THOR INDUSTRIES INC (THO) Stock Fundamental Analysis
NYSE:THO - New York Stock Exchange, Inc. - US8851601018 - Common Stock - Currency: USD
THO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 38 industry peers in the Automobiles industry. Both the health and profitability get an excellent rating, making THO a very profitable company, without any liquidiy or solvency issues. THO is not valued too expensively and it also shows a decent growth rate. Finally THO also has an excellent dividend rating. These ratings would make THO suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year THO was profitable.
THO had a positive operating cash flow in the past year.
Each year in the past 5 years THO has been profitable.
In the past 5 years THO always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 3.01%, THO belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.12%, THO is in the better half of the industry, outperforming 71.05% of the companies in the same industry.
THO has a better Return On Invested Capital (4.82%) than 81.58% of its industry peers.
THO had an Average Return On Invested Capital over the past 3 years of 11.53%. This is above the industry average of 6.56%.
The last Return On Invested Capital (4.82%) for THO is well below the 3 year average (11.53%), which needs to be investigated, but indicates that THO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 5.12% | ||
| ROIC | 4.82% |
ROA(3y)8.1%
ROA(5y)7.61%
ROE(3y)15.87%
ROE(5y)15.96%
ROIC(3y)11.53%
ROIC(5y)11.18%
1.3 Margins
THO has a better Profit Margin (2.13%) than 71.05% of its industry peers.
THO's Profit Margin has improved in the last couple of years.
THO's Operating Margin of 3.56% is fine compared to the rest of the industry. THO outperforms 76.32% of its industry peers.
In the last couple of years the Operating Margin of THO has remained more or less at the same level.
The Gross Margin of THO (14.21%) is better than 63.16% of its industry peers.
In the last couple of years the Gross Margin of THO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.56% | ||
| PM (TTM) | 2.13% | ||
| GM | 14.21% |
OM growth 3Y-17.3%
OM growth 5Y-1.19%
PM growth 3Y-21%
PM growth 5Y9.28%
GM growth 3Y-2.05%
GM growth 5Y3.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), THO is destroying value.
Compared to 1 year ago, THO has less shares outstanding
The number of shares outstanding for THO has been reduced compared to 5 years ago.
The debt/assets ratio for THO has been reduced compared to a year ago.
2.2 Solvency
THO has an Altman-Z score of 3.56. This indicates that THO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.56, THO belongs to the top of the industry, outperforming 92.11% of the companies in the same industry.
The Debt to FCF ratio of THO is 2.03, which is a good value as it means it would take THO, 2.03 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of THO (2.03) is better than 94.74% 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 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.03 | ||
| Altman-Z | 3.56 |
ROIC/WACC0.36
WACC13.55%
2.3 Liquidity
THO has a Current Ratio of 1.71. This is a normal value and indicates that THO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.71, THO is in the better half of the industry, outperforming 71.05% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that THO may have some problems paying its short term obligations.
THO has a Quick ratio of 0.78. This is comparable to the rest of the industry: THO outperforms 47.37% of its industry peers.
THO does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The earnings per share for THO have decreased strongly by -28.33% in the last year.
Measured over the past years, THO shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.50% on average per year.
The Revenue has decreased by -8.47% in the past year.
THO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.01% yearly.
EPS 1Y (TTM)-28.33%
EPS 3Y-24.23%
EPS 5Y-0.5%
EPS Q2Q%-102.86%
Revenue 1Y (TTM)-8.47%
Revenue growth 3Y-6.58%
Revenue growth 5Y5.01%
Sales Q2Q%-8.57%
3.2 Future
The Earnings Per Share is expected to grow by 21.52% on average over the next years. This is a very strong growth
THO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.44% yearly.
EPS Next Y-30.99%
EPS Next 2Y1.01%
EPS Next 3Y12.21%
EPS Next 5Y21.52%
Revenue Next Year-7.47%
Revenue Next 2Y-0.29%
Revenue Next 3Y3.19%
Revenue Next 5Y7.44%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.12, which indicates a rather expensive current valuation of THO.
Compared to the rest of the industry, the Price/Earnings ratio of THO indicates a rather cheap valuation: THO is cheaper than 81.58% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. THO is around the same levels.
The Price/Forward Earnings ratio is 15.15, which indicates a correct valuation of THO.
Based on the Price/Forward Earnings ratio, THO is valued a bit cheaper than 78.95% of the companies in the same industry.
THO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 15.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of THO indicates a rather cheap valuation: THO is cheaper than 84.21% of the companies listed in the same industry.
THO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. THO is cheaper than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.86 | ||
| EV/EBITDA | 7.98 |
4.3 Compensation for Growth
THO has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as THO's earnings are expected to grow with 12.21% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.01%
EPS Next 3Y12.21%
5. Dividend
5.1 Amount
THO has a Yearly Dividend Yield of 2.48%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.60, THO pays a better dividend. On top of this THO pays more dividend than 84.21% of the companies listed in the same industry.
THO's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
5.2 History
The dividend of THO has a limited annual growth rate of 4.27%.
