Honda Motor Co Ltd ADR logo

Honda Motor Co Ltd ADR(HMC)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL RECENCY
1-STAR RATING
Consider higher Upturn Star rating
BUY for 84 days
PROFIT SINCE LAST BUY
+23.88%
LAST CLOSE
$32.53
09/21/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Advisory Performance History (Simulated)Advisory Performance History info

Upturn Advisory & Investor View for HMC

09/21/2026: HMC (1-star) has a low Upturn Star Rating. Not recommended to BUY.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Price Behavior

Steady Uptrend
PRICE PATH

Steady Uptrend

The stock demonstrates consistent and steady upward price momentum.

Smooth
PRICE STABILITY

Smooth

The stock has moved along a generally orderly path with only modest fluctuations.

Analysis of Past Performance

Type Stock
Historic Profit 1.21%
Avg. Invested days 41
Today’s Advisory Consider higher Upturn Star rating
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/21/2026

Upturn Scorecard

Upturn Star Rating

HMC receives a 3-star rating, supported by solid quantitative characteristics. The rating is constrained by weak unit economics, weak price momentum, and limited analyst upside.

Company Fundamentals

HMC has moderate overall fundamentals (3 stars), with moderate financial health, moderate growth momentum, and moderate ownership. In FY2026 versus FY2025, growth and ownership metrics are mixed: negative earnings growth (-150.7%), soft cash generation (FCF margin 1.1%), moderate revenue growth (+0.5%).

Financial Health Rating

HMC's financial health is supported by solid cash strength, including free-cash-flow generation of $237.7B (1.1% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

Free-cash-flow growth is HMC's strongest growth driver at +142.8% FY2026 versus FY2025 (strong, 5 stars). By comparison, while revenue growth (+0.5%, moderate) and earnings growth (-150.7%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

Institutional ownership is 4.2% and approximately 100.0% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.01%, which materially reduces the ownership score.

Top 5 Institutional Investors

Fisher Asset Management, LLC 0.60%
Mondrian Investment Partners Ltd 0.32%
Donald Smith & Co Inc 0.31%
Morgan Stanley - Brokerage Accounts 0.25%
Bank of America Corp 0.22%

Unit Economics (Per $1K Revenue)

HMC generates approximately $165 of gross profit, $-19 of operating income, and $11 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

Effective Tax Rate: 12.47%

Quantitative Style Profile

HMC has a large-cap, liquid, relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedLow VolatilityLarge / Mega Cap StabilityHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 41.79B USD
Price to earnings Ratio -
1Y Target Price 33.27
Price to earnings Ratio -
1Y Target Price 33.27
Volume (30-day avg) 846.1K shares
Beta 0.31
52 Weeks Range 23.25 - 33.45
Updated Date 09/20/2026
52 Weeks Range 23.25 - 33.45
Updated Date 09/20/2026
Dividends yield (FY) 4.14%
Basic EPS (TTM) -0.71

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE -
Forward PE 24.45
Enterprise Value 39.24B
Price to Sales(TTM) -
Enterprise Value 39.24B
Price to Sales(TTM) -
Enterprise Value to Revenue 0.27
Enterprise Value to EBITDA 4.73
Shares Outstanding 1.30B
Shares Floating 1.30B
Shares Outstanding 1.30B
Shares Floating 1.30B
Percent Insiders 0.01
Percent Institutions 4.2

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Honda Motor Co Ltd ADR

Exchange NYSE
Headquarters -
IPO Launch date 1957-12-01
President, CEO, Representative Executive Officer & Chairman Mr. Toshihiro Mibe
Sector Consumer Cyclical
Industry Auto Manufacturers
Full time employees 195109
Full time employees 195109

Honda Motor Co., Ltd. engages in the development, manufacturing, and distribution of motorcycles, automobiles, and power products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Power Product and Other Businesses manufactures and sells power products, such as general-purpose engines, lawn mowers, generators, water pumps, brush cutters, and tillers. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sales services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.