NYSE:HOG, an undervalued stock with good fundamentals.

Last update: Nov 8, 2023

Uncover the potential of HARLEY-DAVIDSON INC (NYSE:HOG) as our stock screener's choice for an undervalued stock. NYSE:HOG maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Valuation Analysis for NYSE:HOG

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:HOG, the assigned 8 reflects its valuation:

With a Price/Earnings ratio of 5.17, the valuation of HOG can be described as very cheap.
Based on the Price/Earnings ratio, HOG is valued cheaper than 92.11% of the companies in the same industry.
HOG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.44.
Based on the Price/Forward Earnings ratio of 5.68, the valuation of HOG can be described as very cheap.
Based on the Price/Forward Earnings ratio, HOG is valued cheaper than 92.11% of the companies in the same industry.
HOG is valuated cheaply when we compare the Price/Forward Earnings ratio to 18.82, which is the current average of the S&P500 Index.
84.21% of the companies in the same industry are more expensive than HOG, based on the Enterprise Value to EBITDA ratio.
89.47% of the companies in the same industry are more expensive than HOG, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of HOG may justify a higher PE ratio.

Profitability Analysis for NYSE:HOG

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:HOG has achieved a 8:

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's Return On Invested Capital of 7.23% is amongst the best of the industry. HOG outperforms 86.84% of its industry peers.
The last Return On Invested Capital (7.23%) for HOG is above the 3 year average (5.75%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 13.03%, HOG belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
HOG's Profit Margin has improved in the last couple of years.
The Operating Margin of HOG (15.49%) is better than 97.37% of its industry peers.
With an excellent Gross Margin value of 38.36%, HOG belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.

Analyzing Health Metrics

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:HOG scores a 5 out of 10:

With a decent Altman-Z score value of 1.62, HOG is doing good in the industry, outperforming 65.79% of the companies in the same industry.
HOG's Debt to FCF ratio of 13.29 is amongst the best of the industry. HOG outperforms 81.58% of its industry peers.
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.

Analyzing Growth Metrics

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:

The Earnings Per Share has grown by an impressive 29.76% over the past year.
The Revenue has grown by 12.70% in the past year. This is quite good.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.