NYSE:WGO appears to be flying under the radar despite its strong fundamentals.

Take a closer look at WINNEBAGO INDUSTRIES (NYSE:WGO), a remarkable value stock uncovered by our stock screener. NYSE:WGO excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Looking at the Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:WGO was assigned a score of 8 for valuation:

• The Price/Earnings ratio is 9.87, which indicates a very decent valuation of WGO.
• WGO's Price/Earnings ratio is rather cheap when compared to the industry. WGO is cheaper than 87.18% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 25.93. WGO is valued rather cheaply when compared to this.
• A Price/Forward Earnings ratio of 8.51 indicates a reasonable valuation of WGO.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of WGO indicates a rather cheap valuation: WGO is cheaper than 84.62% of the companies listed in the same industry.
• When comparing the Price/Forward Earnings ratio of WGO to the average of the S&P500 Index (21.16), we can say WGO is valued rather cheaply.
• 92.31% of the companies in the same industry are more expensive than WGO, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of WGO indicates a rather cheap valuation: WGO is cheaper than 89.74% of the companies listed in the same industry.
• The excellent profitability rating of WGO may justify a higher PE ratio.
• WGO's earnings are expected to grow with 13.61% in the coming years. This may justify a more expensive valuation.

Profitability Analysis for NYSE:WGO

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 NYSE:WGO, the assigned 9 is a significant indicator of profitability:

• WGO's Return On Assets of 7.66% is amongst the best of the industry. WGO outperforms 92.31% of its industry peers.
• With an excellent Return On Equity value of 13.40%, WGO belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.
• WGO has a Return On Invested Capital of 9.62%. This is amongst the best in the industry. WGO outperforms 94.87% of its industry peers.
• WGO had an Average Return On Invested Capital over the past 3 years of 17.85%. This is significantly above the industry average of 8.42%.
• The last Return On Invested Capital (9.62%) for WGO is well below the 3 year average (17.85%), which needs to be investigated, but indicates that WGO had better years and this may not be a problem.
• WGO has a Profit Margin of 5.50%. This is amongst the best in the industry. WGO outperforms 84.62% of its industry peers.
• In the last couple of years the Profit Margin of WGO has grown nicely.
• Looking at the Operating Margin, with a value of 7.69%, WGO belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
• WGO's Operating Margin has improved in the last couple of years.
• The Gross Margin of WGO (16.40%) is better than 74.36% of its industry peers.
• In the last couple of years the Gross Margin of WGO has grown nicely.

Health Examination for NYSE:WGO

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:WGO has received a 7 out of 10:

• WGO has an Altman-Z score of 4.23. This indicates that WGO is financially healthy and has little risk of bankruptcy at the moment.
• WGO has a Altman-Z score of 4.23. This is amongst the best in the industry. WGO outperforms 87.18% of its industry peers.
• The Debt to FCF ratio of WGO is 3.37, which is a good value as it means it would take WGO, 3.37 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of WGO (3.37) is better than 87.18% of its industry peers.
• WGO has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 2.69 indicates that WGO has no problem at all paying its short term obligations.
• The Current ratio of WGO (2.69) is better than 74.36% of its industry peers.

Growth Assessment of NYSE:WGO

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:WGO was assigned a score of 4 for growth:

• The Earnings Per Share has been growing by 19.48% on average over the past years. This is quite good.
• Measured over the past years, WGO shows a quite strong growth in Revenue. The Revenue has been growing by 11.60% on average per year.
• WGO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.31% yearly.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of WGO contains the most current fundamental analsysis.

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.