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Thor Industries, Inc. (THO)
:THO

Thor Industries (THO) AI Stock Analysis

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Thor Industries

(NYSE:THO)

Rating:73Outperform
Price Target:
$92.00
▲(7.00%Upside)
Thor Industries presents a stable financial profile with strong cash flow generation and low leverage, which are significant strengths. However, challenges in profitability margins and revenue growth may impact future performance. Technical indicators are mixed, showing short-term bullish momentum but potential resistance in the longer term. Valuation metrics indicate the stock is fairly valued, while recent positive corporate events enhance future outlook.
Positive Factors
Financial Health
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 Position
THO's towable segment is benefiting from incremental ship-in of private label/contract manufactured units.
Negative Factors
Earnings Guidance
FY2025 guidance was lowered, with THO now expecting sales of $9.0-9.5 billion.
Earnings Performance
THO's FY1Q25 came in well below Street expectations, as margin headwinds weighed on y/y results.
Regional Challenges
Motorized weakness and sluggish European operations are overshadowing a strengthening NA towable market.

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

Thor Industries Business Overview & Revenue Model

Company DescriptionThor 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 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 Price85.98
Price Trends
50DMA
76.25
Positive
100DMA
85.70
Positive
200DMA
95.16
Negative
Market Momentum
MACD
1.95
Negative
RSI
64.69
Neutral
STOCH
68.01
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 85.98 is above the 20-day moving average (MA) of 81.41, above the 50-day MA of 76.25, and below the 200-day MA of 95.16, indicating a neutral trend. The MACD of 1.95 indicates Negative momentum. The RSI at 64.69 is Neutral, neither overbought nor oversold. The STOCH value of 68.01 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
$2.23B14.4911.44%5.09%1.04%65.90%
THTHO
73
Outperform
$4.57B20.635.42%2.30%-6.41%-15.85%
BCBC
67
Neutral
$3.59B45.345.16%3.11%-15.42%-77.50%
62
Neutral
$6.94B11.292.95%3.87%2.70%-24.49%
PIPII
62
Neutral
$2.32B57.423.09%6.41%-17.86%-89.55%
WGWGO
60
Neutral
$978.65M-0.45%3.81%-12.29%-105.55%
58
Neutral
$605.66M-1.68%-27.18%84.33%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
THO
Thor Industries
85.98
-9.89
-10.32%
BC
Brunswick
55.00
-20.21
-26.87%
LCII
LCI Industries
88.50
-11.39
-11.40%
PII
Polaris
40.82
-33.20
-44.85%
WGO
Winnebago Industries
32.83
-25.05
-43.28%
MBUU
Malibu Boats
31.18
-5.51
-15.02%

Thor Industries Corporate Events

Business Operations and StrategyFinancial Disclosures
Thor Industries Reports Strong Q3 2025 Financial Results
Positive
Jun 4, 2025

THOR Industries announced its fiscal 2025 third-quarter results, highlighting a 3.3% increase in net sales compared to the previous year, reaching $2.89 billion. The company achieved a gross profit margin of 15.3% and reported a net income of $135.2 million, reflecting an 18.1% increase from the prior year. Despite challenges in the RV industry, THOR’s strategic initiatives and operational efficiencies resulted in strong performance, with a 9.1% increase in North American Towable RV net sales. The company remains optimistic about its future prospects, reaffirming its full-year fiscal guidance.

The most recent analyst rating on (THO) stock is a Hold with a $100.00 price target. To see the full list of analyst forecasts on Thor Industries stock, see the THO Stock Forecast page.

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.