Honda Motor Co.

HMC

Auto - Manufacturers · Consumer Cyclical

Price

$33.37

+0.77 (+2.36%)

Market Cap

$43.30B

Exchange

New York Stock Exchange

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Weak

Stability

Mixed

Valuation

Data not available

Dividends

Exceptional

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Share count falling — buybacks

−22.5% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.72B (2022) → 1.33B (2026)

Winston Score History

The full picture

Honda Motor Co. makes cars, motorcycles, and power equipment like generators and lawn mowers. Its vehicles are sold to everyday consumers and businesses around the world, with popular car models including the Civic, Accord, and CR-V. Honda is one of the largest automakers in the world and is also the largest motorcycle manufacturer globally by volume.

Honda earns money by selling vehicles and parts directly to customers and through dealership networks, primarily in North America, Japan, Asia, and Europe. Its brand reputation for reliability and its large dealer network give it a durable competitive position. However, Honda faces a major challenge in the shift to electric vehicles — it has lagged behind rivals like Tesla and some Chinese automakers in bringing competitive EVs to market, and its current negative operating margin reflects the heavy costs of that transition.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+8.6% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

<−1,000% YoY

YoY Growth Rate

Earnings declining

R&D Spend

¥1.5T/ year

↑ Rising (+40% vs prior year)

7.1% of revenue

1.8x the sector average (4%)

R&D investment increasing — building for the future

Insider Activity

2.6%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

¥14.3T cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Honda Motor Co. is growing revenue at 9% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

22.2%

Thin — 22.2% gross margin

Profit after running costs

Operating Margin

8.8%

Modest — 8.8% operating margin

Return on the money invested

ROCE

-0.7%

Weak — -0.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

+4.1%

Slow sales growth (+4.1% YoY)

Profit growth

EPS YoY

-131.0%

Earnings shrinking (-131.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

0.0%

Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.43

Conservative — low debt load (0.43)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend

Dividend Yield

4.44%

Healthy income — 4.44% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record

Dividend Growth

+22.9%

Dividend growing fast (22.9% YoY)

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