| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 73 | — | 17.8x | Top tier | |
Growth | 23 | 4.1% | 7.1% | Bottom tier | |
Quality | 22 | -0.6% | 4.5% | Bottom tier | |
Safety | 37 | 6.5x | 2.6x | Bottom tier | |
Capital Return | — | — | 2.12% | N/A | |
Momentum | 66 | -8.6% | 2.9% | Top tier | |
Sentiment | 50 | 2 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Honda Motor Co., Ltd. operates through four pillars reflected in its results: motorcycles, automobiles, financial services, and power products and other businesses. Profit generation depends heavily on motorcycle sales in markets such as India and Brazil, and on automobiles in North America, Japan, and China, with an independent contribution from financial services associated with the vehicle businesses. In Q1 FY2027, group sales totaled 5.663 million motorcycles, 786 thousand automobiles, and 752 thousand power product units.
In FY2025, Honda recorded revenue of $21,688.8 billion, gross profit of $4,664.0 billion, net income of $903.0 billion, and earnings per share of 178.93, compared with revenue of $20,428.8 billion, net income of $1,182.6 billion, and earnings per share of 225.88 in FY2024. This means revenue increased by approximately 6.2%, while net income declined by approximately 23.6%, indicating that sales growth did not fully translate into bottom-line earnings growth.
In Q1 FY2027, Honda achieved record operating profit of ¥530.7 billion, an increase of ¥286.5 billion year over year, while profit attributable to owners of the parent rose by ¥254.2 billion to ¥450.9 billion. Motorcycles led the operating profit mix at ¥233.9 billion, followed by automobiles at ¥192.1 billion with a 5.0% margin, then financial services at ¥105.8 billion, while power products and other businesses recorded an operating loss of ¥1.1 billion. No electric vehicle-related losses were recognized during the quarter because supplier compensation negotiations were still ongoing, not because this burden had disappeared.
The analyst consensus on HMC is Neutral, with an average price target of $31.51 and identical highest and lowest targets of $31.51, making the estimate range extremely narrow. The target is below the 52-week high of $34.89 and above the low of $23.25, while no price-to-earnings ratio is available; therefore, the stock's valuation is primarily tied to Honda's ability to convert record operating profit into sustainable earnings after electric vehicle losses and pressures from China and raw materials.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Operating profit reached ¥530.7 billion, a quarterly record and an increase of ¥286.5 billion year over year. The weaker yen contributed ¥90.8 billion, while the tariff impact added ¥78.1 billion to adjusted operating profit. Motorcycles also achieved record profit of ¥233.9 billion, while automobile profit reached ¥192.1 billion due to strength in North America despite weakness in China.
Honda estimated electric vehicle losses in FY2027 at approximately ¥520 billion after the currency impact, compared with a previous basis of ¥500 billion. The company had announced in March 2026 that changing its North American electric vehicle strategy could result in maximum losses of ¥2.5 trillion, of which ¥1.3 trillion was recognized in the previous fiscal year. Honda did not recognize these losses in Q1 FY2027 because supplier compensation negotiations had not yet reached a stage that allowed the amounts to be recognized for accounting purposes.
Management stated that China's ICE and hybrid automobile market contracted by approximately 40% year over year in Q1 FY2027 as new energy vehicles expanded. Honda sold slightly more than 80 thousand automobiles at retail in China, down nearly 50% from the corresponding quarter and behind the full-year plan of 480 thousand units. The company is working with GAC and local suppliers and on electric vehicle platforms, but said it could take approximately one year for tangible competitive results to emerge.
Automated analysis for informational purposes only — not investment advice.
The motorcycle business sold 5.663 million units in Q1 FY2027, driven particularly by India and Brazil. Its operating profit reached ¥233.9 billion, an increase of ¥44.9 billion year over year, recording the highest quarterly profit and margin in the business's history. Honda targets sales of 22.8 million motorcycles during FY2027, with increased production capacity in India and Brazil.
The earthquake occurred on July 28, 2026 and led to the suspension of production at the Kumamoto plant from the evening of that day through August 7 for nine days, with operations partially resuming. Production at the Saitama plant was also scheduled to be suspended for six days and at Suzuka for five days through August 19, 2026 within the announced schedules. Honda indicated that suppliers and components, including dampers from the Astemo supply chain, were affected, but it did not provide a numerical estimate on August 5, 2026 of the disruption's impact on sales.
Honda expects operating profit of ¥650 billion and profit attributable to owners of the parent of ¥400 billion in FY2027. The adjusted operating profit forecast is ¥1.17 trillion, with an assumed exchange rate of ¥155 per dollar and volume forecasts of 22.8 million motorcycles, 3.39 million automobiles, and 3.65 million power product units. The company maintained its expected full-year dividend at ¥70 per share, supported by net cash of ¥3.3318 trillion in non-financial businesses at the end of Q1 FY2027.
