Winnebago Industries (NYSE:WGO) - Share price, News & Analysis

WGO fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	2/6

WGO Stock Overview

Winnebago Industries, Inc. manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities.

Rewards

Trading at 71.3% below our estimate of its fair value

Earnings have grown 32.6% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of 9% per year for the next 3 years

Winnebago Industries Competitors

Thor Industries

NYSE:THO

US$4.1b

Polaris

NYSE:PII

US$6.1b

Oshkosh

NYSE:OSK

US$5.9b

Brunswick

NYSE:BC

US$5.5b

Price History & Performance

Summary of all time highs, changes and price drops for Winnebago Industries
Historical stock prices
Current Share Price	US$46.75
52 Week High	US$80.30
52 Week Low	US$46.10
Beta	1.7
1 Month Change	-19.59%
3 Month Change	-26.22%
1 Year Change	-32.73%
3 Year Change	36.70%
5 Year Change	82.98%
Change since IPO	1,639.54%

Recent News & Updates

May 13

Winnebago Can Win Inflationary Wars

Winnebago Industries, Inc. continues to rise above pandemic disruptions and inflationary pressures. Quarterly dividends increase further as substantial growth in FY 2022 continues. The stock price is in a downtrend for more than a year now, making it cheaper and undervalued. The pent-up demand for outdoor recreation can support its growth.

Apr 29

At US$53.82, Is It Time To Put Winnebago Industries, Inc. (NYSE:WGO) On Your Watch List?

Winnebago Industries, Inc. ( NYSE:WGO ), is not the largest company out there, but it received a lot of attention from...

Apr 17

Winnebago Industries: Outdoor Recreation Is Essential

Winnebago has improved its sales, market shares, and profitability. The business is in a way better shape than before. WGO's focus on quality, innovation, and service offers it stronger pricing power during an inflationary environment. The valuation is too cheap to ignore given the mega macro trend in outdoor recreation.

Shareholder Returns

	WGO	US Auto	US Market
7D	-12.4%	0.5%	0.1%
1Y	-32.7%	4.3%	-12.7%

Return vs Industry: WGO underperformed the US Auto industry which returned 6.8% over the past year.

Return vs Market: WGO underperformed the US Market which returned -11.5% over the past year.

Price Volatility

Is WGO's price volatile compared to industry and market?
WGO volatility
WGO Average Weekly Movement	7.6%
Auto Industry Average Movement	15.3%
Market Average Movement	8.0%
10% most volatile stocks in US Market	17.0%
10% least volatile stocks in US Market	3.0%

Stable Share Price: WGO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: WGO's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1958	6,532	Mike Happe	https://www.winnebagoind.com

Winnebago Industries, Inc. manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. The company operates in six segments: Grand Design Towables, Winnebago Towables, Winnebago Motorhomes, Newmar motorhomes, Chris-Craft Marine, and Winnebago Specialty Vehicles. It provides towable products that are non-motorized vehicles to be towed by automobiles, pickup trucks, SUVs, or vans for use as temporary living quarters for recreational travel, such as conventional travel trailers, fifth wheels, folding camper trailers, and truck campers under the Winnebago and Grand Design brand names.

Winnebago Industries Fundamentals Summary

How do Winnebago Industries's earnings and revenue compare to its market cap?
WGO fundamental statistics
Market Cap	US$1.64b
Earnings (TTM)	US$346.19m
Revenue (TTM)	US$4.32b

4.4x

P/E Ratio

0.4x

P/S Ratio

Is WGO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WGO income statement (TTM)
Revenue	US$4.32b
Cost of Revenue	US$3.51b
Gross Profit	US$802.77m
Other Expenses	US$456.58m
Earnings	US$346.19m

Last Reported Earnings

Feb 26, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	10.56
Gross Margin	18.59%
Net Profit Margin	8.02%
Debt/Equity Ratio	44.4%

How did WGO perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

6%

Payout Ratio

Valuation

Is Winnebago Industries undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: WGO ($46.75) is trading below our estimate of fair value ($163.17)

Significantly Below Fair Value: WGO is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: WGO is good value based on its PE Ratio (4.4x) compared to the US Auto industry average (13.6x).

PE vs Market: WGO is good value based on its PE Ratio (4.4x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: WGO is good value based on its PB Ratio (1.3x) compared to the US Auto industry average (2.9x).

Future Growth

How is Winnebago Industries forecast to perform in the next 1 to 3 years based on estimates from 10 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

-9.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: WGO's earnings are forecast to decline over the next 3 years (-9% per year).

Earnings vs Market: WGO's earnings are forecast to decline over the next 3 years (-9% per year).

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

Revenue vs Market: WGO's revenue is expected to decline over the next 3 years (-4.8% per year).

High Growth Revenue: WGO's revenue is forecast to decline over the next 3 years (-4.8% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: WGO's Return on Equity is forecast to be low in 3 years time (16.7%).

Past Performance

How has Winnebago Industries performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

32.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WGO has high quality earnings.

Growing Profit Margin: WGO's current net profit margins (8%) are higher than last year (5.6%).

Past Earnings Growth Analysis

Earnings Trend: WGO's earnings have grown significantly by 32.6% per year over the past 5 years.

Accelerating Growth: WGO's earnings growth over the past year (121.9%) exceeds its 5-year average (32.6% per year).

Earnings vs Industry: WGO earnings growth over the past year (121.9%) underperformed the Auto industry 129.3%.

Return on Equity

High ROE: WGO's Return on Equity (28.6%) is considered high.

Financial Health

How is Winnebago Industries's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: WGO's short term assets ($1.0B) exceed its short term liabilities ($464.0M).

Long Term Liabilities: WGO's short term assets ($1.0B) exceed its long term liabilities ($636.4M).

Debt to Equity History and Analysis

Debt Level: WGO's net debt to equity ratio (33.3%) is considered satisfactory.

Reducing Debt: WGO's debt to equity ratio has reduced from 81.7% to 44.4% over the past 5 years.

Debt Coverage: WGO's debt is well covered by operating cash flow (40.3%).

Interest Coverage: WGO's interest payments on its debt are well covered by EBIT (12.3x coverage).

Balance Sheet

Dividend

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

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WGO's dividend (1.54%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: WGO's dividend (1.54%) is low compared to the top 25% of dividend payers in the US market (4.07%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, WGO has been paying a dividend for less than 10 years.

Growing Dividend: WGO's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (5.8%), WGO's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (16.5%), WGO's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure

CEO

Mike Happe (50 yo)

6.33yrs

Tenure

US$6,649,186

Compensation

Mr. Michael J. Happe, also known as Mike, has been the Chief Executive Officer of Winnebago Industries, Inc. since January 18, 2016 and serves as its President since January 1, 2016. He is an Independent D...

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD6.65M) is about average for companies of similar size in the US market ($USD5.41M).

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

Leadership Team

Experienced Management: WGO's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: WGO's board of directors are considered experienced (5.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if 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	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/02/26
Annual Earnings	2021/08/28