# Honda Motor (7267.JP)

Canonical: https://gigainvestors.com/s/7267.JP

Analysis as of: 2026-10-01T09:06:06.472Z. Financial observations: FY2008–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed. Published buy qualification: no.

Share price: JPY 1,776.00 per share; close as of 2026-10-15.

Estimated value: low JPY 1,669.99 per share, central JPY 1,740.50 per share, high JPY 1,834.38 per share. Buy at or below the central value JPY 1,740.50 per share. Valuation as of 2026-10-01T09:06:06.472Z; scenarios are not confidence intervals.

Expected annual return: 9.6% at the stated quote. About 9.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 3.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.50×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.06×

- FY2018: 0.05×

- FY2019: 0.05×

- FY2020: 0.04×

- FY2021: 0.05×

- FY2022: 0.06×

- FY2023: 0.05×

- FY2024: 0.07×

- FY2025: 0.06×

- FY2026: -0.02×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.9%

- ROIC, second-lowest year: 4.7%

- Typical minus recent gross margin: 1.0 pp

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.4%

- ROIC including acquisitions, ten-year median: 9.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 4.7%

- FY2018: 6.7%

- FY2019: 8.5%

- FY2020: 7.3%

- FY2021: 7.6%

- FY2022: 8.7%

- FY2023: 8.3%

- FY2024: 12.3%

- FY2025: 10.2%

- FY2026: -4.8%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.67×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 4.80T

- Net income, five-year total: JPY 2.88T

- Working capital / revenue, annual change: 4.3 pp

- Working capital / revenue, change between three-year averages: 29.4 pp

- Working capital / revenue, final three-year average: 22.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.88×

- FY2023: 1.26×

- FY2024: 1.33×

- FY2025: 1.18×

- FY2026: -0.44×

### management: fail

- $1 retained earnings test: 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 6.7% vs 10.2%

- five-year and ten-year diluted share growth both above threshold

- Market cap gain: JPY 3.01T

- Cumulative retained earnings: JPY 2.66T

- Diluted shares, 10-year annual growth: 8.3%

- Diluted shares, 5-year annual growth: 18.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -7.8%

- Per-share value change: JPY -163.17

- Per-share value, starting three-year median: JPY 342.10

- Per-share value, ending three-year median: JPY 178.93

- Buybacks concentrated in cheaper years (correlation): 0.20

- Average buyback yield: 3.8%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: JPY 6.28T

- ROIC, first three-year median: 6.7%

- ROIC, last three-year median: 10.2%

### accounting: pass

- Sloan accruals: -4.7%

- Receivables to sales index (DSRI): 1.10×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.07×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -1.4%

- FY2018: 0.4%

- FY2019: -0.8%

- FY2020: -2.6%

- FY2021: -1.9%

- FY2022: -4.1%

- FY2023: -6.0%

- FY2024: 1.2%

- FY2025: 1.8%

- FY2026: -4.7%

## Holders

## Price story

Price needs cash profits to shrink 0.9% a year for ten years · sales +0.5%

Story as of 2026-10-03T17:10:00Z; price observation 2026-10-02.

Price needs cash profits to shrink 0.9% a year for ten years

### Sales · FY2025–2026

sales +0.5%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YDD9.pdf; observed 2026-06-18.

- FY2017: JPY 14.00T 

- FY2018: JPY 15.36T 

- FY2019: JPY 15.89T 

- FY2020: JPY 14.93T 

- FY2021: JPY 13.17T 

- FY2022: JPY 14.55T 

- FY2023: JPY 16.91T 

- FY2024: JPY 20.43T 

- FY2025: JPY 21.69T 

- FY2026: JPY 21.80T 

### Gross margin · FY2026

gross margin 16.5%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YDD9.pdf; observed 2026-06-18.

- FY2017: 22.4% 

- FY2018: 21.9% 

- FY2019: 20.8% 

- FY2020: 20.6% 

- FY2021: 20.7% 

- FY2022: 20.5% 

- FY2023: 19.7% 

- FY2024: 21.6% 

- FY2025: 21.5% 

- FY2026: 16.5% 

## Owner memo

Memo as of 2026-10-02T06:52:09.009Z.

### How it makes money

Operates in auto manufacturers; annual sales are JPY 21.8 trillion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YDD9.pdf (filed 2026-06-18); FY2026: revenue 21796610000000; grossProfit 3603182000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-29); HMC.US: Honda Motor Co., Ltd. engages in the development, manufacturing, and distribution of 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.

