Honda Motor Company is part of the autos industry and trades as part of the consumer cyclical sector. The company CEO is Takahiro Hachigo. Honda Motor Co develops, manufactures and markets motorcycles, automobiles and power products. The company produces motorcycles with engine displacement ranging from the 50cc to the 1800cc class. It produces all-terrain and side-by-side vehicles.



Previous Intraday Performance:

The HMC shares had a previous change of 0.39% which opened at 25.42 and closed at 25.62. It moved to an intraday high of 25.76 and a low of 25.32.

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Historical Performance:

Over the last five trading days, HMC shares returned -4.22% and in the past 30 trading days it returned -8.50%. Over three months, it changed -5.18%. In one year it has changed -21.07% and within that year its 52-week high was 33.31 and its 52-week low was 25.30. HMC stock is 1.26% above its 52 Week Low.

Our calculations result in a 200 day moving average of 28.14 and a 50 day moving average of 27.58. Right now, HMC stock is trading -8.94% below its 200 day moving average and may not be a great opportunity to buy as it may continue to trend down.

SeekingAlpha:  Honda Motor Company: Generating Record Revenue But Cruising At 52-Week Lows

Liquidity:

The company has a market cap of $45.3b with 1.8b shares outstanding and a float of 1.8b shares. Trading volume was 307,339 shares and has experienced an average volume of 499,604 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for Honda Motor Company was 5.56 which ended on 31st of March 2018, which according to the previous close, that is a PE of 4.63. Based on 1 analyst estimate, the estimated EPS for the next quarter is 0.99. The trailing twelve month EPS is 3.71, which comes to a trailing twelve month PE of 6.93. Historically, the PE high was 19.90 and the PE low was 4.63. If the stock reached its PE low, that would represent a price of 17.10, which is a decrease of -33.25%.

The dividend per share is currently 1.00, which is a dividend yield of 3.92%. Also, the payout ratio is 27.08%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 35.93, which means it might be undervalued and has a margin of safety of 28.69%

The next earnings report will be: 05-21-2019



The growth of the EPS is critical in understanding the current valuation of Honda Motor Company; the EPS growth rate, as it is typically called, is usually expressed as a percentage, which at this time is hard to estimate, but revenue growth has been 5.40% over the last twelve months.

Indicators Also to Watch:

Based on the latest filings, there is 2.60% of institutional ownership. Short-interest was 753,968, which was 0.04% of shares outstanding. The short-interest ratio or days-to-cover ratio was 1.71. This stock has some short interest, but it might be normal and no need to worry if long the position.

I calculated the beta to be 0.96

SeekingAlpha:  Honda Motor Company: Generating Record Revenue But Cruising At 52-Week Lows

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 9.21%, return on assets is 3.82%, profit margin is 5.75%, price-to-sales is 0.41 and price-to-book is 0.59.

Company Score Card:

Results are out of six:
 1  : Growth Expectations Result
 4  : Financial Safety Result
 2  : Past Performance Result
 5  : Valuation Result
 5  : Dividend Safety Result
 3  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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