| Average Equity | Earnings before Tax | ||
| 2013 | 0.00 | 0.00 | |
| 2014 | 0.00 | 0.00 | |
| 2015 | 0.00 | 0.00 | |
| 2018 | 0.00 | 0.00 | |
| 2019 (projected) | 0.00 | 0.00 |
Make it or break it for Honda Motor in 2019
 | By Ellen Johnson | Macroaxis Story |
This article is aimed at all current or potential Honda Motor investors. I will look into why albeit cyclical Honda Motor disturbance, the long term basic indicators of the company are still strong. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in July 2019. The current disturbance may also be a sign of long term up-swing for the company investors. What is Honda Motor Target Price Odds to finish over Current Price? Depending on normal probability distribution, the odds of Honda Motor to move above current price in 30 days from now is about 84.63%. The Honda Motor Co Ltd probability density function shows the probability of Honda Motor Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, Honda Motor has beta of 0.9237 . This indicates Honda Motor Co Ltd market returns are sensitive to returns on the market. As the market goes up or down, Honda Motor is expected to follow. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. Honda Motor is significantly underperforming S&P 500.
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Reviewed by Rifka Kats
The company has 66.16B in debt with debt to equity (D/E) ratio of 85.5 . This implies that Honda Motor may be unable to create cash to meet all of its financial commitments. Honda Motor has Current Ratio of 1.21 demonstrating that it is not liquid enough and may have problems to pay out its financial commitments when the payables are due. This firm dividends can provide a clue to current valuation of the stock. Honda Motor is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Now, lets check Honda Motor Total Asset. Based on latest financial disclosure Honda Motor Co Ltd has Total Asset of 18229.29B. This is 14693.36% higher than that of the Consumer Cyclical sector, and 264.03% higher than that of Auto Manufacturers industry, The Total Asset for all stocks is 61765.91% lower than the firm.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Honda income statement, its balance sheet, and the statement of cash flows. Potential Honda investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Honda investors may use each financial statement separately, they are all related. The changes in Honda's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Honda's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Honda fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Honda performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Honda shares is the value that is considered the true value of the share. If the intrinsic value of Honda is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Honda. Please read more on our fundamental analysis page. How effective is Honda in utilizing its assets?
Honda Motor Co reports assets on its Balance Sheet. It represents the amount of Honda resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Honda aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Automobile Manufacturers space. To get a better handle on how balance sheet or income statements item affect Honda volatility, please check the breakdown of all its fundamentals.And What about dividends?
A dividend is the distribution of a portion of Honda earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Honda dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Honda one year expected dividend income is about USD0.61 per share.
At present, Honda's Dividend Yield is projected to slightly decrease based on the last few years of reporting. | Last Reported | Projected for Next Year | ||
| Dividends Paid | 245.5 B | 257.8 B | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.29 | 0.21 | |
| Dividend Paid And Capex Coverage Ratio | (5.84) | (5.55) |
Investing in stocks that pay dividends, such as stock of Honda Motor Co, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Honda must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Honda. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.Honda Gross Profit
Honda Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Honda previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Honda Gross Profit growth over the last 10 years. Please check Honda's gross profit and other fundamental indicators for more details.
Breaking it down
The entity has beta of 0.72. As returns on market increase, Honda Motor returns are expected to increase less than the market. However during bear market, the loss on holding Honda Motor will be expected to be smaller as well. The recent Honda Motor price drops may raise some interest from investors. The Stock closed today at a share price of 25.17 on 516338.000 in trading volume. The company executives were unable to exploit market volatilities in May. However, diversifying your overall positions with Honda Motor can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.2218. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Honda Motor is selling for 25.48. This is 0.12 percent up. Opened at 25.48. Honda Motor Inventory is somewhat stable at the moment.
On the whole, we see that Honda Motor Ignores market trends. The company is undervalued with close to average probability of distress within the next 24 months. Our immediate buy-sell advice on the company is Strong Hold.
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