WINNEBAGO INDUSTRIES (NYSE:WGO) is an undervalued gem with solid fundamentals.

Uncover the potential of WINNEBAGO INDUSTRIES (NYSE:WGO) as our stock screener's choice for an undervalued stock. WGO maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Valuation Insights: WGO

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. WGO has earned a 7 for valuation:

• 80.00% of the companies in the same industry are more expensive than WGO, based on the Price/Earnings ratio.
• Compared to an average S&P500 Price/Earnings ratio of 27.85, WGO is valued a bit cheaper.
• Based on the Price/Forward Earnings ratio of 7.73, the valuation of WGO can be described as very cheap.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of WGO indicates a rather cheap valuation: WGO is cheaper than 87.50% of the companies listed in the same industry.
• WGO is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.77, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WGO indicates a somewhat cheap valuation: WGO is cheaper than 80.00% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of WGO indicates a rather cheap valuation: WGO is cheaper than 92.50% of the companies listed in the same industry.
• WGO has a very decent profitability rating, which may justify a higher PE ratio.
• WGO's earnings are expected to grow with 25.07% in the coming years. This may justify a more expensive valuation.

Profitability Insights: WGO

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of WGO, the assigned 6 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of -0.26%, WGO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
• WGO's Return On Equity of -0.47% is fine compared to the rest of the industry. WGO outperforms 70.00% of its industry peers.
• WGO's Return On Invested Capital of 2.73% is fine compared to the rest of the industry. WGO outperforms 72.50% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for WGO is significantly above the industry average of 6.75%.
• The 3 year average ROIC (13.73%) for WGO is well above the current ROIC(2.73%). The reason for the recent decline needs to be investigated.
• WGO's Operating Margin of 2.29% is fine compared to the rest of the industry. WGO outperforms 70.00% of its industry peers.

Evaluating Health: WGO

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. WGO has earned a 7 out of 10:

• WGO has an Altman-Z score of 3.23. This indicates that WGO is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.23, WGO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
• WGO has a better Debt to FCF ratio (8.28) than 85.00% 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.
• WGO has a better Debt to Equity ratio (0.44) than 62.50% of its industry peers.
• A Current Ratio of 2.17 indicates that WGO has no problem at all paying its short term obligations.
• WGO's Current ratio of 2.17 is amongst the best of the industry. WGO outperforms 82.50% of its industry peers.

Understanding WGO's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. WGO has received a 4 out of 10:

• The Revenue has been growing by 8.41% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 23.65% on average over the next years. This is a very strong growth
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.