NYSE:WGO appears to be flying under the radar despite its strong fundamentals.

Last update: Nov 16, 2023

Take a closer look at WINNEBAGO INDUSTRIES (NYSE:WGO), a remarkable value stock uncovered by our stock screener. NYSE:WGO excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

ChartMill's Evaluation of Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:WGO was assigned a score of 8 for valuation:

WGO is valuated reasonably with a Price/Earnings ratio of 8.64.
Based on the Price/Earnings ratio, WGO is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.77. WGO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.18, the valuation of WGO can be described as reasonable.
Based on the Price/Forward Earnings ratio, WGO is valued cheaply inside the industry as 86.84% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 19.40. WGO is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, WGO is valued cheaper than 94.74% of the companies in the same industry.
86.84% of the companies in the same industry are more expensive than WGO, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of WGO may justify a higher PE ratio.
WGO's earnings are expected to grow with 22.44% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: NYSE: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 NYSE:WGO, the assigned 9 is noteworthy for profitability:

WGO's Return On Assets of 8.88% is amongst the best of the industry. WGO outperforms 94.74% of its industry peers.
The Return On Equity of WGO (15.78%) is better than 89.47% of its industry peers.
WGO's Return On Invested Capital of 11.31% is amongst the best of the industry. WGO outperforms 92.11% 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 9.39%.
The 3 year average ROIC (17.85%) for WGO is well above the current ROIC(11.31%). The reason for the recent decline needs to be investigated.
WGO's Profit Margin of 6.19% is amongst the best of the industry. WGO outperforms 86.84% of its industry peers.
In the last couple of years the Profit Margin of WGO has grown nicely.
WGO has a better Operating Margin (8.61%) than 89.47% of its industry peers.
WGO's Operating Margin has improved in the last couple of years.
WGO has a Gross Margin of 16.79%. This is in the better half of the industry: WGO outperforms 76.32% of its industry peers.
In the last couple of years the Gross Margin of WGO has grown nicely.

Health Analysis for NYSE:WGO

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:WGO, the assigned 7 for health provides valuable insights:

WGO has an Altman-Z score of 4.23. This indicates that WGO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.23, WGO belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
The Debt to FCF ratio of WGO is 2.80, which is a good value as it means it would take WGO, 2.80 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WGO (2.80) is better than 89.47% of its industry peers.
WGO has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
WGO has a Current Ratio of 2.52. This indicates that WGO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.52, WGO is in the better half of the industry, outperforming 71.05% of the companies in the same industry.

What does the Growth looks like for NYSE:WGO

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:WGO, the assigned 4 reflects its growth potential:

The Earnings Per Share has been growing by 19.48% on average over the past years. This is quite good.
WGO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.60% yearly.
Based on estimates for the next years, WGO will show a quite strong growth in Revenue. The Revenue will grow by 10.68% on average per year.

More Decent Value stocks can be found 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.