### Why customers stay

Margins ranged from 16.5% to 21.6% during 2024–26; it earns 7.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2024: grossProfit / revenue = 21.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2025: grossProfit / revenue = 21.5%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YDD9.pdf (filed 2026-06-18); FY2026: grossProfit / revenue = 16.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); 10-year return on capital observations [[2017,0.04727377595366461],[2018,0.06681259949054429],[2019,0.08516880333879863],[2020,0.07263985406562955],[2021,0.07562951805775772],[2022,0.08701843102560859],[2023,0.08272341780061968],[2024,0.12323288090184106],[2025,0.10241202059525827],[2026,-0.04848891460480153]]; median 0.0791764679291887. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2018: growth capex 0; upkeep 415563000000; owner earnings 572108000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2019: growth capex 0; upkeep 420768000000; owner earnings 308132000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2020: growth capex 0; upkeep 370195000000; owner earnings 530561000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2021: growth capex 0; upkeep 318410000000; owner earnings 686341000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2022: growth capex 0; upkeep 268143000000; owner earnings 1331314000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2023: growth capex 0; upkeep 475048000000; owner earnings 1575677000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); FY2024: growth capex 0; upkeep 348680000000; owner earnings 318085000000. Growth capex / owner earnings = 0.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YDD9.pdf (filed 2026-06-18); FY2026: growth capex 0; upkeep 612065000000; owner earnings 442974000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); Dividend observations: [[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own <0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-09-29); HMC.US SharesStats.PercentInsiders = 0.006 percentage points; cache date 2026-09-29.

### What could break it

US import tariffs could raise product costs.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YDD9.pdf (filed 2026-06-18); ３ 【事業等のリスク】有価証券報告書に記載した事業の状況、経理の状況に関する事項のうち、投資者の判断に重要な影響を及ぼす可能性のある事項には、以下のようなものがあります。当社グループでは、リスクマネジメント委員会において事業運営上重要なリスクを「全社重点リスク」として特定し、対応状況の確認・議論などを行っています。以下のリスクも同委員会で審議のうえ特定されたものです。なお、文中の将来に関する事項は、有価証券報告書提出日現在において当社グループが判断したものであり、不確実性を内包しているため、将来生じうる実際の結果と大きく異なる可能性もありますので、ご留意ください。 (1) 地政学的リスク当社グループは、世界各国において事業を展開しており、それらの国や近隣地域での関税、輸出入規制、租税を含む現地法令・制度・協定・商習慣の変化、戦争・テロ・政情不安・治安の悪化、政治体制の変化、ストライキなど様々なリスクにさらされています。これら予期せぬ事象が発生し、政治的、軍事的、社会的な緊張の高まりに伴いサプライチェーンが寸断されるなど、事業活動の遅延・停止が発生した場合、当社グループの事業、業績に悪影響を与える可能性があります。その中でも、主に①経済安全保障、②国家間・地域紛争、③人権に関する法規の３つの地政学的リスクを認識しています。これらの地政学的リスクは、「１ 経営方針、経営環境及び対処すべき課題等 (4) 優先的に対処すべき課題」に記載している当社グループの５つの重要テーマのうち、環境負荷ゼロ社会の実現、交通事故ゼロ社会の実現、人的資本経営の進化、独創的な技術の創出への取り組みに与える影響も大きいため、対策の重要性は高まっています。これらの地政学的リスクが将来及ぼしうる各地域の事業規模については、「４ 経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析 (1) 経営成績等の状況の概要 ① 経営成績の状況」を参照ください。 ① 経済安全保障＜リスク＞各国において重要資源・部品、先端技術などに対する輸出入規制、ブロック化を促進する政策の強化の動きが活発化しています。2025年に米国にて様々な政策転換がなされており、各国の通商政策において不透明な状況が続いています。当社グループにおいても各国による関税影響および輸出規制に伴う半導体の供給不足に伴う事業影響が当連結会計年度に発生しました。 各国において輸出入および環境規制などに関する政策が変更された場合、生産活動の停滞や遅延、開発・購買・営業などの事業活動にかかる対応費用などが生じる可能性があり、当社グループの事業、業績に悪影響を与える可能性があります。なお、米国における政府方針転換や市場環境の変化を受け、当社は当連結会計年度を通じてEVモデル商品投入計画の見直しや四輪電動化戦略の見直しを行いました。本リスクへの対応については(4)市場環境変化リスクを参照ください。＜対応策＞当社グループにおいては、国内および海外の各部門が連携し各国の政策動向などの情報収集・モニタリングするインテリジェンス機能を強化するとともに、当社グループの事業に影響を与える可能性がある案件が確認された場合は、リスクマネジメント委員会が先行的に検討を行うことで、早期にリスクヘッジできる体制を構築しています。 ② 国家間・地域紛争＜リスク＞ウクライナ、中東および南シナ海等、国際情勢の見通しが不透明な状況が続いています。新たな紛争が発生および長期化した場合、発生した国や地域のみならず、それ以外の国や地域でも、人的および物的被害、サプライチェーンの寸断あるいは調達価格の高騰、事業活動の停止などが生じる可能性があり、当社グループの事業、業績に悪影響を与える可能性があります。なお、中東情勢の影響もあり世界的に材料価格が高騰しており、当社の業績にも悪影響を及ぼすことが見込まれます。 ＜対応策＞当社グループにおいては、国家間・地域紛争の動向などの情報収集・モニタリングするインテリジェンス機能を強化するとともに、当社グループの事業に影響を与える可能性がある事象が確認された場合は、「人命・安全の確保」および「社会からの信頼の維持」を前提としたうえで、当社グループの会社資産・体制の保全、事業継続をはかるための対応を迅速に行っています。 ③ 人権に関する法規＜リスク＞各国において、企業に人権の取り組みを求める法規の制定が進んでおり、サプライチェーン全体での人権リスク対応の必要性が急速に高まっています。これらの法規に対して適時適切な対応が出来なかった場合、ブランドイメージや社会的信用の低下に加え、当社グループの生産活動の停滞や遅延、開発・購買・営業などの事業活動にかかる対応費用などが生じる可能性があり、当社グループの事業、業績に悪影響を与える可能性があります。＜対応策＞当社グループにおいては、「Hondaフィロソフィー」に掲げる人間尊重の基本理念のもと、事業活動において影響を受けるステークホルダーの人権を尊重する責任を果たすため、「Honda人権方針」を定めています。本方針に基づき、人権デューデリジェンス、適切な教育・啓発活動の実施など、各国法規を踏まえ自社およびサプライチェーンにおける取り組みを行っています。 (2) 購買・調達リスク＜リスク＞当社グループは、良い物を、適正な価格で、タイムリーにかつ永続的に調達することをめざして、多数の外部の取引先から原材料および部品を購入していますが、製品の製造において使用するいくつかの原材料および部品については、特定の取引先に依存しています。効率的かつ適正なコストで継続的に供給を受けられるかどうかは、当社グループがコントロールできないものも含めて、多くの要因に影響を受けます。それらの要因のなかには、取引先が継続的に原材料および部品を確保できるかどうか、また、供給を受けるにあたって、当社グループがその他の需要者に対してどれだけ競争力があるか等が含まれます。取引先から原材料および部品が継続的に供給を受けられなかった場合、原材料および部品の価格が上昇した場合、もしくは主要な取引先を失った場合、生産活動の停滞や遅延、当社グループの競争力の損失に繋がる等、当社グループの事業、業績に悪影響を与える可能性があります。なお、一部の原材料および部品において価