THO has paid a dividend for at least 10 years, which is a reliable track record.
THO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.27%
Div Incr Years14
Div Non Decr Years33
5.3 Sustainability
THO pays out 51.53% of its income as dividend. This is a bit on the high side, but may be sustainable.
THO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP51.53%
EPS Next 2Y1.01%
EPS Next 3Y12.21%
79.62
-0.56 (-0.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners101.62%
Inst Owner Change3.55%
Ins Owners4.51%
Ins Owner Change-0.58%
Market Cap4.24B
Analysts56.67
Price Target84.47 (6.09%)
Short Float %10.13%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend1.92
Dividend Growth(5Y)4.27%
DP51.53%
Div Incr Years14
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-109.35%
Min EPS beat(2)-114.48%
Max EPS beat(2)-104.21%
EPS beat(4)2
Avg EPS beat(4)-44.27%
Min EPS beat(4)-114.48%
Max EPS beat(4)27.94%
EPS beat(8)5
Avg EPS beat(8)-5.21%
EPS beat(12)8
Avg EPS beat(12)0.76%
EPS beat(16)12
Avg EPS beat(16)10.04%
Revenue beat(2)1
Avg Revenue beat(2)-2.05%
Min Revenue beat(2)-5.35%
Max Revenue beat(2)1.26%
Revenue beat(4)3
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-5.35%
Max Revenue beat(4)1.71%
Revenue beat(8)5
Avg Revenue beat(8)1.19%
Revenue beat(12)8
Avg Revenue beat(12)1.79%
Revenue beat(16)12
Avg Revenue beat(16)3.95%
PT rev (1m)-7.32%
PT rev (3m)-21.94%
EPS NQ rev (1m)-1.08%
EPS NQ rev (3m)-17.41%
EPS NY rev (1m)-1.72%
EPS NY rev (3m)-18.88%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-3.46%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 15.15 | ||
| P/S | 0.45 | ||
| P/FCF | 7.86 | ||
| P/OCF | 6.5 | ||
| P/B | 1.07 | ||
| P/tB | 3 | ||
| EV/EBITDA | 7.98 |
EPS(TTM)3.77
EY4.73%
EPS(NY)5.25
Fwd EY6.6%
FCF(TTM)10.13
FCFY12.73%
OCF(TTM)12.24
OCFY15.38%
SpS178.5
BVpS74.28
TBVpS26.57
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 5.12% | ||
| ROCE | 6.46% | ||
| ROIC | 4.82% | ||
| ROICexc | 5.19% | ||
| ROICexgc | 10.69% | ||
| OM | 3.56% | ||
| PM (TTM) | 2.13% | ||
| GM | 14.21% | ||
| FCFM | 5.68% |
ROA(3y)8.1%
ROA(5y)7.61%
ROE(3y)15.87%
ROE(5y)15.96%
ROIC(3y)11.53%
ROIC(5y)11.18%
ROICexc(3y)12.36%
ROICexc(5y)12.16%
ROICexgc(3y)26.95%
ROICexgc(5y)27.77%
ROCE(3y)15.37%
ROCE(5y)14.9%
ROICexcg growth 3Y-27.81%
ROICexcg growth 5Y-5.33%
ROICexc growth 3Y-25.87%
ROICexc growth 5Y-1.71%
OM growth 3Y-17.3%
OM growth 5Y-1.19%
PM growth 3Y-21%
PM growth 5Y9.28%
GM growth 3Y-2.05%
GM growth 5Y3.16%
F-Score6
Asset Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.03 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 40.77% | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 4.41 | ||
| Cash Conversion | 106.11% | ||
| Profit Quality | 266.67% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 3.56 |
F-Score6
WACC13.55%
ROIC/WACC0.36
Cap/Depr(3y)70.25%
Cap/Depr(5y)64.21%
Cap/Sales(3y)1.58%
Cap/Sales(5y)1.42%
Profit Quality(3y)141.79%
Profit Quality(5y)136.07%
High Growth Momentum
Growth
EPS 1Y (TTM)-28.33%
EPS 3Y-24.23%
EPS 5Y-0.5%
EPS Q2Q%-102.86%
EPS Next Y-30.99%
EPS Next 2Y1.01%
EPS Next 3Y12.21%
EPS Next 5Y21.52%
Revenue 1Y (TTM)-8.47%
Revenue growth 3Y-6.58%
Revenue growth 5Y5.01%
Sales Q2Q%-8.57%
Revenue Next Year-7.47%
Revenue Next 2Y-0.29%
Revenue Next 3Y3.19%
Revenue Next 5Y7.44%
EBIT growth 1Y-26.35%
EBIT growth 3Y-22.74%
EBIT growth 5Y3.77%
EBIT Next Year47.97%
EBIT Next 3Y28.16%
EBIT Next 5Y26.36%
FCF growth 1Y-17.32%
FCF growth 3Y0.69%
FCF growth 5Y1.45%
OCF growth 1Y-25.78%
OCF growth 3Y1.19%
OCF growth 5Y1.44%