ScoreWhy is Honda Motor Co., Ltd. ?
1
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)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Operating profit has grown by an annual rate 13.88% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 7.59% signifying low profitability per unit of shareholders funds
3
The company has declared negative results for the last 3 consecutive quarters
- INTEREST(HY) At JPY 29,256 MM has Grown at 13.29%
- NET PROFIT(HY) At JPY 268,767 MM has Grown at -34.54%
- ROCE(HY) Lowest at 3.89%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -11.59% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
Real-Time Research ReportHow 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.
-11.59%
142.10
32.71%
Japan Nikkei 225
40.96%
1.35
28.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.75%
EBIT Growth (5y)
13.88%
EBIT to Interest (avg)
33.23
Debt to EBITDA (avg)
2.70
Net Debt to Equity (avg)
0.56
Sales to Capital Employed (avg)
0.89
Tax Ratio
31.49%
Dividend Payout Ratio
38.00%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
5.93%
ROE (avg)
7.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.59
EV to EBIT
11.73
EV to EBITDA
7.27
EV to Capital Employed
0.74
EV to Sales
0.66
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
6.30%
ROE (Latest)
7.33%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-22What is not working for the Company
INTEREST(HY)
At JPY 29,256 MM has Grown at 13.29%
NET PROFIT(HY)
At JPY 268,767 MM has Grown at -34.54%
ROCE(HY)
Lowest at 3.89%
DEBT-EQUITY RATIO
(HY)
Highest at 67.3 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.36 times
INTEREST COVERAGE RATIO(Q)
Lowest at 2,389.4
RAW MATERIAL COST(Y)
Grown by 5.31% (YoY
OPERATING PROFIT(Q)
Lowest at JPY 330,048 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 6.18 %
Here's what is not working for Honda Motor Co., Ltd.
Interest
At JPY 29,256 MM has Grown at 13.29%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 2,389.4
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Profit
At JPY 268,767 MM has Grown at -34.54%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Debt-Equity Ratio
Highest at 67.3 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 5.36 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Operating Profit
Lowest at JPY 330,048 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 6.18 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Raw Material Cost
Grown by 5.31% (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
Non Operating Income
Highest at JPY 0.4 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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