Harley-Davidson Inc

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HOG : NYSE : Consumer Goods
$48.45 -0.32 | -0.66%
Today's Range: 48.1101 - 48.979
Avg. Daily Volume: 2554800.0
07/21/17 - 12:50 PM ET

Financial Analysis


Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. HARLEY-DAVIDSON INC has average liquidity. Currently, the Quick Ratio is 1.11 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.24% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)1765.171861.08
EBITDA ($mil)0.0506.15
EBIT ($mil)0.0455.22
Net Income ($mil)258.87280.43


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1051.7947.82
Total Assets ($mil)10487.7710348.44
Total Debt ($mil)7172.357061.32
Equity ($mil)2046.172021.01


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin0.045.64
EBITDA Margin0.027.19
Operating Margin0.024.46
Sales Turnover0.540.59
Return on Assets5.786.89
Return on Equity29.6335.3
Debt Q2 FY17 Q2 FY16
Current Ratio1.271.73
Debt/Capital0.780.78
Interest Expense0.049.99
Interest Coverage0.09.11


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)175.04178.8
Div / share0.370.35
EPS1.481.55
Book value / share11.6911.3
Institutional Own % n/a n/a
Avg Daily Volume2505158.02187392.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 11.17 for the Automobiles industry and a significant discount compared to the S&P 500 average of 24.54. For additional comparison, its price-to-book ratio of 4.19 indicates a premium versus the S&P 500 average of 3.06 and a premium versus the industry average of 3.70. The current price-to-sales ratio is well 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 14.23 Peers 11.17   HOG 6.35 Peers 62.26

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 11.97 Peers 10.26   HOG NM Peers 5.51

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 4.19 Peers 3.70   HOG -9.95 Peers 10.21

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 1.52 Peers 1.44   HOG -7.48 Peers 12.54

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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