Honda Motor Company Ltd. Common Stock (HMC)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Honda as a global industrial franchise, not a story. It has real scale in motorcycles, automobiles, financial services, and power products, with 195,109 employees, but the figures at the 2026-10-26 close do not yet show a high-return business. The latest filed quarter, fiscal Q2 2026, produced revenue of $6.1T, net income of $450.9B, and a 7.44% margin - respectable on its face. Yet FairStock's trailing P/E is -48.39, ROE is -0.76%, ROCE is -0.15%, and D/E is 1.14. FairStock's Altman Z-score of 0.73 is a distress signal, and FairStock EV/EBITDA of -4.06 confirms earnings-based measures are impaired. On the asset side, FairStock P/B is 0.56, so the market is valuing the equity well below book. Cash generation is the strongest counterweight: trailing free cash flow is $7.2B, a 22.6% FCF yield. A 4.14% dividend and beta of 0.31 suggest income support and low market sensitivity, while FairStock's Piotroski F-score of 6/9 is middling. The 52-week range of $23.25-$34.64 puts the price near the high end, so this is not a statistically depressed quote on every measure. The path is mixed: the latest quarter is profitable, but trailing profitability remains negative. FairStock's Lynch rule leaves it uncategorized because only 0 years of filed results are available and three are needed. My Graham instinct says demand a margin of safety; the FairStock P/B and FCF yield offer one, but only if earnings normalize and leverage does not consume the cash. My Buffett instinct says wait for evidence of durable returns before calling the franchise cheap rather than merely low-priced.

In plain English: Honda makes motorcycles, automobiles, power products and provides financial services around the world. In fiscal Q2 2026, sales were $6.1T and it earned a profit, but trailing earnings are negative and debt is high compared with equity. The stock looks cheap compared with accounting value and cash generation, but the weak profit picture means it may be cheap for a reason.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer