Why NYSE:THO is a Top Pick for Dividend Investors.

Discover THOR INDUSTRIES INC (NYSE:THO)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:THO showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

What does the Dividend looks like for NYSE:THO

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:THO has been assigned a 7 for dividend:

• THO's Dividend Yield is rather good when compared to the industry average which is at 3.25. THO pays more dividend than 87.80% of the companies 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.
• 37.92% of the earnings are spent on dividend by THO. This is a low number and sustainable payout ratio.
• THO's earnings are growing more than its dividend. This makes the dividend growth sustainable.

A Closer Look at Health for NYSE:THO

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:THO has received a 6 out of 10:

• An Altman-Z score of 3.67 indicates that THO is not in any danger for bankruptcy at the moment.
• THO has a better Altman-Z score (3.67) than 87.80% of its industry peers.
• THO has a debt to FCF ratio of 2.39. This is a good value and a sign of high solvency as THO would need 2.39 years to pay back of all of its debts.
• THO has a Debt to FCF ratio of 2.39. This is amongst the best in the industry. THO outperforms 97.56% of its industry peers.
• A Debt/Equity ratio of 0.32 indicates that THO is not too dependend on debt financing.
• The Current ratio of THO (1.65) is better than 65.85% of its industry peers.

A Closer Look at Profitability for NYSE:THO

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:THO was assigned a score of 6 for profitability:

• The Return On Assets of THO (3.68%) is better than 73.17% of its industry peers.
• Looking at the Return On Equity, with a value of 6.63%, THO is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
• THO has a better Return On Invested Capital (6.09%) than 75.61% of its industry peers.
• THO had an Average Return On Invested Capital over the past 3 years of 14.58%. This is above the industry average of 11.57%.
• The 3 year average ROIC (14.58%) for THO is well above the current ROIC(6.09%). The reason for the recent decline needs to be investigated.
• Looking at the Profit Margin, with a value of 2.59%, THO is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 4.31%, THO is in the better half of the industry, outperforming 70.73% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Disclaimer

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.