Why THOR INDUSTRIES INC (NYSE:THO) qualifies as a good dividend investing stock.

Our stock screener has singled out THOR INDUSTRIES INC (NYSE:THO) as a promising choice for dividend investors. THO not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Understanding THO's Dividend Score

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. THO has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 4.41, THO pays a better dividend. On top of this THO pays more dividend than 84.62% of the companies listed in the same industry.
• THO has paid a dividend for at least 10 years, which is a reliable track record.
• THO has not decreased their dividend for at least 10 years, which is a reliable track record.
• The dividend of THO is growing, but earnings are growing more, so the dividend growth is sustainable.

Assessing Health for THO

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. THO has earned a 8 out of 10:

• THO has an Altman-Z score of 3.58. This indicates that THO is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of THO (3.58) is better than 89.74% of its industry peers.
• THO has a debt to FCF ratio of 2.03. This is a good value and a sign of high solvency as THO would need 2.03 years to pay back of all of its debts.
• THO's Debt to FCF ratio of 2.03 is amongst the best of the industry. THO outperforms 97.44% of its industry peers.
• THO has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
• With a decent Debt to Equity ratio value of 0.27, THO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
• THO has a better Current ratio (1.71) than 64.10% of its industry peers.
• The current and quick ratio evaluation for THO is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

How do we evaluate the Profitability for THO?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For THO, the assigned 8 is a significant indicator of profitability:

• THO's Return On Assets of 3.01% is fine compared to the rest of the industry. THO outperforms 79.49% of its industry peers.
• THO's Return On Equity of 5.12% is fine compared to the rest of the industry. THO outperforms 71.79% of its industry peers.
• THO's Return On Invested Capital of 4.82% is fine compared to the rest of the industry. THO outperforms 76.92% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for THO is above the industry average of 8.95%.
• The 3 year average ROIC (11.53%) for THO is well above the current ROIC(4.82%). The reason for the recent decline needs to be investigated.
• THO has a Profit Margin of 2.13%. This is in the better half of the industry: THO outperforms 71.79% of its industry peers.
• THO's Profit Margin has improved in the last couple of years.
• THO has a better Operating Margin (3.56%) than 76.92% of its industry peers.
• The Gross Margin of THO (14.21%) is better than 61.54% of its industry peers.
• In the last couple of years the Gross Margin of THO has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of THO for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.