THO  Thor Industries Inc.

Exchange

NYSE

Sector

Consumer Non-Durables

Industry

Homebuilding

Market Cap.

5.86B

Vuru Grade

56.95/100

Current Price

$111.45
+1.29 (+1.17%)

Growth Price

$87.36
Overvalued by 21.62%

Stability Price

$33.60
Overvalued by 69.85%

Company Metrics

  • P/E 20.62
  • P/S 1.1
  • P/B 4.37
  • EPS 5.41
  • Cash ROIC 17.85%
  • Cash Ratio 0.32
  • Dividend 1.32 / 1.18%
  • Avg. Vol. 660,190.00
  • Shares 52.58M
  • Market Cap. 5.86B

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

An Interview With Bob Martin, President And CEO Of Thor Industries, Inc.
Forbes - Oct 31, 2016
bobmartin-casual-axis-285 Bob Martin is the President and CEO of Thor Industries, Inc. The Elkhart, Indiana-based company builds motorized and towable recreational vehicles under 17 different brand names, including Airstream, Thor Motor Coach ...
Thor Industries Finishes Its Fiscal Year Strong on Jayco Gains
Motley Fool - Sep 27, 2016
Investors in recreational vehicle specialist Thor Industries (NYSE:THO) have been excited about the company's prospects lately, and the ascent in its stock price to new all-time highs has mirrored record business performance.
Thor Industries drives higher as younger buyers flock to the RV lifestyle - CNBC
Thor Industries (THO) Posts Record Year for RV Sales - Economic Calendar
Thor Industries Inc. (THO) Moves Higher on Volume Spike for February 08
Equities.com - Feb 8, 2017
Thor Industries Inc. (THO) traded on unusually high volume on Feb. 08, as the stock gained 4.06% to close at $108.75. On the day, Thor Industries Inc. saw 974,903 shares trade hands on 9,857 trades. Considering that the stock averages only a daily ...
Still Time To Take A Look At Thor Industries Ahead Of A Strong RV Season - Benzinga
Thor Industries, Inc. (THO) Shares Tick Up after Upgrade at Robert W. Baird - The Ledger Gazette
What's The Deal With Thor Industries?
Seeking Alpha - Mar 8, 2016
Thor Industries Inc. (NYSE:THO) continues to be a rather thinly covered name here at Seeking Alpha, with just a few articles in the last six months.
Thor Industries Climbs on Solid RV Growth - Motley Fool
Thor Industries: My Top Auto Stock For 2017
Seeking Alpha - Dec 22, 2016
In this series of articles, I will be reviewing individual industry sectors and selecting my favorite stock picks for 2017. For this article, I will be reviewing the Auto industry sector, taking a look at revenue/earnings growth and the overall ...
Why You Should Add Thor To Your Watch List
Seeking Alpha - Feb 15, 2017
Thor Industries (NYSE:THO), the parent company of Airstream, has been able to fully capitalize on this trend. With 2016 sales near double of what they were in 2011, THO is at an all-time high, which has made investors of the company to quote Airstream ...
Thor Industries, Inc. (NYSE:THO) Reviewed By Analysts - The De Soto Edge
Thor Industries Looks Like A Good Place For Investors To Set Up Camp
Forbes - Jul 7, 2016
All too often, a company engaging in an acquisitional approach to growing a business is doing so to hide weaknesses in the fundamentals of the corporation.
Thor Industries - Jayco Purchase Is Transformational, Looks Decent
Seeking Alpha - Jul 3, 2016
Thor Industries announced its largest acquisition so far with the +$500 million deal to acquire Jayco. The deal looks very appealing based on sales multiples, certainly if Thor can expand Jayco's margins. The transaction is likely to be very accretive ...
Thor Industries to Buy Jayco for $576 Million - Wall Street Journal
Thor Announces Acquisition of Jayco for $576 Million - PR Newswire (press release)
Wunderlich Downgrades Thor Industries, Sees Industry Soon Exceeding Peak ...
Benzinga - Aug 19, 2016
Following their outperformance over the recent quarters, shares of Thor Industries, Inc. (NYSE: THO) are now trading at a 10–20 percent premium to the leading recreational and leisure vehicle peers.
Employees Retirement System of Texas Has $3052000 Stake in Thor Industries ...
The Cerbat Gem - Feb 24, 2017
Thor Industries logo Employees Retirement System of Texas lowered its stake in Thor Industries, Inc. (NYSE:THO) by 22.8% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC).
Earnings Reaction History: Thor Industries, Inc. (NYSE:THO) has a 53.57 ... - The Independent Republic
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.

$111.45 Current Price

$87.36 Growth Price (DCF)

Overvalued by 21.62%


Growth Rate Assumed by Market: 22.02%


Future Free Cash Flow Growth Rate: 14.3%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$33.60 Stability Price (EPV)

Overvalued by 69.85%


Discount Rate: 15.0%

$60.51 Book Price

Overvalued by 45.71%


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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