Harley-DavidsonHOG -0.12%79 Gross Margin % is 28.92% as of Mar. 2026, which is 21% below its 10-year median of 36.46. GuruFocus rates HOG with a GF Score™ of 79/100 and a GF Value™ of $28.02 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,313 Vehicles & Parts companies, Harley-Davidson ranks better than 70.37% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Harley-Davidson had a gross margin of 28.92% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Harley-Davidson Gross Margin % Related Terms
Harley-Davidson Gross Margin % Historical Data
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The historical data trend for Harley-Davidson's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Recreational Vehicles subindustry, Harley-Davidson's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Harley-Davidson Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Harley-Davidson's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Harley-Davidson's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Harley-Davidson (HOG) has a Gross Margin % of 28.92% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Harley-Davidson and its competitors. This is 21% below median its historical median of 36.46. Over the past decade, Harley-Davidson's Gross Margin % has ranged from 28.09 to 39.97. According to the industry distribution chart, Harley-Davidson ranks #389 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 29.6%.
Is Harley-Davidson's Gross Margin % too high?
Harley-Davidson's current Gross Margin % of 28.92% is 21% below median its 10-year median of 36.46. Over the past 10 years, this metric has ranged from a low of 28.09 to a high of 39.97. The Vehicles & Parts industry median Gross Margin % is 19.84. Harley-Davidson's value of 28.92% is 45.8% above this industry median. Based on the distribution chart, Harley-Davidson ranks #389 out of 1313 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Harley-Davidson has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Harley-Davidson's Gross Margin % compare to LCII and PATK?
According to the Vehicles & Parts industry distribution chart, Harley-Davidson ranks #389 out of 1313 companies for Gross Margin %. This puts Harley-Davidson in the upper half of its industry. The industry median Gross Margin % is 19.84. Harley-Davidson's value of 28.92% is 45.8% above this benchmark. Historically, Harley-Davidson's own Gross Margin % has ranged from 28.09 to 39.97 over the past decade. While the company's 10-year median is 36.46 vs. the industry median of 19.84, Harley-Davidson has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Harley-Davidson's current Gross Margin % of 28.92% is 45.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Harley-Davidson and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Harley-Davidson's current Gross Margin % is 28.92%, which is 21% below median its own 10-year median of 36.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harley-Davidson stock overvalued right now?
Based on GuruFocus' analysis, Harley-Davidson (HOG) is currently considered Fairly Valued. The stock's GF Value™ is $28.02, compared to a current price of $25.55 — trading 8.8% below its estimated fair value. The current Gross Margin % is 28.92%, which is 21% below median its 10-year median of 36.46 and 45.8% above the Vehicles & Parts industry median of 19.84. Harley-Davidson's overall GF Score™ is 79/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Harley-Davidson (HOG), the current Gross Margin % is 28.92% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Harley-Davidson (HOG) Overvalued in 2026?
Based on GuruFocus' analysis, Harley-Davidson stock appears to be undervalued.
The current stock price of $25.55 is trading 8.8% below its estimated GF Value™ of $28.02.
GuruFocus considers Harley-Davidson to be Fairly Valued.
Key valuation signals for HOG:
Gross Margin %: 28.92% (21% below median its 10-year median of 36.46)
GF Value™: $28.02 vs. price of $25.55 (8.8% below fair value)
Industry Position: 45.8% above the Vehicles & Parts median (#389 of 1313)
No single metric tells the full story. See the HOG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harley-Davidson is a leading global manufacturer of heavyweight motorcycles across the custom, cruising, and touring categories, as well as related merchandise, parts, and accessories. In recent years, the firm has expanded into the adventure touring market with its Pan America model, into electric with the LiveWire brand, and is returning to smaller-displacement bikes with the Sprint. Its captive finance arm, Harley-Davidson Financial Services, provides wholesale financing to dealers and retail financing and insurance brokerage services to customers. Harley captured around 34% of the heavyweight domestic market in 2025.
79GF Score
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