Harley-DavidsonWBO:HOG +1.56%78 Operating Margin % is 2.00% as of Mar. 2026, which is 85% below its 10-year median of 13.73. GuruFocus rates WBO:HOG with a GF Score™ of 78/100 and a GF Value™ of €24.91 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,325 Vehicles & Parts companies, Harley-Davidson ranks better than 57.21% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Harley-Davidson Operating Margin % Related Terms
Harley-Davidson Operating Margin % Historical Data
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The historical data trend for Harley-Davidson's Operating 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.
WBO:HOG vs LCII, PATK, PII: Operating Margin % Comparison
For the Recreational Vehicles subindustry, Harley-Davidson's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Harley-Davidson's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Harley-Davidson's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Harley-Davidson's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Harley-Davidson (WBO:HOG) has a Operating Margin % of 2.00% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Harley-Davidson and its competitors. This is 85% below median its historical median of 13.73. Over the past decade, Harley-Davidson's Operating Margin % has ranged from 3.45 to 17.45. According to the industry distribution chart, Harley-Davidson ranks #567 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 42.8%.
Is Harley-Davidson's Operating Margin % too high?
Harley-Davidson's current Operating Margin % of 2.00% is 85% below median its 10-year median of 13.73. Over the past 10 years, this metric has ranged from a low of 3.45 to a high of 17.45. The Vehicles & Parts industry median Operating Margin % is 4.86. Harley-Davidson's value of 2.00% is 58.8% below this industry median. Based on the distribution chart, Harley-Davidson ranks #567 out of 1325 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Harley-Davidson has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Harley-Davidson's Operating Margin % compare to LCII and PATK?
According to the Vehicles & Parts industry distribution chart, Harley-Davidson ranks #567 out of 1325 companies for Operating Margin %. This puts Harley-Davidson in the upper half of its industry. The industry median Operating Margin % is 4.86. Harley-Davidson's value of 2.00% is 58.8% below this benchmark. Historically, Harley-Davidson's own Operating Margin % has ranged from 3.45 to 17.45 over the past decade. While the company's 10-year median is 13.73 vs. the industry median of 4.86, Harley-Davidson has consistently been below 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 Operating Margin % for a Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Harley-Davidson's current Operating Margin % of 2.00% is 58.8% below 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Harley-Davidson and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Harley-Davidson's current Operating Margin % is 2.00%, which is 85% below median its own 10-year median of 13.73. 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 (WBO:HOG) is currently considered Fairly Valued. The stock's GF Value™ is €24.91, compared to a current price of €22.72 — trading 8.8% below its estimated fair value. The current Operating Margin % is 2.00%, which is 85% below median its 10-year median of 13.73 and 58.8% below the Vehicles & Parts industry median of 4.86. Harley-Davidson's overall GF Score™ is 78/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Harley-Davidson (WBO:HOG), the current Operating Margin % is 2.00% 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 (WBO:HOG) Overvalued in 2026?
Based on GuruFocus' analysis, Harley-Davidson stock appears to be undervalued.
The current stock price of €22.72 is trading 8.8% below its estimated GF Value™ of €24.91.
GuruFocus considers Harley-Davidson to be Fairly Valued.
Key valuation signals for WBO:HOG:
Operating Margin %: 2.00% (85% below median its 10-year median of 13.73)
GF Value™: €24.91 vs. price of €22.72 (8.8% below fair value)
Industry Position: 58.8% below the Vehicles & Parts median (#567 of 1325)
No single metric tells the full story. See the WBO: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.
78GF Score
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