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Winnebago Industries (WGO)
NYSE:WGO
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Winnebago Industries
(NYSE:WGO)
56Neutral
Positive Factors
Market Positioning
WGO's premium positioning and end-market diversification via Marine position the company well for long-term opportunities.
Sales and Earnings Growth
Winnebago is expected to grow sales and earnings due to operational improvements, market share gains from Barletta, and enhanced product offerings.
Negative Factors
Gross Margin
The analyst has lowered gross margin estimates due to less leverage and more promotional activity.
Revenue Decline
Motorhome revenue is expected to decline significantly, falling below the Street's expectations.
Winnebago Industries (WGO) vs. S&P 500 (SPY)
Market Cap
$1.01B
Dividend Yield3.65%
Average Volume (3M)737.19K
Price to Earnings (P/E)―
Beta (1Y)1.33
Revenue Growth-14.10%
EPS Growth-110.55%
CountryUS
Employees5,700
SectorConsumer Cyclical
Sector Strength49
IndustryVehicles
Share Statistics
EPS (TTM)-0.67
Shares Outstanding28,396,755
10 Day Avg. Volume1,026,074
30 Day Avg. Volume737,192
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.36
Price to Cash Flow (P/CF)-15.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$61.00Price Target Upside76.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Winnebago Industries Business Overview & Revenue Model
Company DescriptionWinnebago Industries, Inc. engages in the design, development, manufacture, and sale of motorized and towable recreation products. It operates through the following segments: Grand Design towables, Winnebago towables, Chris-Craft marine, Winnebago motorhomes and Winnebago specialty vehicles. The company was founded on February 12, 1958 and is headquartered in Forest City, IA.
How the Company Makes MoneyWinnebago Industries generates revenue primarily through the sale of its recreational vehicles and related products. The company operates several key business segments, including Motorhomes, Towables, and Boats. Motorhomes, which include Class A, B, and C vehicles, represent a significant portion of the company's revenue, driven by consumer demand for mobile and flexible travel solutions. The Towables segment, featuring travel trailers and fifth wheels, also contributes substantially to revenue, with products designed for various consumer preferences and price points. Additionally, the Boats segment, particularly through the Chris-Craft brand, adds to the company's revenue streams by offering luxury and performance boats. Winnebago's earnings are further supported by its extensive dealer network, which helps distribute its products across North America. Strategic acquisitions, like the purchase of Grand Design and Newmar, have also bolstered its market position and expanded its product offerings, contributing to overall growth and profitability.
Winnebago Industries Financial Statement Overview
Summary
Winnebago Industries faces challenges in revenue growth and profitability, evidenced by a declining trend in revenue and a recent negative net income. However, the balance sheet is strong with low leverage and stable cash flow generation, indicating financial stability despite recent setbacks.Income Statement
Winnebago Industries has experienced noticeable fluctuations in revenue and profitability. The TTM (Trailing-Twelve-Months) shows a challenging period with a negative net income of -$18 million, reflected in a negative net profit margin. Gross profit margin stands at approximately 13.5%, and EBIT margin is around 2.1%, indicating tight cost control but reduced profitability. Previous annual data shows a declining trend in revenue, from $4.95 billion in 2022 to $3.49 billion in 2023, with a corresponding drop in net income. Such trends suggest volatility in revenue and profitability, warranting a moderate score.65
Positive
Balance Sheet
Winnebago's balance sheet shows a healthy equity ratio of about 54% in TTM, suggesting a strong capital structure. The debt-to-equity ratio stands at 0.08, indicating low leverage and reduced financial risk. Return on equity has declined in recent periods due to reduced profitability, yet the company maintains a solid asset base. Despite the reduction in total assets and stockholders' equity over the years, the company's ability to manage debt effectively is a positive sign.75
Positive
Cash Flow
Cash flow analysis indicates stability, with operating cash flow of $148.6 million in TTM and free cash flow of $105.4 million. Winnebago has managed to generate positive free cash flow consistently, but the free cash flow growth rate has shown variability. The operating cash flow to net income ratio is high due to negative net income, reflecting robust cash generation relative to income. This suggests resilience in cash operations, though growth potential may be limited.70
