Positioning no disclosures inside 60 days, left as found
Options no verdict drawn today, left as found
Ethical passes the values gate
Price32.53 USD
Fair value32.00
Ethical score70.0/100
RatingOPPORTUNITY
Our investment reviews on this name
2026-09-01Read Accumulation33.37-2.5% to today
2026-07-02Read Markup26.44+23.0% to today ✓
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Honda Motor Co. holds its Distribution at $32.53. Consolidating, no directional conviction, held for 205 days.
As held on the ledger · 2026-09-21
Phase
Distribution · caution
Quantitative state
Consolidating, no directional conviction, held for 205 days
Price at the screen
$32.53
Valuation
N/A trailing · N/A forward price to earnings
Values screen
PASS· score 70.0
Beta
0.31
The Workings
Five Screens, Shown in Full
Full pass across all five screens. This security clears the Titan Ethical Standard: its business and its balance sheet both stay inside the lines.
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
14.37%
Below 33%
Interest-bearing debt is just 14.4% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
14.72%
Below 33%
Cash held in interest-bearing accounts and securities is 14.7% of assets, under the one-third limit.
Pass
Receivables
20.06%
Below 49%
Money owed to the company is 20.1% of assets, under the 49% limit.
Pass
Revenue purity
0.62%
Below 5%
Only 0.6% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
What the Numbers Say It Is Worth
The Fair Value Range
Our framework reads OPPORTUNITY: it trades above our $32.00 fair value estimate, 13.50% revenue growth.
Fair value range in USD, drawn from the 2026-09-21 screen. The gold marker is the market price at the same screen. The price runs 1.6% above the base estimate.
Third-party analyst targets: 3 covering, consensus Hold. The average target sits −2% from the screen price.
Reading the gap · Our model and the Street both land near the screened price: fairly valued, with no strong edge either way.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-21 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Honda's Cheap Multiple Hides Cycle Trap
Think of Honda as the family saloon that still starts on a cold morning when rivals have already stalled. Its forward earnings multiple sits at just 5.7 times while revenue edges up 9 percent, and the ethical screen gives it a clean pass, which is why the name registers as an opportunity against a $32 fair value.
Yet autos are the textbook cyclical sector where a depressed multiple rarely signals a bargain. Negative profit margins of 2 percent and a negative 3 percent return on equity show the current cycle is already hurting operations, not setting up an easy recovery.
That combination is the classic value trap warning. Low multiples here usually reflect peak or fading earnings rather than undervalued strength, so any rebound hinges on factors outside the company's control.
The risks · The things to watch: its business and earnings are exposed to Japan and to currency swings.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
HMC trades on NYSE (ADR) (the company is based in Japan). As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from markup to accumulation since the last review. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved up 14.6% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are down 10%. Our forward projection puts the odds of a 10% gain over the next month near 14%. The street (3 analysts) rates it buy, with a mean price target of $28.
2026-08-01Markup$29.13+10.2%Entry 4
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 10.2% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are down 10%. Our forward projection puts the odds of a 10% gain over the next month near 14%. The street (3 analysts) rates it buy, with a mean price target of $28.
2026-07-18Markup$26.44+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are down 10%. Our forward projection puts the odds of a 10% gain over the next month near 14%. The street (3 analysts) rates it buy, with a mean price target of $28.
2026-07-03Markup$26.44+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows negative risk-adjusted returns.
2026-07-02Markup$26.44Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows negative risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.