Honda (HMC, $25.62) posts full-year +7.6% increase in profit
Honda posted full-year results, which revealed a strong, +7.6% increase in net profit in the financial year to March, on the back of strong motorbike sales and a weaker yen.
Sales surged +10.5% over the year, largely owing to increased sales revenue in motorcycle business and financial services business operations as well as positive foreign currency translation effects – as indicated by the company.
However, Honda mentioned, "despite shifting to a recovery trend, the economic environment surrounding the company, its consolidated subsidiaries and its affiliates... continued to be difficult due to the impact of (the) semiconductor supply shortage, and increases in raw material costs, among other factors."
Looking ahead, the company expects 710 billion yen net profit for the year to March 2023.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for HMC turns negative, indicating new downward trend
HMC saw its Momentum Indicator move below the 0 level on September 29, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 93 similar instances where the indicator turned negative. In 55 of the 93 cases, the stock moved further down in the following days. The odds of a decline are at 59%.
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HMC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 51%.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
HMC moved above its 50-day moving average on October 05, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +2.43% 3-day Advance, the price is estimated to grow further. Considering data from situations where HMC advanced for three days, in 165 of 303 cases, the price rose further within the following month. The odds of a continued upward trend are 54%.
HMC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 117 of 232 cases where HMC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 50%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 12 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. HMC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 48 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.537) is normal, around the industry mean (8.703). P/E Ratio (10.238) is within average values for comparable stocks, (493.775). Projected Growth (PEG Ratio) (3.454) is also within normal values, averaging (2.450). Dividend Yield (0.041) settles around the average of (0.017) among similar stocks. P/S Ratio (0.299) is also within normal values, averaging (2.589).
The Tickeron Profit vs. Risk Rating rating for this company is 81 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HMC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock better than average.
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General Information
Manufactures automobiles and related components, engages in lawnmowers and generator production
Industry MotorVehicles
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