EZ, Here my quick look at Honda.
Personally I feel current price is fair market value. If you hold 5-10 years, can't go wrong on it, as earning/dividends will outweight price share. One thing I would want to see is more institutional interest. That may be coming as more of the "big boys" come on board. The split will give the company more financial resources, and forward splits are looked upon as forvorable. Overall, good long term hold, IMO, FWIW, LOL (how's that for back loading acronyms).
Streetshooter is better at disecting the bigger issues, maybe he can post more on it when he gets a chance.
HMC
Honda Motor Co., Ltd. is a leading manufacturer of automobiles and the largest manufacturer of motorcycles in the world. The Company is recognized internationally for its expertise and leadership in developing and manufacturing a wide variety of products, ranging from small general-purpose engines to specialty sports cars that incorporate Honda's highly efficient internal combustion engine technology. By following a corporate policy that emphasizes originality, innovation and efficiency in every facet of the Company's operations, from product development and manufacturing to marketing, Honda strives to attain its goal of satisfying its customers. Through a worldwide commitment to advancing this goal, Honda and its many partners who share in this commitment have succeeded in creating a global network comprising 119 production facilities in 33 countries that supply Honda products to most industrialized countries in the world.
For the six months ended 9/30/01, revenues rose 15% to Y3.505T. Net income increased 43% to Y173.74 billion. Revenues reflect higher sales of motorcycles, automobiles and power products. Earnings also reflect a lower effective income tax rate.
Recent Price $79.44
Book Value (mrq) $36.59
Total Cash (mrq) $3.55B
Shares Outstanding 487.2M Float 360.6M
Shares Short 89.0K Percent of Float 0.0%
Insider and 5%+ Owners: 26%
114 institutions 1%
(16 new positions v.s. 9 closed out)
Zacks average brokerage recommendation is Moderate Buy
Consensus is $105
HMC has a 6.95% average annual rate of growth in sales over the last 5 years and a 8.82% average annual increase in earnings.
HMC has a projected 7.43% five-year growth rate
At -39.9% potential appreciation, HMC does not meet the NAIC goal of doubling within the next five years.
HMC has increased dividends in 6 of the last 12 years
HMC has a payout ratio of 18.2%.
HMC has a 0.19 long-term debt/equity ratio
HMC is trading at 2.08 times book value
HMC has 107 institutional investors holding less than 1% of the common shares outstanding
