HOG - Harley Davidson Is Still Not Attractive At Its Current Price
Background
Harley-Davidson,Inc. (HOG) manufactures and sells custom luxury motorcycles through a network of independent dealers worldwide. HOG reports its business under two segments, Motorcycles and Financial Services. The Motorcycles Segment can be split mainly into sales from Motorcycles, Parts & Accessories, General Merchandise and Licensing, whereas Financial Services provides financing options to customers.
HOG faces immense challenges ahead as it experiences a decline in motorcycle sales over the past 5 years.
Revenue by Segment (USD Bn, '14-'19):
Source: HOG's 10-K
Current Situation
We are currently observing two major concerning trends:
- Sales in the