THOR INDUSTRIES INC (THO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THO - US8851601018 - Common Stock
112.92 USD
+1.05 (+0.94%)
112.92 USD
0 (0%)
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 is not valued too expensively and it also shows a decent growth rate. These ratings could make THO a good candidate 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.
- In the past 5 years THO always reported a positive cash flow from operatings.
1.2 Ratios
- THO has a better Return On Assets (4.03%) than 91.43% of its industry peers.
- The Return On Equity of THO (6.56%) is better than 85.71% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.48%, THO belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
- THO had an Average Return On Invested Capital over the past 3 years of 6.72%. This is in line with the industry average of 5.29%.
| 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
- The Profit Margin of THO (2.87%) is better than 82.86% of its industry peers.
- THO's Profit Margin has been stable in the last couple of years.
- THO's Operating Margin of 3.81% is amongst the best of the industry. THO outperforms 85.71% of its industry peers.
- In the last couple of years the Operating Margin of THO has declined.
- With a decent Gross Margin value of 14.05%, THO is doing good in the industry, outperforming 68.57% of the companies in the same industry.
- THO's Gross Margin has been stable in the last couple of years.
| 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
- THO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
- Compared to 1 year ago, THO has an improved debt to assets ratio.
2.2 Solvency
- THO has an Altman-Z score of 3.99. This indicates that THO is financially healthy and has little risk of bankruptcy at the moment.
- THO has a Altman-Z score of 3.99. This is amongst the best in the industry. THO outperforms 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.
- The Debt to FCF ratio of THO (2.63) is better than 91.43% of its industry peers.
- A Debt/Equity ratio of 0.23 indicates that THO is not too dependend on debt financing.
- THO's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. THO outperforms 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
WACC9.53%
2.3 Liquidity
- A Current Ratio of 1.81 indicates that THO should not have too much problems paying its short term obligations.
- THO's Current ratio of 1.81 is fine compared to the rest of the industry. THO outperforms 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's Quick ratio of 0.83 is in line compared 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.
- THO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.12% yearly.
- THO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.45%.
- THO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.24% yearly.
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 21.35, the valuation of THO can be described as rather expensive.
- 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 28.39. THO is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 19.72, which indicates a rather expensive current valuation of THO.
- Based on the Price/Forward Earnings ratio, THO is valued a bit cheaper than 74.29% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, THO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.35 | ||
| Fwd PE | 19.72 |
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 | 16 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
- The decent profitability rating of THO may justify a higher PE ratio.
- A more expensive valuation may be justified as THO's earnings are expected to grow with 12.69% in the coming years.
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%. Purely for dividend investing, there may be better candidates out there.
- 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.
- Compared to an average S&P500 Dividend Yield of 1.82, THO has a dividend comparable with the average S&P500 company.
| 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
- 37.63% of the earnings are spent on dividend by THO. This is a low number and 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%.