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Winnebago Industries Inc WGO

Morningstar Rating
$71.97 +0.24 (0.33%)
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Company Report

Winnebago's Balance Sheet Remains in Good Shape to Deal With Macroeconomic Uncertainty

Winnebago, which reinvented itself under CEO Mike Happe with the November 2016 acquisition of high-end towable maker Grand Design, sees itself as a leading outdoor lifestyle firm. It now has a marine segment with Chris-Craft and Barletta. Towables is an area the company had long wanted to grow in but had remained very small since acquiring SunnyBrook in 2011. Winnebago’s North American towables share is in the teens, up from under 2% before Grand Design, so we see a long growth runway if it can keep chipping into Thor's and Forest River's roughly 80% combined share. In fiscal 2023, towables were about 41% of total revenue compared with just 9% in fiscal 2016. Marine was about 13.5% of fiscal 2023 sales and Barletta is a top five pontoon brand. Management wants non-RV revenue of 15% by fiscal 2025.

Price vs Fair Value

WGO is trading at a 11% discount.
Price
$71.73
Fair Value
$32.00
Uncertainty
Very High
1-Star Price
$544.28
5-Star Price
$38.20
Economic Moat
Hdvy
Capital Allocation
Rczpfkdr

Bulls Say, Bears Say

Bulls

The Grand Design acquisition materially raised Winnebago's operating margin, and Newmar could do the same.

Bears

Management's desire to keep making acquisitions could prove to be a poor use of capital.

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News

Trading Information

Previous Close Price
$71.73
Day Range
$70.4372.08
52-Week Range
$53.9475.42
Bid/Ask
$71.32 / $72.38
Market Cap
$2.10 Bil
Volume/Avg
375,227 / 523,442

Key Statistics

Price/Earnings (Normalized)
10.77
Price/Sales
0.76
Dividend Yield (Trailing)
1.62%
Dividend Yield (Forward)
1.73%
Total Yield
6.14%

Company Profile

Winnebago Industries manufactures Class A, B, and C motor homes along with towables, customized specialty vehicles, boats, and parts. Headquartered in Eden Prairie, Minnesota, Winnebago has been producing recreational vehicles since 1958. Revenue was about $3.5 billion in fiscal 2023. Winnebago expanded into towables in 2011 with the acquisition of SunnyBrook and acquired Grand Design in November 2016. Towables made up 79% of the firm's RV unit volume, up from 31% in fiscal 2016. The company's total RV unit volume was 39,447 in fiscal 2023. Winnebago expanded into boating in 2018 with the purchase of Chris-Craft, bought premium motor home maker Newmar in November 2019, and bought Barletta pontoon boats in August 2021. It also is developing electric and autonomous technology.
Sector
Consumer Cyclical
Industry
Recreational Vehicles
Stock Style Box
Small Value
Total Number of Employees
6,250

Competitors

Valuation

Metric
WGO
PII
MBUU
Price/Earnings (Normalized)
10.7710.126.75
Price/Book Value
1.553.691.43
Price/Sales
0.760.600.74
Price/Cash Flow
9.987.759.86
Price/Earnings
WGO
PII
MBUU

Financial Strength

Metric
WGO
PII
MBUU
Quick Ratio
1.170.350.60
Current Ratio
2.691.391.82
Interest Coverage
13.515.9639.15
Quick Ratio
WGO
PII
MBUU

Profitability

Metric
WGO
PII
MBUU
Return on Assets (Normalized)
7.93%9.71%17.34%
Return on Equity (Normalized)
14.25%42.30%25.51%
Return on Invested Capital (Normalized)
10.42%18.29%23.86%
Return on Assets
WGO
PII
MBUU
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Recreational Vehicles Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
THO
Thor Industries IncRjl$6.8 Bil
BC
Brunswick CorpGdwbbp$6.0 Bil
PII
Polaris IncXvwz$5.2 Bil
DOOO
BRP Inc Shs Subord.VotingVnknt$5.0 Bil
HOG
Harley-Davidson IncRlw$5.0 Bil
LCII
LCI Industries IncVwfh$3.2 Bil
BTEAF
Beneteau SANclm$1.1 Bil
MBUU
Malibu Boats Inc Class AHjthdw$891.6 Mil
MPX
Marine Products CorpGthml$395.0 Mil

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