Some
College— Trade 41% 37% 38% 38% 40% 38% 39% 39% 38% 38% College Grad / Graduate
18% 20% 21% 22% 26% 29% 31% 31% 34% 34% Gross/Net profit Margin: Profitability
Ratios (%) Company Industry Sector S&P Gross Margin (TTM) 34.09 41.07 29.54
50.31 Gross Margin - 5 Yr. Avg. 32.65 40.25 29.01 48.09 Net Profit Margin (TTM)
11.20 6.42 6.33 13.38 Net Profit Margin - 5 Yr. Avg. 9.74 6.99 5.95 10.27 Return
on Assets: Return on Assets Company Industry Sector S&P 5 Return On Assets (TTM)
13.69 7.58 6.52 10.83 Return On Assets - 5 Yr. Avg. 12.62 9.61 5.38 9.37 Return
On Equity (TTM) 25.29 13.80 23.51 23.26 Return On Equity - 5 Yr. Avg. 23.90
17.74 18.76 21.93 Fiscal year-end: December 1999 Sales (mil.): $2,452.9 1-Yr.
Sales Growth: 18.8% 1999 Employees: 7,220 1999 Net Inc. (mil.): $267.2 1-Yr. Net
Inc. Growth: 25.2% 1-Yr. Employee Growth: 16.5% The second-quarter report this
year boasted nearly 20% annual sales growth with improving margins and no share
count dilution. There are not many other companies that have such solid
competitive advantages, combined with dependable management.
For the most recent
quarter, Harley announced earnings per share of $0.29, up 33.4% from last year's
second quarter. Sales across most divisions were up by 21% to 23%, and gross
margins eased to 34.1% from 35.0% the year before, but the company's tax rate
improved, and 1.5 million shares were repurchased, making the bottom line
improvement much more impressive than their growth. Sales growth in the high
teens or low-20% range is very predictable for the company; the long-term trend
on gross margins has been great for shareholders. Harley has funded its growth
over the last 10 years almost entirely through cash generated from operations,
rather than through constantly issuing new equity. There is a greater degree of
Harley stock owned by its employees signifying strong faith in the company. With
a 17% growth rate, combined with high demand for the motorbikes, and the
stability of Harley's earnings make the company very attractive for long term
investment.
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