Honda Finance offers also hold potential for cross-selling insurance and extended warranty products. These ancillary revenues can improve blended gross margin, bolstering overall corporate valuation. There’s plenty of change in this 11th-generation hatchback. It has a hybrid powertrain for the first time – and indeed only a hybrid powertrain. That’s a choice by Honda’s European product planners rather than its engineers, it must be said. The hot Honda Civic Type R persists with a turbocharged 2.0-litre and a manual gearbox, and outside Europe, the standard Civic remains available with petrol engines. If you are on the fence about what to do with Honda Motor stock, you are definitely not alone. On one hand, a quick glance at the numbers suggests this is a company on an impressive roll. In just the past year, Honda Motor’s share price climbed nearly 20%, and over the last five years, it has more than doubled with a gain of 127.9%. Even the shorter-term performance stands out, with a 6.1% lift over the past month and a 2.0% increase in just the last week. This kind of steady upward momentum inevitably raises the question: are investors simply catching up to Honda’s true value, or are we entering riskier territory where upside potential is waning? Institutional investors have been revising their models to reflect the improved credit risk profile in Honda Finance offers. The unit’s securitization activities help maintain liquidity and improve ROE, currently at 9.4%, which aligns above the peer median.
