Core Viewpoint - Honda Motor's stock has shown limited growth, with a 2% increase since the start of 2023, and recent financial results have been disappointing, particularly in Q4 FY'25, where revenues fell to $35.1 billion from $36.5 billion the previous year [1][2] Financial Performance - For Q4 FY'25, Honda's revenues were approximately $35.1 billion, a decline from $36.5 billion year-over-year, and profits also did not meet expectations [1] - The company sold 1.65 million vehicles in North America in FY'25, a slight increase from the previous year, aided by a rise in hybrid vehicle adoption [1] - Honda has projected a net profit forecast for 2026 that is expected to be 70.1% lower than FY'25, with revenues anticipated to decline by 6.4% year-over-year [2] Market Challenges - The 25% tariff on foreign automotive imports imposed by the Trump Administration is expected to impact Honda's U.S. operations, prompting the company to consider producing its next-generation Civic hybrid in the U.S. instead of Mexico [2] - Honda's sales volumes in Asia decreased by nearly 28% year-over-year in FY'25, indicating challenges in maintaining competitiveness in the region [3] - The strengthening of the yen, which has appreciated almost 8% against the dollar in the past year, could negatively affect Honda's export competitiveness and international earnings [3][4] Valuation and Investment Outlook - Honda's stock is trading at approximately 8x FY'25 earnings, suggesting a reasonable valuation, supported by ongoing share repurchase programs and potential growth in the hybrid sector [4] - The current stock valuation is estimated at around $32 per share, slightly above the present market price [4]

Honda is reportedly preparing to significantly expand its US manufacturing footprint in response to sweeping new auto tariffs introduced by the Trump administration.The Japanese automaker is considering shifting production of several key models from Mexico and Canada to the US with the goal of ensuring that 90% of the cars it sells in the states are built domestically, according to a report in the Nikkei newspaper.Honda plans to boost its production in the US by up to 30% over the next two-to-three years, t ...