Harley-davidson Stock Intrinsic Value – Harley-Davidson Reports Strong Fourth Quarter Earnings for Fiscal Year 2022
February 23, 2023
Earnings Overview
On February 2, 2023, HARLEY-DAVIDSON ($NYSE:HOG) released its earnings results for the fourth quarter of fiscal year 2022, which concluded on December 31, 2022. The company saw a 94.1% increase in total revenue, coming in at USD 41.9 million compared to the same period in the previous year. Furthermore, net income increased by 12.4%, amounting to USD 1142.3 million.
Transcripts Simplified
Harley-Davidson reported strong Q4 and full year results, with total consolidated revenue of $1.14 billion in Q4 and $5.8 billion for the full year. Operating income in Q4 was $4 million and $909 million for the full year, showing an increase of 10%. Global retail sales of new motorcycles were flat in Q4 and down 8% for the full year due to the production suspension and inventory replenishment. The company’s Hardwire strategy contributed to the success, and LiveWire was included in the new three-segment structure.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Harley-davidson. More…
| Total Revenues | Net Income | Net Margin |
| 5.76k | 741.41 | 12.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Harley-davidson. More…
| Operations | Investing | Financing |
| 548.46 | -773.01 | -201.97 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Harley-davidson. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 11.49k | 8.59k | 18.37 |
Key Ratios Snapshot
Some of the financial key ratios for Harley-davidson are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.4% | 15.6% | 15.8% |
| FCF Margin | ROE | ROA |
| 6.9% | 20.0% | 4.9% |
Market Price
On Thursday, the stock of HARLEY-DAVIDSON opened at $50.0 and closed at an impressive $51.7, soar by 10.7% from its prior closing price of 46.7. The iconic American motorcycle maker reported strong revenue growth and higher motorcycle shipments from the same period last year. Furthermore, the company also saw higher sales of parts, garments and accessories, which drove their overall revenue growth. The strong fourth quarter results earned HARLEY-DAVIDSON accolades from investors and Wall Street analysts alike as the stock surged by 10.7%.
This is a clear indication that the motorcycle maker has performed exceedingly well in the current environment, despite the pandemic causing disruption in many industries. Investors are confident that HARLEY-DAVIDSON will be able to maintain its healthy performance in the upcoming quarters as well. Live Quote…
Analysis – Harley-davidson Stock Intrinsic Value
At GoodWhale, we have done a fundamental analysis of HARLEY-DAVIDSON, and have calculated the intrinsic value of their stock to be around $42.6 using our proprietary Valuation Line. Currently, HARLEY-DAVIDSON shares are trading at $51.7, making them overvalued by 21.2%. This implies that the stock may be a less attractive investment opportunity at this current time. More…
Peers
In the motorcycle industry, Harley-Davidson Inc faces competition from Polaris Inc, Lazydays Holdings Inc, and Motorcycle Holdings Ltd. Harley-Davidson has been the market leader for years, but its competitors are constantly trying to catch up.
– Polaris Inc ($NYSE:PII)
Polaris Inc is a American manufacturing company based in Minnesota. The company specializes in off-road vehicles, snowmobiles, motorcycles, and ATVs. Polaris is also a leading manufacturer of electric vehicles.
The company has a market cap of 5.52B as of 2022 and a ROE of 32.56%. Polaris has a long history of innovative and high-quality products that have made it a leader in the powersports industry. The company’s strong financials and commitment to innovation should continue to fuel growth in the years to come.
– Lazydays Holdings Inc ($NASDAQ:LAZY)
Lazydays Holdings Inc is a holding company that, through its subsidiaries, engages in the retail sale of recreational vehicles (RVs) and related services in the United States. It operates through two segments, RV Services and Sales, and RV Accessories and Supplies. The company was founded in 1976 and is headquartered in Englewood, Colorado.
As of 2022, Lazydays Holdings Inc had a market cap of 129.7 million and a return on equity of 41.96%. The company is engaged in the retail sale of recreational vehicles and related services in the United States.
– Motorcycle Holdings Ltd ($ASX:MTO)
Following a banner year in 2020, Harley-Davidson’s market cap has grown to $153.03M. The company’s ROE has also grown to 13.44%. Harley-Davidson is a leading manufacturer of motorcycles and related products and services. The company’s products and services are sold through a worldwide network of independent dealers and distributors.
Summary
HARLEY-DAVIDSON released its fourth quarter earnings results for 2022, showing a 94.1% year-over-year increase in total revenue and a 12.4% increase in net income. The company’s stock price moved upwards on the same day, indicating that investors reacted positively to the news. Analysts suggest that HARLEY-DAVIDSON is well-positioned to continue strong growth in the coming years, given their positive financial results and focus on innovative products. Investors should continue to monitor the company and its future performance to make informed decisions regarding potential investments.
