Automobiles constitute 65% of revenue and motorcycles 17%, with the rest split between power products and financial services. Over the past three years, Honda achieved 18.1% revenue growth with expanding operating margins, indicating improving profitability. The company is strategically positioned as a diversified automotive and powersports leader with financial stability.
Cyborg Score Rationale
Honda revised fiscal 2026 revenue expectations to ¥20.7 trillion with operating profit of ¥550 billion. The company maintains a stable financial position with a current ratio of 1.3 and debt-to-equity ratio of 0.38. However, an Altman Z-Score of 1.67 places Honda in the distress zone, suggesting potential financial risk within two years.
Top Insights
FY2026 guidance revised downward: revenue adjusted to ¥20.7 trillion, operating profit reduced to ¥550 billion, pre-tax profit to ¥590 billion