HOG

Harley-Davidson Inc

Consumer, Industrial/Transportation


Presented:05/31/2013
Price:$54.54
Cap:$12.20B
Current Price:$35.24
Cap:$4.64B

Presented

Date05/31/2013
Price$54.54
Market Cap$12.20B
Ent Value$16.73B
P/E Ratio16.24x
Book Value$13.79
Div Yield1.9%
Shares O/S224.41M
Ave Daily Vol1,510,000
Short Int2.83%

Current

Price$35.24
Market Cap$4.64B
Harley-Davidson, Inc. manufactures heavyweight cruiser and touring motorcycles. The company operates through two segments: the Motorcycles segment and the Financial Services segment. The Motorcycles segment designs and manufactures premium motorcycles for the heavyweight market and sells them at wholesale. This segment manufactures five families of motorcycles: Touring, Dyna, Softail, Sportster, and V-Rod. It also offers limited-edition, factory-custom motorcycles through its custom vehicle operation program. In addition, the company provides motorcycle parts and accessories comprising replacement parts, and mechanical and cosmetic accessories; general merchandise, such as apparel and riding gear; and related services. It also licenses the Harley-Davidson name and other trademarks. This segment sells its products through a network of independent dealers primarily in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The Financial Services segment provides wholesale and retail financing, and insurance and insurance-related programs to dealers and retail customers. It also offers wholesale financial services, including floor plan and open account financing of motorcycles, and motorcycle parts and accessories; and operates an insurance agency that offers point-of-sale protection products to Harley-Davidson dealers in the United States and Canada, including motorcycle insurance. Harley-Davidson, Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin.

Highlights

The presenter is bullish on the outlook for HOG, and believes the company’s brand remains extremely strong in the market. He expects a combination of the company’s recent restructuring and the reduction of motorcycles in the sales channel (over the past five years) to contribute to a meaningful expansion of operating margins over the next 12-18 months, and as profitability expands he believes the market will award HOG a higher multiple on future earnings (e.g., 15x his $5 per-share estimate for 2015 yields a $90 potential value). He outlined his thesis as follows:

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.