Honda Motor Co., Ltd. [NYSE:HMC]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Honda Motor Co., Ltd. [HMC], the latest average analyst recommendation we can see is from the quarter closing in March. On average, stock market experts give HMC an Outperform rating. The average 12-month price forecast for this stock is $34.96, with the high estimate being $43.99, the low estimate being $27.47 and the median estimate amounting to $34.82. This is compared to its latest closing price of $28.88.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Honda Motor Co., Ltd. [HMC] is sitting at 2.00. This is compared to 1 month ago, when its average rating was 2.00.
For the quarter ending in Mar-18 Honda Motor Co., Ltd. [HMC] generated $36.13 billion in sales. That’s 4.30% higher than the average estimate of $34.64 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Fri 1 Feb (In 19 Days).
Fundamental Analysis of Honda Motor Co., Ltd. [HMC]
Now let’s turn to look at profitability: with a current Operating Margin for Honda Motor Co., Ltd. [HMC] sitting at +5.43 and its Gross Margin at +20.88, this company’s Net Margin is now 7.20%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 5.67, and its Return on Invested Capital has reached 5.70%. Its Return on Equity is 13.91, and its Return on Assets is 5.53. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates HMC financial performance.
Turning to investigate this organization’s capital structure, Honda Motor Co., Ltd. [HMC] has generated a Total Debt to Total Equity ratio of 85.70. Similarly, its Total Debt to Total Capital is 46.15, while its Total Debt to Total Assets stands at 35.14. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 48.93, and its Long-Term Debt to Total Capital is 26.35. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 4.20 and its Total Debt to EBITDA Value is 2.97. The Enterprise Value to Sales for this firm is now 0.61, and its Total Debt to Enterprise Value stands at 0.60. Honda Motor Co., Ltd. [HMC] has a Price to Book Ratio of 0.82, a Price to Cash Flow Ratio of 6.64 and P/E Ratio of 5.12. These metrics all suggest that Honda Motor Co., Ltd. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Honda Motor Co., Ltd. [HMC] earns $71,235,803 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.81 and its Total Asset Turnover is 0.80. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.96 and its Current Ratio is 1.23. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Honda Motor Co., Ltd. [HMC] has 1.74B shares outstanding, amounting to a total market cap of $50.97B. Its stock price has been found in the range of 25.30 to 37.29. At its current price, it has moved by -21.51% from its 52-week high, and it has moved 15.69% from its 52-week low.
This stock’s Beta value is currently 0.86, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 69.31. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Honda Motor Co., Ltd. [HMC] a Reliable Buy?
Shares of Honda Motor Co., Ltd. [HMC], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.