Stock Updates

Honda Motor Co., Ltd. (NYSE: HMC) – Is this large market cap stock undervalued?

Honda Motor Co., Ltd. (NYSE: HMC), is firmly in the large market cap category with market cap of 52750.66. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Honda Motor Co., Ltd. is 29.13 (with a change from open of 0.25%), this in conjunction with a target price of 32.4. Volume today has so far reached 149155, with an average volume of about 840.92. The GAP for this stock, is 0.48%.

The P/E ratio is 15.97, bringing the forward P/E to a value of 9.91. The current EPS for Honda Motor Co., Ltd., is 1.81, with a EPS growth for this year coming to a value of -32.40%. Performance has been interesting with performance year to date coming to -9.43%.

Looking further into the growth statistics for Honda Motor Co., Ltd., EPS is looking like it will grow 11.55% in the next year. Looking even further it is projected to be 19.80%. Quarter over quarter is -6.10% for EPS growth and for sales growth quarter over quarter it is -6.30%. Looking at past EPS growth statistics we see that for the past five years it has been -8.40%. Sales growth for the past five years has in fact been 10.30%.

Looking at the ownership, we see that the insider ownership is at 0.30% and institutional ownership is 3.20%. Shares outstanding is 1824.02, while shares float is at a value of 1715.74. Float short for Honda Motor Co., Ltd. is 0.06% and the short ratio is 1.2.

In terms of debt, long term debt/equity is 0.52, while the total debt/equity comes to 0.97. The ability to meet these debts, means that the current ratio is 1.1, and the quick ratio is 0.9. The most recent gross margin is 22.60% and their operating margin is 3.70%. The profit margin is 2.30%.

Honda Motor Co., Ltd. has seen returns on assets of 1.80%, and on investment, 2.00%. Return on equity is 4.80%. Price/Earnings to growth ratio is 0.81. Price/Sales ratio is at a value of 0.37, with Price/book ratio coming to 0.82 and Price/cash is 3.05, and finally Price/Free cash Flow is 27.76.

The simple moving averages are 1.24% and 3.84% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -13.98% and the 52 week low is 21.24%.

Honda Motor Co., Ltd. has a dividend yield of 2.77%, with a current price of 29.13. The ability to pay this means the payout ratio is 47.60%. This is in an industry, Auto Manufacturers – Major, with equally high dividends from other companies in this sector, which it is Consumer Goods. Honda Motor Co., Ltd. is based in Japan.

Performance in the Auto Manufacturers – Major industry means that Honda Motor Co., Ltd. has seen performance for the past week of -3.89%, with performance for the month coming to -3.21%. Looking at the data for the quarter it is at a value of 11.45%, and for the half year the performance is -9.34%. Volatility for this week is 1.17% and for the month this is 0.91%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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