Honda Motor Co., Ltd. (7267) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Honda Motor Co., Ltd.

Why is Honda Motor Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.93%

The company has been able to generate a Return on Capital Employed (avg) of 5.93% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 8.55% of over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.59% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 7 consecutive quarters

ROCE(HY) Lowest at -3.51%
DEBT-EQUITY RATIO (HY) Highest at 73.96 %
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 5.04%, its profits have fallen by -49.8%

Underperformed the market in the last 1 year

The stock has generated a return of 5.04% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Honda Motor Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Honda Motor Co., Ltd.

5.04%

156.39

32.70%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.41%

EBIT Growth (5y)

8.55%

EBIT to Interest (avg)

33.23

Debt to EBITDA (avg)

2.70

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

0.89

Tax Ratio

31.49%

Dividend Payout Ratio

38.00%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

5.93%

ROE (avg)

7.59%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.49

EV to EBIT

21.78

EV to EBITDA

6.07

EV to Capital Employed

0.69

EV to Sales

0.68

PEG Ratio

Dividend Yield

ROCE (Latest)

3.19%

ROE (Latest)

4.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 1,135,261 MM

CASH AND EQV(HY)

Highest at JPY 9,913,349 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 7.27 times

NET SALES(Q)

Highest at JPY 5,820,946 MM

-37What is not working for the Company

ROCE(HY)

Lowest at -3.51%

DEBT-EQUITY RATIO (HY)

Highest at 73.96 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 73.36% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.29 times

INTEREST(Q)

Highest at JPY 40,401 MM

OPERATING PROFIT(Q)

Lowest at JPY -11,016 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.19 %

PRE-TAX PROFIT(Q)

Lowest at JPY -988,966 MM

NET PROFIT(Q)

Lowest at JPY -889,378 MM

EPS(Q)

Lowest at JPY -228.48

Here's what is working for Honda Motor Co., Ltd.

Operating Cash Flow

Highest at JPY 1,135,261 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Net Sales

Highest at JPY 5,820,946 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 9,913,349 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 7.27 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

At JPY 994,835 MM has Grown at 463.05%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Honda Motor Co., Ltd.

Pre-Tax Profit

At JPY -988,966 MM has Fallen at -587.43%

over average net sales of the previous four periods of JPY 202,895 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -889,378 MM has Fallen at -817.22%

over average net sales of the previous four periods of JPY 124,002.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 40,401 MM has Grown at 192.49%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at 73.96 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at JPY 40,401 MM

in the last five periods and Increased by 192.49% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -11,016 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -0.19 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -988,966 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -889,378 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -228.48

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Lowest at 5.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 73.36% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales