E Daily Stock Analysis: Honda Motor (HMC)

Honda Motor Co Ltd is known by the trading ticker symbol, HMC. It is listed in the consumer cyclical sector as an auto manufacturer. This is my first ever report on Honda Motor Co Ltd for Vista or any of my other five stock portfolios.

Honda Motor Co Ltd was originally a motorcycle manufacturer. Today, the firm makes automobiles, motorcycles, and power products such as boat engines, generators, and lawnmowers. 

Honda sold 19.7 million cars and motorcycles in fiscal 2021 (4.5 million of which were autos), and consolidated sales were JPY 13.2 trillion. Automobiles constitute 65% of revenue and motorcycles 14%, with the rest split between power products and financial services. Honda also makes robots and private jets.

motorcycle parks on road between trees

Source: Unsplash 

The company also sells spare parts; and provides after-sale 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.

Three key data points gauge dividend equities or funds like Honda Motor Co Ltd:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

HMC Price

Honda's price per share was $29.80 as of Friday's market close. One year ago its price was $25.17. So HMC's share price has increased just under 18.4% in the past year. 

If Honda Motor's stock trades in the range of $20.00 to $40.00 this next year, its recent $29.80 price might rise by $6.20 to reach $36.00 by August 23, 2022. My estimate is $1.80 under the median of estimates from three analysts tracking the stock for brokers.

HMC Dividends

Honda's most recent regular quarterly dividend payout of  $0.49 was paid on June 14. Their annual payout of $1.01 yields 3.39% based on yesterday's $29.80 closing price. HMC has paid variable quarterly dividends for 6 years.

HMC Returns

Adding the $1.01 annual HMC forward-looking dividend to my $6.20 price upside estimate shows a $7.21 potential gross gain, per share, to be reduced by any costs to trade HMC shares.  

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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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