Honda Buy Hold or Sell Recommendation

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HMC -- USA Stock  

Fiscal Quarter End: 30th of June 2020  

Considering 30-days investment horizon, and your above average risk tolerance our recommendation regarding Honda Motor is 'Cautious Hold'. Macroaxis provides Honda buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Honda positions. The advice algorithm takes into account all of Honda Motor available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from Honda buy-and-hold perspective. Please check Honda Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments please use Instant Ratings tool.

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Time Horizon

Risk Tolerance

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Sell HondaBuy Honda
Cautious Hold

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

Inapplicable
For the selected time horizon Honda Motor has a mean deviation of 2.78, semi deviation of 3.54, standard deviation of 3.75, variance of 14.04, downside variance of 13.55 and semi variance of 12.55
Macroaxis buy or sell recommendations module can be used to complement current analysts and expert consensus on Honda Motor. Our buy, hold, or sell recommendation engine utilizes analyzes the firm potential to grow using all fundamental data market data available at the time. To make sure Honda Motor is not overpriced, please check out all Honda fundamentals, including its Price to Book, Cash and Equivalents, Cash Flow from Operations, as well as the relationship between Gross Profit and Debt to Equity . Given that Honda Motor has Price to Book of 0.55 , we strongly advise you confirm Honda Motor market performance and probability of bankruptcy to make sure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Honda Trading Alerts and Improvement Suggestions

Honda Motor has very high historical volatility over the last 30 days
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Honda current analysts recommendations

Target Median Price27.71
Target Mean Price27.71
Recommendation Mean1.00
Target High Price28.70
Number Of Analyst Opinions2
Target Low Price26.72
Average Consensus Strong Buy
The consensus estimates and target price estimation is comprised of individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Honda Returns Distribution Density

Mean Return0.15Value At Risk-6.14
Potential Upside7.71Standard Deviation3.75
 Return Density 
      Distribution 

Institutional Investors

Security TypeSharesValue
American Century Companies IncCommon Shares4.8 M108.6 M
Macquarie Group LtdCommon Shares3.3 M75.2 M
Renaissance Technologies LlcCommon Shares3.3 M73.9 M
Orbis Allan Gray LtdCommon Shares2.1 M48.1 M
Mondrian Investment Partners LtdCommon Shares2.1 M46.3 M
Parametric Portfolio Associates LlcCommon Shares1.8 M39.4 M
Northern Trust CorpCommon Shares1.7 M37.4 M

Honda Cash Flow Accounts

2014201520162017201820192020 (projected)
Capital Expenditure(614.96 B)(609.56 B)(475.42 B)(400.52 B)(400 B)(360 B)(388.42 B)
Depreciation Amortization and Accretion625.23 B660.71 B674.33 B713.09 B721.7 B829.95 B804.31 B
Net Cash Flow or Change in Cash and Cash Equivalents278.15 B285.73 B348.52 B150.51 B237.63 B273.28 B244.52 B
Net Cash Flow Business Acquisitions and Disposals(1.97 B)(1,000 K)12.83 B(2.45 B)(2.4 B)(2.16 B)(2.22 B)
Issuance Purchase of Equity Shares(16 M)(13 M)(11 M)(87.08 B)(64.56 B)(58.1 B)(59.63 B)
Issuance Repayment of Debt Securities(1,259.4 B)(1,673.38 B)(1,544.37 B)(1,507.67 B)(1,504.55 B)(1,354.09 B)(1,460.99 B)
Payment of Dividends and Other Cash Distributions(142.38 B)(158.6 B)(162.21 B)(174.22 B)(194.27 B)(174.84 B)(188.65 B)
Net Cash Flow from Financing12.49 B(95.3 B)115.42 B(174.33 B)22.92 B26.36 B28.44 B
Net Cash Flow from Investing(840.5 B)(875.08 B)(650.62 B)(615.11 B)(577.55 B)(664.19 B)(716.62 B)
Net Cash Flow Investment Acquisitions and Disposals11.02 B(28.35 B)(44.7 B)(55.93 B)9.24 B10.62 B11.46 B
Net Cash Flow from Operations1,020.4 B1,390.99 B885.07 B987.67 B775.99 B698.39 B4.56 B
Effect of Exchange Rate Changes on Cash85.75 B(134.89 B)(1.36 B)(47.71 B)16.28 B14.65 B15.8 B

Honda Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Honda or Driverless Cars sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Honda stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Honda stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
=0.06
β
Beta against DOW=0.78
σ
Overall volatility
=3.73
Ir
Information ratio =0.0114

Honda Volatility Alert

Honda Motor shows above average downside volatility of 3.68 for selected time horizon. We advise investors to further inspect Honda Motor to make sure all market timing and asset allocation strategies are consistent with estimation about Honda future alpha.
    
 Better Than Average     
    
 Worse Than Average Compare Honda to competition

Honda Fundamental Vs Peers

FundamentalsHondaPeer Average
Return On Equity0.0009 (0.31) 
Return On Asset0.0004 (0.14) 
Profit Margin0.0005 (1.27) 
Current Valuation41.39 B16.62 B
Shares Outstanding1.73 B571.82 M
Shares Owned by Institutions2.16 39.21 
Number of Shares Shorted2.35 M4.71 M
Price to Earning4.07 28.72 
Price to Book0.55 9.51 
Price to Sales0.36 11.42 
Revenue142.91 B9.43 B
Gross Profit3080 B27.38 B
EBITDA13.08 B3.9 B
Net Income10.29 B570.98 M
Cash and Equivalents22.37 B2.7 B
Cash per Share12.70 5.01 
Total Debt66.16 B5.32 B
Debt to Equity0.94 48.70 
Current Ratio1.26 2.16 
Book Value Per Share4,820 1.93 K
Cash Flow from Operations4.56 B971.22 M
Short Ratio2.34 4.00 
Earnings Per Share5.79 3.12 
Number of Employees219.72 K18.84 K
Beta1.11-0.15
Market Capitalization40.82 B19.03 B
Total Asset18229.29 B29.47 B
Retained Earnings8438.59 B9.33 B
Working Capital771.27 B1.48 B
Current Asset6241.63 B9.34 B
Current Liabilities5470.35 B7.9 B
Five Year Return3.03
Last Dividend Paid1.04

Honda Market Momentum

About Honda Buy or Sell Advice

When is the right time to buy or sell Honda Motor? Buying stocks such as Honda isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily bases. Although Honda investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply. Please read more on our stock advisor page.
Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other products worldwide. The company was founded in 1946 and is headquartered in Tokyo, Japan. Honda operates under Auto Manufacturers classification in USA and is traded on BATS Exchange.

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Please check Honda Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments please use Instant Ratings tool. Please also try Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Macroaxis is not a registered investment advisor or broker/dealer. All investments, including stocks, funds, ETFs, or cryptocurrencies, are speculative and involve substantial risk of loss. We encourage our investors to invest carefully. Much of our information is derived directly from data published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. Also, note that past performance is not necessarily indicative of future results. All investments carry risk, and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any investing they choose to do. Hypothetical or simulated performance is not indicative of future results. We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown because hypothetical or simulated performance is not necessarily indicative of future results. For more information please visit our terms and condition page