THOR INDUSTRIES INC (THO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THO - US8851601018 - Common Stock
110.844 USD
-1.03 (-0.92%)
Overall THO gets a fundamental rating of 7 out of 10. We evaluated THO against 35 industry peers in the Automobiles industry. Both the health and profitability get an excellent rating, making THO a very profitable company, without any liquidiy or solvency issues. THO has a decent growth rate and is not valued too expensively. With these ratings, THO could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- THO had positive earnings in the past year.
- THO had a positive operating cash flow in the past year.
- THO had positive earnings in each of the past 5 years.
- Each year in the past 5 years THO had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.03%, THO belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 6.56%, THO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 5.48%, THO belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for THO is in line with the industry average of 5.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.03% | ||
| ROE | 6.56% | ||
| ROIC | 5.48% |
ROA(3y)4.2%
ROA(5y)7.57%
ROE(3y)7.32%
ROE(5y)15.24%
ROIC(3y)6.72%
ROIC(5y)11.6%
1.3 Margins
- THO's Profit Margin of 2.87% is amongst the best of the industry. THO outperforms 82.86% of its industry peers.
- In the last couple of years the Profit Margin of THO has remained more or less at the same level.
- THO has a Operating Margin of 3.81%. This is amongst the best in the industry. THO outperforms 85.71% of its industry peers.
- THO's Operating Margin has declined in the last couple of years.
- THO has a Gross Margin of 14.05%. This is in the better half of the industry: THO outperforms 68.57% of its industry peers.
- In the last couple of years the Gross Margin of THO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.81% | ||
| PM (TTM) | 2.87% | ||
| GM | 14.05% |
OM growth 3Y-27.39%
OM growth 5Y-5.16%
PM growth 3Y-27.13%
PM growth 5Y-0.23%
GM growth 3Y-6.65%
GM growth 5Y0.44%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), THO is destroying value.
- The number of shares outstanding for THO has been reduced compared to 1 year ago.
- The number of shares outstanding for THO has been reduced compared to 5 years ago.
- THO has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.99 indicates that THO is not in any danger for bankruptcy at the moment.
- THO has a better Altman-Z score (3.99) than 94.29% of its industry peers.
- The Debt to FCF ratio of THO is 2.63, which is a good value as it means it would take THO, 2.63 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.63, THO belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
- A Debt/Equity ratio of 0.23 indicates that THO is not too dependend on debt financing.
- The Debt to Equity ratio of THO (0.23) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 3.99 |
ROIC/WACC0.58
WACC9.52%
2.3 Liquidity
- THO has a Current Ratio of 1.81. This is a normal value and indicates that THO is financially healthy and should not expect problems in meeting its short term obligations.
- THO has a better Current ratio (1.81) than 68.57% of its industry peers.
- A Quick Ratio of 0.83 indicates that THO may have some problems paying its short term obligations.
- THO has a Quick ratio of 0.83. This is comparable to the rest of the industry: THO outperforms 48.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 28.09% over the past year.
- The Earnings Per Share has been decreasing by -0.12% on average over the past years.
- The Revenue has been growing slightly by 1.45% in the past year.
- Measured over the past years, THO shows a small growth in Revenue. The Revenue has been growing by 3.24% on average per year.
EPS 1Y (TTM)28.09%
EPS 3Y-38.25%
EPS 5Y-0.12%
EPS Q2Q%1466.67%
Revenue 1Y (TTM)1.45%
Revenue growth 3Y-16.26%
Revenue growth 5Y3.24%
Sales Q2Q%11.5%
3.2 Future
- The Earnings Per Share is expected to grow by 23.52% on average over the next years. This is a very strong growth
- Based on estimates for the next years, THO will show a quite strong growth in Revenue. The Revenue will grow by 8.77% on average per year.
EPS Next Y-11.82%
EPS Next 2Y8.66%
EPS Next 3Y12.69%
EPS Next 5Y23.52%
Revenue Next Year2.7%
Revenue Next 2Y3.87%
Revenue Next 3Y5.1%
Revenue Next 5Y8.77%
3.3 Evolution
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 20.95, THO is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of THO indicates a rather cheap valuation: THO is cheaper than 85.71% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. THO is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 19.36, the valuation of THO can be described as rather expensive.
- THO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. THO is cheaper than 74.29% of the companies in the same industry.
- THO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 19.36 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, THO is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, THO is valued cheaper than 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.7 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
- THO has a very decent profitability rating, which may justify a higher PE ratio.
- THO's earnings are expected to grow with 12.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.66%
EPS Next 3Y12.69%
5. Dividend
5.1 Amount
- THO has a Yearly Dividend Yield of 1.76%.
- THO's Dividend Yield is rather good when compared to the industry average which is at 0.84. THO pays more dividend than 82.86% of the companies in the same industry.
- THO's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
- The dividend of THO has a limited annual growth rate of 4.66%.
- THO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.66%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- THO pays out 37.63% 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.
DP37.63%
EPS Next 2Y8.66%
EPS Next 3Y12.69%
THOR INDUSTRIES INC / THO FAQ
What is the fundamental rating for THO stock?
ChartMill assigns a fundamental rating of 7 / 10 to THO.
What is the valuation status of THOR INDUSTRIES INC (THO) stock?
ChartMill assigns a valuation rating of 6 / 10 to THOR INDUSTRIES INC (THO). This can be considered as Fairly Valued.
What is the profitability of THO stock?
THOR INDUSTRIES INC (THO) has a profitability rating of 7 / 10.
How financially healthy is THOR INDUSTRIES INC?
The financial health rating of THOR INDUSTRIES INC (THO) is 7 / 10.
How sustainable is the dividend of THOR INDUSTRIES INC (THO) stock?
The dividend rating of THOR INDUSTRIES INC (THO) is 6 / 10 and the dividend payout ratio is 37.63%.