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
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
3
Poor long term growth as Operating profit has grown by an annual rate 8.55% of over the last 5 years
4
Flat results in Jun 26
- NET PROFIT(HY) At JPY -438,463 MM has Grown at -292.95%
- INTEREST(HY) At JPY 59,938 MM has Grown at 94.79%
- ROCE(HY) Lowest at -1.4%
5
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 8.90%, its profits have fallen by -49.8%
6
Underperformed the market in the last 1 year
- The stock has generated a return of 8.90% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%
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.
5.32%
187.35
31.78%
Japan Nikkei 225
60.14%
2.04
29.37%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.41%
EBIT Growth (5y)
8.55%
EBIT to Interest (avg)
22.72
Debt to EBITDA (avg)
3.29
Net Debt to Equity (avg)
0.57
Sales to Capital Employed (avg)
0.89
Tax Ratio
20.84%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
4.99%
ROE (avg)
7.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
0.52
EV to EBIT
22.42
EV to EBITDA
6.25
EV to Capital Employed
0.71
EV to Sales
0.70
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.19%
ROE (Latest)
4.51%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 1,342,118 MM
RAW MATERIAL COST(Y)
Fallen by -11.5% (YoY
CASH AND EQV(HY)
Highest at JPY 10,363,280 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 7.59 times
NET SALES(Q)
Highest at JPY 6,061,514 MM
OPERATING PROFIT(Q)
Highest at JPY 704,136 MM
OPERATING PROFIT MARGIN(Q)
Highest at 11.62 %
PRE-TAX PROFIT(Q)
Highest at JPY 582,382 MM
NET PROFIT(Q)
Highest at JPY 450,915 MM
EPS(Q)
Highest at JPY 115.84
-20What is not working for the Company
NET PROFIT(HY)
At JPY -438,463 MM has Grown at -292.95%
INTEREST(HY)
At JPY 59,938 MM has Grown at 94.79%
ROCE(HY)
Lowest at -1.4%
DEBT-EQUITY RATIO
(HY)
Highest at 70.94 %
Here's what is working for Honda Motor Co., Ltd.
Pre-Tax Profit
At JPY 582,382 MM has Grown at 1,065.73%
over average net sales of the previous four periods of JPY -60,305 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 450,915 MM has Grown at 525.45%
over average net sales of the previous four periods of JPY -105,985.25 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Operating Cash Flow
Highest at JPY 1,342,118 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Net Sales
Highest at JPY 6,061,514 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 704,136 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 11.62 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 582,382 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 450,915 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 115.84
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 10,363,280 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 7.59 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -11.5% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Honda Motor Co., Ltd.
Interest
At JPY 59,938 MM has Grown at 94.79%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 70.94 % 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
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