NYSE:HOG is probably undervalued for the fundamentals it is displaying.

Last update: Dec 21, 2023

Our stock screening tool has identified HARLEY-DAVIDSON INC (NYSE:HOG) as an undervalued gem with strong fundamentals. NYSE:HOG boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Evaluating Valuation: NYSE:HOG

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:HOG scores a 8 out of 10:

With a Price/Earnings ratio of 7.03, the valuation of HOG can be described as very cheap.
92.31% of the companies in the same industry are more expensive than HOG, based on the Price/Earnings ratio.
HOG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.30.
Based on the Price/Forward Earnings ratio of 7.80, the valuation of HOG can be described as very cheap.
HOG's Price/Forward Earnings ratio is rather cheap when compared to the industry. HOG is cheaper than 87.18% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.92. HOG is valued rather cheaply when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HOG indicates a rather cheap valuation: HOG is cheaper than 84.62% of the companies listed in the same industry.
89.74% 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.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:HOG scores a 8 out of 10:

With an excellent Return On Assets value of 5.80%, HOG belongs to the best of the industry, outperforming 89.74% of the companies in the same industry.
HOG has a Return On Equity of 21.83%. This is amongst the best in the industry. HOG outperforms 94.87% of its industry peers.
The Return On Invested Capital of HOG (6.02%) is better than 87.18% of its industry peers.
The last Return On Invested Capital (6.02%) for HOG is above the 3 year average (5.75%), which is a sign of increasing profitability.
The Profit Margin of HOG (12.19%) is better than 97.44% of its industry peers.
HOG's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 13.56%, HOG belongs to the best of the industry, outperforming 97.44% of the companies in the same industry.
HOG's Gross Margin of 37.83% is amongst the best of the industry. HOG outperforms 97.44% of its industry peers.

Assessing Health Metrics for NYSE:HOG

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:HOG, the assigned 5 reflects its health status:

With a decent Altman-Z score value of 1.62, HOG is doing good in the industry, outperforming 71.79% of the companies in the same industry.
The Debt to FCF ratio of HOG (15.39) is better than 82.05% of its industry peers.
HOG has a Current Ratio of 2.03. This indicates that HOG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HOG (2.03) is better than 66.67% of its industry peers.
With a decent Quick ratio value of 1.74, HOG is doing good in the industry, outperforming 69.23% of the companies in the same industry.

What does the Growth looks like for NYSE:HOG

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:HOG has received a 4 out of 10:

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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

Check the latest full fundamental report of HOG for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.