Why the dividend investor may take a look at NYSE:THO.

Last update: Nov 15, 2024

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.

Looking at the Dividend

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:THO has been awarded a 7 for its dividend quality:

THO's Dividend Yield is rather good when compared to the industry average which is at 3.71. THO pays more dividend than 85.37% of the companies 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
38.50% 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.

Analyzing Health Metrics

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:THO has earned a 7 out of 10:

An Altman-Z score of 3.84 indicates that THO is not in any danger for bankruptcy at the moment.
THO has a better Altman-Z score (3.84) than 90.24% of its industry peers.
The Debt to FCF ratio of THO is 2.98, which is a good value as it means it would take THO, 2.98 years of fcf income to pay off all of its debts.
THO's Debt to FCF ratio of 2.98 is amongst the best of the industry. THO outperforms 95.12% of its industry peers.
THO has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.

Profitability Examination for NYSE:THO

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

Looking at the Return On Assets, with a value of 3.78%, THO is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
With a decent Return On Equity value of 6.52%, THO is doing good in the industry, outperforming 70.73% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.91%, THO belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
The 3 year average ROIC (11.53%) for THO is well above the current ROIC(5.91%). The reason for the recent decline needs to be investigated.
With a decent Profit Margin value of 2.64%, THO is doing good in the industry, outperforming 75.61% of the companies in the same industry.
THO's Profit Margin has improved in the last couple of years.
The Operating Margin of THO (4.31%) is better than 75.61% of its industry peers.
In the last couple of years the Gross Margin of THO has grown nicely.

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

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.