This is a step-by-step stock review to answer the question, is Harley-Davidson (HOG) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Harley-Davidson (HOG) stock a good buy?
- Harley-Davidson Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Harley-Davidson (HOG) stock a good buy?
1. Harley-Davidson Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- 1903: William S. Harley and Arthur Davidson founded Harley-Davidson in Milwaukee, Wisconsin, starting with a small shed and a single-cylinder motorbike.
- 1907: Incorporated and introduced the first V-twin engine, establishing Harley-Davidson’s reputation for powerful motorcycles.
- 1910s: Supplied motorcycles to the U.S. military during World War I, significantly increasing production and brand recognition.
- 1930s: Introduced the iconic “Knucklehead” engine, leading to significant advancements in motorcycle design.
- 1940s: Played a crucial role in World War II, producing nearly 90,000 motorcycles for the U.S. armed forces.
- 1950s: Became synonymous with American biker culture, popularized through movies and a growing community of enthusiasts.
- 1969: Merged with American Machine and Foundry (AMF), which led to both expansion and quality control issues.
- 1981: Group of investors, including members of the Davidson family, bought Harley-Davidson back from AMF, revitalizing the brand.
- 1990s: Introduced the Evolution engine, significantly improving reliability and performance, and launched the popular Fat Boy model.
- 2000s: Expanded global presence and diversified product lines, including the introduction of the VRSC (V-Rod) series.
- 2010s: Faced challenges with declining domestic sales but continued to innovate with the introduction of electric motorcycles like the LiveWire.
- 2020s: Focused on expanding its electric vehicle lineup and appealing to a younger, more diverse audience.
Harley-Davidson’s rich history of innovation, cultural impact, and resilience through various challenges has solidified its iconic status in the motorcycle industry.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: overpriced
- Score: 33/100
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Harley-Davidson (HOG) makes money:
- Motorcycle Sales: Generates revenue from the sale of new motorcycles, including popular models like the Sportster, Touring, and Cruiser series.
- Parts and Accessories: Earns from selling motorcycle parts, accessories, and customizations to enhance and personalize bikes.
- Merchandise: Profits from branded clothing, gear, and memorabilia, such as jackets, helmets, and shirts.
- Financial Services: Provides financing options for motorcycle purchases through Harley-Davidson Financial Services, earning interest and fees.
- Extended Warranties and Services: Sells extended warranties, maintenance packages, and other service-related products.
- Licensing and Partnerships: Generates revenue through licensing agreements and partnerships for branded products and experiences.
Here are a few of the other companies that Harley-Davidson has acquired over the years.
- MV Agusta
- Erik Buell Racing
- AMF Harley-Davidson
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Harley-Davidson (HOG) stacks up against other companies.
- Marine Products Corporation(MPX) – 67
- Polaris Inc.(PII) – 61
- Brunswick Corporation.(BC) – 45
- LCI Industries.(LCII) – 44
- Thor Industries, Inc.(THO) – 44
- Harley-Davidson, Inc.(HOG) – 33
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Rewire Strategy Implementation:Jochen Zeitz Developed and executed the Rewire strategy, focusing on streamlining operations, reducing complexity, and repositioning the brand.
- Financial Turnaround: Led a financial turnaround, achieving improved profitability and cost management through strategic restructuring and cost-cutting measures.
- New Product Launches: Successfully launched new and innovative products, including the Pan America adventure bike, expanding Harley-Davidson’s market presence.
- Brand Revitalization: Revitalized the brand by emphasizing its core values while modernizing its image to appeal to a broader and younger audience.
- Electric Motorcycle Development: Advanced Harley-Davidson’s foray into electric vehicles with the launch of the LiveWire electric motorcycle, positioning the company in the growing EV market.
- Enhanced Customer Experience: Improved customer engagement and experience through initiatives like enhanced retail environments and digital platforms.
- Focus on Core Markets: Refocused efforts on core markets and segments, optimizing the product lineup and marketing strategies to strengthen market position.
- Sustainability Initiatives: Promoted sustainability within the company, aligning Harley-Davidson’s practices with environmental and social responsibility goals.
Jochen Zeitz’s achievements at Harley-Davidson include implementing the Rewire strategy, leading a financial turnaround, launching new products, revitalizing the brand, advancing electric motorcycle development, enhancing customer experience, focusing on core markets, and promoting sustainability initiatives.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Harley-Davidson (HOG) is 47/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Harley-Davidson (HOG) stock a good buy?
Some of the top questions investors can have is Harley-Davidson (HOG) stock a good buy or should I buy Harley-Davidson (HOG) stock?
Harley-Davidson presents a mixed investment opportunity. Under the leadership of Jochen Zeitz, the company has made significant strides with its Rewire strategy, focusing on streamlining operations and revitalizing the brand. New product launches, such as the Pan America adventure bike and the LiveWire electric motorcycle, demonstrate innovation and an effort to appeal to broader and younger audiences. Harley-Davidson’s emphasis on sustainability and enhancing customer experience further strengthens its market position.
However, potential investors should consider the challenges, including the competitive motorcycle market, fluctuating demand, and economic factors that can impact sales. Despite these challenges, Harley-Davidson’s strong brand, ongoing product innovation, and strategic initiatives make it a compelling investment for those seeking exposure to the motorcycle and lifestyle brand sector.
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To truly know if Harley-Davidson is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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