Winnebago Industries (WGO) AI Stock Analysis

• Market Cap: $922.81M
• Dividend Yield: 3.42%
• Average Volume (3M): 487.14K
• Price to Earnings (P/E): 46.4
• Beta (1Y): 1.13
• Revenue Growth: 1.38%
• EPS Growth: N/A
• Country: US
• Employees: 5,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 0.38
• Shares Outstanding: 28,220,627
• 10 Day Avg. Volume: 543,263
• 30 Day Avg. Volume: 487,140
• PEG Ratio: 0.39
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 11.34
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 10.13
• 1Y Price Target: $47.80
• Price Target Upside: 46.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 2.47
• Revenue Forecast (FY): $2.92B

• Rating: 63 Neutral
• Price Target: $36.00 ▲(10.09% Upside)
• Action: Downgraded Date: 03/11/26
• Date: Action: Downgraded 03/11/26

The score reflects strong cash flow and a low-debt balance sheet, supported by an upbeat earnings outlook and leverage-reduction actions. These positives are tempered by very weak price momentum (below all major moving averages with negative MACD) and a high P/E that limits valuation appeal despite the strong dividend yield.

Positive Factors

Strong Cash Generation

Sustained FCF growth (51.96% TTM) indicates durable cash conversion and liquidity. This strengthens the company's ability to fund capital expenditure, product development, dividends, and opportunistic debt repayment without relying on external financing, improving long-term financial resilience.

Leverage Reduction / Balance Sheet Strength

A deliberate $100M partial redemption reduces interest burden and improves leverage metrics, increasing financial flexibility. Lower debt levels bolster resilience through demand cycles, enabling strategic investment and smoothing cash flow demands over the medium term.

Product Innovation and Dealer Acceptance

Repeated successful launches and award-winning designs signal strong product-market fit and dealer traction. A steady pipeline of well-received models supports market share, pricing power, and brand differentiation, underpinning sustainable revenue growth and competitive positioning.

Negative Factors

Low Profitability

A low net margin (1.27%) shows limited earnings buffer against cost inflation or demand softness. Even with healthy revenue, thin profitability constrains reinvestment and capital returns, and makes operating performance more sensitive to commodity, labor, or warranty cost shifts over time.

Marine Segment Headwinds

Persistent weakness in marine sales highlights revenue concentration and uneven segment performance. Slower marine recovery limits diversification of revenue streams and could depress aggregate cash generation and margin resilience if marine conditions remain adverse over multiple quarters.

Rising Warranty Costs

Increasing warranty expense (3.6% of revenue, +40bps) signals quality-related costs that directly erode gross margins and cash flow. If persistent, higher warranty provisioning can reduce free cash flow and require structural improvements in quality control or higher pricing to restore margin sustainability.

Winnebago Industries Business Overview & Revenue Model

Company Description

Winnebago Industries, Inc. manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. The company operates in six segments: Grand Design Towables, Winnebago Towables, Winnebago Motorhomes, Newmar motorhomes, Chris-Craft Marine, and Winnebago Specialty Vehicles. It provides towable products that are non-motorized vehicles to be towed by automobiles, pickup trucks, SUVs, or vans for use as temporary living quarters for recreational travel, such as conventional travel trailers, fifth wheels, folding camper trailers, and truck campers under the Winnebago and Grand Design brand names. The company also offers motorhomes, which are self-propelled mobile dwellings used primarily as temporary living quarters during vacation and camping trips, or to support active and mobile lifestyles under the Winnebago and Newmar brand names. In addition, it offers other specialty commercial vehicles for law enforcement command centers, mobile medical clinics, and mobile office spaces; commercial vehicles as bare shells to third-party up fitters; and boats in the recreational powerboat industry under the Chris-Craft and Barletta brand names. Further, the company is involved in the original equipment manufacturing of parts for other manufacturers and commercial vehicles. The company sells its products primarily through independent dealers in the United States, Canada, and internationally. Winnebago Industries, Inc. was incorporated in 1958 and is based in Forest City, Iowa.

How the Company Makes Money

Winnebago Industries primarily makes money by manufacturing and selling outdoor recreation products to dealers, with revenue largely recognized from wholesale shipments of finished units. The company’s key revenue streams are (1) RVs—covering both motorhomes and towable RVs—sold under its various RV brands through independent RV dealerships, and (2) marine products—boats sold under its marine brands through marine dealers. In addition to unit sales, the company generates revenue from related parts, accessories, and services tied to its products (where offered and reported), and its earnings are influenced by product mix (e.g., higher-priced or higher-margin models), production volume, raw-material and component costs, dealer inventory levels, retail demand, and financing conditions that affect consumer affordability. The company’s distribution model relies heavily on third-party dealer relationships, and its ability to deliver products depends on its supply chain and manufacturing footprint; specific partnership terms or material counterparty details are not available in the provided prompt, so null.

