Harley Davidson Financial and Strategic Analysis Review

Topics: Harley-Davidson, Motorcycle, Softail Pages: 5 (1002 words) Published: January 11, 2014

Harley-Davidson, Inc. - Financial and Strategic Analysis Review

Publication Date: 03-Aug-2012Reference Code: GDAUT29887FSA

Company Snapshot

Key Information
Harley-Davidson, Inc., Key Information
Web Addresswww.harley-davidson.com
Financial year-endDecember
Number of Employees6,000
NYSEHOG
Source : GlobalData

Key Ratios

Harley-Davidson, Inc., Key Ratios
P/E 20.87
EV/EBITDA 19.64
Return on Equity (%) 24.75
Debt/Equity 236.45
Operating profit margin (%) 15.63
Dividend Yield 0.01
Note: Above ratios are based on share price as of 01-Aug-2012 Source : GlobalData Company Overview

Harley-Davidson, Inc. (Harley-Davidson) is one of the leading manufacturers of heavyweight motorcycles in the world. Harley-Davidson is the parent company of the group of companies including Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The company offers more than 30 models of touring and custom Harleys through a worldwide network of more than 1,600dealers,spreadacrosssixcontinents. Harley-Davidson provides wholesale and retail financing and insurance programs principally to its dealers and customers.

SWOT Analysis

Share Data

Harley-Davidson, Inc., Share Data
Price (USD) as on 01-Aug-201241.67
EPS (USD)2.33
Book value per share (USD)10.50
Shares Outstanding (in million)234.92
Source : GlobalData

Performance Chart
Harley-Davidson, Inc., Performance Chart (2007 - 2011)
Financial Performance
The company reported revenues of (U.S. Dollars) USD 5,311.71 million during the fiscal year ended December 2011, an increase of 9.31% over 2010. The operating profit of the company was USD 829.97 million during the fiscal year 2011, an increase of 74.59% over 2010. The net profit of the company was USD 599.11 million during the fiscal year 2011, an increase of 308.83% over 2010.

Source : GlobalData

Harley-Davidson, Inc. - SWOT Analysis

SWOT Analysis - Overview
Harley-Davidson, Inc. (Harley-Davidson) designs, manufactures, and sells heavyweight motorcycles. The company markets its products in North America, Europe, Asia/Pacific and Latin America. The company’s strong brand image, coupled with its wide range of products, helps it to be a front-runner in the industry. However, dependence on the domestic market and product issues are a few areas of concern to the company. Nonetheless, expansion in global markets, especially Asian markets, and launch of new models could ensure a strong future for the company. New emission standards for two wheelers and the prevailing competition could negatively impact the company’s growth.

Harley-Davidson, Inc. - Strengths
Strength - Strong Brand Image
Harley-Davidson owns one of the strongest brands in the world, which helps it attract and retain a loyal customer base. The company established a strong brand image with its motorcycles achieving iconic status and being ranked among the world’s most valuable brands. Harley-Davidson has been continuously ranked among the top 100 global brands in the world. The company holds 55.7% share in the US heavyweight market; and is ranked #1 or #2 in the heavyweight motorcycle market share in nine countries across Europe. Harley-Davidson’s motorcycles are known for their traditional styling, design simplicity, durability and quality. The company achieved industry recognition for its high quality, best design, robust performance and unflinching customer confidence, loyalty and trust of its products and services. The Harley-Davidson brand has significantly contributed to the success of the company by building strong market recognition and a loyal customer base.

Strength - Broad Product and Service Portfolio
Harley-Davidson offers a broad array of products and services through its two business segments, namely, the Motorcycles & Related Products segment and the Financial Services segment. The company offers a variety of products in...
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