Honda Motor Co., Ltd.
Honda Motor Co., Ltd. (NYSE: HMC) is a Japanese conglomerate engage in designing, manufacturing and marketing motorbikes, automobiles, financial services, and life creation business. Its Motorcycle division includes all-terrain vehicles (ATVs), side-by-side (SxS), and motorbikes. Its Automobile segment provides automobile parts. The Financial Services section includes sales finance and leasing. Life creation and other enterprises offer power products and other associated components. HMC has 1.81 billion American Depository Shares (ADS) listed and outstanding (each ADS representing one ordinary shares).
Why Should Investors Book Profit?
Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
HMC's share price has inclined 10.15% in the past twelve months and is currently leaning towards the higher band of the 52-week range of USD 27.11 to USD 33.42. We have valued the stock using the Price/Earnings-based relative valuation methodology and arrived at a target price of USD 26.14.
Considering the company's declining financials, highly leveraged balance sheet, weak liquidity profile, current valuation and associated risks. we recommend a "Sell" rating on the stock at the current price of USD 30.88, down 0.96% as of February 23, 2022, at 03:01 PM ET.
Three-Year Technical Price Chart (as of February 23, 2022, at 03:01 PM ET). Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.