NYSE:HOG, an undervalued stock with good fundamentals.

Last update: Feb 23, 2024

Discover HARLEY-DAVIDSON INC (NYSE:HOG), an undervalued stock highlighted by our stock screener. NYSE:HOG showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Assessment of 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 7.62, the valuation of HOG can be described as very cheap.
Based on the Price/Earnings ratio, HOG is valued cheaper than 92.31% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.32. HOG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.50, which indicates a very decent valuation of HOG.
Based on the Price/Forward Earnings ratio, HOG is valued cheaply inside the industry as 87.18% of the companies are valued more expensively.
HOG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
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.
The excellent profitability rating of HOG may justify a higher PE ratio.

Analyzing Profitability Metrics

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.
With an excellent Return On Equity value of 21.83%, HOG belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.05%, HOG belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
With an excellent Profit Margin value of 12.19%, HOG belongs to the best of the industry, outperforming 94.87% of the companies in the same industry.
In the last couple of years the Profit Margin of HOG has grown nicely.
The Operating Margin of HOG (13.56%) is better than 97.44% of its industry peers.
HOG has a Gross Margin of 37.83%. This is amongst the best in the industry. HOG outperforms 97.44% of its industry peers.

Health Examination for NYSE:HOG

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:HOG has earned a 5 out of 10:

HOG has a better Altman-Z score (1.64) than 71.79% of its industry peers.
Looking at the Debt to FCF ratio, with a value of 15.39, HOG belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
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 69.23% of its industry peers.
HOG's Quick ratio of 1.74 is fine compared to the rest of the industry. HOG outperforms 71.79% of its industry peers.

Analyzing Growth Metrics

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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

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.