HOG is now undervalued and could go up 213%
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 presents a compelling case for being undervalued, earning a rating of 4 out of 5 stars from Cashu. Several key financial ratios highlight this potential.
The company's Price-to-Earnings (PE) ratio stands at 8.57, significantly lower than the sector average of 17.12. A lower PE ratio often indicates that a company is undervalued relative to its earnings, suggesting that investors may not fully recognize Harley-Davidson's profitability potential.
Additionally, Harley-Davidson's Price-to-Book (PB) ratio is 1.21, compared to the sector average of 2.04. This indicates that the market values the company less than its book value, which could signal an opportunity for investors to acquire shares at a bargain price.
Harley-Davidson boasts a net profit margin of 8.78, far superior to the sector average of 0.25. This strong profitability metric demonstrates the company's ability to convert sales into actual profit, indicating operational efficiency and competitiveness in the market.
The company's return on equity (ROE) ratio is an impressive 14.38, compared to the sector average of 1.98. This metric reflects the company’s ability to generate profits from shareholders' equity, showcasing its effectiveness in using capital to grow earnings.
Furthermore, Harley-Davidson offers a dividend yield of 2.96, which is more than double the sector's average of 1.48, providing a steady income stream for investors. Lastly, the return on assets (ROA) ratio of 3.83, compared to the sector average of 0.12, indicates efficient use of assets to generate 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