Honda Motor Co., Ltd.
- Open
- 27.14
- Day high
- 27.30
- Day low
- 27.00
- Prev close
- 27.11
- Volume
- 139K
- Mkt cap
- $35.4B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.5
- P/S
- 0.3
- Yield
- 2.01%
- Per share
- $0.55
Honda Motor Co., Ltd. (HMC) is a Consumer Cyclical company listed on NYSE. The stock is down 7% over the past year. Drillr has 1 published research article covering HMC.
Honda Motor Co., Ltd. (HMC) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
HMC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 14, 2026 | $-5.74 | $-4.24 | +26.2% | $36.8B | +11.6% |
| Nov 7, 2025 | $0.68 | $0.60 | -11.6% | $35.3B | -1.9% |
| Jun 18, 2025 | — | $0.14 | — | $36.9B | — |
| Feb 13, 2025 | $0.94 | $1.31 | +39.4% | $35.2B | -0.3% |
| May 10, 2024 | $0.44 | $0.99 | +125.0% | $35.8B | -0.8% |
| Feb 9, 2024 | $0.85 | $1.06 | +24.7% | $38.5B | +7.1% |
| Nov 9, 2023 | $0.69 | $1.07 | +55.1% | $33.4B | -2.2% |
| May 11, 2023 | $0.61 | $0.51 | -16.4% | $33.1B | -2.3% |
| Feb 10, 2023 | $0.95 | $1.02 | +7.4% | $34.2B | +2.8% |
| Nov 9, 2022 | $0.91 | $0.80 | -12.1% | $29.4B | +0.5% |
| Aug 10, 2022 | $0.79 | $0.67 | -15.2% | $28.2B | +2.6% |
| May 13, 2022 | $0.57 | $0.63 | +10.5% | $31.7B | +2.1% |
HMC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 4, 2026 | Morisawa Jirodirector | Grant | 438 | $9.14 |
| Jun 4, 2026 | Higashi Kazuhirodirector | Grant | 81 | $9.14 |
| Jun 4, 2026 | Suzuki Asakodirector | Grant | 438 | $9.14 |
| Jun 4, 2026 | Oe Kensukeofficer: Managing Executive Officer | Grant | 499 | $9.14 |
| Jun 4, 2026 | Igarashi Masayukiofficer: Managing Executive Officer | Grant | 513 | $9.14 |
| Jun 4, 2026 | Ito Hironaoofficer: Managing Executive Officer | Grant | 499 | $9.14 |
| Jun 4, 2026 | Inoue Katsushidirector | Grant | 438 | $9.14 |
| Jun 4, 2026 | Nagata Ryokodirector | Grant | 81 | $9.14 |
| Jun 4, 2026 | Fujimura Eijidirector, officer: See Remarks | Grant | 884 | $9.14 |
| Jun 4, 2026 | Sakai Kunihikodirector | Grant | 81 | $9.14 |
| Jun 4, 2026 | Agatsuma Mikadirector | Grant | 81 | $9.14 |
| Jun 4, 2026 | Ogawa Yoichirodirector | Grant | 81 | $9.14 |
| Jun 4, 2026 | Kokubu Fumiyadirector | Grant | 81 | $9.14 |
| Jun 2, 2026 | Takeishi Ikuoofficer: Executive Officer | Grant | 100 | — |
| Jun 2, 2026 | Takeishi Ikuoofficer: Executive Officer | Grant | 6,200 | $9.02 |
Source: HMC SEC Form 4 filings, latest Jun 4, 2026. For informational purposes only — not investment advice.
See the full HMC insider & 13F page →Honda Motor Co., Ltd. company profile
Overview
Honda Motor Co., Ltd. (NYSE:HMC) is a Japanese multinational conglomerate founded in 1946 and headquartered in Tokyo. Originally established by Soichiro Honda as a motorcycle manufacturer, the company has evolved into one of the world's largest automotive and mobility companies. Honda is renowned for its engineering excellence and innovation across multiple transportation segments, from motorcycles and automobiles to aircraft and marine engines. The company went public on the New York Stock Exchange in 1980 and has maintained a strong global presence with manufacturing operations across Japan, North America, Europe, and Asia.
Business
Honda operates as a diversified mobility and power equipment manufacturer across four primary business segments. The Motorcycle Business represents Honda's founding heritage and generates approximately 40% of operating profits. This segment produces a comprehensive range of motorcycles from small commuter bikes to large touring motorcycles, all-terrain vehicles, and side-by-side utility vehicles. Honda is the world's largest motorcycle manufacturer, with particularly strong market positions in Asia, where motorcycles serve as primary transportation. The Automobile Business accounts for roughly 40% of operating profits and manufactures passenger cars, light trucks, and Japan's popular mini vehicles (kei cars). Honda's automotive lineup includes popular models like the Civic, Accord, CR-V, and the best-selling N-BOX mini car in Japan. The company is actively transitioning toward electrification with hybrid vehicles currently serving as a bridge technology while developing battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs). The Financial Services Business contributes approximately 17% of operating profits by providing retail lending, leasing services to customers, and wholesale financing to Honda dealers. This captive finance arm supports sales across Honda's product portfolio and generates steady recurring revenue streams. The Life Creation and Other Businesses segment, while currently unprofitable, encompasses power products like generators, lawn mowers, marine engines, and the innovative HondaJet aircraft. This segment also includes emerging technologies such as walking assist devices and robotic solutions, representing Honda's diversification into broader mobility and life enhancement products.
