Honda shares are listed on the Tokyo Stock Exchange (TSE) under the ticker symbol 7267. It also trades as an American Depositary Receipt (ADR) on the New York Stock Exchange (NYSE) under the ticker HMC.
Honda Motor Co. Shares Shares Today (7267.T)
Honda Motor Co. EPS and Revenue Breakdown 2020-2023
Japanese company Honda Motor is one of the world’s largest automobile and motorcycle manufacturers. Founded in 1948 by Soichiro Honda and Takeo Fujisawa, the company is headquartered in Tokyo, Japan. Honda is well-known for its various vehicles, including cars, motorcycles, power equipment, and even aircraft.
| Year | EPS | Annual Revenue |
|---|---|---|
| 2020 | $2.32 | $122.88 billion |
| 2021 | $4.13 | $127.75 billion |
| 2022 | $3.11 | $123.18 billion |
| 2023 | $3.70 | $136.43 billion |
Honda has, like many other car companies, moved into the electric vehicle market, while it also has a range of hybrid cars. Honda is also pushing hydrogen technologies and fuel cell electric vehicles (FCEV). The company is also known for its leadership in the motorcycle market, where it maintains a dominant position.
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Automotive Industry Comparison
Honda Motor Co. Price & Dividend Yield
Honda began offering its shares on the Tokyo over-the-counter stock market in 1954. After being listed on the Tokyo Stock Exchange in 1957, the company then issued American Depositary Receipts (ADRs) in 1962. In 1977, the ADRs were listed on the New York Stock Exchange.
Honda's stock has demonstrated resilience over the years, despite the lack of significant upside, although it did experience a rally between January 2023 and March 2024, where it climbed to over JPY 1,900 a share. As of September 27, 2024, the stock is trading at approximately JPY 1,621.5.
Dividend Yield: 4.19%
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Honda Motor Co. Share Price Forecast
Based on analyst data from TradingView, out of 20 analysts covering Honda, 15 have given the stock a Buy rating, four have issued it with a Hold rating, and one analyst has a Sell rating on the stock
A View From The Bulls: In June, Citi raised its price target for Honda to JPY 2,300 from JPY 2,100, maintaining a Buy rating on the stock and labelling it a top pick among OEMs. “The disclosures made by the firm over the past few months are a strong indication, in our view, of Honda’s confidence in its extensive cash inflows,” said the bank, adding that it sees the company as a unique name differentiated by its vertical integration strategy for batteries and software that are essential to competitiveness in the battery electric vehicle market. Citi also highlighted the company's sustained shareholder returns.
A View From The Bears: JPMorgan lowered its rating for Honda to Neutral from Overweight in June, cutting the price target to JPY 1,800 from JPY 2,000. The US investment bank also lowered its investment stance for the Japanese auto sector to Neutral. While they acknowledged that earnings recovered firmly at Japan's automakers in 2023, they said output and sales volume are expected to be flat in 2024, and earnings will “temporarily plateau.” Focusing on Honda, the bank added that Honda's earnings recovery is winding down, and the company needs to decide if it can maintain its increasingly aggressive electrification investment and generous shareholder returns.
Average Analyst Consensus 12-Month Price Target: JPY 1,960.5
Our View: Honda is, of course, a strong player in the automotive and motorcycle sectors. The company’s position in both markets continues to generate strong revenue. However, Honda faces competition in the EV market, and its ability to scale production and maintain profitability will be key to its success.
Who Should Buy Honda Shares?
Honda is a good fit for long-term investors who are interested in the automotive sector but want exposure to a company with a diversified product portfolio. The company’s leadership in motorcycles, alongside its growing presence in the EV and hybrid space, makes it a strong player in both the short and long term.
Dividend-focused investors may also find Honda attractive due to its stable dividend history, supported by strong cash flow from its diverse businesses. Honda’s commitment to sustainability and clean energy technologies also provides potential for growth as the world transitions to greener energy sources.
That said, investors should be mindful of the challenges posed by increased competition supply chain risks. Honda’s success in the electric and hydrogen vehicle markets will be crucial to its long-term growth trajectory.
