Harley Davidson Profitability Analysis

HOG
 Stock
  

USD 32.74  0.65  2.03%   

For Harley Davidson profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Harley Davidson to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Harley-Davidson utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Harley Davidson's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Harley-Davidson over time as well as its relative position and ranking within its peers. Please check Risk vs Return Analysis.
  
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Harley Davidson Sales per Share is projected to increase significantly based on the last few years of reporting. The past year's Sales per Share was at 34.68. The current year Income Tax Expense is expected to grow to about 200.6 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (259.9 M).

Harley Davidson Revenues

5.15 Billion

Is Harley Davidson's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Harley Davidson. If investors know Harley will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Harley Davidson listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.14
Market Capitalization
4.7 B
Quarterly Revenue Growth YOY
0.051
Return On Assets
0.0445
Return On Equity
0.27
The market value of Harley-Davidson is measured differently than its book value, which is the value of Harley that is recorded on the company's balance sheet. Investors also form their own opinion of Harley Davidson's value that differs from its market value or its book value, called intrinsic value, which is Harley Davidson's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Harley Davidson's market value can be influenced by many factors that don't directly affect Harley Davidson's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Harley Davidson's value and its price as these two are different measures arrived at by different means. Investors typically determine Harley Davidson value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Harley Davidson's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Harley-Davidson Beta vs. Shares Owned by Insiders Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Harley Davidson's current stock value. Our valuation model uses many indicators to compare Harley Davidson value to that of its competitors to determine the firm's financial worth.
Harley-Davidson is one of the top stocks in shares owned by insiders category among related companies. It is one of the top stocks in beta category among related companies totaling about  2.25  of Beta per Shares Owned by Insiders. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Harley Davidson by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Harley Davidson's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Harley Davidson's earnings, one of the primary drivers of an investment's value.

Harley Beta vs. Shares Owned by Insiders

Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.
Harley Davidson 
Insiders Shares 
 = 
Executives Shares 
Employees 
0.61 %
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it will be expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Harley Davidson 
Beta 
 = 
Covariance 
Variance 
1.37
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

Harley Beta Comparison

Harley Davidson is currently under evaluation in beta category among related companies.

Harley Davidson Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Harley Davidson, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Harley Davidson will eventually generate negative long term returns. The profitability progress is the general direction of Harley Davidson's change in net profit over the period of time. It can combine multiple indicators of Harley Davidson, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-240.9 M-259.9 M
Consolidated Income650 M586.1 M
Net Income650 M586.1 M
Net Income Common Stock650 M586.1 M
Net Loss Income from Discontinued Operations-45.9 M-49.6 M
Operating Income823.4 M795.2 M
Income Tax Expense169.2 M200.6 M
Net Income Per Employee112.1 K110.9 K
The company operates in two segments, Motorcycles and Related Products and Financial Services. Harley-Davidson, Inc. was founded in 1903 and is based in Milwaukee, Wisconsin. Harley Davidson operates under Recreational Vehicles classification in the United States and is traded on New York Stock Exchange. It employs 5800 people.

Harley Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Harley Davidson. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Harley Davidson position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Harley Davidson's important profitability drivers and their relationship over time.

Harley Davidson Profitability Trends

Harley Davidson profitability trend refers to the progression of profit or loss within a business. An upward trend means that Harley Davidson's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Harley Davidson's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Harley Davidson Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Harley Davidson different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Harley Davidson in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Harley Davidson's future profitability.

Use Harley Davidson in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Harley Davidson position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Harley Davidson will appreciate offsetting losses from the drop in the long position's value.

Harley Davidson Pair Trading

Harley-Davidson Pair Trading Analysis

The ability to find closely correlated positions to Harley Davidson could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Harley Davidson when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Harley Davidson - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Harley-Davidson to buy it.
The correlation of Harley Davidson is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Harley Davidson moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Harley-Davidson moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Harley Davidson can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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Please check Risk vs Return Analysis. Note that the Harley-Davidson information on this page should be used as a complementary analysis to other Harley Davidson's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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To fully project Harley Davidson's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Harley-Davidson at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Harley Davidson's income statement, its balance sheet, and the statement of cash flows.
Potential Harley Davidson investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Harley Davidson investors may work on each financial statement separately, they are all related. The changes in Harley Davidson's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Harley Davidson's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.