Thor Industries (NYSE:THO) - Share price, News & Analysis

Q: What is the Fair Price of THO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

THO ($80.16) is trading below our estimate of [[fair value]] ($91.02)

THO fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	6/6
Financial Health	4/6
Dividends	4/6

THO Stock Overview

Thor Industries, Inc. designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories in the United States, Canada, and Europe.

Rewards

Trading at 11.9% below our estimate of its fair value

Earnings grew by 98.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 41.3% per year for the next 3 years

Has a high level of debt

Unstable dividend track record

Thor Industries Competitors

Winnebago Industries

NYSE:WGO

US$1.7b

Ferrari

NYSE:RACE

US$34.7b

Li Auto

NasdaqGS:LI

US$38.6b

General Motors

NYSE:GM

US$47.2b

Price History & Performance

Summary of all time highs, changes and price drops for Thor Industries
Historical stock prices
Current Share Price	US$80.16
52 Week High	US$128.87
52 Week Low	US$66.26
Beta	1.82
1 Month Change	7.86%
3 Month Change	1.06%
1 Year Change	-26.89%
3 Year Change	42.00%
5 Year Change	-21.91%
Change since IPO	6,770.86%

Shareholder Returns

	THO	US Auto	US Market
7D	2.2%	-0.3%	0.3%
1Y	-26.9%	-9.4%	-18.4%

Return vs Industry: THO underperformed the US Auto industry which returned -13.6% over the past year.

Return vs Market: THO underperformed the US Market which returned -19.1% over the past year.

Price Volatility

Is THO's price volatile compared to industry and market?
THO volatility
THO Average Weekly Movement	7.4%
Auto Industry Average Movement	13.2%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.3%

Stable Share Price: THO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: THO's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1980	31,000	Bob Martin	https://www.thorindustries.com

Thor Industries, Inc. designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories in the United States, Canada, and Europe. The company offers travel trailers; gasoline and diesel Class A, Class B, and Class C motorhomes; conventional travel trailers and fifth wheels; luxury fifth wheels; and motorcaravans, caravans, campervans, and urban vehicles. It also provides aluminum extrusion and specialized component products to RV and other manufacturers; and digital products and services for RVs.

Thor Industries Fundamentals Summary

How do Thor Industries's earnings and revenue compare to its market cap?
THO fundamental statistics
Market Cap	US$4.37b
Earnings (TTM)	US$1.09b
Revenue (TTM)	US$16.08b

4.0x

P/E Ratio

0.3x

P/S Ratio

Is THO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
THO income statement (TTM)
Revenue	US$16.08b
Cost of Revenue	US$13.35b
Gross Profit	US$2.73b
Other Expenses	US$1.65b
Earnings	US$1.09b

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	19.94
Gross Margin	17.00%
Net Profit Margin	6.76%
Debt/Equity Ratio	58.0%

How did THO perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

9%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is THO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for THO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for THO. This is calculated by dividing THO's market cap by their current preferred multiple.
What is THO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$4.37b

THO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	3.5x
PEG Ratio	-0.1x

Price to Earnings Ratio vs Peers

How does THO's PE Ratio compare to its peers?

THO PE Ratio vs Peers

The above table shows the PE ratio for THO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	2358.2x
WGO Winnebago Industries	4.2x	-16.3%	US$1.7b
RACE Ferrari	39.3x	13.4%	US$34.7b
LI Li Auto	9384.1x	66.5%	US$38.6b
GM General Motors	5.3x	6.2%	US$47.2b
THO Thor Industries	4x	-41.3%	US$4.4b

Forward PE

Price-To-Earnings vs Peers: THO is good value based on its Price-To-Earnings Ratio (4x) compared to the peer average (2358.2x).

Price to Earnings Ratio vs Industry

How does THO's PE Ratio compare vs other companies in the Global Auto Industry?

Price-To-Earnings vs Industry: THO is good value based on its Price-To-Earnings Ratio (4x) compared to the US Auto industry average (7.9x)

Price to Earnings Ratio vs Fair Ratio

What is THO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

THO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4x
Fair PE Ratio	7.8x

Price-To-Earnings vs Fair Ratio: THO is good value based on its Price-To-Earnings Ratio (4x) compared to the estimated Fair Price-To-Earnings Ratio (7.8x).

Share Price vs Fair Value

What is the Fair Price of THO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: THO ($80.16) is trading below our estimate of fair value ($91.02)

Significantly Below Fair Value: THO is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: THO's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Discover undervalued companies

Future Growth

How is Thor Industries forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-41.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: THO's earnings are forecast to decline over the next 3 years (-41.3% per year).

Earnings vs Market: THO's earnings are forecast to decline over the next 3 years (-41.3% per year).

High Growth Earnings: THO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: THO's revenue is expected to decline over the next 3 years (-17.1% per year).

High Growth Revenue: THO's revenue is forecast to decline over the next 3 years (-17.1% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: THO's Return on Equity is forecast to be low in 3 years time (10.5%).

Discover growth companies

Past Performance

How has Thor Industries performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

21.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: THO has high quality earnings.

Growing Profit Margin: THO's current net profit margins (6.8%) are higher than last year (5%).

Past Earnings Growth Analysis

Earnings Trend: THO's earnings have grown significantly by 21.5% per year over the past 5 years.

Accelerating Growth: THO's earnings growth over the past year (98.1%) exceeds its 5-year average (21.5% per year).

Earnings vs Industry: THO earnings growth over the past year (98.1%) exceeded the Auto industry 81%.

Return on Equity

High ROE: THO's Return on Equity (31.6%) is considered high.

Discover strong past performing companies

Financial Health

How is Thor Industries's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: THO's short term assets ($3.4B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: THO's short term assets ($3.4B) exceed its long term liabilities ($2.3B).

Debt to Equity History and Analysis

Debt Level: THO's net debt to equity ratio (48.4%) is considered high.

Reducing Debt: THO's debt to equity ratio has increased from 19.9% to 58% over the past 5 years.

Debt Coverage: THO's debt is well covered by operating cash flow (49.6%).

Interest Coverage: THO's interest payments on its debt are well covered by EBIT (17.2x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Thor Industries's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.15%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: THO's dividend (2.15%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: THO's dividend (2.15%) is low compared to the top 25% of dividend payers in the US market (4.24%).

Stability and Growth of Payments

Stable Dividend: THO's dividend payments have been volatile in the past 10 years.

Growing Dividend: THO's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (8.6%), THO's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (12.2%), THO's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure

CEO

Bob Martin (53 yo)

8.92yrs

Tenure

US$19,085,967

Compensation

Mr. Robert W. Martin, also known as Bob, has been the Chief Executive Officer of Thor Industries Inc. since August 1, 2013 and serves as its President. Mr. Martin served as the President and Chief Operatin...

CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD19.09M) is above average for companies of similar size in the US market ($USD6.90M).

Compensation vs Earnings: Bob's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: THO's management team is considered experienced (3.7 years average tenure).

Board Members

Experienced Board: THO's board of directors are considered experienced (6.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: THO insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/05 00:00
End of Day Share Price	2022/07/05 00:00
Earnings	2022/04/30
Annual Earnings	2021/07/31