-1.59 | -2.79%
HARLEY-DAVIDSON INC's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. HARLEY-DAVIDSON INC has strong liquidity. Currently, the Quick Ratio is 1.65 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.19% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 1571.21 | 1429.69 |
| EBITDA ($mil) | 434.65 | 381.37 |
| EBIT ($mil) | 391.8 | 338.17 |
| Net Income ($mil) | 224.13 | 172.04 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 1351.03 | 1658.28 |
| Total Assets ($mil) | 9335.12 | 9605.35 |
| Total Debt ($mil) | 5295.32 | 5568.09 |
| Equity ($mil) | 2657.05 | 2574.66 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 45.78 | 45.89 |
| EBITDA Margin | 27.66 | 26.67 |
| Operating Margin | 24.94 | 23.65 |
| Sales Turnover | 0.61 | 0.57 |
| Return on Assets | 7.24 | 6.78 |
| Return on Equity | 25.44 | 23.33 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.95 | 1.75 |
| Debt/Capital | 0.67 | 0.68 |
| Interest Expense | 51.95 | 62.75 |
| Interest Coverage | 7.54 | 5.39 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 224.14 | 231.52 |
| Div / share | 0.21 | 0.16 |
| EPS | 0.99 | 0.74 |
| Book value / share | 11.85 | 11.12 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1551610.0 | 1604627.0 |
BUY. The current P/E ratio indicates a premium compared to an average of 16.95 for the Automobiles industry and a value on par with the S&P 500 average of 19.08. Conducting a second comparison, its price-to-book ratio of 4.89 indicates a significant premium versus the S&P 500 average of 2.44 and a premium versus the industry average of 3.77. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, HARLEY-DAVIDSON INC proves to trade at a premium to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| HOG 19.58 | Peers 16.95 | HOG 17.16 | Peers 7.76 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. HOG is trading at a premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. HOG is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| HOG 14.92 | Peers 15.16 | HOG 0.90 | Peers 0.80 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. HOG is trading at a premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. HOG trades at a premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| HOG 4.89 | Peers 3.77 | HOG 15.17 | Peers 97.69 | |||||||||||||||||||||
|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. HOG is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, HOG is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| HOG 2.27 | Peers 1.00 | HOG 3.72 | Peers 14.45 | |||||||||||||||||||||
|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. HOG is trading at a significant premium to its industry. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. HOG significantly trails its peers on the basis of sales growth |
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