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Is this Large Market Cap Stock target price reasonable for Honda Motor Co., Ltd. (NYSE:HMC)?

The company in question is, Honda Motor Co., Ltd. (NYSE:HMC) currently with a stock price of 29.41 (0.58% today). The market cap for Honda Motor Co., Ltd. is 53014.47, and is in the sector Consumer Goods, and Auto Manufacturers РMajor industry. The target price for Honda Motor Co., Ltd. is 32.4. Currently Honda Motor Co., Ltd. is trading with a P/E of 16.49, and a forward P/E of 10.15. Average volume for Honda Motor Co., Ltd. is 704.66 and so far today it is 514700.

Performance in the last year for Honda Motor Co., Ltd. has been -9.14%. For EPS growth, Honda Motor Co., Ltd. has seen a growth of -32.40%, and is looking to grow in the next year to 11.55%. More long term stats show that EPS growth has been -8.40% over the last five years and could be 19.80% for the next five years. Honda Motor Co., Ltd. has seen sales growth quarter over quarter at -6.30%, with EPS growth quarter over quarter at -6.10%. The 20-day simple moving average is -1.17%, with the 200-day simple moving average coming to 5.87%.

Since the IPO date for Honda Motor Co., Ltd. on the 3/17/1980, Honda Motor Co., Ltd. has seen performance year to date to be -7.89%. With Honda Motor Co., Ltd. trading at 29.41, the dividend yield is 2.72%, and the EPS is 1.78.

So could Honda Motor Co., Ltd., be undervalued? Well as said before P/E is 16.49. The PEG is 0.83, P/S is 0.38 and the P/B is at 0.85. The P/cash is 3.11, with P/free cash flow at 28.33.

Honda Motor Co., Ltd. ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 0.9. This is with long term debt/equity at 0.52, and total debt/equity at 0.97.

In terms of margins, Honda Motor Co., Ltd. has a gross margin of 22.60%, an operating margin of 3.70% and a profit margin of 2.30%.Payout ratio for Honda Motor Co., Ltd. is 47.60%. Return on assets come to 1.80% with return on investment coming to 2.00%.

Insider ownership for Honda Motor Co., Ltd., is at 0.30% and institutional ownership comes to 3.30%. Outstanding shares are at 1802.6. While shares float is 1715.74. The float short is currently 0.04%, and short ratio is 1.08.

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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