Despite its impressive fundamentals, NYSE:HOG remains undervalued.

Last update: Feb 2, 2024

Discover HARLEY-DAVIDSON INC (NYSE:HOG)—an undervalued stock our stock screener has picked out. NYSE:HOG demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Assessing Valuation Metrics for NYSE:HOG

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:HOG has earned a 8 for valuation:

With a Price/Earnings ratio of 6.78, the valuation of HOG can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of HOG indicates a rather cheap valuation: HOG is cheaper than 92.31% of the companies listed in the same industry.
HOG is valuated cheaply when we compare the Price/Earnings ratio to 26.18, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.57 indicates a rather cheap valuation of HOG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HOG indicates a rather cheap valuation: HOG is cheaper than 87.18% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.43. HOG is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, HOG is valued cheaper than 84.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HOG is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
HOG has an outstanding profitability rating, which may justify a higher PE ratio.

How do we evaluate the Profitability for NYSE:HOG?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:HOG has earned 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.
The Return On Equity of HOG (21.83%) is better than 92.31% of its industry peers.
HOG has a better Return On Invested Capital (6.02%) than 87.18% of its industry peers.
The 3 year average ROIC (5.75%) for HOG is below the current ROIC(6.02%), indicating increased profibility in the last year.
The Profit Margin of HOG (12.19%) is better than 94.87% of its industry peers.
HOG's Profit Margin has improved in the last couple of years.
HOG has a better Operating Margin (13.56%) than 97.44% of its industry peers.
With an excellent Gross Margin value of 37.83%, HOG belongs to the best of the industry, outperforming 97.44% of the companies in the same industry.

Evaluating Health: NYSE:HOG

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:HOG, the assigned 5 for health provides valuable insights:

With a decent Altman-Z score value of 1.61, HOG is doing good in the industry, outperforming 69.23% of the companies in the same industry.
HOG's Debt to FCF ratio of 15.39 is amongst the best of the industry. HOG outperforms 82.05% of its industry peers.
A Current Ratio of 2.03 indicates that HOG has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.03, HOG is doing good in the industry, outperforming 69.23% of the companies in the same industry.
HOG's Quick ratio of 1.74 is fine compared to the rest of the industry. HOG outperforms 71.79% of its industry peers.

Looking at the Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:HOG has earned a 4 for growth:

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.

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.