Honda Motor Company, Ltd. (HMC) Stock Analysis

Q: What is the HMC stock price target?

Take-profit $26.13 (+3.6% upside). Prior stop was $24.01.

Q: What are the risks of investing in HMC?

Target reached (-4.7% upside); Quality below floor (1.4 < 4.0); Target reached (-4.7% upside); Quality below floor (1.4 < 4.0).

Q: Is HMC overvalued or undervalued?

Honda Motor Company, Ltd. trades at a P/E of N/A (forward 5.3). TrendMatrix value score: 8.0/10. Overall verdict: Sell.

Q: What do analysts say about HMC?

26 analysts cover HMC with a consensus score of 3.4/5. Average price target: $28.

Recovery setup

SellVALUE-TRAP 1/5Moderate ConfidenceUpdated 2 days ago (May 18, 2026, 6:46 PM ET)

Consumer Cyclical · Auto Manufacturers

Sell if holding. Engine safety override at $25.21: Quality below floor (1.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Below-average business quality; Below long-term trend.

$25.21+3.6% A.UpsideScore 5.3/10#8 of 16 Auto Manufacturers

QualityF-score4 / 9FCF yield-3726.63%

IncomeYield5.31%(5y avg 4.08%)Payout55.35%sustainable

Stop $24.01Target $26.13(resistance)A.R:R -0.8:1

Analyst target$28.28+12.2%3 analysts

$26.13our TP

$25.21price

$28.28mean

$23

$32

Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 80d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

Recent Developments — Honda Motor Company, Ltd.

Latest news

Honda To Shelve $11B Canada EV Plant As Demand Sputters; Automaker To Discontinue Joint Electric Model With GM, Shift To — benzinga May 5, 2026 negative
American Honda Reports Sales Of 137,405 Units In April — benzinga May 1, 2026 positive
Honda To Discontinue Automobile Sales Operations In South Korea By End Of 2026, Will Continue Motorcycle Business And Af — benzinga Apr 23, 2026 negative
'Sony-Honda Venture To Press On After EV Called Off' - Nikkei Asia — benzinga Apr 17, 2026 neutral
Honda Recalls 440,830 2018-2022 Odyssey Vehicles Over Software Programming Error That Can Cause Side And Side Curtain Ai — benzinga Apr 15, 2026 negative

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards

No bull case signals

Risks

Target reached (-4.7% upside)

Quality below floor (1.4 < 4.0)

Key Metrics

P/E (TTM)—

P/E (Fwd)5.3

Mkt Cap$34.0B

EV/EBITDA10.0

Profit Mgn-1.9%

ROE-2.8%

Rev Growth8.6%

Beta0.27

Dividend5.31%

Rating analysts26

Quality Signals

Piotroski F4/9

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers

Overall = weighted sum of the 10 dimension scores. Fundamentals (Value/Quality/Growth) carry 45%; market signals (Momentum/Sentiment/Insider/Peer) carry 40%; structure (Technical/Risk/Catalyst) carries 15%.

DimensionScoreWeightContribution

Value8.015%1.20

Quality1.415%0.21

Growth4.615%0.69

Momentum7.210%0.72

Sentiment6.010%0.60

Insider Activity5.010%0.50

Peer Rank5.610%0.56

Technical Setup4.55%0.23

Risk Profile8.25%0.41

Catalyst3.15%0.16

Overall (Σ contributions)5.27

Small float-rounding may cause last-digit differences between this sum and the displayed Overall.

Cyclical trough — margins compressed or negative. Profitability typically recovers with the cycle, but floor fires on current data.static

Roe

0.0

Roa

0.0

Gross Margin

0.0

Operating Margin

0.0

Net Margin

0.0

Fcf Quality

0.0

Moat

3.6

Piotroski F

4.4

Current Ratio

4.8

Cash-burning: FCF -6% of revenueNo competitive moatQuality concerns

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Earnings History

0.0

Surprise Avg

0.0

Erm

4.0

Earnings Timing

5.0

Dividend Safety

6.5

Earnings concerns: 0B/4MDividend: 531.0%

GatesA.R:R -0.8=NEGATIVEDeath cross (50MA < 200MA)Momentum 7.2>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 80d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Moderate

RSI

58 · Neutral

↑ 20D MA↑ 50D MA↓ 200D MADEATH CROSSSupport $23.80Resistance $26.66

Price Targets

$24

$26

A.Upside+3.6%

A.R:R-0.8:1

Position Sizing

ConvictionNone

Suggested %0.5%

Max %1%

RegimeSteady

Risk Alerts

! Target reached (-4.7% upside)

! Quality below floor (1.4 < 4.0)

! Negative risk/reward — downside exceeds upside

Earnings

0/4 beats

Next Earnings2026-08-06 (80d)

Verdict History

reverse chrono — latest first

Loading history...

Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.

Frequently Asked Questions

Is HMC stock a buy right now?

Sell if holding. Engine safety override at $25.21: Quality below floor (1.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Below-average business quality; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 58. Prior stop was $24.01. Score 5.3/10, moderate confidence.

What is the HMC stock price target?

Take-profit target: $26.13 (+3.6% upside). Prior stop was $24.01. Stop-loss: $24.01.

What are the risks of investing in HMC?

Target reached (-4.7% upside); Quality below floor (1.4 < 4.0).

Is HMC overvalued or undervalued?

Honda Motor Company, Ltd. trades at a P/E of N/A (forward 5.3). TrendMatrix value score: 8.0/10. Verdict: Sell.

What do analysts say about HMC?

26 analysts cover HMC with a consensus score of 3.4/5. Average price target: $28.

What does Honda Motor Company, Ltd. do?Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, and power products in Japan,...

Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, and power products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Power Product and Other Businesses manufactures and sells power products, such as general-purpose engines, lawn mowers, generators, water pumps, brush cutters, and tillers. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sales services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.