Honda Motor Company AI Stock Analysis
Want to see HMC full AI Analyst Report?
Honda Motor Company (HMC) AI Stock Analysis
Honda Motor Company
(NYSE:HMC)
The score is primarily constrained by weak financial performance, including losses, higher leverage, negative ROE, and declining free cash flow. Positive technical momentum and upgraded earnings guidance provide support, but the negative P/E and significant EV, China, production, and cost risks keep the overall assessment cautious.
Honda Motor Company Key Performance Indicators (KPIs)
Revenue by SegmentShows revenue contributions from each business area, indicating which segments are growing, stable, or declining, and providing insight into the company's strategic focus and market positioning.
Honda’s revenue mix has meaningfully shifted: automobile revenues peaked in late‑2023 and have slid through 2025, signaling softer auto demand or normalization after the post‑COVID recovery, which could pressure margins given autos’ scale. That deterioration is being offset by a persistent motorcycle uptrend—motorcycle revenue has steadily accelerated into 2025—reducing reliance on cyclical car sales and highlighting strength in two‑wheeler markets. Financial services remain a stable growth buffer, while Power/Product & Other are immaterial to near‑term top‑line momentum.
The FlyHonda Motor Company (HMC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $44.51B
- Dividend Yield
- 4.25%
- Average Volume (3M)
- 893.17K
- Price to Earnings (P/E)
- -37.3
- Beta (1Y)
- 0.66
- Revenue Growth
- 2.11%
- EPS Growth
- -136.48%
- Country
- US
- Employees
- 195,109
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Auto - Manufacturers
Honda Motor Company Business Overview & Revenue Model
Company Description
Honda Motor Co., Ltd. is a global enterprise that designs, manufactures, and markets a diverse array of products, primarily motorcycles, automobiles, and power equipment, reaching customers across Japan, North America, Europe, Asia, and other interna...
How the Company Makes Money
Honda primarily makes money by selling products and services across its major businesses and related financing activities. (1) Automobile sales: A large portion of revenue is generated from the sale of Honda- and Acura-branded vehicles to dealers and...
Honda Motor Company Earnings Call Summary
The call reported strong, record first-quarter results (record operating profit, robust motorcycle performance, upgraded full-year guidance and a very strong net cash position), but these positives are offset by several significant and ongoing risks: meaningful China auto-market weakness, large and uncertain EV-related losses tied to supplier compensation (with FX exposure), material cost inflation driven by geopolitical uncertainty, and production disruptions from the Kumamoto earthquake. Management has raised guidance and emphasized financial resilience, yet material downside risks remain. The balance of meaningful near-term achievements and clear medium-term uncertainties results in a mixed but stable outlook.
Q1-2027 Updates
Positive Updates
Negative Updates
Company Guidance
Honda maintained FY Mar‑31, 2027 guidance assuming JPY155/USD and raised operating profit to JPY650.0 billion (up JPY150.0b), adjusted operating profit (ex‑EV losses) to JPY1.17 trillion (up JPY170.0b), and profit attributable to owners to JPY400.0 billion (up JPY140.0b) while revising EV‑related losses to JPY520.0 billion; group unit sales were unchanged at Motorcycles 22.8 million, Automobiles 3.39 million and Power Products 3.65 million. Q1 results beat expectations with record operating profit JPY530.7 billion, Q1 profit attributable JPY450.9 billion, motorcycle operating profit JPY233.9 billion, automobile operating profit JPY192.1 billion, financial services JPY105.8 billion and power products/other loss JPY1.1 billion; Q1 adjusted operating profit (ex‑EV) was JPY530.7 billion (up JPY164.5b YoY) with foreign exchange and tariff effects positive (FX +JPY90.8b, tariffs +JPY78.1b). Financial position and cash metrics stayed strong: net cash of non‑financial services JPY3,331.8 billion, non‑financial free cash flow JPY128.3 billion and operating cash flow after R&D adjustment JPY737.1 billion, and shareholder returns were unchanged at JPY70 per share (targeting DOE ~3%).
Honda Motor Company Financial Statement Overview
Summary
Financial performance is weak overall: negative EBIT and net income, sharply higher debt, negative ROE, and negative free cash flow outweigh strong revenue scale, gross profit, and positive operating cash flow.
