Honda Stock Symbol HMC Market Trends and Outlook

Author

Reads 290

Black Honda Hatchback on the Road
Credit: pexels.com, Black Honda Hatchback on the Road

Honda's stock symbol, HMC, is listed on the New York Stock Exchange (NYSE) and is one of the most recognizable brands in the world.

The company's market trends and outlook are closely watched by investors and analysts alike, with many considering it a bellwether for the global automotive industry.

In recent years, Honda has been shifting its focus towards electric and hybrid vehicles, with plans to electrify its entire lineup by 2025.

This move is driven in part by the growing demand for environmentally friendly vehicles and the need to comply with increasingly stringent emissions regulations.

Financial Analysis

Honda's financial health is a crucial aspect to consider when evaluating the stock. The company's quick ratio is a respectable 1.03, indicating its ability to meet short-term obligations.

The current ratio of 1.38 suggests that Honda has sufficient liquidity to cover its current debts. In fact, the company's current ratio is higher than its quick ratio, indicating a strong ability to meet its short-term obligations.

Here's a summary of Honda's financial ratios:

Honda's financial performance is also impressive, with revenue increasing by 20.83% in 2023 to 20.43 trillion yen. This significant growth is a testament to the company's strong market position and ability to adapt to changing market conditions.

Financial Strength

Credit: youtube.com, How do you assess the financial strength of a company if you have no financial data?

Financial Strength is a crucial aspect of a company's overall health. A quick ratio of 1.03 indicates that Honda Motor (HMC) has sufficient liquidity to cover its short-term obligations.

The Current Ratio of 1.38 for HMC suggests that it can pay off its current liabilities with its current assets. This ratio is higher than Ford's (F) ratio of 1.16.

Interest Coverage is another key metric, and HMC's ratio of 22.33 indicates that it can easily cover its interest payments. In comparison, Ford's ratio is 6.01, which is lower than HMC's.

Analysts' Recommendations

Analysts' Recommendations can be a great indicator of a company's financial health and potential for growth. Nomura, a well-known financial institution, has provided several recommendations for Honda Motor Co., Ltd.

Nomura Adjusts Honda Motor's Price Target to 1,900 Yen From 1,780 Yen, Keeps at Buy, which suggests a positive outlook on the company's future performance. In August 2022, Nomura adjusted Honda Motor's Price Target to 4,300 Yen From 4,000, and kept its recommendation at Buy.

A Black Honda Civic Car
Credit: pexels.com, A Black Honda Civic Car

Nomura also Downgraded Honda Motor to Neutral From Buy, Adjusting Price Target to 4,900 Yen From 4,500 Yen in June 2023. This change in recommendation may indicate a shift in the company's financial situation or market trends.

Nomura Adjusted Honda Motor's Price Target to 4,980 Yen From 4,900 Yen, Keeps at Neutral, in August 2023. This adjustment suggests that the analyst is still cautious about the company's performance.

Here are the key changes in Nomura's recommendations for Honda Motor Co., Ltd.:

Price Volatility

Honda Motor's price volatility is a topic worth exploring. The company's stock price has been relatively stable in the past 3 months, with an average weekly movement of 5.9%. This is lower than the market average of 6.4%.

The auto industry as a whole has seen an average movement of 10.0%, making Honda's stock price relatively less volatile. To put this into perspective, the 10% least volatile stocks in the US market have an average movement of 3.2%.

Here's a comparison of Honda's volatility with industry and market averages:

Honda's weekly volatility has been stable over the past year, with a consistent movement of 6%. This suggests that the company's stock price is relatively stable and less prone to sudden fluctuations.

Market Insights

Credit: youtube.com, Honda (HMC) Stock Analysis: Should You Invest in $HMC?

The Honda stock symbol is HMC, and it's listed on the New York Stock Exchange (NYSE).

Honda is a multinational conglomerate corporation, headquartered in Tokyo, Japan.

The company was founded in 1948 by Soichiro Honda and Takeo Fujisawa.

Honda's main business is in the automotive industry, but it also has a significant presence in motorcycle and power equipment manufacturing.

In 2020, Honda's revenue was over $134 billion.

The company has a diverse portfolio of brands, including Honda, Acura, and Honda Power Equipment.

Honda's stock has a beta of around 1.3, indicating a relatively stable investment.

