Thor Industries (THO) AI Stock Analysis

• Market Cap: $3.85B
• Dividend Yield: 2.71%
• Average Volume (3M): 923.32K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.33
• Revenue Growth: -8.45%
• EPS Growth: -25.41%
• Country: US
• Employees: 22,300
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 3.77
• Shares Outstanding: 53,203,568
• 10 Day Avg. Volume: 727,885
• 30 Day Avg. Volume: 923,320
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.32
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $79.67
• Price Target Upside: 8.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

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

Financial Stability

The balance sheet remains solid, with liquidity of $1.23B and a healthy net leverage ratio, allowing for capital allocation flexibility.

Industry Trends

Thor benefits from RV industry tailwinds, including an aging population, ongoing replacement cycle, and popularity of RVs among millennials.

Market Positioning

THO's towable segment is benefiting from incremental ship-in of private label/contract manufactured units.

Negative Factors

Earnings Performance

THO's 2Q25 earnings met top-line expectations but missed on AEBITDA & EPS due to weaker margins.

Guidance

FY2025 guidance was lowered, with THO now expecting sales of $9.0-9.5 billion.

Market Challenges

The quarter was pressured by greater-than-expected weakness in Motorized and Europe.

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 generates revenue primarily through the design, manufacture, and sale of recreational vehicles. The company operates through various subsidiaries, each specializing in different types of RVs, providing a broad product mix that appeals to varying consumer preferences and price points. Sales are made directly to independent, non-affiliated dealers who then sell to end consumers. Additionally, Thor Industries benefits from significant economies of scale and a diverse brand portfolio, which help maintain a competitive edge in the RV market. The company also engages in strategic partnerships and acquisitions to enhance its market position and expand its product offerings.

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

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

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

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
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
10.04B	11.12B	16.31B	12.32B	8.17B
	Gross Profit
1.45B	1.60B	2.81B	1.89B	1.12B
	EBIT
423.89M	596.80M	1.53B	938.92M	180.94M
	EBITDA
714.50M	862.42M	1.82B	1.14B	583.02M
	Net Income Common Stockholders
265.31M	374.27M	1.14B	659.87M	222.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
501.32M	441.23M	311.69M	445.85M	541.36M
	Total Assets
7.02B	7.26B	7.41B	6.65B	5.77B
	Total Debt
1.13B	1.30B	1.75B	1.59B	1.65B
	Net Debt
632.60M	861.45M	1.44B	1.15B	1.11B
	Total Liabilities
2.95B	3.28B	3.81B	3.71B	3.43B
	Stockholders Equity
4.07B	3.98B	3.57B	2.92B	2.35B
Cash Flow		Free Cash Flow
405.91M	773.44M	747.90M	397.65M	434.24M
	Operating Cash Flow
545.55M	981.63M	990.25M	526.48M	540.94M
	Investing Cash Flow
-146.81M	-222.48M	-1.05B	-428.49M	-84.25M
	Financing Cash Flow
-337.68M	-635.68M	-47.84M	-188.44M	-392.92M

Thor Industries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 73.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THO, the sentiment is Neutral. The current price of 73.41 is above the 20-day moving average (MA) of 70.86, below the 50-day MA of 79.97, and below the 200-day MA of 97.49, indicating a neutral trend. The MACD of -1.63 indicates Negative momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 68.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for THO.

Thor Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LCII	71 Outperform	$1.95B	13.76	10.42%	5.71%	-1.15%	121.43%
THO	68 Neutral	$3.85B	19.22	5.13%	2.71%	-8.45%	-25.41%
BC	64 Neutral	$3.04B	38.34	5.16%	3.67%	-15.42%	-77.50%
WGO	61 Neutral	$872.15M	―	-0.45%	3.99%	-12.29%	-105.55%
Sector *	61 Neutral	$6.55B	11.72	3.07%	4.01%	2.66%	-21.27%
PII	60 Neutral	$1.95B	48.84	3.09%	7.80%	-17.86%	-89.55%
MBUU	48 Neutral	$560.78M	―	-15.71%	―	-39.56%	-238.09%

Thor Industries Corporate Events

Thor Industries Revises Fiscal 2025 Financial Guidance

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%.