Honda Motor Co., Ltd. (7267.T) stock analysis

In our weekly check, Honda Motor Co., Ltd. is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 11 pass, warnings: 2, red flags: 10.

About Honda Motor Co., Ltd.

Honda Motor Co., Ltd. is a Consumer Cyclical company (Auto - Manufacturers) based in Japan, listed on JPX as 7267.T.

What our checks show for 7267.T

Red flags

• Net debt is 7.3x a year of EBITDA (debt/equity 1.14). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (-1.4x): interest is paid from cash or new debt.
• The net margin fell by 5.6 points over 5 years, to -0.8%: the company keeps less of each sale as profit.
• The gross margin fell by 3.3 points, to 17.2%: costs are rising faster than prices.
• Earnings per share fell 32.8% a year over the last 3 years.
• The company is losing money: the net margin is -0.8%.
• Honda Motor Co., Ltd. pays a dividend while losing money: it is funded from reserves or debt.
• The stock has fallen as much as 66% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 14 years.
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.

Warning signs

• Analysts expect only about 4.1% a year of growth in revenue.
• Free cash flow is only 2.3% of revenue.

Strengths

• Operating cash flow is 6.69x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 102% a year over the next years.
• Analysts expect the net margin to improve by 4.4 points from today's -0.8%.
• A large company: market value $44.54 billion.
• Beta 0.33: the stock usually moves less than the market.
• The share count fell by 18.4% in 2 years: the company buys back its own shares.

Next earnings report: 2026-11-11

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Questions

What grade does Honda Motor Co., Ltd. (7267.T) have?

In our weekly check, Honda Motor Co., Ltd. is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 11 pass, warnings: 2, red flags: 10. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 7267.T stock?

This week's biggest flags for Honda Motor Co., Ltd.: High debt, Weak interest cover, Margins falling. In total 12 of 23 checks show a warning or a red flag.

What does Honda Motor Co., Ltd. do?

Honda Motor Co., Ltd. is a Consumer Cyclical company (Auto - Manufacturers) based in Japan, listed on JPX as 7267.T.

When does Honda Motor Co., Ltd. report earnings next?

The next earnings report is expected on 2026-11-11. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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