HONDA MOTOR CO., LTD. HMC

Consumer DiscretionaryAutomobiles & Auto PartsJapan

Last close 33.68 USD on Nov 1, 2026, +18.4% year to date

Quant rating

Quant rating B Rank 73 of 297 in Consumer Discretionary

Growth D 216 of 297
Valuation C 158 of 297
Quality C 195 of 297
Revisions A 9 of 297
Momentum A 24 of 297

Wall Street consensus Buy (2.50)Average target 33.82 USD +0.4%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 51.4B
Enterprise value: 107.3B
52-week range: 23.25 – 34.64
3-year range: 23.25 – 37.68
Dividend yield: 3.92%
Beta (5 years): 0.52
Shares outstanding: 4,533M
Next earnings: Nov 5, 2026

About the company

Honda Motor Co Ltd is a Japan-based company principally engaged in the motorcycle business, the automobile business, the financial service business and the life creation business. The Company operates through four business segments. The Motorcycle segment is engaged in the research and development, production and sale of motorcycles, all-terrain vehicles (ATVs), side-by-side vehicles and related parts. The Automobile segment is engaged in the research and development, production and sale of automobiles and related parts. The Financial Service segment is engaged in the sales financing and leasing of its products. The Power Products and Other Business segment is engaged in the research and development, production and sale of power products and related parts.

Growth and profitability fiscal year ends March 31

Growth and profitability by fiscal year
	2026	2025	2024	2023	2022	5Y avg
Revenue (mil)	137,336	144,640	135,013	127,327	119,618	–
Revenue growth	−5.0%	7.1%	6.0%	6.4%	0.5%	2.9%
EPS (basic, normalized)	−2.11	3.52	4.69	3.02	3.66	–
EPS growth	–	−24.9%	54.9%	−17.3%	–	–
Gross margin	16.5%	21.5%	21.6%	19.7%	20.5%	20.0%
Net margin	−1.9%	3.9%	5.4%	3.9%	4.9%	3.2%
ROE	−3.5%	6.7%	9.3%	6.0%	7.2%	5.1%

Balance sheet, last quarter
Cash & short-term investments (mil)	33,850
Current ratio	1.29x
Long-term debt (mil)	53,513
Net debt (mil)	54,329
Total equity (mil)	76,052
Net debt / equity	0.71x
Net debt / EBITDA	9.21x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2026 actual	137,336	−5.0%	0.8x	5,898	−55.3%	18.2x	−2.11	−160.0%	−16.0x
2027	145,447	+5.9%	0.7x	9,869	+67.3%	10.9x	1.66	+178.8%	20.2x
2028	149,110	+2.5%	0.7x	12,907	+30.8%	8.3x	3.18	+91.3%	10.6x
2029	153,463	+2.9%	0.7x	11,861	−8.1%	9.0x	1.65	−48.1%	20.4x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2027	145,447	+1.2%	+2.7%	+2.5%	1.66	0.0%	+24.3%	−23.1%
2028	149,110	+1.2%	+3.9%	+4.4%	3.18	+10.7%	+49.8%	+43.1%
2029	153,463	0.0%	+2.4%	+18.7%	1.65	0.0%	+6.6%	–

Earnings surprises

Reported results versus consensus, last 10 fiscal quarters
	FQ-9	FQ-8	FQ-7	FQ-6	FQ-5	FQ-4	FQ-3	FQ-2	FQ-1	FQ0
Sales reported (mil)	36,579	34,684	36,147	36,276	35,148	–	–	–	–	–
Sales mean (mil)	40,069	–	34,439	34,098	39,178	–	–	–	–	–
Surprise	−8.7%	–	+5.0%	+6.4%	−10.3%	–	–	–	–	–
EPS reported	–	–	–	–	–	–	–	–	–	–
EPS mean	–	–	–	–	–	–	–	–	–	–
Surprise	–	–	–	–	–	–	–	–	–	–

FQ0 is the most recent reported quarter, FQ-1 the one before, and so on.

Peer comparison Automobiles & Auto Parts

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
HMC HONDA MOTOR CO., LTD.	51.4B	9.21x	−1.9%	0.56x	20.2x	10.6x	10.9x	8.3x
005380 HYUNDAI MOTOR COMPANY	49.7B	9.61x	5.1%	0.60x	7.5x	6.9x	14.9x	13.9x
7203 TOYOTA MOTOR CORPORATION	284.1B	5.80x	7.6%	0.97x	9.7x	8.7x	12.7x	11.3x
TSLA Tesla Inc	1.58T	−2.42x	4.0%	17.70x	238.2x	189.5x	108.8x	88.8x
BYDDY BYD Company Limited	98.7B	0.42x	4.0%	2.80x	14.8x	11.3x	5.8x	5.0x
GM General Motors Co	73.7B	4.15x	1.7%	1.18x	6.5x	5.9x	7.8x	7.2x
Mean		4.46x	3.4%	3.97x	49.5x	38.8x	26.8x	22.4x
Median		4.98x	4.0%	1.08x	12.3x	9.6x	11.8x	9.8x

