Harley-Davidson, headquartered in Milwaukee, manufactures custom, cruiser, and touring motorcycles, employing 6,400 people. Its operations include HDMC, LiveWire for electric models, and HDFS, with global sales through independent dealers.
Based on our analysis, Harley-Davidson appears undervalued with a rating of 4 out of 5 stars from Cashu. This conclusion stems from several key financial ratios that highlight the company's strong performance relative to its industry peers.
The Price-to-Earnings (PE) Ratio for Harley-Davidson stands at 8.34, significantly lower than the sector average of 17.12. A lower PE Ratio indicates that investors are paying less for each dollar of earnings, suggesting that the stock may be undervalued compared to others in the sector.
Additionally, Harley-Davidson's Price-to-Book (PB) Ratio is 1.21, compared to the sector's 2.04. This ratio assesses the market's valuation of a company's assets; a lower PB Ratio can imply that the stock is trading at a discount regarding its book value.
The company's Net Profit Margin of 8.78% far exceeds the sector average of 0.25%, indicating that Harley-Davidson is effectively converting sales into actual profit, showcasing strong operational efficiency.
Furthermore, the Return on Equity (ROE) for Harley-Davidson is 14.38%, compared to the sector's 1.98%. A high ROE signifies that the company is proficient in generating profits from its equity, reflecting strong management effectiveness.
Harley-Davidson also offers a Dividend Yield of 3.05%, which is higher than the sector's 1.48%. This makes the stock attractive for income-focused investors. Lastly, the Return on Assets Ratio of 3.83% versus 0.12% in the sector demonstrates effective asset utilization for generating profits.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary
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