Harley-Davidson Inc

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HOG : NYSE : Consumer Goods
$52.46 -0.02 | -0.04%
Today's Range: 51.96 - 53.08
Avg. Daily Volume: 2,580,400
09/30/16 - 11:19 AM ET

Financial Analysis


HARLEY-DAVIDSON INC's gross profit margin for the second 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. HARLEY-DAVIDSON INC has average liquidity. Currently, the Quick Ratio is 1.48 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 33.15% 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 FY16 Q2 FY15
Net Sales ($mil)1861.081824.39
EBITDA ($mil)506.15551.32
EBIT ($mil)455.22503.7
Net Income ($mil)280.43299.81


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)947.821436.86
Total Assets ($mil)10348.4410564.87
Total Debt ($mil)7061.326226.7
Equity ($mil)2021.013023.63


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin45.6447.6
EBITDA Margin27.1930.21
Operating Margin24.4627.61
Sales Turnover0.590.57
Return on Assets6.897.51
Return on Equity35.326.26
Debt Q2 FY16 Q2 FY15
Current Ratio1.731.86
Debt/Capital0.780.67
Interest Expense49.9941.2
Interest Coverage9.1112.23


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)178.8205.97
Div / share0.350.31
EPS1.551.44
Book value / share11.314.68
Institutional Own % n/a n/a
Avg Daily Volume3016684.02863987.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 10.01 for the Automobiles industry and a significant discount compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 4.60 indicates a significant premium versus the S&P 500 average of 2.82 and a premium versus the industry average of 3.79. 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 13.60 Peers 10.01   HOG 9.40 Peers 4.60

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 12.53 Peers 10.21   HOG 2.65 Peers 0.71

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 4.60 Peers 3.79   HOG 1.86 Peers 35.03

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 1.07   HOG 1.83 Peers 19.07

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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