Hello everyone welcome to your website If you want to know about investment then you are in right platform. Earlier I have told you about Ford stock, Mahindra company, cryptocurrency, tata stocks etc. Today I am going to talk about of the world largest growing company “How to invest in Honda stocks”. HONDA The Power of Dreams has many companies like Automobiles, Power Products, Marine, HondaJet, Aero Engine but in this article I am going to mainly analyse the most popular company Honda Motor Company Ltd. but the process will remain same to buy another honda stocks. In this article we will starting through Introduction and company details of Honda Motor and end with conclusion. If you want to know more about “How to invest in Honda stocks” then stay with us.
Introduction and company details of Honda Motor
Honda is a Japanese manufacturer of automobiles, motorcycles and power equipment. The company has been the world largest motorcycle manufacturer since 1959, reaching a production of 400 million. It is also the world largest manufacturer of internal combustion engine, producing more than 14 million combustion engines each year. Honda was the first Japanese automobiles manufacturer to release a luxury and dedicated brand Acura in 1986. The company also manufacture garden equipment, marine engines, personal watercraft and power generators. Since 1986 honda has been involved with artificial intelligence and robotics research. They also ventured ito aerospace with the establishment of ge honda aero engines. Honda is the first Japanese automaker to be a net exporter from the united states exporting 109 000 while Acura model exporting only 88000.
Financial review of Honda Motor
Let’s look at the financial the way you value a company is you estimate the free cashflow into the future and then you discount those numbers back to today’s value. That’s we were doing in this article and free cashflow is cashflow from operation minus capital expenditure so you can see that company has large cashflow each year picking in the trailing 12 month at 4.6 billion. Net income is the profit and loss on the income statement. It’s revenue minus expenses and their net income seems to be decreasing from each year from 10 billion to 2 billion. Revenue is a sales for the company and their revenve peaked at 2018 at 151 billion, it’s dropping a bit it’s down to 123 billion. This is the company’s income statement and all these numbers are in Japanese yen I converted these numbers into US dollar on my excel sheet. So the company have positive net income each year but it seems to be decreasing which is not a good things to see when you investing in a company.
Capital structure and valuation of Honda Motor
Let’s look at a capital structure. 79 billion dollar of equity, 71 billion dollar of debt, there 57 Percent of equity 47 percent of debt and their net debt is 44 billion so they could pay a lot of their debt with the cash on that balance sheet, if they want to do. There wacc is eight is a half percent and that’s the discount rate we are going to apply to the future cash flow. We estimated 4years of future free cashflow, we also estimated terminal value which is also cashflow past year four that’s we discounted those number back to today using the weighted average cost of capital. We get a value of company 57 billion US dollar. So the trading at a 16 percent discount. it’s a buy according to the model. Simply wall street is a way higher than me. So these are some financial and valuation part of “How to invest in Honda stocks”.
How to buy and sell Honda stocks?
If you want to buy and sell Honda stock from then you have to follow some step.
Step-1 – First you have to open your demat account with a stock broker. Let’s take an example of stock broker “Groww”. You need some documents to open your demat account the document are – pan card, adhar card, Phone number, bank account and net banking details. After your demat account opened login it on your mobile phone or personal computer.
Step-2 – Click on the wallet botton. After clicking botton you will see USD section, click in USD add fund from your bank account. Click on the search bar and search any stock of Honda. Let’s take honda motor company, after clicking you can see graph of Honda motor and 5 year return. You can buy here stock starting from minimum 1 dollar.
Step-3 – Click on buy botton and fill number of share as you want. You can’t buy here share in fraction. After filling number of share click on buy botton and the shares are added to your portfolio. The amout of buyer share will be deducted from your funds. If you want to sell it then, go to the portfolio click on the stock and verify it with OTP then sell it.
So this is how can you buy share and sell of “How to invest in Honda stocks”.
This is a really Important company. They do provide a product that’s very needed. People drive motorcycles and cars and they have been around for a while this company.Investment should not be done in just one sector, investment should also be done in different places like real estate etc.
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1. What is the current price of Honda Motor Co Ltd ?
2. Is Honda a Japanese product ?
3. What is the market cap of Honda Siel Power ?
Honda Siel Power has a market cap of Rs 1,472.06 Cr.
4. Who makes Honda engines ?
5. Is Honda listed in NSE ?