| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 71 | — | 17.3x | Top tier | |
Growth | 20 | 4.1% | 7.1% | Bottom tier | |
Quality | 23 | -0.6% | 4.5% | Bottom tier | |
Safety | 37 | 6.5x | 2.6x | Bottom tier | |
Capital Return | 97 | 3.49% | 0.06% | Top tier | |
Momentum | 88 | 1.1% | -1.6% | Top tier | |
Sentiment | 55 | 2 | 3 | Around median |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, 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 evident in its results: motorcycles, automobiles, financial services related to product financing, and power products and other businesses. In Q1 FY2027 (ends 2026-06), the group sold 5.663 million motorcycles, 786 thousand automobiles, and 752 thousand power product units; the motorcycle business generated operating profit of 233.9 billion yen, compared with 192.1 billion yen for automobiles and 105.8 billion yen for financial services, while power products and other businesses recorded an operating loss of 1.1 billion yen.
Revenue in Q1 FY2027 reached approximately 6.06 trillion yen, up 13.5% year over year from 5.34 trillion yen in Q1 FY2026 (ends 2025-06). Net income amounted to 450.9 billion yen, while the gross margin expanded to 22.2% from 20.1%, and the operating margin rose to 8.8% from 4.6%. Operating cash flow reached 292.5 billion yen, with the company holding 5.07 trillion yen in cash and investments and total debt of 0 yen.
The operating improvement came from record motorcycle profits supported by India and Brazil, and from higher automobile sales in North America despite weakness in China. Results also benefited from a positive currency impact of 90.8 billion yen and a positive tariff impact of 78.1 billion yen, but increased automobile incentives and higher material costs remained pressure factors. The redirection of the electric vehicle strategy still carries expected losses of 520 billion yen during FY2027, none of which was recorded in the first quarter because compensation negotiations with suppliers were ongoing.
Q1 FY2027 (2026-06)
Last 12 months to 2026-06-30
When: 2026-11-06
Operating margin compared with the 8.8% threshold
Annual revenue growth compared with the 13.5% threshold
When: FY2027
Operating profit compared with the 650 billion yen forecast
Analyst targets indicate a value of 34 dollars, based on only three analysts, so this signal is indicative and low-confidence and measures the expected growth analysts incorporate into their targets. The discounted cash flow model indicates a value of 25 dollars, within a range of 24 to 25 dollars and at a discount rate of 8.8%, and it measures the value of the cash generated by the company. The two methods differ by 9 dollars at their central values because the analyst target prices in stronger growth expectations, while the discounted cash flow model ties value to cash flows and discounting, and no industry multiple method or no-growth value is included among the calculated values. Analyst targets tend by nature to be optimistic, while the discounted cash flow model tends to be conservative; the analyst consensus remains neutral, with an average and median target of 34 dollars.
Figures in the text are as of 2026-09-27; the live price is shown at the top of the page.
Revenue reached 6.06 trillion yen in Q1 FY2027 (ends 2026-06), up 13.5% year over year, and net income reached 450.9 billion yen. The gross margin expanded to 22.2% and the operating margin to 8.8%, compared with 20.1% and 4.6%, respectively, in Q1 FY2026 (ends 2025-06). Record motorcycle profits, growth in North American automobiles, and a currency impact of 90.8 billion yen contributed to this improvement.
The motorcycle business generated operating profit of 233.9 billion yen in Q1 FY2027 (ends 2026-06), the business's highest quarterly operating profit. Automobiles generated 192.1 billion yen, financial services generated 105.8 billion yen, while power products and other businesses recorded an operating loss of 1.1 billion yen. Motorcycle growth came particularly from India and Brazil, where increased unit sales supported profit by 20.6 billion yen.
Automated analysis for informational purposes only — not investment advice.
Electric vehicle-related losses compared with the 520 billion yen forecast
Honda expects electric vehicle-related losses of 520 billion yen in FY2027 following the strategy adjustment in North America. The company did not record these losses in Q1 FY2027 (ends 2026-06) because supplier compensation negotiations were still ongoing. Management kept the operating basis of the losses at 500 billion yen, then the currency impact raised the estimate to 520 billion yen because most of the affected suppliers are concentrated in North America.
Honda's retail sales in China reached just over 80 thousand automobiles in Q1 FY2027 (ends 2026-06), down approximately 50% from the corresponding period. This performance is behind the FY2027 target of 480 thousand automobiles, at a time when the internal combustion engine and hybrid vehicle market in China contracted by approximately 40%. Honda reduced its local capacity for this category from just under 1.5 million automobiles to more than 700 thousand automobiles and extended its joint venture agreement with GAC to address customer and dealer concerns and support the recovery plan.
Cash and investments reached 5.07 trillion yen and total debt was 0 yen in Q1 FY2027 (ends 2026-06). Operating cash flow reached 292.5 billion yen in the quarter, while it reached 1.34 trillion yen over the last 12 months through 2026-06-30. Honda maintained its FY2027 annual distribution forecast at 70 yen per share, targeting a distribution-to-equity ratio of 3%.
Honda expects operating profit of 650 billion yen and profit attributable to owners of the parent of 400 billion yen in FY2027. The adjusted operating profit forecast is 1.17 trillion yen, after being raised by 170 billion yen, based on an exchange rate of 155 yen to the dollar. The company maintained its volume forecasts at 22.8 million motorcycles, 3.39 million automobiles, and 3.65 million power product units, but expects price and cost pressure of 313 billion yen.