Honda Motor Co. Ltd. (NYSE:HMC) shares traded lower over the last trading session, losing -0.82% on 06/17/21. The shares fell to a low of $32.33 before closing at $32.53. Intraday shares traded counted 0.68 million, which was 27.33% higher than its 30-day average trading volume of 929.43K. HMC’s previous close was $32.80 while the outstanding shares total 1.73B. The firm has a beta of 0.86, a 12-month trailing P/E ratio of 9.34, and a growth ratio of 0.80. The stock’s Relative Strength Index (RSI) is 58.10, with weekly volatility at 1.24% and ATR at 0.54. The HMC stock’s 52-week price range has touched low of $23.10 and a $33.32 high.
Investors have identified the Auto Manufacturers company Honda Motor Co. Ltd. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $58.01 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Honda Motor Co. Ltd. (HMC) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For HMC, the company has in raw cash 27.58 billion on their books with 31.91 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 70.65 billion total, with 54.97 billion as their total liabilities.
HMC were able to record 5.75 billion as free cash flow during the 08/03/2021 quarter of the year, this saw their quarterly net cash flow reduce by 1.93 billion. In cash movements, the company had a total of 7.93 billion as operating cash flow.
Potential earnings growth for Honda Motor Co. Ltd. (HMC)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/03/2021 quarter of the year, Honda Motor Co. Ltd. recorded a total of 36.21 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 4.78% coming in sequential stages and their sales for the 08/03/2021 quarter increasing by 5.2%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 28.23 billion trying to sell their products during the last quarter, with the result yielding a gross income of 7.97 billion. This allows shareholders to hold on to 1.73B with the recently reported earning now reading 1.66 cents per share. This is a figure that compared to analyst’s prediction for their 08/03/2021 (1.17 cents a share).
Having a look at the company’s valuation, the company is expected to record 4.32 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on HMC sounds very interesting.
Is the stock of HMC attractive?
In the last 6 months, insiders have changed their ownership in shares of company stock by 0.30%.
11 out of 17 analysts covering the stock have rated it a Buy, while 4 have maintained a Hold recommendation on Honda Motor Co. Ltd.. 0 analysts has assigned a Sell rating on the HMC stock. The 12-month mean consensus price target for the company’s shares has been set at $36.00.