THO  Thor Industries Inc.

Exchange

NYSE

Sector

Consumer Non-Durables

Industry

Homebuilding

Market Cap.

5.19B

Vuru Grade

56.95/100

Current Price

$98.73
+1.72 (+1.77%)

Growth Price

$87.38
Overvalued by 11.50%

Stability Price

$33.61
Overvalued by 65.96%

Company Metrics

  • P/E 17.06
  • P/S 0.87
  • P/B 3.71
  • EPS 5.79
  • Cash ROIC 17.85%
  • Cash Ratio 0.32
  • Dividend 1.32 / 1.35%
  • Avg. Vol. 710,250.00
  • Shares 52.57M
  • Market Cap. 5.19B

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

News

Thor Industries Inc. Stock Dives After Failing to Meet High Expectations
Motley Fool - Mar 12, 2017
In this segment from Market Foolery, Chris Hill and Bill Barker discuss the latest quarterly results from RV industry leader, Thor Industries (NYSE:THO). The company's shares have gained over 60% in the past year, benefiting from broad strength in the ...
Thor Industries: Grab This Bargain Whilst You Can - Seeking Alpha
Why Is Thor Industries Imploding?
Seeking Alpha - Mar 7, 2017
Thor Industries Inc. (NYSE:THO) continues to be a rather thinly covered name here at Seeking Alpha, with just a few articles on the name, several of them are my own.
Thor Industries (THO) Earnings Miss, Revenues Beat in Q2 - Yahoo Finance
Thor Industries Inc. (THO) Is Weakening Despite Q2 Results - RTT News
XPO Logistics, Inc. (XPO), Thor Industries, Inc. (THO) Stock Eyes Ahead of ...
The USA Commerce - 11 hours ago
While trading at volume above than average, Thor Industries, Inc. (NYSE:THO) previous 52-week high was $115.74 and moved up 60.16% over the same period, trading at a volume of 694.73 thousand.
Thor Industries, Inc. (NYSE:THO) Consensus Alert - Aiken Advocate
The Thrivent Financial for Lutherans Raises Stake in Thor Industries, Inc. (THO) - Petro Global News 24
About: Thor Industries, (THO)
Seeking Alpha - Mar 22, 2017
Thor's Y/Y revenue growth was up 65%. However, sequential revenue and unit sales were off 7% and 9%, respectively. THO got hammered and the stock is off over 15% post-earnings.
Analyst's Predictions on Quality Care Properties, Inc. (QCP), Thor Industries ... - StockNewsJournal
Sell-Side Analyst's Predictions: Thor Industries, Inc. (THO), Loews ... - The USA Commerce
Ex-Dividend Reminder: Thor Industries, Covanta Holding and ProAssurance
Nasdaq - Mar 24, 2017
Looking at the universe of stocks we cover at Dividend Channel , on 3/28/17, Thor Industries, Inc. (Symbol: THO), Covanta Holding Corp (Symbol: CVA), and ProAssurance Corp (Symbol: PRA) will all trade ex-dividend for their respective upcoming dividends.
Why is Thor Industries Inc (THO) intrinsic value above its March share price?
Simply Wall St - Mar 24, 2017
How far off is Thor Industries (NYSE:THO) to its intrinsic value? I am going to take a look now by estimating the Future Cash Flows and discounting them to their present value.
Thor Industries Inc.: Thor Announces Final Date For Earnings Release
The Wall Street Transcript - Feb 28, 2017
These forward looking statements are made based on management's current expectations and beliefs regarding future and anticipated developments and their effects upon Thor Industries, Inc., and inherently involve uncertainties and risks. These forward ...
Thor Industries Inc (NYSE:THO) Upside Stock Technicals at Extreme Strength - CML News
The Thor Industries, Inc. (THO) Upgraded by Robert W. Baird to Outperform - DailyQuint
Drilling Down Into the Charts for Thor Industries, Inc. (THO)
The USA Commerce - Mar 23, 2017
We have gathered the technical data on Thor Industries, Inc. (THO), and see some interesting trends in the stock's behavior of late.
Earnings Clues on Veeva Systems Inc. (VEEV), Thor Industries, Inc. (THO ...
StockNewsJournal - Mar 14, 2017
Thor Industries, Inc. (NYSE:THO), maintained return on investment for the last twelve months at 20.78, higher than what Reuters data shows regarding industry's average.
Thor Industries, Inc. (NYSE:THO) Files An 8-K Regulation FD Disclosure
Market Exclusive - Mar 17, 2017
Thor Industries, Inc. manufactures a range of recreational vehicles (RVs) in the United States and sells those vehicles primarily in the United States and Canada.
Thor Industries Inc Stock Volatility Hits An Elevated Level - CML News
Latest Stocks: The Thor Industries, Inc. (THO) Rating Lowered to Hold at Zacks ... - Petro Global News 24
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.

