NYSE:HMC
$34.52
(2/9 2:30PM)
+2.1%
| Open | $34.18 |
Mkt Cap | $62.0 Billion |
| High | $34.84 |
52Wk High | $37.23 |
| Low | $34.17 |
52Wk Low | $20.72 |
| Volume | 260,363 |
Avg Vol 10D | 869,900 |
Ockham's Rating/Recommendation Summary
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HMC Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at HMC through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 0.69x and 0.43x respectively.
Utilizing this range we can see that HMC’s current Price to Sales per share ratio of 0.76x is well above its historical average. This means that HMC looks relatively expensive compared to its historical Price to Sales average, and thus it is more difficult to believe that there is significant price appreciation potential. In order for the stock to become more attractive, we would like to see a decline in the Price to Sales ratio of 35% just to return HMC to its historical average.
HMC Cash Earnings
Looking at HMC specifically in their Cash Earnings capabilities, Ockham views HMC as significantly above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for HMC to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 9.27 and a 5.69 low over the same period.
Just recall that when a stock's price, as in the cases of HMC, is significantly elevated to the level of Cash Earnings being generated, the market has already priced in much of that value. For example, the historical average for HMC's Price to Cash Earnings ratio is 41% below the current ratio of 10.58. That is not an insignificant amount, and diminishes our overall outlook on HMC. However, you need to review several areas of a company's potential, and as management would point out, one metric is not the end-all-be-all of any analysis.
HMC Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
The Opening Bell on Fox Business Has the Latest News on HMC
Honda Motor Company, Limited is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on The Opening Bell on Fox Business.
The Motley Fool CAPS data suggests that investors believe Honda Motor Company, Limited will beat the market in the foreseeable future. At Ockham, we are not advising buying Honda Motor Company, Limited at the current price level because according to our methodology it is not supported by the fundamentals. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, HMC has been less covered in the news compared to the rest of our universe of stocks.
“… Tracy: and HONDA in this whole thing. Stuart: even though they've recalled 600,000 vehicles. Okay. Let's check the big board, the rally is still in place and we're 15 minutes ... …”
The Opening Bell on Fox Business Discussed the Latest Development of Honda Motor Company, Limited
Honda Motor Company, Limited is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on The Opening Bell on Fox Business.
The Motley Fool CAPS data suggests that investors believe Honda Motor Company, Limited will beat the market in the foreseeable future. At Ockham, we are not advising buying Honda Motor Company, Limited at the current price level because according to our methodology it is not supported by the fundamentals. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, HMC has been less covered in the news compared to the rest of our universe of stocks.
“… The cfo of HONDA coming out and saying this is going to put people on shaky ground with all cars in general. The auto industry in general is in trouble. This doesn't help. …”
Check Out WSJ Marketbeat and News on HMC
The latest news from WSJ Marketbeat on HMC is available through Ockham's news analytics platform RazorWire.
The Motley Fool CAPS data suggests that investors believe Honda Motor Company, Limited will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, HMC has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Honda Motor Company, Limited at the current price level because according to our methodology it is not supported by the fundamentals.
“… a pure electric version of its Transit Connect commercial van, Kia Motors’ Ray plug-in hybrid vehicle and a concept version of the next-generation HONDA MOTOR Odyssey minivan ... …”
See More News on HMC from Closing Bell
Honda Motor Company, Limited is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Closing Bell.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; HMC has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… So when you look at a grand like HONDA which is widely crossed with toyota and a brand like hyundai, they are very aggressive and looking to directly take share from HONDA and ... …”
Squawk Box Brings News Related to Honda Motor Company, Limited
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Honda Motor Company, Limited.
The Motley Fool CAPS data suggests that investors believe Honda Motor Company, Limited will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, HMC has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Honda Motor Company, Limited at the current price level because according to our methodology it is not supported by the fundamentals.
“… Are they going straight to HONDA and others? > > on edmunds. Com we see consumers like you might follow a stock. We can see the press release come and what purchasers are ... …”
Honda Motor Company, Limited News is Being Covered Right Now on Squawk Box
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Honda Motor Company, Limited.
The Motley Fool CAPS data suggests that investors believe Honda Motor Company, Limited will beat the market in the foreseeable future. At Ockham, we are not advising buying Honda Motor Company, Limited at the current price level because according to our methodology it is not supported by the fundamentals. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, HMC has been less covered in the news compared to the rest of our universe of stocks. Check the news on this stock because there is a catalyst that has allowed this stock to advance 5.68% today.
“… HONDA and hyundai have really done similar deals. Chevy is still down there. It's still the biggest company in the world. …”
Honda Motor Company, Limited Was Talked About by Squawk Box
The latest news on Squawk Box in regards to HMC came through on RazorWire recently.
The Motley Fool CAPS data suggests that investors believe Honda Motor Company, Limited will beat the market in the foreseeable future. At Ockham, we are not advising buying Honda Motor Company, Limited at the current price level because according to our methodology it is not supported by the fundamentals. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, HMC has been less covered in the news compared to the rest of our universe of stocks. Check the news on this stock because there is a catalyst that has allowed this stock to advance 5.68% today.
“… happens in january? >> I wonder if it's HONDA that benefits. Gm and ford will definitely benefit, but -- >> HONDA and hyundai. …”
Can HMC Keep Costs In-Line? See Power Lunch's Take
HMC costs were discussed on Power Lunch, and may be of interest to investors.
As of this week's report, we have an Overvalued valuation on HMC because the price has gotten too high to be justified by the fundamentals. Take notice of the news on this stock because it is up $2.64 since the close of trading yesterday. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Honda Motor Company, Limited has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… HONDA worrying the toyota recalls could tarnish the image of other japanese brands. However, it's lifting guidance mostly base on cost cuts to the strong strongest level in a ... …”
Fox Business Has News on HMC
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on HMC from Fox Business.
As of this week's report, we have an Overvalued valuation on HMC because the price has gotten too high to be justified by the fundamentals. Take notice of the news on this stock because it is up $2.53 since the close of trading yesterday. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Honda Motor Company, Limited has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… Ford and HONDA you can see the up arrows there. HONDA coming out and mitsubishi each with some good first quarter earnings. …”
News Developing on Seeking Alpha Wall St Breakfast for HMC
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on HMC from Seeking Alpha Wall St Breakfast.
The Motley Fool CAPS data suggests that investors believe Honda Motor Company, Limited will beat the market in the foreseeable future. At Ockham, we are not advising buying Honda Motor Company, Limited at the current price level because according to our methodology it is not supported by the fundamentals. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, HMC has been less covered in the news compared to the rest of our universe of stocks.
“… HONDA (HMC): -5% to 67,479 vehicles. Total car sales +2. 7% to 41,638. Truck sales -15. 3% to 25,841. Toyota (TM): -8. 7% to 98,796 vehicles. …”