Thor Industries (THO) AI Stock Analysis

• Market Cap: $4.10B
• Dividend Yield: 1.94%
• Average Volume (3M): 683.53K
• Price to Earnings (P/E): 82.8
• Beta (1Y): 1.20
• Revenue Growth: 1.43%
• EPS Growth: 34.76%
• Country: US
• Employees: 22,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 0.34
• Shares Outstanding: 52,595,932
• 10 Day Avg. Volume: 791,951
• 30 Day Avg. Volume: 683,532
• PEG Ratio: -8.46
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 10.62
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 3.57
• Enterprise Value/Ebitda: 8.02
• 1Y Price Target: $110.00
• Price Target Upside: 41.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 4.21
• Revenue Forecast (FY): $9.61B

• Rating: 55 Neutral
• Price Target: $80.00 ▲(2.56% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is held back primarily by weak technicals (price below major moving averages with bearish momentum) and pressured profitability/cash conversion despite a revenue rebound. Offsetting factors include a strong balance sheet with low leverage, reasonable valuation with a ~2.1% dividend yield, and positive corporate updates including affirmed FY2026 outlook and ongoing capital returns.

Positive Factors

Conservative balance sheet

Low leverage and a large equity base provide durable financial flexibility. This supports capital allocation through cycles, allows continued buybacks/dividends and targeted investment, and reduces refinancing risk—key for a cyclical manufacturing business over the next 2–6 months.

Scale and diversified brand portfolio

A broad brand portfolio and multi-category product mix (towable and motorized) plus a large dealer network deliver scale in manufacturing and purchasing. That structural market position supports resilient revenue streams and bargaining power with suppliers over the medium term.

Strategic realignment and disciplined capital returns

Management's realignment aims to standardize processes, integrate data and capture synergies—measures that can sustainably improve margins and dealer economics. Coupled with debt reduction and shareholder returns, this reflects disciplined capital allocation that bolsters long-term operational resilience.

Negative Factors

Material margin compression

Sharp compression in gross and net margins signals weaker pricing power or higher input and restructuring costs. Lower margins reduce earnings power and limit the company's ability to rebuild profitability to prior-cycle levels within the next several months without structural cost or pricing improvements.

Weakening cash conversion

Declining FCF and poor OCF coverage of net income point to weaker working-capital dynamics and lower quality of earnings. This reduces internal funding for capex, dealer support and M&A, increasing reliance on balance-sheet buffers and exposing the company to cash-flow volatility over the medium term.

European segment pressure

Sustained aggressive pricing and restructuring in Europe can persistently depress margins and require continued investment to stabilize operations. Regional weakness risks dragging consolidated results and diverting management focus from North American recovery in the coming months.

Thor Industries Business Overview & Revenue Model

Company Description

Thor Industries, Inc. designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories in the United States, Canada, and Europe. The company offers travel trailers; gasoline and diesel Class A, Class B, and Class C motorhomes; conventional travel trailers and fifth wheels; luxury fifth wheels; and motorcaravans, caravans, campervans, and urban vehicles. It also provides aluminum extrusion and specialized component products to RV and other manufacturers; and digital products and services for RVs. The company provides its products through independent and non-franchise dealers. The company was founded in 1980 and is based in Elkhart, Indiana.

How the Company Makes Money

Thor Industries primarily makes money by manufacturing RVs and selling them at wholesale prices to independent RV dealers, who then retail the units to end consumers. Its core revenue stream is the sale of RV units across major categories: (1) towable RVs and (2) motorized RVs, with revenues influenced by unit volume, product mix, pricing, and dealer inventory levels. The company also generates revenue from the sale of parts and accessories and from after-sale/ancillary offerings tied to its RV ecosystem (where applicable within its operating segments). Geographically, sales are driven by both North American operations and European operations, with earnings affected by regional demand cycles, production capacity utilization, raw material and component costs, and supply chain availability. Significant factors that contribute to its earnings include the breadth of its brand portfolio, its scale in manufacturing and purchasing, and its reliance on dealer distribution channels (dealer ordering patterns and floorplan financing conditions can materially affect wholesale demand). Specific named partnerships or contract terms: null.

Thor Industries Financial Statement Overview

Summary

Mixed fundamentals: revenue has rebounded in the TTM period, but profitability remains materially compressed versus 2021–2022 (TTM gross margin ~14% and net margin ~2.9%). The balance sheet is a clear strength with conservative leverage (debt-to-equity ~0.24x), but cash flow quality and trend are weaker (TTM FCF down ~39% YoY and operating cash flow covering only ~one-third of net income).

