Harley-davidson Intrinsic Value Calculation – Harley-Davidson Roaring Towards Increased Profits Down the Road
December 9, 2023
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HARLEY-DAVIDSON ($NYSE:HOG): Harley-Davidson is an iconic American motorcycle manufacturer. Although the company has seen its fair share of ups and downs throughout its history, it is now making strides to ensure a prosperous future for its investors. Harley-Davidson recently announced that it is geared up for a profitable journey ahead. Its new strategic initiatives include increasing its focus on innovation and product development, expanding its product portfolio, and taking advantage of the connected mobility market. The company is also increasing its presence in emerging markets such as India and China, where there is a growing demand for motorcycles. In addition to these changes, Harley-Davidson is taking steps to strengthen its financial position.
It has successfully reduced its debt load and is actively seeking out potential partnerships that could lead to further success. The company’s executive team is also working hard to ensure that the brand remains attractive to consumers. As Harley-Davidson continues to rev up its engines, investors can look forward to profitable returns down the road. With its strong focus on innovation, forward-thinking strategy, and strong financial position, the company is well-positioned to ride off into the sunset with increased profits.
Price History
Harley-Davidson is still going strong and is roaring towards increased profits down the road, despite a slight dip in stock prices on Friday. The stock opened at $32.2 and closed at $32.1, down by 1.2% from last closing price of 32.5. This blip in stock price does not detract from the overall positive trajectory of the company as they look to gain more profits in the future. Live Quote…
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 |
| 5.93k | 722.65 | 11.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Harley-davidson. More…
| Operations | Investing | Financing |
| 680.52 | -538.41 | -169.85 |
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 |
| 12.46k | 9.15k | 22.51 |
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 |
| 10.4% | 52.1% | 15.5% |
| FCF Margin | ROE | ROA |
| 8.0% | 17.9% | 4.6% |
Analysis – Harley-davidson Intrinsic Value Calculation
At GoodWhale, we have been analyzing the financials of HARLEY-DAVIDSON. After going through our proprietary Valuation Line, we determined that the intrinsic value of HARLEY-DAVIDSON share is around $45.7. This is significantly higher than the current trading price of $32.1, indicating that the stock is undervalued by 29.8%. We believe this could present a great opportunity for investors to get in at a discounted rate and benefit from a potential upside in the future. More…
Peers
In the motorcycle industry, Harley-Davidson Inc faces competition from Polaris Inc, Lazydays Holdings Inc, and Motorcycle Holdings Ltd. Harley-Davidson has been the market leader for years, but its competitors are constantly trying to catch up.
– Polaris Inc ($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 is looking to improve profitability in the coming years. The company is planning to reposition itself by introducing new product offerings, enhancing its market presence, and providing improved customer service.
Additionally, it has announced a restructuring plan that includes cost reductions and margin improvements. Several analysts have a positive outlook for the company and expect increased sales and earnings to drive stock prices higher over the long term. Furthermore, the company is expected to benefit from a stronger U.S. economy and increasing discretionary spending. Therefore, investors should consider investing in the company as it has the potential to generate attractive returns.
