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Thor Industries (THO)
NYSE:THO

Thor Industries (THO) AI Stock Analysis

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Thor Industries

(NYSE:THO)

Rating:68Neutral
Price Target:
Thor Industries' overall stock score reflects a stable financial foundation with strong cash flow and low leverage, which is offset by challenges in revenue growth and profitability margins. Technical indicators suggest neutral to bearish sentiment, and the stock is fairly valued with an attractive dividend yield. The lack of recent earnings call data or corporate events leaves the current stock performance heavily reliant on its financial stability.
Positive Factors
Backlog Increase
Consolidated backlog increased +20% q/q, the first sequential increase since FY4Q23, with towable backlog increasing +17% y/y.
Industry Tailwinds
Thor benefits from RV industry tailwinds, including an aging population, ongoing replacement cycle, and popularity of RVs among millennials.
Towable Segment Performance
THO's towable segment is benefiting from incremental ship-in of private label/contract manufactured units.
Negative Factors
Earnings Miss
THO's FY2Q25 EPS came in below the Street and FY25 guidance was cut.
European and Motorized Weakness
The quarter was pressured by greater-than-expected weakness in Motorized and Europe.
Guidance Reduction
FY2025 guidance was lowered, with THO now expecting sales of $9.0-9.5 billion.

Thor Industries (THO) vs. SPDR S&P 500 ETF (SPY)

Thor Industries Business Overview & Revenue Model

Company DescriptionThor Industries, Inc. is a prominent American manufacturer of recreational vehicles (RVs), catering to a diverse array of consumers seeking leisure and travel solutions. Founded in 1980 and headquartered in Elkhart, Indiana, Thor Industries operates through its extensive network of subsidiaries, which include well-known brands such as Airstream, Jayco, and Keystone. The company offers a wide range of RV products, including motorhomes, travel trailers, and fifth wheels, designed to provide comfort and convenience for outdoor enthusiasts.
How the Company Makes MoneyThor Industries makes money primarily through the design, manufacture, and sale of recreational vehicles. Its revenue model is heavily reliant on the sale of RVs, which are distributed through an extensive network of independent dealers across North America and Europe. The company benefits from a diverse product lineup that caters to various segments of the RV market, from entry-level to luxury offerings. In addition to direct sales, Thor Industries generates revenue through aftermarket parts and services, which provide ongoing support and maintenance options for RV owners. Strategic acquisitions and partnerships also play a significant role in Thor's business model, allowing the company to expand its brand portfolio and market reach. Key factors contributing to its earnings include consumer demand for outdoor recreational activities, favorable economic conditions, and the company's ability to innovate and adapt to changing market trends.

Thor Industries Financial Statement Overview

Summary
Thor Industries demonstrates a stable financial standing with strong cash flow generation and low leverage. However, the company faces challenges in profitability margins and revenue growth, which may affect future performance. The balance sheet strength and cash flow efficiency provide a solid foundation for potential improvements in income metrics.
Income Statement
70
Positive
Thor Industries shows a mixed income statement performance. The TTM gross profit margin is 14.76%, indicating solid profitability from core operations. However, the net profit margin of 2.10% is relatively low, suggesting high expenses or other financial pressures. The revenue growth trajectory has been negative in recent years, with a decline from previous periods, impacting overall income performance.
Balance Sheet
75
Positive
The balance sheet exhibits strong equity, with a debt-to-equity ratio of 0.01 in the TTM, indicating low leverage and financial stability. The equity ratio stands at 58.86%, suggesting a healthy proportion of assets financed by equity, enhancing financial robustness. Return on equity is modest at 5.05%, reflecting average returns for shareholders.
Cash Flow
80
Positive
Cash flow analysis reveals strong cash generation capabilities. The operating cash flow to net income ratio is 3.26, highlighting efficient cash operations. Free cash flow growth has been robust, with a significant increase in the latest period. The free cash flow to net income ratio of 2.70 underscores effective cash utilization.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
9.50B10.04B11.12B16.31B12.32B8.17B
Gross Profit
1.40B1.45B1.60B2.81B1.89B1.12B
EBIT
349.80M423.89M596.80M1.53B938.92M180.94M
EBITDA
608.24M714.50M862.42M1.82B1.14B583.02M
Net Income Common Stockholders
202.14M265.31M374.27M1.14B659.87M222.97M
Balance SheetCash, Cash Equivalents and Short-Term Investments
373.82M501.32M441.23M311.69M445.85M541.36M
Total Assets
6.71B7.02B7.26B7.41B6.65B5.77B
Total Debt
1.03B1.13B1.30B1.75B1.59B1.65B
Net Debt
657.32M632.60M861.45M1.44B1.15B1.11B
Total Liabilities
2.76B2.95B3.28B3.81B3.71B3.43B
Stockholders Equity
3.95B4.07B3.98B3.57B2.92B2.35B
Cash FlowFree Cash Flow
539.06M405.91M773.44M747.90M397.65M434.24M
Operating Cash Flow
651.33M545.55M981.63M990.25M526.48M540.94M
Investing Cash Flow
-100.33M-146.81M-222.48M-1.05B-428.49M-84.25M
Financing Cash Flow
-531.44M-337.68M-635.68M-47.84M-188.44M-392.92M

Thor Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price79.62
Price Trends
50DMA
76.00
Positive
100DMA
86.58
Negative
200DMA
95.75
Negative
Market Momentum
MACD
1.79
Negative
RSI
60.36
Neutral
STOCH
38.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THO, the sentiment is Positive. The current price of 79.62 is above the 20-day moving average (MA) of 78.41, above the 50-day MA of 76.00, and below the 200-day MA of 95.75, indicating a neutral trend. The MACD of 1.79 indicates Negative momentum. The RSI at 60.36 is Neutral, neither overbought nor oversold. The STOCH value of 38.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for THO.

Thor Industries Risk Analysis

Thor Industries disclosed 31 risk factors in its most recent earnings report. Thor Industries reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Rule 10b5-1 Trading Arrangements Q4, 2024

Thor Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$2.21B14.3211.44%5.03%1.04%65.90%
THTHO
68
Neutral
$4.24B21.135.13%2.49%-8.45%-25.41%
BCBC
63
Neutral
$3.27B41.025.16%3.40%-15.42%-77.50%
PIPII
63
Neutral
$2.14B53.503.09%6.97%-17.86%-89.55%
62
Neutral
$6.84B11.233.09%3.95%2.66%-25.23%
WGWGO
61
Neutral
$941.09M-0.45%3.96%-12.29%-105.55%
56
Neutral
$567.47M-1.68%-27.18%84.33%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
THO
Thor Industries
82.40
-10.60
-11.40%
BC
Brunswick
51.26
-24.79
-32.60%
LCII
LCI Industries
89.67
-13.43
-13.03%
PII
Polaris
39.77
-38.95
-49.48%
WGO
Winnebago Industries
34.34
-23.48
-40.61%
MBUU
Malibu Boats
30.75
-5.59
-15.38%

Thor Industries Corporate Events

Business Operations and StrategyFinancial Disclosures
Thor Industries Revises Fiscal 2025 Financial Guidance
Neutral
Mar 5, 2025

Thor Industries announced its fiscal 2025 second-quarter results, revealing a decrease in net sales and gross profit compared to the previous year due to ongoing macroeconomic challenges. Despite these challenges, the company reported strong cash flows and continued strategic actions to enhance dealer relationships, positioning itself for future market recovery. The company revised its full-year fiscal 2025 financial guidance, projecting consolidated net sales between $9.0 billion and $9.5 billion, with a gross profit margin of 13.8% to 14.5%.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.