Income Statement
35NegativeBalance Sheet
45NeutralCash Flow
30Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.20T | 21.80T | 21.69T | 20.43T | 16.91T | 14.55T |
| Gross Profit | 3.67T | 3.60T | 4.66T | 4.41T | 3.33T | 2.98T |
| EBITDA | 1.04T | 983.52B | 2.12T | 2.50T | 1.64T | 1.50T |
| Net Income | -219.01B | -423.94B | 835.84B | 1.11T | 651.42B | 707.07B |
Balance Sheet | ||||||
| Total Assets | 33.97T | 33.65T | 30.78T | 29.77T | 24.67T | 23.97T |
| Cash, Cash Equivalents and Short-Term Investments | 5.69T | 5.09T | 4.74T | 5.18T | 4.07T | 3.89T |
| Total Debt | 13.91T | 13.54T | 4.42T | 10.08T | 7.62T | 8.05T |
| Total Liabilities | 21.68T | 21.45T | 18.15T | 16.77T | 13.17T | 13.20T |
| Stockholders Equity | 12.04T | 11.87T | 12.33T | 12.70T | 11.18T | 10.47T |
Cash Flow | ||||||
| Free Cash Flow | -56.34B | 237.72B | -555.28B | 138.61B | 1.50T | 1.23T |
| Operating Cash Flow | 1.40T | 1.14T | 292.15B | 747.28B | 2.13T | 1.68T |
| Investing Cash Flow | -1.16T | -852.17B | -941.97B | -867.27B | -678.06B | -376.06B |
| Financing Cash Flow | 328.17B | -36.92B | 280.48B | 918.65B | -1.47T | -615.72B |
Honda Motor Company Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HMC, the sentiment is Positive. The current price of 34.30 is below the 20-day moving average (MA) of 34.42, above the 50-day MA of 33.17, and above the 200-day MA of 29.09, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 52.04 is Neutral, neither overbought nor oversold. The STOCH value of 19.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HMC.
Honda Motor Company Risk Analysis
Honda Motor Company disclosed 22 risk factors in its most recent earnings report. Honda Motor Company reported the most risks in the "Macro & Political" category.
Latest Risks Added
0 New RisksHonda Motor Company Peers Comparison
Overall Rating
TM71Outperform
GM69Neutral
TSLA58Neutral- HMC51.3Neutral
RIVN49Neutral
F45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TM | 71Outperform | $253.41B | 9.90 | 11.22% | 2.96% | 1.73% | -7.46% |
| GM | 69Neutral | $72.55B | 19.46 | 6.32% | 0.80% | -0.26% | -11.45% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| TSLA | 58Neutral | $1.54T | 394.16 | 3.76% | ― | 8.30% | -39.19% |
| HMC | 51Neutral | $44.88B | -37.29 | -1.80% | 4.25% | 2.11% | -136.48% |
| RIVN | 49Neutral | $17.78B | -5.41 | -60.10% | ― | 11.05% | 27.65% |
| F | 45Neutral | $47.56B | -6.08 | -21.35% | 5.04% | -1.38% | -252.96% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HMC | Honda Motors | 34.30 | 5.30 | 18.28% | |
| F | Ford Motor Company | 11.91 | -0.39 | -3.16% | |
| GM | General Motors Company | 86.00 | 18.67 | 27.73% | |
| TSLA | Tesla, Inc. | 390.22 | -18.70 | -4.57% | |
| TM | Toyota Motor Corp Ltd Ord | 212.43 | 13.43 | 6.75% | |
| RIVN | Rivian Automotive, Inc. | 12.18 | -2.69 | -18.09% |
Honda Motor Company Corporate Events
Honda Reports Fiscal First-Half Results for Six Months Ended September 30
Honda Motor Co. announced on November 10, 2026, its consolidated financial results for the six months ended September 30, 2026. Sales revenue was ¥12,037,658 million, up 13.2% from the year-earlier period, while operating profit increased 48.1% to ¥6...
Honda Announces $3 Billion Ohio Plant and North American Hybrid Investments
Honda Motor Co. is an automaker producing Honda and Acura vehicles, engines and hybrid systems, with manufacturing and development operations across North America. On Nov. 9, 2026, the company announced a $3 billion investment in a new auto plant in...
Honda and Nissan Strike SDV ECU Standardization Deal for 2029 Launch
On August 31, 2026, Honda Motor Co., Ltd. announced that it has entered into a joint development agreement with Nissan Motor Co., Ltd. to standardize key electronic control units that underpin next-generation software-defined vehicles, along with the...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 11, 2026