Harley-DavidsonHOG +0.78%80 Return-on-Tangible-Equity is 3.26% as of Mar. 2026, which is 88% below its 10-year median of 26.25. GuruFocus rates HOG with a GF Score™ of 80/100 and a GF Value™ of $28.00 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,285 Vehicles & Parts companies, Harley-Davidson ranks worse than 51.6% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Harley-Davidson's annualized net income for the quarter that ended in Mar. 2026 was $99 Mil. Harley-Davidson's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $3,039 Mil. Therefore, Harley-Davidson's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 3.26%.
The historical rank and industry rank for Harley-Davidson's Return-on-Tangible-Equity or its related term are showing as below:
HOG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.08 Med: 26.25 Max: 37.9
Current: 7.22
During the past 13 years, Harley-Davidson's highest Return-on-Tangible-Equity was 37.90%. The lowest was 0.08%. And the median was 26.25%.
HOG's Return-on-Tangible-Equity is ranked worse than 51.6% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.49
vs HOG: 7.22
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Harley-Davidson Return-on-Tangible-Equity Related Terms
Harley-Davidson Return-on-Tangible-Equity Historical Data
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The historical data trend for Harley-Davidson's Return-on-Tangible-Equity 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.
HOG vs LCII, PATK, THO: Return-on-Tangible-Equity Comparison
For the Recreational Vehicles subindustry, Harley-Davidson's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Harley-Davidson's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Harley-Davidson's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 3.26% mean?
Harley-Davidson (HOG) has a Return-on-Tangible-Equity of 3.26% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Harley-Davidson and its competitors. This is 88% below median its historical median of 26.25. Over the past decade, Harley-Davidson's Return-on-Tangible-Equity has ranged from 0.08 to 37.90. According to the industry distribution chart, Harley-Davidson ranks #663 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 51.6%.
Is Harley-Davidson's Return-on-Tangible-Equity too high?
Harley-Davidson's current Return-on-Tangible-Equity of 3.26% is 88% below median its 10-year median of 26.25. Over the past 10 years, this metric has ranged from a low of 0.08 to a high of 37.90. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.49. Harley-Davidson's value of 3.26% is 56.5% below this industry median. Based on the distribution chart, Harley-Davidson ranks #663 out of 1285 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Harley-Davidson has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Harley-Davidson's Return-on-Tangible-Equity compare to LCII and PATK?
According to the Vehicles & Parts industry distribution chart, Harley-Davidson ranks #663 out of 1285 companies for Return-on-Tangible-Equity. This places Harley-Davidson in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.49. Harley-Davidson's value of 3.26% is 56.5% below this benchmark. Historically, Harley-Davidson's own Return-on-Tangible-Equity has ranged from 0.08 to 37.90 over the past decade. While the company's 10-year median is 26.25 vs. the industry median of 7.49, 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 Return-on-Tangible-Equity for a Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.49, based on 1,285 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Harley-Davidson's current Return-on-Tangible-Equity of 3.26% is 56.5% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Harley-Davidson and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Harley-Davidson's current Return-on-Tangible-Equity is 3.26%, which is 88% below median its own 10-year median of 26.25. 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 Modestly Undervalued. The stock's GF Value™ is $28.00, compared to a current price of $24.42 — trading 12.8% below its estimated fair value. The current Return-on-Tangible-Equity is 3.26%, which is 88% below median its 10-year median of 26.25 and 56.5% below the Vehicles & Parts industry median of 7.49. Harley-Davidson's overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Harley-Davidson (HOG), the current Return-on-Tangible-Equity is 3.26% 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 $24.42 is trading 12.8% below its estimated GF Value™ of $28.00.
GuruFocus considers Harley-Davidson to be Modestly Undervalued.
Key valuation signals for HOG:
Return-on-Tangible-Equity: 3.26% (88% below median its 10-year median of 26.25)
GF Value™: $28.00 vs. price of $24.42 (12.8% below fair value)
Industry Position: 56.5% below the Vehicles & Parts median (#663 of 1285)
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.
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