Is HOG a high-quality business?

AlphaMadera's AlphaQuality grade scores Harley-Davidson, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how HOG compares to a Buffett-style quality bar.

What is Harley-Davidson, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to HOG based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes HOG a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

HOG - Harley-Davidson, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $23.17 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

B- 65.9 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

D 37.4

5yr Avg ROIC 8.7% 53/100
Operating Margin Trend -2.13 pp/yr 0/100

Capital Efficiency

Weight: 15%

A 92.3

5yr Avg ROE 18.4% 88/100
5yr Share-Count CAGR -6.0% 100/100

Growth Quality

Weight: 10%

F 17.3

5yr Revenue CAGR -4.3% 11/100
5yr EPS CAGR -9.7% 1/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

A- 84.6

5yr FCF Margin 11.7% 74/100
5yr FCF/NI Conversion 1.15x 97/100

Balance Sheet

Weight: 25%

A- 82.4

Net Debt / EBITDA -0.08x 95/100
Interest Coverage (EBIT/Int) 14.72x 92/100
Altman Z-Score 2.19 47/100

Stability

Weight: 20%

C+ 57.7

EPS Volatility (σ/μ) 0.40 43/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 2/5 60/100

4 of 4 gurus held; 2 added; 1 trimmed.

Holders: 4
Avg Δ position: +90.6%
New buys: 0
Full exits: 0

Greenblatt increased +404%
Dalio decreased -76%
Cooperman increased +35%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.