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 (NYSE: HOG) has received an undervalued rating of 4 out of 5 stars from Cashu, supported by several compelling financial metrics.
The company's Price-to-Earnings (P/E) ratio stands at 9.50, significantly lower than the sector average of 15.61. A lower P/E ratio suggests that the stock may be undervalued relative to its earnings, indicating potential for price appreciation. Similarly, Harley-Davidson's Price-to-Book (P/B) ratio of 1.21 is less than the sector average of 1.97, further suggesting that the stock is trading below its intrinsic value.
In terms of profitability, Harley-Davidson boasts a net profit margin of 8.78, far exceeding the sector's 0.09. This indicates that the company retains a significant portion of its revenue as profit, showcasing operational efficiency and strong demand for its products. The Return on Equity (ROE) ratio of 14.38 is also noteworthy, as it demonstrates that the company is effective in generating returns on shareholders' equity, compared to the sector average of 1.09.
Additionally, Harley-Davidson offers a dividend yield of 2.67, surpassing the sector's 2.56, which is attractive for income-seeking investors. With a Return on Assets (ROA) of 3.83, significantly higher than the sector average of -0.10, the company illustrates effective asset utilization to generate profits.
These factors collectively highlight that Harley-Davidson presents an attractive investment opportunity in the current market.
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