Harley-Davidson Inc

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HOG : NYSE : Consumer Goods
$49.96 -0.03 | -0.06%
Today's Range: 49.80 - 50.45
Avg. Daily Volume: 2,867,800
07/26/16 - 1:25 PM ET

Financial Analysis


HARLEY-DAVIDSON INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. HARLEY-DAVIDSON INC has average liquidity. Currently, the Quick Ratio is 1.43 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, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 35.52% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)1749.971672.95
EBITDA ($mil)484.77494.68
EBIT ($mil)434.75448.65
Net Income ($mil)250.49269.85


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)832.331346.37
Total Assets ($mil)10467.6710263.82
Total Debt ($mil)7112.775928.48
Equity ($mil)1892.822935.84


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin46.547.74
EBITDA Margin27.729.56
Operating Margin24.8426.82
Sales Turnover0.580.6
Return on Assets7.08.26
Return on Equity38.7128.9
Debt Q1 FY16 Q1 FY15
Current Ratio1.741.88
Debt/Capital0.790.67
Interest Expense53.0938.55
Interest Coverage8.1911.64


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)181.09208.14
Div / share0.350.31
EPS1.361.27
Book value / share10.4514.11
Institutional Own % n/a n/a
Avg Daily Volume2885572.03439591.0

Valuation


HOLD. The current P/E ratio indicates a premium compared to an average of 9.29 for the Automobiles industry and a significant discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 4.80 indicates a significant premium versus the S&P 500 average of 2.81 and a discount versus the industry average of 5.00. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. The valuation analysis reveals that, HARLEY-DAVIDSON INC seems to be trading 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 13.52 Peers 9.29   HOG 9.39 Peers 5.32

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.

 

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HOG 11.92 Peers 43.11   HOG 1.92 Peers 0.63

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

HOG is trading at a significant discount 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 4.80 Peers 5.00   HOG -5.60 Peers 34.59

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

HOG is trading at a valuation on par with 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 1.50 Peers 1.09   HOG -1.67 Peers 10.81

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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