THOR INDUSTRIES INC (THO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THO - US8851601018 - Common Stock
111.87 USD
-2.52 (-2.2%)
111.87 USD
0 (0%)
Taking everything into account, THO scores 7 out of 10 in our fundamental rating. THO was compared to 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 correct valuation and a medium 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.
- In the past year THO had a positive cash flow from operations.
- In the past 5 years THO has always been profitable.
- Each year in the past 5 years THO had a positive operating cash flow.
1.2 Ratios
- THO has a better Return On Assets (4.03%) than 91.43% of its industry peers.
- THO's Return On Equity of 6.56% is amongst the best of the industry. THO outperforms 85.71% of its industry peers.
- THO's Return On Invested Capital of 5.48% is amongst the best of the industry. THO outperforms 94.29% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- 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 has a better Operating Margin (3.81%) than 85.71% of its industry peers.
- THO's Operating Margin has declined in the last couple of years.
- 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.
- 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.
- THO has less shares outstanding than it did 1 year ago.
- THO has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for THO has been reduced compared to a year ago.
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 better Altman-Z score (3.99) than 94.29% of its industry peers.
- 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 Debt to Equity ratio of 0.23. This is in the better half 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
WACC9.52%
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 (0.83) which is in line with 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%.
- 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
- THO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.52% yearly.
- 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
- 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
- A Price/Earnings ratio of 21.15 indicates a rather expensive valuation of THO.
- THO's Price/Earnings ratio is rather cheap when compared to the industry. THO is cheaper than 85.71% of the companies in the same industry.
- When comparing the Price/Earnings ratio of THO to the average of the S&P500 Index (28.60), we can say THO is valued slightly cheaper.
- A Price/Forward Earnings ratio of 19.54 indicates a rather expensive valuation of THO.
- 74.29% of the companies in the same industry are more expensive than THO, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of THO to the average of the S&P500 Index (25.83), we can say THO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.15 | ||
| Fwd PE | 19.54 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of THO indicates a rather cheap valuation: THO is cheaper than 85.71% of the companies listed in the same industry.
- 88.57% of the companies in the same industry are more expensive than THO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.85 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
- THO has a very decent profitability rating, which 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.
- 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.
- THO's earnings are growing more than its dividend. This makes the dividend growth 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%.