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 is currently rated as undervalued with a 4 out of 5 stars by Cashu. The company displays several strong financial ratios that indicate potential for growth and profitability, especially in comparison to its sector peers.
The Price-to-Earnings (PE) ratio for Harley-Davidson stands at 8.25, significantly lower than the sector average of 15.61. This suggests that investors are currently paying less for each dollar of earnings, which may imply that the stock is undervalued relative to its earnings potential.
Additionally, the Price-to-Book (PB) ratio of 1.21 versus the sector average of 1.97 indicates that Harley-Davidson’s stock is trading at a lower valuation compared to its assets, further supporting the undervaluation claim.
Harley-Davidson also boasts a robust net profit margin of 8.78, vastly exceeding the sector's mere 0.09. This strong profitability metric reflects the company's ability to convert revenue into profit effectively, showcasing operational efficiency.
The company’s Return on Equity (ROE) ratio of 14.38, compared to the sector's 1.09, highlights its adeptness at generating returns for its shareholders, indicating strong management performance.
Furthermore, Harley-Davidson offers a dividend yield of 3.08, higher than the sector average of 2.56, making it an attractive option for income-focused investors. The Return on Assets (ROA) ratio of 3.83, also superior to the sector's -0.10, demonstrates efficient asset management in 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