consolidated sales were JPY 20.4 trillion. Automobiles constitute 66% of revenue and motorcycles 16%, with the rest split between power products and financial services. Honda also makes robots and private jets.
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Stock Style Box
Large Value
Total Number of Employees
194,993

Competitors

Valuation

Metric
7267
MBGAF
VWAGY
Price/Earnings (Normalized)
6.674.953.36
Price/Book Value
0.580.720.33
Price/Sales
0.370.420.16
Price/Cash Flow
4.193.351.15
Price/Earnings
7267
MBGAF
VWAGY

Financial Strength

Metric
7267
MBGAF
VWAGY
Quick Ratio
1.010.880.87
Current Ratio
1.371.321.14
Interest Coverage
24.8228.2139.74
Quick Ratio
7267
MBGAF
VWAGY

Profitability

Metric
7267
MBGAF
VWAGY
Return on Assets (Normalized)
4.25%4.85%2.74%
Return on Equity (Normalized)
9.71%13.99%10.34%
Return on Invested Capital (Normalized)
5.17%7.07%4.46%
Return on Assets
7267
MBGAF
VWAGY

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