THOR INDUSTRIES INC (THO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THO - US8851601018 - Common Stock
113.92 USD
-0.45 (-0.39%)
113.92 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to THO. THO was compared to 35 industry peers in the Automobiles industry. THO gets an excellent profitability rating and is at the same time showing great financial health properties. THO is not valued too expensively and it also shows a decent growth rate. This makes THO very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year THO was profitable.
- In the past year THO had a positive cash flow from operations.
- Each year in the past 5 years THO has been profitable.
- 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 82.86% 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 5.56%.
| 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
- Looking at the Profit Margin, with a value of 2.87%, THO belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
- 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 82.86% of its industry peers.
- THO's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 14.05%, THO is in the better half of 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), THO is destroying value.
- THO has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, THO has less shares outstanding
- Compared to 1 year ago, THO has an improved debt to assets ratio.
2.2 Solvency
- THO has an Altman-Z score of 4.02. This indicates that THO is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.02, THO belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
- THO has a debt to FCF ratio of 2.63. This is a good value and a sign of high solvency as THO would need 2.63 years to pay back of 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.
- THO has a better Debt to Equity ratio (0.23) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 4.02 |
ROIC/WACC0.58
WACC9.53%
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.
- The Current ratio of THO (1.81) is better 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'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.
- Measured over the past years, THO shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.12% on average per year.
- The Revenue has been growing slightly by 1.45% in the past year.
- 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
- Based on estimates for the next years, THO will show a very strong growth in Earnings Per Share. The EPS will grow by 23.52% on average per year.
- The Revenue is expected to grow by 8.77% on average over the next years. This is quite good.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 21.53, which indicates a rather expensive current valuation of THO.
- 85.71% of the companies in the same industry are more expensive than THO, based on the Price/Earnings ratio.
- THO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.25.
- The Price/Forward Earnings ratio is 19.89, which indicates a rather expensive current valuation of THO.
- 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 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 19.89 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, THO is valued cheaper than 82.86% of the companies in the same industry.
- 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 | 16.14 | ||
| EV/EBITDA | 10.02 |
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
- With a Yearly Dividend Yield of 1.76%, THO has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.84, THO pays a better dividend. On top of this THO pays more dividend than 82.86% of the companies listed 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 been paying a dividend for at least 10 years, so it has 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%.