Reuters·2d ago
Honda to invest $602 million to expand motorcycle factory in BrazilHonda to invest $602 million to expand motorcycle factory in Brazil
Honda's fundamental outlook is mixed: a sharp 2027Q1 recovery (net income ¥450.9B, EPS growth 147.5%) contrasts with severe 2026Q4 losses (operating margin -17.3%), indicating earnings instability.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth decelerated to 0.5% YoY in 2026Q4, with gross margin stable near 20-22%, but operating margin plunged to -17.3% in 2026Q4 due to R&D and SG&A spikes, before recovering to 8.8% in 2027Q1.
The Wall Street consensus price target of $31.51 represents a potential upside of +17.4% from the current stock price of $26.85.
Honda Motor Co., Ltd. reported revenue exceeding analyst expectations, indicating strong financial performance.
The current stock price around $26 may present a buying opportunity for investors seeking value in the automotive sector.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 5, 2026 | $2.18+78.7% vs $1.22 | $38.3B+5.7% vs $36.2B |
Q2 2026 May 14, 2026 | -$4.20+26.8% vs -$5.74 | $36.8B+11.6% vs $33.0B |
Q1 2026 Feb 10, 2026 | $0.76+47.6% vs $0.52 | $34.8B+4.5% vs $33.3B |
Q4 2025 Nov 7, 2025 | $0.60-11.6% vs $0.68 | $35.3B-1.9% vs $35.9B |
Honda to invest $602 million to expand motorcycle factory in Brazil
AI volatility is shaking markets, but value still shines. CVE, MU, SNDK, HPE and HMC pass a high earnings yield screen and carry Zacks Buy ratings.
Honda executive warns higher tariffs on Canadian imports would hurt industry Higher tariffs on Canadian steel, autos could hit from January 1 Rules around origin of car parts are sticking point for
Honda executive Jennifer Thomas said a planned Jan. 1 increase to tariffs on Canadian vehicles and parts would be “catastrophic” for the auto industry. President Donald Trump has threatened to double tariffs on Canadian vehicles and parts from 25% to 50% if a trade deal is not reached between the two countries.
Benchmark HMC against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Honda Motor Co., Ltd. (HMC)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $35.78 | $46.43B | -46.79 | 0.5% | -0.75% | -1.38% | 3.77% | |
| $216.19 | $256.01B | 9.60 | 5.51% | 8.14% | 11.09% | 2.78% | |
| $12.44 | $49.61B | -6.51 | 1.23% | -4.17% | -21.33% | 6.04% | |
| $86.16 | $77.93B | 19.47 | -1.29% | 2.1% | 6.13% | 0.78% | |
| $4.43 | $12.84B | -0.59 | -22.33% | -8.26% | -31.87% | — | |
| $358.22 | $1.41T | 394.17 | -2.93% | 3.11% | 3.73% | — |
Honda Motor Co., Ltd. (HMC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Honda Motor Co., Ltd. (HMC) stock FAQ — growth, dividends, profitability & financials explained
Honda Motor Co., Ltd. (HMC) reported $22.52T in revenue over the trailing twelve months. Revenue was $21.80T in fiscal year 2026. That is 313% more than the $5.28T of fiscal year 1997.
Honda Motor Co., Ltd. (HMC) grew revenue by 4.1% over the trailing twelve months, compared with the twelve months before.
No. Honda Motor Co., Ltd. (HMC) reported a net loss of $169.70B over the trailing twelve months.
Yes. Honda Motor Co., Ltd. (HMC) pays a dividend that yields 3.77% at the current price, a moderate yield.
Honda Motor Co., Ltd. (HMC) had a return on equity (ROE) of -1.4% over the trailing twelve months. A negative ROE means the company lost money over the period.
Honda Motor Co., Ltd. (HMC) generated $7.21B in free cash flow over the trailing twelve months.
