HARLEY-DAVIDSON INC (HAR.DE) Stock Fundamental Analysis
FRA:HAR - Deutsche Boerse Ag - US4128221086 - Common Stock - Currency: EUR
HAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Automobiles industry. Both the profitability and the financial health of HAR get a neutral evaluation. Nothing too spectacular is happening here. HAR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
HAR had positive earnings in the past year.
HAR had a positive operating cash flow in the past year.
Each year in the past 5 years HAR has been profitable.
In the past 5 years HAR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.86%, HAR is doing good in the industry, outperforming 63.33% of the companies in the same industry.
HAR's Return On Equity of 11.11% is fine compared to the rest of the industry. HAR outperforms 70.00% of its industry peers.
HAR has a Return On Invested Capital of 2.82%. This is amonst the worse of the industry: HAR underperforms 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HAR is in line with the industry average of 6.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 11.11% | ||
| ROIC | 2.82% |
ROA(3y)5.37%
ROA(5y)4.4%
ROE(3y)20.55%
ROE(5y)17.43%
ROIC(3y)6.41%
ROIC(5y)5.73%
1.3 Margins
Looking at the Profit Margin, with a value of 7.39%, HAR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of HAR has grown nicely.
HAR has a Operating Margin of 6.56%. This is in the lower half of the industry: HAR underperforms 63.33% of its industry peers.
HAR's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 34.71%, HAR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of HAR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.56% | ||
| PM (TTM) | 7.39% | ||
| GM | 34.71% |
OM growth 3Y-19.67%
OM growth 5Y-6.04%
PM growth 3Y-10.34%
PM growth 5Y2.13%
GM growth 3Y-0.69%
GM growth 5Y-0.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HAR is destroying value.
Compared to 1 year ago, HAR has less shares outstanding
HAR has less shares outstanding than it did 5 years ago.
HAR has about the same debt/assets ratio as last year.
2.2 Solvency
HAR has an Altman-Z score of 1.27. This is a bad value and indicates that HAR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HAR (1.27) is comparable to the rest of the industry.
HAR has a debt to FCF ratio of 7.93. This is a slightly negative value and a sign of low solvency as HAR would need 7.93 years to pay back of all of its debts.
The Debt to FCF ratio of HAR (7.93) is better than 66.67% of its industry peers.
HAR has a Debt/Equity ratio of 1.72. This is a high value indicating a heavy dependency on external financing.
HAR's Debt to Equity ratio of 1.72 is on the low side compared to the rest of the industry. HAR is outperformed by 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 7.93 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.36
WACC7.76%
2.3 Liquidity
A Current Ratio of 1.56 indicates that HAR should not have too much problems paying its short term obligations.
The Current ratio of HAR (1.56) is better than 76.67% of its industry peers.
HAR has a Quick Ratio of 1.36. This is a normal value and indicates that HAR is financially healthy and should not expect problems in meeting its short term obligations.
HAR has a better Quick ratio (1.36) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
HAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.44%.
HAR shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.52% yearly.
The Revenue for HAR has decreased by -17.15% in the past year. This is quite bad
The Revenue has been decreasing by -0.66% on average over the past years.
EPS 1Y (TTM)-40.44%
EPS 3Y-7.45%
EPS 5Y4.52%
EPS Q2Q%-37.79%
Revenue 1Y (TTM)-17.15%
Revenue growth 3Y-0.94%
Revenue growth 5Y-0.66%
Sales Q2Q%-26.73%
3.2 Future
The Earnings Per Share is expected to grow by 8.60% on average over the next years. This is quite good.
Based on estimates for the next years, HAR will show a small growth in Revenue. The Revenue will grow by 1.14% on average per year.
EPS Next Y-22.82%
EPS Next 2Y-0.77%
EPS Next 3Y5.27%
EPS Next 5Y8.6%
Revenue Next Year-9.95%
Revenue Next 2Y-3.23%
Revenue Next 3Y-2.06%
Revenue Next 5Y1.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HAR is valuated reasonably with a Price/Earnings ratio of 9.17.
Compared to the rest of the industry, the Price/Earnings ratio of HAR is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.29. HAR is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.48 indicates a rather cheap valuation of HAR.
HAR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of HAR to the average of the S&P500 Index (22.17), we can say HAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 7.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HAR is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
HAR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HAR is cheaper than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.24 | ||
| EV/EBITDA | 16.53 |
4.3 Compensation for Growth
The decent profitability rating of HAR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.03
EPS Next 2Y-0.77%
EPS Next 3Y5.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.95%, HAR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.08, HAR is paying slightly less dividend.
HAR's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
5.2 History
The dividend of HAR decreases each year by -14.37%.
Dividend Growth(5Y)-14.37%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
25.39% of the earnings are spent on dividend by HAR. This is a low number and sustainable payout ratio.
