Honda Motor Co Stock Piotroski F Score

HMC Stock  USD 34.45  0.26  0.75%   
This module uses fundamental data of Honda to approximate its Piotroski F score. Honda F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Honda Motor Co. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Honda financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Check out Honda Altman Z Score, Honda Correlation, Honda Valuation, as well as analyze Honda Alpha and Beta and Honda Hype Analysis.
  
At present, Honda's Short Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Long Term Debt is expected to grow to about 5.3 T, whereas Net Debt is forecasted to decline to about 2.7 T. At present, Honda's Free Cash Flow Yield is projected to increase slightly based on the last few years of reporting. The current year's Invested Capital is expected to grow to 0.70, whereas Price To Sales Ratio is forecasted to decline to 0.50.
At this time, it appears that Honda's Piotroski F Score is Healthy. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
6.0
Piotroski F Score - Healthy
Current Return On Assets

Positive

Focus
Change in Return on Assets

Increased

Focus
Cash Flow Return on Assets

Positive

Focus
Current Quality of Earnings (accrual)

Improving

Focus
Asset Turnover Growth

Increase

Focus
Current Ratio Change

Decrease

Focus
Long Term Debt Over Assets Change

Higher Leverage

Focus
Change In Outstending Shares

Increase

Focus
Change in Gross Margin

Increase

Focus

Honda Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Honda is to make sure Honda is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Honda's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Honda's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Return On Assets0.04090.0304
Significantly Up
Pretty Stable
Asset Turnover1.130.79
Way Up
Pretty Stable
Gross Profit Margin0.310.23
Significantly Up
Slightly volatile
Net Debt2.7 T4.4 T
Way Down
Slightly volatile
Total Current LiabilitiesT7.6 T
Sufficiently Up
Slightly volatile
Non Current Liabilities Total7.9 T7.5 T
Sufficiently Up
Slightly volatile
Total Assets29.8 T28.4 T
Sufficiently Up
Slightly volatile
Total Current Assets11.6 T11 T
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities2.6 T2.4 T
Sufficiently Up
Slightly volatile

Honda Motor F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Honda's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Honda in a much-optimized way.

About Honda Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Common Stock Shares Outstanding

6.14 Billion

At present, Honda's Common Stock Shares Outstanding is projected to increase significantly based on the last few years of reporting.

Honda Current Valuation Drivers

We derive many important indicators used in calculating different scores of Honda from analyzing Honda's financial statements. These drivers represent accounts that assess Honda's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Honda's important valuation drivers and their relationship over time.
201920202021202220232024 (projected)
Market Cap12.7T17.3T17.9T18.0T16.2T17.0T
Enterprise Value17.4T22.3T22.3T21.8T19.6T20.6T

About Honda Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Honda Motor Co's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Honda using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Honda Motor Co based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When determining whether Honda Motor offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Honda's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Honda Motor Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Honda Motor Co Stock:

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When running Honda's price analysis, check to measure Honda's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Honda is operating at the current time. Most of Honda's value examination focuses on studying past and present price action to predict the probability of Honda's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Honda's price. Additionally, you may evaluate how the addition of Honda to your portfolios can decrease your overall portfolio volatility.
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Is Honda's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Honda. If investors know Honda will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Honda listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.081
Dividend Share
49
Earnings Share
3.73
Revenue Per Share
11.8 K
Quarterly Revenue Growth
0.214
The market value of Honda Motor is measured differently than its book value, which is the value of Honda that is recorded on the company's balance sheet. Investors also form their own opinion of Honda's value that differs from its market value or its book value, called intrinsic value, which is Honda's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Honda's market value can be influenced by many factors that don't directly affect Honda's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Honda's value and its price as these two are different measures arrived at by different means. Investors typically determine if Honda is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Honda's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.