As of 2022, Honda's market capitalization is over $50 billion.

Honda Stock Performance

Honda Motor's current share price is JP¥26.90, which is a 6.11% decrease from last month.

The 52-week high for Honda's stock price was JP¥37.90, while the 52-week low was JP¥23.41. This indicates a significant fluctuation in the stock's value over the past year.

Here's a summary of Honda's stock performance over different time periods:

Valuation

Credit: youtube.com, Why Is HONDA Stock So CHEAP Right Now? | HMC Stock Analysis

Valuation is a crucial aspect of Honda's stock performance, and it's essential to understand the key metrics that investors look at.

The Price/Earnings (Normalized) ratio for HMC is 6.00, which is higher than NSANY's 7.75. This suggests that HMC may be overvalued compared to its peers.

A lower Price/Book Value ratio is generally a good sign, and NSANY's 0.28 is significantly lower than HMC's 0.50. This indicates that NSANY's stock may be undervalued.

The Price/Sales ratio for HMC is 0.30, which is lower than NSANY's 0.13. However, HMC's Price/Cash Flow ratio of 3.56 is higher than NSANY's 2.56, suggesting that HMC may be more expensive than NSANY.

Here's a comparison of the key valuation metrics for HMC, NSANY, and F:

Overall, the valuation metrics suggest that NSANY may be a more attractive option for investors, with a lower Price/Book Value ratio and a lower Price/Sales ratio.

Price History & Performance

The price history of Honda Motor stock is a fascinating topic. Honda's current share price is a respectable ¥26.90.

Credit: youtube.com, Honda (HMC) Stock Analysis: Should You Invest in $HMC?

Over the past year, Honda's stock price has taken a significant hit, with a 1 Year Change of -20.56%. This decline is a concern for investors.

However, it's worth noting that Honda's stock has had its share of highs. The 52 Week High is a notable ¥37.90, which is a significant amount of money.

In the past five years, Honda's stock price has actually increased by 0.67%. This is a relatively modest gain, but it's still a positive trend.

Here's a brief summary of Honda's stock price performance over the past few years:

It's also interesting to look at Honda's stock price change since its IPO. The Change since IPO is a staggering 2,750.07%, which is a testament to the company's growth and success.

Shareholder Returns

Let's take a look at Honda's shareholder returns over the past 7 days and 1 year. Over the past 7 days, Honda's stock price dropped by 6.6%. In contrast, the US Auto industry saw a 3.5% drop during the same period, while the US Market remained relatively stable with a 0.2% drop.

Credit: youtube.com, 【High Dividend Stock Analysis】Honda Motor Co., Ltd. Company Overview/Dividend History/CF/BS (Part 1)

Here's a comparison of Honda's returns to the US Auto industry and the US Market over the past year:

As you can see, Honda's stock price underperformed the US Auto industry, which returned 83% over the past year. Similarly, Honda's stock price also underperformed the US Market, which returned 23.1% over the past year.

Honda Motor Events Past

Honda has a history of releasing earnings reports on a quarterly basis. The company's financial performance is a key indicator of its overall health.

The most recent earnings report, released on November 6, 2024, showed an actual EPS of 0.431 USD. This is a notable decrease from the previous quarter's earnings.

One of the most significant events in Honda's past was its Q1 2025 Earnings Release, which reported an actual EPS of 1.575 USD. This was released on August 7, 2024.

Here's a breakdown of Honda's earnings reports over the past few years:

Note that the actual EPS for Q4 2022 was 0.628 USD, released on May 13, 2022.

Frequently Asked Questions

Can I buy stock in Honda?

Yes, you can buy stock in Honda through various brokerage firms, including online services. To get started, explore online brokerage options or visit a financial advisor for guidance.

Is Honda on Nasdaq?

Yes, Honda Motor Company, Ltd. is listed on the Nasdaq stock exchange under the ticker symbol HMC. You can find the latest stock price, news, and history on the Nasdaq website.

Allison Emmerich

Senior Writer

Allison Emmerich is a seasoned writer with a keen interest in technology and its impact on daily life. Her work often explores the latest trends in digital payments and financial services, with a particular focus on mobile payment ATMs. Based in a bustling urban center, Allison combines her technical knowledge with a knack for clear, engaging prose to bring complex topics to a broader audience.

Love What You Read? Stay Updated!

Join our community for insights, tips, and more.