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Thor Industries Inc THO

Morningstar Rating
$94.44 −2.92 (3.00%)
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Company Report

Thor Earnings: Lack of Dealer Inventory Restocking Forces Another Guidance Cut

Thor’s fiscal 2024 third-quarter results forced the company to again cut its full-year guidance, but we don’t see a reason to change our fair value estimate. At the start of the fiscal year, management expected dealers' reluctance to meaningfully increase inventory would end during the second half of fiscal 2024. However, the lack of interest-rate cuts means dealers remain leery of holding excess inventory, and Thor now expects this weakness to continue into fiscal 2025. We agree with management, however, that macroeconomic conditions will eventually improve and consumer interest in eventually owning another recreational vehicle remains strong.

Price vs Fair Value

THO is trading at a 523% premium.
Price
$94.44
Fair Value
$995.00
Uncertainty
Very High
1-Star Price
$929.47
5-Star Price
$14.60
Economic Moat
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Capital Allocation
Qlgmnkykp

Bulls Say, Bears Say

Bulls

Thor Industries has positioned itself as the largest RV manufacturer in North America and second-largest RV manufacturer in Europe, which should disproportionately benefit the company as the industry returns to growth.

Bears

Thor operates over 30 brands across North America and Europe, which we believe has driven some brand dilution impacting margins.

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News

Trading Information

Previous Close Price
$97.36
Day Range
$94.0298.16
52-Week Range
$84.55129.31
Bid/Ask
$92.37 / $104.00
Market Cap
$5.02 Bil
Volume/Avg
1 / 485,157

Key Statistics

Price/Earnings (Normalized)
18.35
Price/Sales
0.50
Dividend Yield (Trailing)
2.00%
Dividend Yield (Forward)
2.03%
Total Yield
2.86%

Company Profile

Based in Elkhart, Indiana, Thor Industries manufactures Class A, Class B, and Class C motor homes along with travel trailers and fifth wheel towables across over 30 brands. Through the acquisition of Erwin Hymer in 2019, the company expanded its geographic footprint and now produces various motorized and towable recreational vehicles for Europe, including motorcaravans, campervans, urban vehicles, caravans, and other RV-related products and services. The company has also begun generating revenue through aftermarket component parts through the acquisition of Airxcel in 2021, however, this is still a nascent part of the business as it accounts for less than 10% of total sales. In fiscal 2023, the company wholesaled 187,015 units and generated over $11.1 billion in revenue.
Sector
Consumer Cyclical
Industry
Recreational Vehicles
Stock Style Box
Small Value
Total Number of Employees
24,900

Competitors

Valuation

Metric
THO
BRK.B
PII
Price/Earnings (Normalized)
18.3521.7410.69
Price/Book Value
1.251.533.21
Price/Sales
0.502.150.53
Price/Cash Flow
9.3123.737.77
Price/Earnings
THO
BRK.B
PII

Financial Strength

Metric
THO
BRK.B
PII
Quick Ratio
0.690.31
Current Ratio
1.651.47
Interest Coverage
4.8118.864.76
Quick Ratio
THO
BRK.B
PII

Profitability

Metric
THO
BRK.B
PII
Return on Assets (Normalized)
3.94%3.90%7.66%
Return on Equity (Normalized)
7.28%7.49%32.37%
Return on Invested Capital (Normalized)
6.69%6.61%15.03%
Return on Assets
THO
BRK.B
PII
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