DP25.39%
EPS Next 2Y-0.77%
EPS Next 3Y5.27%
FRA:HAR (5/30/2025, 7:00:00 PM)
21.64
+0.1 (+0.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners95.19%
Inst Owner ChangeN/A
Ins Owners0.98%
Ins Owner ChangeN/A
Market Cap2.63B
Analysts70
Price Target25.88 (19.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Yearly Dividend0.62
Dividend Growth(5Y)-14.37%
DP25.39%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.93%
Min EPS beat(2)-39.22%
Max EPS beat(2)35.35%
EPS beat(4)3
Avg EPS beat(4)6.21%
Min EPS beat(4)-39.22%
Max EPS beat(4)35.35%
EPS beat(8)6
Avg EPS beat(8)50.61%
EPS beat(12)10
Avg EPS beat(12)74.63%
EPS beat(16)13
Avg EPS beat(16)68.18%
Revenue beat(2)0
Avg Revenue beat(2)-6.59%
Min Revenue beat(2)-10.44%
Max Revenue beat(2)-2.74%
Revenue beat(4)1
Avg Revenue beat(4)-4.81%
Min Revenue beat(4)-10.44%
Max Revenue beat(4)4.08%
Revenue beat(8)2
Avg Revenue beat(8)-4.15%
Revenue beat(12)6
Avg Revenue beat(12)5%
Revenue beat(16)10
Avg Revenue beat(16)9.38%
PT rev (1m)-1.05%
PT rev (3m)-26.75%
EPS NQ rev (1m)-16.82%
EPS NQ rev (3m)-20.16%
EPS NY rev (1m)-17.59%
EPS NY rev (3m)-21.01%
Revenue NQ rev (1m)-6.44%
Revenue NQ rev (3m)-7.21%
Revenue NY rev (1m)-5.59%
Revenue NY rev (3m)-7.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 7.48 | ||
| P/S | 0.62 | ||
| P/FCF | 3.24 | ||
| P/OCF | 2.71 | ||
| P/B | 0.94 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 16.53 |
EPS(TTM)2.36
EY10.91%
EPS(NY)2.89
Fwd EY13.36%
FCF(TTM)6.69
FCFY30.9%
OCF(TTM)7.99
OCFY36.95%
SpS34.75
BVpS23.1
TBVpS22.65
PEG (NY)N/A
PEG (5Y)2.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 11.11% | ||
| ROCE | 3.58% | ||
| ROIC | 2.82% | ||
| ROICexc | 3.56% | ||
| ROICexgc | 3.59% | ||
| OM | 6.56% | ||
| PM (TTM) | 7.39% | ||
| GM | 34.71% | ||
| FCFM | 19.25% |
ROA(3y)5.37%
ROA(5y)4.4%
ROE(3y)20.55%
ROE(5y)17.43%
ROIC(3y)6.41%
ROIC(5y)5.73%
ROICexc(3y)7.68%
ROICexc(5y)7.1%
ROICexgc(3y)7.75%
ROICexgc(5y)7.17%
ROCE(3y)8.44%
ROCE(5y)7.56%
ROICexcg growth 3Y-23.42%
ROICexcg growth 5Y-7.47%
ROICexc growth 3Y-23.38%
ROICexc growth 5Y-7.45%
OM growth 3Y-19.67%
OM growth 5Y-6.04%
PM growth 3Y-10.34%
PM growth 5Y2.13%
GM growth 3Y-0.69%
GM growth 5Y-0.54%
F-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 7.93 | ||
| Debt/EBITDA | 11.5 | ||
| Cap/Depr | 112% | ||
| Cap/Sales | 3.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 231.91% | ||
| Profit Quality | 260.58% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 1.27 |
F-Score6
WACC7.76%
ROIC/WACC0.36
Cap/Depr(3y)117.79%
Cap/Depr(5y)99.35%
Cap/Sales(3y)3.33%
Cap/Sales(5y)3.09%
Profit Quality(3y)107.15%
Profit Quality(5y)16195.2%
High Growth Momentum
Growth
EPS 1Y (TTM)-40.44%
EPS 3Y-7.45%
EPS 5Y4.52%
EPS Q2Q%-37.79%
EPS Next Y-22.82%
EPS Next 2Y-0.77%
EPS Next 3Y5.27%
EPS Next 5Y8.6%
Revenue 1Y (TTM)-17.15%
Revenue growth 3Y-0.94%
Revenue growth 5Y-0.66%
Sales Q2Q%-26.73%
Revenue Next Year-9.95%
Revenue Next 2Y-3.23%
Revenue Next 3Y-2.06%
Revenue Next 5Y1.14%
EBIT growth 1Y-53.3%
EBIT growth 3Y-20.42%
EBIT growth 5Y-6.66%
EBIT Next Year12.75%
EBIT Next 3Y12.86%
EBIT Next 5Y13.81%
FCF growth 1Y220.86%
FCF growth 3Y0.46%
FCF growth 5Y4.77%
OCF growth 1Y141.58%
OCF growth 3Y2.92%
OCF growth 5Y4.15%