Is NYSE:THO suited for dividend investing?

Unearth the potential of THOR INDUSTRIES INC (NYSE:THO) as a dividend stock recommended by our stock screening tool. NYSE:THO maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Evaluating Dividend: NYSE:THO

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:THO scores a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.50, THO pays a better dividend. On top of this THO pays more dividend than 87.80% of the companies listed in the same industry.
• THO has been paying a dividend for at least 10 years, so it has a reliable track record.
• THO has not decreased their dividend for at least 10 years, which is a reliable track record.
• THO pays out 37.92% of its income as dividend. This is a sustainable payout ratio.
• The dividend of THO is growing, but earnings are growing more, so the dividend growth is sustainable.

Understanding NYSE:THO's Health

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:

• THO has an Altman-Z score of 3.65. 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 3.65, THO belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
• 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.
• Looking at the Debt to FCF ratio, with a value of 2.39, THO belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
• THO has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
• The Current ratio of THO (1.65) is better than 63.41% of its industry peers.

Profitability Examination 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 7 for profitability:

• THO has a Return On Assets of 3.68%. This is in the better half of the industry: THO outperforms 75.61% of its industry peers.
• The Return On Equity of THO (6.63%) is better than 70.73% of its industry peers.
• THO has a better Return On Invested Capital (6.09%) than 75.61% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for THO is above the industry average of 11.62%.
• The last Return On Invested Capital (6.09%) for THO is well below the 3 year average (14.58%), which needs to be investigated, but indicates that THO had better years and this may not be a problem.
• 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.
• THO's Operating Margin of 4.31% is fine compared to the rest of the industry. THO outperforms 70.73% of its industry peers.
• THO has a better Gross Margin (14.10%) than 60.98% of its industry peers.

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.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.