Revenue model
Honda generates revenue primarily through direct product sales across its four business segments, with different customer bases and market dynamics for each division. The motorcycle business sells to both individual consumers and commercial users, particularly in emerging markets where motorcycles serve as essential transportation. Revenue comes from unit sales with varying profit margins depending on engine size and market positioning - larger displacement motorcycles in developed markets command higher margins than small commuter bikes in price-sensitive Asian markets. The automobile business operates on a traditional manufacturing model, selling vehicles through dealer networks to retail customers. Honda's profitability in this segment currently achieves around 8% margins on internal combustion engine and hybrid vehicles, with management targeting double-digit margins for next-generation hybrids launching in model years 2026-2027. The company faces margin pressure from the costly transition to electric vehicles, where current EV sales require substantial incentives of approximately $7,000 per unit. Financial services generates revenue through interest income on loans and leases, providing Honda with recurring cash flows and higher-margin business compared to manufacturing. This segment benefits from Honda's strong brand loyalty and helps facilitate vehicle sales while creating additional profit streams. Several factors significantly impact Honda's margins. Raw material costs, particularly steel and battery-related materials, create substantial cost pressures estimated at ¥260 billion annually. Currency fluctuations affect profitability given Honda's global manufacturing footprint, though the company mitigates this through localized production strategies. Semiconductor shortages have disrupted production schedules and forced costly production adjustments. The electric vehicle transition requires massive R&D investments of approximately ¥1 trillion while current EV sales operate at losses, creating near-term margin compression. However, Honda's strong hybrid technology and growing motorcycle sales in emerging markets provide margin support during this transition period.
Competitive moat
Honda possesses a moderate but meaningful competitive moat built primarily on brand reputation, engineering expertise, and manufacturing scale, though this moat faces significant challenges in the evolving automotive landscape. The company's strongest moat exists in motorcycles, where Honda maintains the world's largest market share and benefits from decades of engineering refinement, extensive dealer networks, and strong brand recognition, particularly in Asia where motorcycles are essential transportation. In automobiles, Honda's moat is weaker but still meaningful, built on reliability reputation, fuel efficiency expertise, and strong hybrid technology. The company's engineering culture and manufacturing quality create customer loyalty, evidenced by strong resale values and repeat purchase rates. Honda's hybrid technology currently provides competitive advantages, with plans to scale production to potentially 2 million units by 2030. However, Honda's moat faces substantial disruption from the electric vehicle transition. Traditional automotive engineering advantages become less relevant as the industry shifts toward software-defined vehicles and battery technology. New entrants, particularly Chinese EV manufacturers, are rapidly gaining market share with competitive products and aggressive pricing. Honda's collaboration with Nissan in electrification and software development suggests recognition that scale and technological partnerships are increasingly necessary to maintain competitiveness. The company's diversification across motorcycles, automobiles, power products, and financial services provides some defensive characteristics, as does its strong balance sheet with substantial cash reserves. However, the core automotive business faces an uncertain competitive position as traditional manufacturers compete against both established players investing heavily in EVs and new entrants with different cost structures and business models.
Risks & safety
Honda maintains a strong financial position with substantial margin of safety, though some metrics warrant attention during the company's strategic transition. • **Liquidity and Solvency**: Excellent position with ¥31.5 billion in cash and short-term investments, current ratio of 1.38, and minimal debt-to-equity ratio near zero, indicating very low solvency risk • **Cash Flow**: Mixed signals with positive operating cash flow of ¥538 million but negative free cash flow of ¥693 million in recent quarter, reflecting heavy capital investments in EV transition • **Valuation Metrics**: Extremely attractive with P/E ratio of 1.87, P/B ratio of 0.18, and EV/EBITDA of 0.74, suggesting significant undervaluation relative to fundamentals • **Profitability**: Solid operating margins around 7% with operating profit of ¥1.42 trillion, though facing pressure from EV transition costs and raw material inflation • **Other Considerations**: Large share buyback program of ¥1.1 trillion demonstrates management confidence, while R&D investments of ¥1 trillion position company for future competitiveness despite near-term earnings pressure
Recent development
Honda has undergone significant strategic evolution over the past few years, primarily focused on electrification while maintaining profitability in traditional businesses. The company established a clear electrification roadmap targeting 40% EV sales by 2030 and 100% FCEV/BEV by 2040, though management emphasizes maintaining flexibility in timing based on market conditions. Key strategic partnerships have emerged as central to Honda's EV strategy. The company formed joint ventures with LG Energy Solutions for battery production in Ohio and established partnerships with CATL in China for EV battery procurement. Additionally, Honda is exploring collaboration with Nissan in electrification, software development, and complementary product supplies, with more details expected by year-end. Honda's hybrid technology has become a crucial bridge strategy, with the company targeting 1 million hybrid units in FY 2025 and potentially scaling to 2 million units by 2030. Management positions hybrids as both a transitional technology and cash generator to fund EV investments, with next-generation hybrids expected to achieve double-digit profitability margins. In response to challenging market conditions, particularly in China, Honda has implemented significant capacity adjustments, reducing automobile production capacity from 1.49 million to 960,000 units and implementing personnel reductions through voluntary resignations. The company is launching its YE series electric vehicles in China to compete more effectively in the rapidly evolving NEV market. Financial strategy has emphasized shareholder returns with record share buyback programs totaling ¥1.1 trillion while maintaining substantial R&D investments. Honda also implemented a stock split to attract individual investors and has maintained consistent dividend payments despite transition-related cost pressures.
HMC company profile · for informational purposes only — not investment advice.
Track HMC with Drillr
SEC filings, earnings calls, insider activity, alt-data signals — all queryable through Drillr's AI terminal and MCP API.
Try Drillr for free