Professional Documents
Culture Documents
Honda
Honda
Company
Presented By: Zach Bodine
March 9, 2006
Stock Fundamentals
Price
$29.54
52-Week
High
$30.36
52-Week
Low
$23.75
Average
Volume (3 months)
539,598
Market
Capitalization
$55.55 Bil
Investment Recommendation
Buy/Hold
Key Ratios
Ratios (all per share)
P/E Ratio
Earnings
Dividend and Yield
Financial Strength Ratios
Quick
Current
Long-Term D/E
Total Debt to Equity
Return on Equity (per share)
Return on Assets
13.46
$2.19
0.34 (1.10%)
0.84
1.13
0.839
13.52%
5.03%
Growth Percentages
Revenue
7.2%
19.42%
8.2%
Company Description
Automotive
Manufacturers Major
1. Automobiles
2. Motorcycles
3. Power Products
4. Financial Services
Global Position
Automobile Business
9 months ended
Dec. 30, 2005
% change from
previous year
Sales
Make up
Japan
18.50%
-2.70%
North America
58.90%
2.40%
Europe
8.40%
0.30%
Asia
9.30%
-0.30%
Other Regions
4.60%
0.30%
Hondas principal
automobile products
include passenger cars
under:
Multiwagons, Minivans,
Sport utility vehicle,
and Sports coupe
under:
Honda Civic
Honda Accord
Acura TL (Honda)
Infiniti M35 (Nissan)
Toyota Highlander
Hybrid
Subaru Forester
Honda Odyssey
Honda Ridgeline
Toyota Prius
Subaru Imprezza
Marketing/Technology
Management Structure
President
and
Representative Director
Takeo Fukui
Age: 62
Promotion
Executive Vice-President
and Representative
Director
Satoshi Aoki
Age: 60
of Objective Management:
Image
New
Clean-
Competitive Analysis
HMC
Market Cap:
53.25B
14.06B
10.86B
171.94B
53.25B
Employees:
137,827
300,000
327,000
265,753
300.00K
15.80%
3.60%
-1.20%
14.80%
5.60%
9.74%
1.06%
1.34%
11.12%
N/A
Revenue (ttm):
81.00B
177.09B
192.60B
173.35B
177.09B
29.58%
8.21%
1.53%
18.27%
18.27%
EBITDA (ttm):
8.64B
16.10B
5.82B
24.35B
16.10B
7.09%
1.00%
-5.34%
8.30%
7.89%
4.05B
2.23B
-8.45B
10.82B
3.37B
2.19
1.048
-15.14
6.61
2.19
13.22
7.22
N/A
15.99
15.99
PEG (5 yr expected):
2.06
2.07
N/A
2.9
2.07
P/S (ttm):
0.67
0.08
0.06
0.66
ROE
14.10%
15.70%
-13.00%
12.70%
N/A
ROA
5.10%
0.80%
-0.70%
4.70%
N/A
Dividend Yield
1.12%
5.23%
11.09%
1.20%
N/A
EPS (ttm):
P/E (ttm):
GM
TM
Industry
Industry Trends
Trend of Companies performing well in foreign markets, but
not domestically.
GM: Dealing with Health care problems ($100B annually)
Sold
GMAC Subsid.
Possibility of bankruptcy in the future
Market Performance
Market Performance
81.00B
43.86
15.80%
24.29B
EBITDA (ttm):
8.64B
4.05B
2.19
-11.70%
Balance Sheet
Total Cash (mrq):
5.27B
2.865
27.54B
0.839
1.128
17.82
5.18B
1.25B
7.68%
Conservative
Growth rate
Normal Growth
Re= 7.68%
Owner earnings= $3.14B
Growth rate = 4%
Second Stage Growth rate = 2.5%
Estimated Intrinsic Value= $39.11
Valuation continued
Diminishing Growth
Valuation continued..
Impressive growth
By Viewing the table which displays sales in yen
over the 9 months ended 12/31/2004, and then
looking at the sales in yen for the 9 months ended
12/31/2005 you get the following numbers
2004 sales = 6300551
2005 sales =7074255
Growth rate= 7074255/6300551= 12.2%
Adjusted to 10%
Estimated Intrinsic Value = $62.50
Analysts Ratings
finance.yahoo.com
Curren
t
1 Month
Ago
3 Months
Ago
RECOMMENDATION SUMMARY*
Strong Buy
Moderate
Buy
Hold
Moderate
Hold
Sell
1.3
1.3
0
Industry Mean:
N/A
Sector Mean:
N/A
2.46
Pros:
Cons:
Questions