Harley-Davidson Inc

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HOG : NYSE : Consumer Goods
$56.11 up 0.57 | 1.0%
Today's Range: 55.69 - 56.55
Avg. Daily Volume: 2225400.0
06/26/17 - 10:55 AM ET

Financial Analysis


HARLEY-DAVIDSON INC's gross profit margin for the first quarter of its fiscal year 2017 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 1.41 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 increased by 5.31% 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 FY17 Q1 FY16
Net Sales ($mil)1501.931749.97
EBITDA ($mil)389.67484.77
EBIT ($mil)334.77434.75
Net Income ($mil)186.37250.49


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)920.41832.33
Total Assets ($mil)10281.8610467.67
Total Debt ($mil)6971.227112.77
Equity ($mil)1993.411892.82


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin46.9846.5
EBITDA Margin25.9427.7
Operating Margin22.2924.84
Sales Turnover0.560.58
Return on Assets6.17.0
Return on Equity31.538.71
Debt Q1 FY17 Q1 FY16
Current Ratio1.661.74
Debt/Capital0.780.79
Interest Expense50.9653.09
Interest Coverage6.578.19


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)175.04181.09
Div / share0.370.35
EPS1.051.36
Book value / share11.3910.45
Institutional Own % n/a n/a
Avg Daily Volume2201877.01885370.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 10.75 for the Automobiles industry and a discount compared to the S&P 500 average of 25.75. Conducting a second comparison, its price-to-book ratio of 4.94 indicates a significant premium versus the S&P 500 average of 3.09 and a premium versus the industry average of 4.01. The current price-to-sales ratio is below the S&P 500 average, but 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 16.02 Peers 10.75   HOG 7.64 Peers 83.72

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.

 

Discount. 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 discount 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 13.65 Peers 9.89   HOG NM Peers 5.29

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HOG 4.94 Peers 4.01   HOG -5.40 Peers 10.83

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 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 1.71 Peers 1.69   HOG -5.34 Peers 14.70

Average. 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 valuation on par with its industry on this measurement.

 

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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