THO  Thor Industries Inc.

Exchange

NYSE

Sector

Consumer Non-Durables

Industry

Homebuilding

Market Cap.

7.21B

Vuru Grade

57.35/100

Current Price

$137.19
+0.97 (+0.71%)

Growth Price

$98.25
Overvalued by 28.39%

Stability Price

$50.25
Overvalued by 63.37%

Company Metrics

  • P/E 19.35
  • P/S 0.99
  • P/B 4.54
  • EPS 7.09
  • Cash ROIC 18.72%
  • Cash Ratio 0.29
  • Dividend 1.48 / 1.1%
  • Avg. Vol. 646,915.00
  • Shares 52.55M
  • Market Cap. 7.21B

Company Description

Thor Industries, Inc., together with its subsidiaries, manufactures and sells a range of recreation vehicles and small and mid-size buses, as well as related parts and accessories in the United States and Canada. The company offers a range of travel trailers and motorhomes under the trade name of Airstream, which include Airstream Safari, International, Flying Cloud, and Bambi travel trailers, as ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

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Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for THO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate THO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$137.19 Current Price

$98.25 Growth Price (DCF)

Overvalued by 28.39%


Growth Rate Assumed by Market: 25.76%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$50.25 Stability Price (EPV)

Overvalued by 63.37%


Discount Rate: 15.0%

$3.78 NCA Price

Overvalued by 97.24%

$77.01 Book Price

Overvalued by 43.87%


Excellent Cash Return on Invested Capital over the past 5 years

THO has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

THO has created $18.72 of cash for every $100 invested.
Figures in USD. Fiscal year ends in July
20132014201520162017
Free Cash Flow 120.76M 118.86M 205.58M 289.23M 304.31M
divided by
Invested Capital 730.00M 748.67M 941.44M 1.46B 1.55B
Cash ROIC 16.54% 15.88% 21.84% 19.76% 19.59%

Excellent Return on Equity over the past 5 years

Over the past 5 years, THO has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

THO has generated $19.61 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in July
20132014201520162017
Net Income 151.68M 175.52M 202.01M 258.02M 374.25M
divided by
Stockholders' Equity 892.61M 977.70M 1.07B 1.27B 1.58B
Return on Equity 16.99% 17.95% 18.96% 20.39% 23.74%

Excellent Business Performance over the past 10 years

THO has been able to maintain profitability in good times and bad. This could mean THO has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

THO has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Free Cash Flow 107.63M 42.95M 88.36M 81.05M 108.78M 120.76M 118.86M 205.58M 289.23M 304.31M

Good Balance Sheet

THO's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Cash 189.62M 328.83M 247.75M 215.44M 218.64M 236.60M 289.34M 183.48M 209.90M 223.26M
Current Assets 527.92M 604.02M 601.77M 623.77M 684.89M 830.70M 844.05M 775.84M 1.02B 1.18B
Total Assets 996.56M 951.12M 964.07M 1.20B 1.24B 1.33B 1.41B 1.50B 2.33B 2.56B
Current Liabilities 248.42M 184.47M 256.76M 278.60M 311.09M 361.67M 370.72M 378.34M 651.65M 781.05M
Total Liabilities 296.87M 246.09M 306.80M 361.80M 392.23M 435.65M 431.02M 438.06M 1.06B 981.39M
Stockholder' Equity 699.70M 705.03M 657.28M 836.27M 850.83M 892.61M 977.70M 1.07B 1.27B 1.58B
Current Ratio 2.13 3.27 2.34 2.24 2.20 2.30 2.28 2.05 1.56 1.51
TL-to-TA 0.30 0.26 0.32 0.30 0.32 0.33 0.31 0.29 0.46 0.38

Consistent Reinvestment of Profits over the past 10 years

THO has consistently retained profits. This may put THO in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, THO can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Retained Earnings 675.93M 677.55M 745.20M 829.15M 918.57M 953.74M 1.03B 1.17B 1.37B 1.67B
Retained Earnings Growth - 0.24% 9.99% 11.26% 10.78% 3.83% 8.04% 13.78% 16.51% 22.32%

Highly Competitive Industry over the past 10 years

It's likely that THO is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely THO invests heavily in R&D and Sales, General & Administrative expenses.

Only $4.28 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Net Income 92.71M 17.14M 110.06M 106.27M 121.74M 151.68M 175.52M 202.01M 258.02M 374.25M
divided by
Revenue 2.64B 1.52B 2.28B 2.76B 3.08B 3.24B 3.53B 4.01B 4.58B 7.25B
Net Profit Margin 3.51% 1.13% 4.83% 3.86% 3.95% 4.68% 4.98% 5.04% 5.63% 5.16%

Weak Pricing Power over the past 10 years

THO is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that THO has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $13.00 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Gross Profit 322.43M 152.54M 307.09M 333.14M 356.78M 424.54M 470.40M 557.55M 726.33M 1.04B
divided by
Revenue 2.64B 1.52B 2.28B 2.76B 3.08B 3.24B 3.53B 4.01B 4.58B 7.25B
Gross Margin 12.21% 10.02% 13.49% 12.09% 11.57% 13.10% 13.34% 13.91% 15.85% 14.40%

Low Capital Intensity over the past 10 years

THO has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that THO may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

20.48% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Capital Expenditure 14.48M 5.63M 12.30M 33.75M 10.06M 24.31M 30.41M 42.28M 51.98M 115.03M
divided by
Net Income 92.71M 17.14M 110.06M 106.27M 121.74M 151.68M 175.52M 202.01M 258.02M 374.25M
Capital Expenditure Ratio 15.61% 32.81% 11.17% 31.76% 8.27% 16.02% 17.32% 20.93% 20.14% 30.74%

Very Strong Dividend History over the past 10 years

THO has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests THO is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Dividend Paid 127.28M 15.52M 42.41M 22.33M 32.32M 117.69M 102.31M 57.38M 62.97M 69.41M
divided by
Shares Outstanding 55.73M 55.48M 53.12M 55.37M 53.90M 53.12M 53.36M 53.28M 52.59M 52.76M
Dividend Paid Per Share 2.28 0.28 0.80 0.40 0.60 2.22 1.92 1.08 1.20 1.32
Price at Year End 11.93 30.62 33.37 27.43 36.84 54.84 55.74 57.32 100.05 94.54
Dividend Yield 19.14% 0.91% 2.39% 1.47% 1.63% 4.04% 3.44% 1.88% 1.20% 1.39%

Strong History of Stock Buybacks over the past 10 years

THO has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in July
2008200920102011201220132014201520162017
Shares Outstanding 55.73M 55.48M 53.12M 55.37M 53.90M 53.12M 53.36M 53.28M 52.59M 52.76M
Stock Bought Back - 0.46% 4.44% -4.07% 2.73% 1.48% -0.46% 0.16% 1.30% -0.32%
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