NYSE:WGO is probably undervalued for the fundamentals it is displaying.

Last update: Jan 3, 2025

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.

Valuation Analysis for NYSE:WGO

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:WGO has received a 7 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of WGO indicates a somewhat cheap valuation: WGO is cheaper than 77.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.09, WGO is valued a bit cheaper.
With a Price/Forward Earnings ratio of 9.89, the valuation of WGO can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WGO indicates a rather cheap valuation: WGO is cheaper than 82.50% of the companies listed in the same industry.
WGO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.45, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, WGO is valued a bit cheaper than the industry average as 72.50% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WGO indicates a rather cheap valuation: WGO is cheaper than 87.50% of the companies listed in the same industry.
WGO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WGO's earnings are expected to grow with 33.64% in the coming years.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:WGO, the assigned 6 is a significant indicator of profitability:

With a decent Return On Assets value of -0.78%, WGO is doing good in the industry, outperforming 65.00% of the companies in the same industry.
WGO has a Return On Equity of -1.45%. This is in the better half of the industry: WGO outperforms 65.00% of its industry peers.
With a decent Return On Invested Capital value of 3.67%, WGO is doing good in the industry, outperforming 70.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WGO is above the industry average of 9.90%.
The 3 year average ROIC (13.73%) for WGO is well above the current ROIC(3.67%). The reason for the recent decline needs to be investigated.
The Operating Margin of WGO (3.19%) is better than 72.50% of its industry peers.

How do we evaluate the Health for NYSE:WGO?

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:WGO has achieved a 5 out of 10:

WGO has a Debt to FCF ratio of 6.05. This is amongst the best in the industry. WGO outperforms 87.50% of its industry peers.
WGO has a Current Ratio of 2.58. This indicates that WGO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.58, WGO belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
Looking at the Quick ratio, with a value of 1.34, WGO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.

A Closer Look at Growth for NYSE:WGO

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:WGO has received a 4 out of 10:

Measured over the past years, WGO shows a quite strong growth in Revenue. The Revenue has been growing by 8.41% on average per year.
Based on estimates for the next years, WGO will show a very strong growth in Earnings Per Share. The EPS will grow by 25.04% on average per year.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.