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Should you consider WINNEBAGO INDUSTRIES (NYSE:WGO) for quality investing?

By Mill Chart

Last update: Dec 7, 2023

In this article we will dive into WINNEBAGO INDUSTRIES (NYSE:WGO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed WINNEBAGO INDUSTRIES showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Key Considerations for Quality Investors.

  • Over the past 5 years, WINNEBAGO INDUSTRIES has experienced impressive revenue growth, with 11.6% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a notable ROIC excluding cash and goodwill at 32.45%, WINNEBAGO INDUSTRIES demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a Debt/Free Cash Flow Ratio of 2.8, WINNEBAGO INDUSTRIES exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • With a robust Profit Quality (5-year) ratio of 143.0%, WINNEBAGO INDUSTRIES highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • WINNEBAGO INDUSTRIES has consistently achieved strong EBIT growth over the past 5 years, with a 13.39% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • WINNEBAGO INDUSTRIES demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What is the full fundamental picture of NYSE:WGO telling us.

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

WGO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 39 industry peers in the Automobiles industry. Both the health and profitability get an excellent rating, making WGO a very profitable company, without any liquidiy or solvency issues. WGO may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make WGO suitable for value investing!

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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.

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