Winnebago Industries Financial Statement Overview

Summary

Financials are solid overall: strong cash flow (51.96% free cash flow growth and strong cash conversion) and a low-leverage balance sheet (debt-to-equity 0.018) offset modest profitability (1.27% net margin) and only moderate revenue growth (2.76% TTM).

Income Statement

Winnebago Industries has shown a modest revenue growth rate of 2.76% in the TTM, indicating a recovery from previous declines. The gross profit margin is stable at 13.12%, but the net profit margin is relatively low at 1.27%, suggesting limited profitability. EBIT and EBITDA margins are also modest, reflecting operational challenges. Overall, the income statement shows moderate performance with room for improvement in profitability.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.018 in the TTM, indicating low leverage and financial stability. Return on equity is modest at 2.52%, suggesting moderate efficiency in generating returns from equity. The equity ratio is healthy, reflecting a solid capital structure. Overall, the balance sheet is stable with low financial risk.

Cash Flow

Winnebago Industries has demonstrated strong cash flow performance with a significant free cash flow growth rate of 51.96% in the TTM. The operating cash flow to net income ratio is 0.59, indicating good cash generation relative to net income. The free cash flow to net income ratio is robust at 0.80, highlighting efficient cash conversion. Overall, the cash flow statement reflects strong liquidity and cash management.

Breakdown	TTM	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	2.88B	2.80B	2.97B	3.49B	4.96B	3.63B
Gross Profit	377.30M	365.10M	433.50M	586.10M	929.34M	650.36M
EBITDA	131.30M	94.50M	118.10M	351.70M	609.69M	440.70M
Net Income	36.40M	25.70M	13.00M	215.90M	390.60M	281.90M
Balance Sheet
Total Assets	2.13B	2.26B	2.38B	2.51B	2.48B	2.11B
Cash, Cash Equivalents and Short-Term Investments	181.70M	174.00M	330.90M	309.90M	282.17M	434.56M
Total Debt	578.60M	595.40M	741.80M	649.30M	598.66M	563.91M
Total Liabilities	893.60M	1.04B	1.11B	1.14B	1.22B	1.06B
Stockholders Equity	1.23B	1.22B	1.27B	1.37B	1.26B	1.06B
Cash Flow
Free Cash Flow	136.00M	89.50M	98.90M	211.30M	312.65M	192.39M
Operating Cash Flow	171.00M	128.90M	143.90M	294.50M	400.62M	237.28M
Investing Cash Flow	-32.30M	-34.80M	-45.90M	-170.00M	-315.67M	-33.01M
Financing Cash Flow	-219.50M	-251.00M	-77.00M	-96.80M	-237.34M	-62.28M

Winnebago Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.70
• 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 WGO, the sentiment is Negative. The current price of 32.7 is below the 20-day moving average (MA) of 38.36, below the 50-day MA of 43.25, and below the 200-day MA of 36.30, indicating a bearish trend. The MACD of -3.13 indicates Positive momentum. The RSI at 18.89 is Positive, neither overbought nor oversold. The STOCH value of 9.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WGO.

Winnebago 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	―	-42.42%	3.99%	-9.39%	-173.86%

Winnebago Industries Corporate Events

Winnebago Announces Partial Redemption of Senior Secured Notes

On February 5, 2026, Winnebago Industries announced that it would redeem $100 million of the $200 million outstanding principal of its 6.25% Senior Secured Notes due 2028 on February 20, 2026, at par plus accrued and unpaid interest, with notice of redemption sent the same day to record holders by the trustee, U.S. Bank Trust Company, National Association. Management framed the partial debt redemption as a deliberate move to improve balance sheet leverage while preserving strong cash balances and cash flow, positioning the company for greater financial flexibility in what it expects to be a seasonally stronger second half of its fiscal year and underscoring an ongoing commitment to leverage reduction within a balanced capital allocation strategy.

The most recent analyst rating on (WGO) stock is a Buy with a $54.00 price target. To see the full list of analyst forecasts on Winnebago Industries stock, see the WGO Stock Forecast page.

Winnebago Shareholders Approve Key Governance Amendments

At its annual meeting on December 16, 2025, Winnebago Industries‘ shareholders approved amendments to the company’s 2019 Omnibus Incentive Plan and Employee Stock Purchase Plan, which included authorizing additional shares for issuance and extending the plans’ terms. Other major decisions included the reelection of directors, advisory approval of executive compensation, and the ratification of Deloitte & Touche LLP as the independent accountant for fiscal 2026, reflecting ongoing stakeholder engagement in corporate governance and operational planning.

The most recent analyst rating on (WGO) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Winnebago Industries stock, see the WGO Stock Forecast page.