### What the price says

The price assumes cash profits shrink 0.1% yearly over ten years; actual decline was 24.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-18); Ten-year compound average after fade. Initial solved rate -0.014137931805481452. Price 1696; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 771.7813613288789 → FY2026 46.79172833012141. Closing-price date 2026-10-01.

## Monthly share-price history (JPY per share)

- 2016-10: JPY 1,048.00 per share

- 2016-11: JPY 1,110.67 per share

- 2016-12: JPY 1,138.33 per share

- 2017-01: JPY 1,129.00 per share

- 2017-02: JPY 1,163.00 per share

- 2017-03: JPY 1,117.00 per share

- 2017-04: JPY 1,077.33 per share

- 2017-05: JPY 1,039.00 per share

- 2017-06: JPY 1,021.33 per share

- 2017-07: JPY 1,036.00 per share

- 2017-08: JPY 1,027.00 per share

- 2017-09: JPY 1,110.67 per share

- 2017-10: JPY 1,174.33 per share

- 2017-11: JPY 1,248.00 per share

- 2017-12: JPY 1,287.33 per share

- 2018-01: JPY 1,275.33 per share

- 2018-02: JPY 1,295.00 per share

- 2018-03: JPY 1,220.00 per share

- 2018-04: JPY 1,255.67 per share

- 2018-05: JPY 1,149.00 per share

- 2018-06: JPY 1,084.33 per share

- 2018-07: JPY 1,118.33 per share

- 2018-08: JPY 1,097.33 per share

- 2018-09: JPY 1,146.33 per share

- 2018-10: JPY 1,080.33 per share

- 2018-11: JPY 1,067.33 per share

- 2018-12: JPY 964.83 per share

- 2019-01: JPY 1,083.00 per share

- 2019-02: JPY 1,051.00 per share

- 2019-03: JPY 998.33 per share

- 2019-04: JPY 1,033.67 per share

- 2019-05: JPY 883.67 per share

- 2019-06: JPY 928.33 per share

- 2019-07: JPY 903.50 per share

- 2019-08: JPY 841.17 per share

- 2019-09: JPY 932.83 per share

- 2019-10: JPY 980.67 per share

- 2019-11: JPY 1,022.33 per share

- 2019-12: JPY 1,033.00 per share

- 2020-01: JPY 943.67 per share

- 2020-02: JPY 933.17 per share

- 2020-03: JPY 810.00 per share

- 2020-04: JPY 870.17 per share

- 2020-05: JPY 928.00 per share

- 2020-06: JPY 918.50 per share

- 2020-07: JPY 841.33 per share

- 2020-08: JPY 909.67 per share

- 2020-09: JPY 824.50 per share

- 2020-10: JPY 811.67 per share

- 2020-11: JPY 957.17 per share

- 2020-12: JPY 959.17 per share

- 2021-01: JPY 921.50 per share

- 2021-02: JPY 970.50 per share

- 2021-03: JPY 1,106.33 per share

- 2021-04: JPY 1,077.33 per share

- 2021-05: JPY 1,117.67 per share

- 2021-06: JPY 1,183.33 per share

- 2021-07: JPY 1,164.33 per share

- 2021-08: JPY 1,114.00 per share

- 2021-09: JPY 1,151.67 per share

- 2021-10: JPY 1,116.33 per share

- 2021-11: JPY 1,033.67 per share

- 2021-12: JPY 1,076.67 per share

- 2022-01: JPY 1,118.00 per share

- 2022-02: JPY 1,175.00 per share

- 2022-03: JPY 1,162.33 per share

- 2022-04: JPY 1,139.67 per share

- 2022-05: JPY 1,062.33 per share

- 2022-06: JPY 1,097.67 per share

- 2022-07: JPY 1,129.33 per share

- 2022-08: JPY 1,241.33 per share

- 2022-09: JPY 1,045.67 per share

- 2022-10: JPY 1,124.33 per share

- 2022-11: JPY 1,118.67 per share

- 2022-12: JPY 1,010.67 per share

- 2023-01: JPY 1,069.00 per share

- 2023-02: JPY 1,180.67 per share

- 2023-03: JPY 1,170.00 per share

- 2023-04: JPY 1,196.00 per share

- 2023-05: JPY 1,335.00 per share

- 2023-06: JPY 1,447.00 per share

- 2023-07: JPY 1,504.33 per share

- 2023-08: JPY 1,567.67 per share

- 2023-09: JPY 1,682.00 per share

- 2023-10: JPY 1,506.50 per share

- 2023-11: JPY 1,509.00 per share

- 2023-12: JPY 1,466.00 per share

- 2024-01: JPY 1,675.50 per share

- 2024-02: JPY 1,782.00 per share

- 2024-03: JPY 1,893.50 per share

- 2024-04: JPY 1,812.00 per share

- 2024-05: JPY 1,769.50 per share

- 2024-06: JPY 1,720.00 per share

- 2024-07: JPY 1,647.00 per share

- 2024-08: JPY 1,588.00 per share

- 2024-09: JPY 1,507.50 per share

- 2024-10: JPY 1,557.50 per share

- 2024-11: JPY 1,291.50 per share

- 2024-12: JPY 1,535.00 per share

- 2025-01: JPY 1,478.50 per share

- 2025-02: JPY 1,393.00 per share

- 2025-03: JPY 1,342.50 per share

- 2025-04: JPY 1,453.00 per share

- 2025-05: JPY 1,468.00 per share

- 2025-06: JPY 1,394.50 per share

- 2025-07: JPY 1,569.00 per share

- 2025-08: JPY 1,642.00 per share

- 2025-09: JPY 1,531.00 per share

- 2025-10: JPY 1,560.00 per share

- 2025-11: JPY 1,572.00 per share

- 2025-12: JPY 1,536.00 per share

- 2026-01: JPY 1,555.00 per share

- 2026-02: JPY 1,584.50 per share

- 2026-03: JPY 1,257.50 per share

- 2026-04: JPY 1,266.50 per share

- 2026-05: JPY 1,452.50 per share

- 2026-06: JPY 1,480.00 per share

- 2026-07: JPY 1,625.50 per share

- 2026-08: JPY 1,710.00 per share

- 2026-09: JPY 1,669.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 4,664.91 per share, central JPY 5,121.29 per share, high JPY 5,728.84 per share

- FY2021: low JPY 5,066.37 per share, central JPY 5,565.71 per share, high JPY 6,230.44 per share

- FY2022: low JPY 5,603.06 per share, central JPY 6,104.34 per share, high JPY 6,771.65 per share

- FY2023: low JPY 2,155.02 per share, central JPY 2,358.28 per share, high JPY 2,628.85 per share

- FY2024: low JPY 2,755.35 per share, central JPY 3,007.38 per share, high JPY 3,342.88 per share

- FY2025: low JPY 3,192.49 per share, central JPY 3,511.80 per share, high JPY 3,936.86 per share

- FY2026: low JPY 1,669.99 per share, central JPY 1,740.50 per share, high JPY 1,834.38 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YDD9.pdf); period 2026-03-31, filed 2026-06-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations