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 look at Honda as a globally recognized manufacturer with real scale in motorcycles, automobiles, power products, and financial services. The brand and distribution network are genuine assets, and a beta of 0.31 suggests the shares have historically been less volatile than the market. But this is not a clean value picture. In fiscal Q2 2026, the latest reported quarter, revenue was $6.1T and net income was $450.9B, a 7.44% margin, so the core business can still earn money. Yet trailing EPS is -$0.71, P/E is -46.94, ROE is -0.76%, and ROCE is -0.15% on FairStock's calculations, while profit growth is -999%. The supplied revenue growth figure of 8.60% is encouraging, but profit has collapsed. The balance sheet gives pause: debt-to-equity is 1.14 and Altman Z-Score is 0.73, a distressed reading. Still, trailing free cash flow is $7.2B, a 22.6% FCF yield at the 2026-10-13 close of $33.33, and the shares trade at 0.55 times book. The 4.14% dividend yield is attractive, though not risk-free. Piotroski F-Score is 6/9, FairStock Score is 54/100, and the Lynch category is none because only 0 years of filed results are available and three are needed. Honda's franchise has value, but the earnings volatility and leverage mean I would want clearer evidence of durable profitability before calling the discount a true margin of safety.

In plain English: Honda makes motorcycles, cars, power equipment, and financial services. The business looks mixed: sales grew, but profits have been weak, and the latest quarter was still profitable. The stock price looks low compared with its accounting value and cash generation, but that low price comes with real risks around earnings and debt.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · 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