Honda Motor Co., Ltd. (ADR) (HMC)

TMFBreakerWade (97.93) Submitted: 10/04/06 10:46 AM : Start Price: $33.93 HMC Score: 3.05

Just bought a Civic so I thought I would look deeper. By normalizing fcf or just using sfcf you can see that the valuation isn't that great. Check the roic/wacc spread and that wont thrill you either. To put the debt into context, - at the present rate of sfcf it will take them 8.6 years to pay it down. Btw the pe ratio listed on the caps page is wrong. With everything going against it, why would I rate it an outperform? Look no further than to its comparable auto companies. Do a line by line with gm, ford, or d/c and you will see how dominant Honda is to its peers. Of course there will be an opportunity to get hmc at a cheaper price, but why chase nickels and dimes. This race is a marathon not a sprint.

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