NYSE:HOG appears to be flying under the radar despite its strong fundamentals.

Our stock screener has singled out HARLEY-DAVIDSON INC (NYSE:HOG) as a stellar value proposition. NYSE:HOG not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

How do we evaluate the Valuation for NYSE:HOG?

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:HOG was assigned a score of 8 for valuation:

• Based on the Price/Earnings ratio of 5.78, the valuation of HOG can be described as very cheap.
• Based on the Price/Earnings ratio, HOG is valued cheaply inside the industry as 92.11% of the companies are valued more expensively.
• The average S&P500 Price/Earnings ratio is at 26.01. HOG is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 6.26 indicates a rather cheap valuation of HOG.
• HOG's Price/Forward Earnings ratio is rather cheap when compared to the industry. HOG is cheaper than 92.11% of the companies in the same industry.
• HOG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 19.05.
• Based on the Enterprise Value to EBITDA ratio, HOG is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of HOG indicates a rather cheap valuation: HOG is cheaper than 89.47% of the companies listed in the same industry.
• The excellent profitability rating of HOG may justify a higher PE ratio.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:HOG, the assigned 8 is a significant indicator of profitability:

• The Return On Assets of HOG (6.53%) is better than 89.47% of its industry peers.
• The Return On Equity of HOG (24.62%) is better than 97.37% of its industry peers.
• HOG has a Return On Invested Capital of 7.23%. This is amongst the best in the industry. HOG outperforms 84.21% of its industry peers.
• The 3 year average ROIC (5.75%) for HOG is below the current ROIC(7.23%), indicating increased profibility in the last year.
• HOG's Profit Margin of 13.03% is amongst the best of the industry. HOG outperforms 97.37% of its industry peers.
• HOG's Profit Margin has improved in the last couple of years.
• HOG has a better Operating Margin (15.49%) than 97.37% of its industry peers.
• Looking at the Gross Margin, with a value of 38.36%, HOG belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.

Understanding NYSE:HOG's Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:HOG has earned a 5 out of 10:

• With a decent Altman-Z score value of 1.65, HOG is doing good in the industry, outperforming 68.42% of the companies in the same industry.
• Looking at the Debt to FCF ratio, with a value of 13.29, HOG belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.
• A Current Ratio of 2.03 indicates that HOG has no problem at all paying its short term obligations.
• The Current ratio of HOG (2.03) is better than 65.79% of its industry peers.
• With a decent Quick ratio value of 1.69, HOG is doing good in the industry, outperforming 71.05% of the companies in the same industry.

What does the Growth looks like for NYSE:HOG

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:HOG scores a 5 out of 10:

• HOG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.76%, which is quite impressive.
• Looking at the last year, HOG shows a quite strong growth in Revenue. The Revenue has grown by 12.70% in the last year.
• HOG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.20% yearly.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of HOG contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.