Technical analysis

1M+4.5%
3M+12.2%
1Y+9.3%
3Y+23.7%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, HONDA MOTOR CO., LTD., fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Total revenue	137,336	144,640	135,013	127,327	119,618	118,975
Cost of revenue	114,633	113,536	105,853	102,238	95,084	94,306
Gross profit	22,703	31,104	29,160	25,089	24,534	24,669
Selling, general & administrative expenses	15,606	15,679	13,922	12,576	10,903	12,030
Research & development	9,707	7,332	6,104	6,634	6,469	6,675
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	–	–	–	–	–	–
Other operating expenses	0	0	0	0	0	0
Operating income	−2,611	8,093	9,133	5,880	7,161	5,964
Net interest income (expense)	−91.8	703	1,989	874	1,696	2,448
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	161	−8.6	−268	−130	−60.3	−155
Net income before taxes	−2,541	8,787	10,854	6,624	8,797	8,257
Provision for taxes	−317	2,765	3,039	1,222	2,544	1,975
Minority interest	−447	−448	−498	−496	−441	−343
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	−2,671	5,574	7,317	4,906	5,812	5,939
Extraordinary items	–	–	–	–	–	–
Net income	−2,671	5,574	7,317	4,906	5,812	5,939
EBIT, normalized	−2,611	8,093	9,133	5,880	7,161	5,964
EBITDA, normalized	7,789	18,848	19,572	17,905	19,301	18,838
Basic EPS, normalized	−2.11	3.52	4.69	3.02	3.66	–

Balance sheet in millions of USD, fiscal years

Balance sheet, HONDA MOTOR CO., LTD., fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Assets
Cash & short-term investments	33,796	31,592	34,262	30,627	31,996	27,582
Receivables	27,268	26,120	25,105	22,289	21,296	23,455
Total inventory	15,948	16,476	16,145	16,320	15,770	13,962
Prepaid expenses	–	–	–	–	–	–
Other current assets	5,369	3,756	2,953	2,896	3,611	3,466
Total current assets	82,381	77,944	78,465	72,132	72,673	68,465
Property, plant & equipment	60,678	59,741	55,761	59,450	67,718	71,738
Goodwill	–	–	–	–	–	–
Intangibles	4,945	7,509	6,607	6,558	6,983	7,396
Long-term investments	14,742	14,112	14,375	13,337	14,689	13,727
Note receivable	43,074	41,166	37,120	30,087	30,745	32,700
Other long-term assets	5,316	4,769	4,447	4,218	4,243	3,996
Total assets	211,135	205,241	196,776	185,783	197,050	198,022
Liabilities
Accounts payable	9,065	9,064	8,664	8,900	8,611	8,526
Payable/accrued	–	–	–	–	–	–
Accrued expenses	6,280	4,861	4,219	3,160	3,087	3,750
Short-term debt	7,760	12,203	10,025	10,285	7,451	11,738
Current portion of long-term debt	23,774	17,792	17,109	14,500	18,180	15,414
Other current liabilities	17,418	13,533	14,993	13,250	12,024	12,203
Total current liabilities	64,296	57,454	55,010	50,095	49,354	51,630
Long-term debt	53,400	46,372	40,037	32,939	40,969	42,596
Minority interest	2,083	2,009	2,041	2,395	2,464	2,625
Other liabilities	16,896	17,202	15,774	16,128	18,181	19,127
Total liabilities	136,676	123,037	112,862	101,557	110,968	115,978
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	542	574	569	648	707	777
Additional paid-in capital	1,291	1,369	1,355	1,398	1,525	1,554
Retained earnings (accumulated deficit)	59,076	74,173	70,347	75,157	78,408	80,409
Treasury stock	−5,651	−8,488	−3,640	−3,652	−2,699	−2,473
Other equity	19,202	14,577	15,283	10,674	8,141	1,777
Total equity	74,460	82,204	83,914	84,225	86,083	82,044
Total liabilities & shareholders' equity	211,135	205,241	196,776	185,783	197,050	198,022

Cash flow statement in millions of USD, fiscal years

Cash flow statement, HONDA MOTOR CO., LTD., fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Operating activities
Net income	−2,541	8,787	10,854	6,624	8,797	8,257
Depreciation, depletion & amortization	8,212	4,954	5,250	5,434	5,023	5,639
Deferred taxes	–	–	–	–	–	–
Non-cash items	1,544	−2,286	−2,671	−2,527	−3,409	−3,498
Changes in working capital	−61.0	−9,507	−8,495	6,502	3,396	−710
Cash from operations	7,153	1,948	4,939	16,033	13,806	9,687
Investing activities
Capital expenditures	−5,655	−5,651	−4,023	−4,763	−3,692	−4,979
Other investing cash flows	286	−630	−1,709	−343	601	−2,220
Cash from investing	−5,369	−6,282	−5,732	−5,106	−3,091	−7,199
Financing activities
Financing cash flow items	−493	−421	−552	−387	−442	−382
Cash dividends paid	−1,792	−2,319	−1,598	−1,608	−1,549	−1,311
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	2,052	4,611	8,221	−9,063	−3,070	−872
Cash from financing	−233	1,870	6,071	−11,058	−5,061	−2,565
Foreign exchange effects	2,164	−376	2,332	1,096	1,883	850
Net change in cash	3,715	−2,839	7,611	965	7,537	774
Free cash flow	1,498	−3,703	916	11,270	10,113	4,709

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.