top of page


Harley-Davidson is the parent company for the groups of companies doing business as Harley-Davidson Motor Company and Harley-Davidson Financial Services (HDFS). Co. operates in two business segments: Motorcycles & Related Products (Motorcycles) and Financial Services. The primary business of the Motorcycles segment is to design, manufacture and sell at wholesale street-legal Harley-Davidson motorcycles as well as a line of motorcycle parts, accessories, general merchandise and related services. HDFS is engaged in the business of financing and servicing wholesale inventory receivables and retail consumer loans, primarily for the purchase of Harley-Davidson motorcycles.



In our opinion Harley's economic moat is dug from a strong distribution channel and brand loyalty. HOG has a strong dealer network allows the company to have a broad reach with its products. Harley’s 100 years history is hard to replicate.  Harley dominates in the U.S. market for heavyweight motorcycles--with about 60% share—this has created economies of scale.



Harley crashed in early 2015.  Revenues didn't live up to estimates. We don't look for this situation to abate over the next few quarters. We like the Harley story long term, thanks to favorable demographics, a continued domestic economic recovery, and a strong new product pipeline, short-term risks remain. Price competition in this space may remain intense for the foreseeable future, while foreign currency headwinds are also reason for caution. The company remains shareholder friendly. Indeed, the board of directors raised the quarterly dividend to an annual run rate of $1.24 a share. We look for further increases down the road, given likely strong cash flow from operations. Harley's earnings should regain solid momentum in the next 3 to 5 years.



  • Strong market position and brand image enables the company to get more business

  • Wide distribution network enhances geographic reach

  • Robust financial performance helps the company in future growth prospects 


  • Product recalls may negatively impact consumer confidence and brand image

  • Unfunded employee post-retirement benefits could negatively affect the liquidity position 



  • Intense competition could negatively impact financial condition and results of operations

  • Compliance with government laws and regulations could increase operational cost

  • Reliance on third party suppliers to obtain raw materials may have adverse impact on business and results of operations 


  • Robust outlook of global motorcycle industry could provide growth opportunities

  • New product and market development strategies could help in business expansion 

The above report is for information purposes only, and is not a solicitation or offer to buy or sell any securities. Past performance is no guarantee of future performance. Neither diversification nor asset allocation ensures a profit or guarantees against loss. Before investing, investors should consider their risk tolerance, investment objectives, time horizon, available capital, and charges and expenses.  


The information presented in this report has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guranteed. All material is subject to change without notice. The views and opinions expressed are those of Focused Stock Research and/or WALT ST Investment Management, Ltd. and in no way reflect the views and opinions of Investment Consultants nor their Broker Dealers.


bottom of page