Harley-Davidson Inc

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HOG : NYSE : Consumer Goods
$59.71 | %
Today's Range: 59.38 - 62.08
Avg. Daily Volume: 2363400.0
12/02/16 - 4:05 PM ET

Financial Analysis


HARLEY-DAVIDSON INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. HARLEY-DAVIDSON INC has average liquidity. Currently, the Quick Ratio is 1.34 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 22.16% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1274.811317.43
EBITDA ($mil)274.56308.73
EBIT ($mil)220.95260.35
Net Income ($mil)114.07140.35


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)860.411529.41
Total Assets ($mil)10212.2310731.56
Total Debt ($mil)6926.196936.11
Equity ($mil)1992.372559.67


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin47.3647.03
EBITDA Margin21.5323.43
Operating Margin17.3319.76
Sales Turnover0.590.56
Return on Assets6.727.31
Return on Equity34.4930.64
Debt Q3 FY16 Q3 FY15
Current Ratio1.611.73
Debt/Capital0.780.73
Interest Expense50.1646.09
Interest Coverage4.45.65


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)176.77191.86
Div / share0.350.31
EPS0.640.69
Book value / share11.2713.34
Institutional Own % n/a n/a
Avg Daily Volume2281289.02994276.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 9.08 for the Automobiles industry and a discount compared to the S&P 500 average of 25.16. For additional comparison, its price-to-book ratio of 5.15 indicates a significant premium versus the S&P 500 average of 2.79 and a significant premium versus the industry average of 1.89. The price-to-sales ratio is below the S&P 500 average, but well above the industry average. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HOG 15.41 Peers 9.08   HOG 9.88 Peers 10.46

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

HOG is trading at a significant premium to its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HOG 14.00 Peers 9.86   HOG 3.16 Peers 1.39

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 significant 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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HOG 5.15 Peers 1.89   HOG 0.53 Peers 73.64

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HOG 1.69 Peers 0.90   HOG 0.85 Peers 17.13

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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