$98.73 Current Price

$87.38 Growth Price (DCF)

Overvalued by 11.50%


Growth Rate Assumed by Market: 18.26%


Future Free Cash Flow Growth Rate: 14.3%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$33.61 Stability Price (EPV)

Overvalued by 65.96%


Discount Rate: 15.0%

$60.86 Book Price

Overvalued by 38.36%


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 $17.85 of cash for every $100 invested.
Figures in USD. Fiscal year ends in July
20122013201420152016
Free Cash Flow 108.78M 120.76M 118.86M 205.58M 289.23M
divided by
Invested Capital 713.32M 730.00M 748.67M 941.44M 1.46B
Cash ROIC 15.25% 16.54% 15.88% 21.84% 19.76%

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 $17.72 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in July
20122013201420152016
Net Income 121.74M 151.68M 175.52M 202.01M 258.02M
divided by
Stockholders' Equity 850.83M 892.61M 977.70M 1.07B 1.27B
Return on Equity 14.31% 16.99% 17.95% 18.96% 20.39%

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
2007200820092010201120122013201420152016
Free Cash Flow 219.10M 107.63M 42.95M 88.36M 81.05M 108.78M 120.76M 118.86M 205.58M 289.23M

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
2007200820092010201120122013201420152016
Cash 346.46M 189.62M 328.83M 247.75M 215.44M 218.64M 236.60M 289.34M 183.48M 209.90M
Current Assets 705.53M 527.92M 604.02M 601.77M 623.77M 684.89M 830.70M 844.05M 775.84M 1.02B
Total Assets 1.06B 996.56M 951.12M 964.07M 1.20B 1.24B 1.33B 1.41B 1.50B 2.33B
Current Liabilities 277.20M 248.42M 184.47M 256.76M 278.60M 311.09M 361.67M 370.72M 378.34M 651.65M
Total Liabilities 292.97M 296.87M 246.09M 306.80M 361.80M 392.23M 435.65M 431.02M 438.06M 1.06B
Stockholder' Equity 766.33M 699.70M 705.03M 657.28M 836.27M 850.83M 892.61M 977.70M 1.07B 1.27B
Current Ratio 2.55 2.13 3.27 2.34 2.24 2.20 2.30 2.28 2.05 1.56
TL-to-TA 0.28 0.30 0.26 0.32 0.30 0.32 0.33 0.31 0.29 0.46

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
2007200820092010201120122013201420152016
Retained Earnings 727.73M 675.93M 677.55M 745.20M 829.15M 918.57M 953.74M 1.03B 1.17B 1.37B
Retained Earnings Growth - -7.12% 0.24% 9.99% 11.26% 10.78% 3.83% 8.04% 13.78% 16.51%

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 $4.23 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in July
2007200820092010201120122013201420152016
Net Income 134.73M 92.71M 17.14M 110.06M 106.27M 121.74M 151.68M 175.52M 202.01M 258.02M
divided by
Revenue 2.86B 2.64B 1.52B 2.28B 2.76B 3.08B 3.24B 3.53B 4.01B 4.58B
Net Profit Margin 4.72% 3.51% 1.13% 4.83% 3.86% 3.95% 4.68% 4.98% 5.04% 5.63%

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 $12.83 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
2007200820092010201120122013201420152016
Gross Profit 363.30M 322.43M 152.54M 307.09M 333.14M 356.78M 424.54M 470.40M 557.55M 726.33M
divided by
Revenue 2.86B 2.64B 1.52B 2.28B 2.76B 3.08B 3.24B 3.53B 4.01B 4.58B
Gross Margin 12.72% 12.21% 10.02% 13.49% 12.09% 11.57% 13.10% 13.34% 13.91% 15.85%

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.

18.42% 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
2007200820092010201120122013201420152016
Capital Expenditure 13.65M 14.48M 5.63M 12.30M 33.75M 10.06M 24.31M 30.41M 42.28M 51.98M
divided by
Net Income 134.73M 92.71M 17.14M 110.06M 106.27M 121.74M 151.68M 175.52M 202.01M 258.02M
Capital Expenditure Ratio 10.13% 15.61% 32.81% 11.17% 31.76% 8.27% 16.02% 17.32% 20.93% 20.14%

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
2007200820092010201120122013201420152016
Dividend Paid 71.32M 127.28M 15.52M 42.41M 22.33M 32.32M 117.69M 102.31M 57.38M 62.97M
divided by
Shares Outstanding 55.90M 55.73M 55.48M 53.12M 55.37M 53.90M 53.12M 53.36M 53.28M 52.59M
Dividend Paid Per Share 1.28 2.28 0.28 0.80 0.40 0.60 2.22 1.92 1.08 1.20
Price at Year End 35.50 11.93 30.62 33.37 27.43 36.84 54.84 55.74 57.32 100.05
Dividend Yield 3.59% 19.14% 0.91% 2.39% 1.47% 1.63% 4.04% 3.44% 1.88% 1.20%

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
2007200820092010201120122013201420152016
Shares Outstanding 55.90M 55.73M 55.48M 53.12M 55.37M 53.90M 53.12M 53.36M 53.28M 52.59M
Stock Bought Back - 0.31% 0.46% 4.44% -4.07% 2.73% 1.48% -0.46% 0.16% 1.30%
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