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded to ~$9.93B (about +11% vs the prior annual period), but the multi-year trend shows meaningful contraction from the 2022 peak. Profitability has compressed significantly versus 2021–2022: TTM gross margin is ~14.0% and net margin ~2.9% (down sharply from 2022’s ~17.2% and ~7.0%), indicating weaker pricing/power and/or higher costs. Net income improved versus 2025 (~$300M vs ~$259M), but overall earnings power remains well below prior-cycle levels.

Balance Sheet

Leverage looks conservative in the most recent TTM (Trailing-Twelve-Months) view, with low debt relative to equity (debt-to-equity ~0.24x) alongside a large equity base (~$4.32B) versus total assets (~$7.02B). Returns on equity are modest (TTM ~6.7%), reflecting the reduced profitability environment. Overall, the balance sheet appears to provide solid flexibility, though shareholder returns are currently constrained by lower margins.

Cash Flow

Cash generation is positive but weakening: TTM (Trailing-Twelve-Months) operating cash flow is ~$359M and free cash flow ~$228M, with free cash flow down ~39% versus the prior annual period. Free cash flow is reasonably supported by earnings (free cash flow is ~74% of net income), but operating cash flow covers a relatively small portion of net income (about one-third), pointing to less favorable working-capital/quality-of-earnings dynamics in the latest period. The trend suggests more pressure on cash conversion than in 2023–2025.

Breakdown	TTM	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	9.93B	9.58B	10.04B	11.12B	16.31B	12.32B
Gross Profit	1.34B	1.20B	1.59B	1.46B	2.99B	1.76B
EBITDA	597.06M	570.83M	701.99M	861.96M	1.82B	1.14B
Net Income	300.41M	258.56M	265.31M	374.27M	1.14B	659.87M
Balance Sheet
Total Assets	7.02B	7.07B	7.02B	7.26B	7.41B	6.65B
Cash, Cash Equivalents and Short-Term Investments	242.18M	586.60M	501.32M	441.23M	311.69M	445.85M
Total Debt	994.49M	922.98M	1.13B	1.30B	1.82B	1.59B
Total Liabilities	2.69B	2.78B	2.95B	3.28B	3.81B	3.71B
Stockholders Equity	4.32B	4.29B	4.07B	3.98B	3.57B	2.92B
Cash Flow
Free Cash Flow	227.76M	454.94M	405.91M	773.44M	747.90M	397.65M
Operating Cash Flow	359.23M	577.92M	545.55M	981.63M	990.25M	526.48M
Investing Cash Flow	-61.21M	-64.47M	-146.81M	-222.48M	-1.05B	-428.49M
Financing Cash Flow	-408.76M	-426.31M	-337.68M	-635.68M	-47.84M	-188.44M

Thor Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THO, the sentiment is Negative. The current price of 78 is below the 20-day moving average (MA) of 92.83, below the 50-day MA of 105.87, and below the 200-day MA of 101.02, indicating a bearish trend. The MACD of -8.00 indicates Positive momentum. The RSI at 16.85 is Positive, neither overbought nor oversold. The STOCH value of 10.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for THO.

Thor Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LCII	69 Neutral	$2.94B	15.99	13.76%	3.72%	5.74%	39.40%
WGO	63 Neutral	$922.81M	46.39	2.98%	3.42%	1.38%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BC	58 Neutral	$4.58B	-35.47	-7.80%	2.27%	-4.78%	-189.89%
THO	55 Neutral	$4.10B	82.80	7.01%	1.94%	1.43%	34.76%
HOG	52 Neutral	$1.92B	7.26	10.26%	3.47%	-15.99%	-6.76%
PII	51 Neutral	$2.93B	-7.73	-42.42%	3.99%	-9.39%	-173.86%

Thor Industries Corporate Events

Thor Industries Posts Q2 Results, Affirms 2026 Outlook

Thor Industries reported fiscal 2026 second-quarter results on March 3, 2026, with revenue rising to $2.13 billion and net income attributable to Thor improving to $17.8 million, helped in part by gains on real estate transactions as it optimizes its footprint. Adjusted EBITDA climbed to $98.1 million, supported by strong North American motorized performance, resilient towable margins despite lower volumes, and notable gains at its supply companies, while the European segment remained pressured by aggressive pricing and restructuring costs.

Management highlighted that its recently announced strategic realignment of North American RV operations on February 23, 2026, is designed to enhance efficiency, standardize processes and integrate data, positioning the company for improved synergies and long-term competitive benefits for dealers, consumers and shareholders. Thor maintained its full-year fiscal 2026 guidance, including projected net sales of $9.0 billion to $9.5 billion and diluted EPS of $3.75 to $4.25, and underscored disciplined capital allocation after cutting debt by about $47.1 million and returning cash via share repurchases and dividends during the quarter.

The most recent analyst rating on (THO) stock is a Hold with a $116.00 price target. To see the full list of analyst forecasts on Thor Industries stock, see the THO Stock Forecast page.