| 2013 | 2018 | 2019 (projected) | Honda Motor Cost of Revenue | 9,590,557,000,000 | 8,631,501,300,000 | 7,476,837,421,053 | Honda Motor Consolidated Income | 665,911,000,000 | 467,311,700,000 | 512,227,921,053 |
Honda Motor slips -1.02
 | By Ellen Johnson | Macroaxis Story |
This article is aimed at all current or potential Honda Motor investors. I will look into why albeit cyclical Honda Motor disturbance, the long term basic indicators of the company are still strong. The company chance of financial distress is now about 50.0 percent. What is Honda Motor Target Price Odds to finish over Current Price? Depending on normal probability distribution, the odds of Honda Motor to move above current price in 30 days from now is about 97.0%. The Honda Motor Co Ltd probability density function shows the probability of Honda Motor Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, Honda Motor has beta of 0.9858 . This indicates Honda Motor Co Ltd market returns are sensitive to returns on the market. As the market goes up or down, Honda Motor is expected to follow. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. Honda Motor is significantly underperforming S&P 500.
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Reviewed by Gabriel Shpitalnik
The entity has beta of 0.72. As returns on market increase, Honda Motor returns are expected to increase less than the market. However during bear market, the loss on holding Honda Motor will be expected to be smaller as well. This firm dividends can provide a clue to current valuation of the stock. Honda Motor is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Earning per share calculations of Honda Motor is based on official Zacks consensus of 1 analysts regarding the entity future annual earnings. Given the historical accuracy of 82.83%, the future earnings per share of the company is estimated to be 2.77 with lowest and highest values of 2.67 and 2.87 respectively. Please note that this consensus of annual earnings estimates for the stock is an estimate of EPS before non-recurring items and including employee stock options expenses.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Honda. Your research has to be compared to or analyzed against Honda's peers to derive any actionable benefits. When done correctly, Honda's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Honda Motor.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Honda Motor. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Honda
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Honda's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Honda's Liquidity
Honda financial leverage refers to using borrowed capital as a funding source to finance Honda Motor Co ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Honda financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Honda's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Honda's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Honda's total debt and its cash.
Honda Gross Profit
Honda Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Honda previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Honda Gross Profit growth over the last 10 years. Please check Honda's gross profit and other fundamental indicators for more details.
Breaking it down
Honda Motor reported last year revenue of 142.91B. Total Income to common stockholders was 10.29B with profit before taxes, overhead, and interest of 3310B. Honda Motor price decrease over the last few months may raise some interest from investors. The Stock closed today at a share price of 25.15 on 490214.000 in trading volume. The company directors and management were not very successful in positioning the corporation components to exploit market volatility in April. However, diversifying your holdings with Honda Motor or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.1723. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Honda Motor maintains working capital of 771.27b. Honda Motor is trading at 25.28. This is 1.02 percent down. Day high is 25.45. Honda Motor Tangible Assets Book Value per Share is increasing over the last 5 years. Also, Honda Motor Total Liabilities is increasing over the last 5 years. The current value of Honda Motor Total Liabilities is 7,489,544,736,842.
Taking everything into account, we see that Honda Motor Follows market closely. The company is undervalued with close to average probability of distress within the next 24 months. Our ongoing buy vs. sell advice on the company is Strong Hold.
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