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.84B | 2.97B | 3.49B | 4.96B | 3.63B | 2.36B | Gross Profit |
| 383.20M | 433.50M | 586.10M | 929.34M | 650.36M | 312.93M | EBIT |
| 60.40M | 100.20M | 300.70M | 583.50M | 407.42M | 113.76M | EBITDA |
| 65.00M | 118.10M | 346.60M | 609.69M | 440.70M | 152.84M | Net Income Common Stockholders |
| -18.00M | 13.00M | 215.90M | 390.60M | 281.90M | 61.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 122.94M | 330.90M | 309.90M | 282.17M | 434.56M | 292.57M | Total Assets |
| 1.57B | 2.38B | 2.43B | 2.42B | 2.06B | 1.71B | Total Debt |
| 492.68M | 741.80M | 634.40M | 586.28M | 555.30M | 539.68M | Net Debt |
| 369.75M | 410.90M | 324.50M | 304.11M | 120.74M | 247.10M | Total Liabilities |
| 770.40M | 1.11B | 1.06B | 1.15B | 1.01B | 886.23M | Stockholders Equity |
| 801.52M | 1.27B | 1.37B | 1.26B | 1.06B | 827.47M |
| Cash Flow | Free Cash Flow | ||||
| 105.40M | 98.90M | 211.30M | 312.65M | 192.39M | 238.06M | Operating Cash Flow |
| 148.60M | 143.90M | 294.50M | 400.62M | 237.28M | 270.43M | Investing Cash Flow |
| -39.20M | -45.90M | -170.00M | -315.67M | -33.01M | -293.08M | Financing Cash Flow |
| -66.50M | -77.00M | -96.80M | -237.34M | -62.28M | 277.79M |
Winnebago Industries Technical Analysis
Negative
34.55
Price Trends
44.23
Negative
50.30
Negative
53.48
Negative
Market Momentum
-2.81
Positive
29.36
Positive
16.08
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 34.55 is below the 20-day moving average (MA) of 39.92, below the 50-day MA of 44.23, and below the 200-day MA of 53.48, indicating a bearish trend. The MACD of -2.81 indicates Positive momentum. The RSI at 29.36 is Positive, neither overbought nor oversold. The STOCH value of 16.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WGO.
Winnebago Industries Risk Analysis
Winnebago Industries disclosed 23 risk factors in its most recent earnings report. Winnebago Industries reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Winnebago Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.32B | 16.28 | 10.42% | 4.71% | -1.15% | 121.43% | |
69 Neutral | $2.87B | 20.78 | 12.73% | 1.80% | 7.14% | -4.01% | |
62 Neutral | $4.19B | 20.90 | 5.13% | 2.49% | -8.45% | -25.41% | |
59 Neutral | $12.50B | 10.40 | 2.27% | 3.63% | 1.65% | -18.81% | |
56 Neutral | $1.01B | ― | -1.39% | 3.65% | -14.10% | -110.55% | |
53 Neutral | $2.49B | 22.78 | 8.18% | 5.94% | -19.69% | -77.72% | |
44 Neutral | $1.68B | ― | -17.13% | 3.04% | -2.03% | -202.23% |
* Consumer Cyclical Sector Average
Performance Comparison
WGO
Winnebago Industries
34.55
-26.89
-43.77%
CWH
Camping World Holdings
16.07
-9.05
-36.03%
LCII
LCI Industries
87.53
-15.27
-14.85%
PATK
Patrick Industries
83.26
10.92
15.10%
PII
Polaris
42.23
-44.82
-51.49%
THO
Thor Industries
76.77
-22.21
-22.44%
Winnebago Industries Earnings Call Summary
Earnings Call Date: Dec 20, 2024 | % Change Since: -32.99% | Next Earnings Date: Mar 27, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook, with the Marine segment showing strong performance and market share gains, particularly with Barletta and Chris-Craft. However, the RV segments faced significant challenges, including revenue declines, increased warranty expenses, and competitive pressures. Despite these challenges, there is optimism for demand recovery later in the fiscal year, supported by improving consumer confidence and strategic product introductions.Highlights
Marine Segment Performance
The Marine segment delivered revenue and margin growth sequentially and year-over-year, with Barletta and Chris-Craft brands generating retail market share growth through October, outperforming the industry.
RV Industry Retail Improvement
October saw a 2.4% year-over-year increase in industry-wide RV shipments, marking the first positive retail comps after 40 months of declines.
Grand Design Motorized Lineup Expansion
Grand Design announced the addition of a Class Super C Motorhome to its Lineage product lineup, with a debut scheduled at the 2025 Florida RV Super Show.
Barletta Market Share Gains
Barletta's market share in the U.S. aluminum pontoon market increased by 180 basis points to 9.1% over the 12 months ending October 31, 2024.
Lowlights
Decline in RV Segment Revenues
Revenues were down 18% year-over-year, driven by lower unit volumes in the towables and motorized RV segments and a reduction in ASPs due to a shift in product mix.
Increased Warranty Expenses
The quarter saw increased warranty expenses related to a couple of recalls in the Motorhome segment.
Pressures on Motorized RV Segment
Motorhome RV segment revenues declined due to lower unit volume, with adjusted EBITDA also decreasing, reflecting volume deleverage, higher discounts and allowances, and increased warranty experience.
Net Debt Increase
Winnebago Industries had a net debt-to-EBITDA ratio of approximately 3x, above the targeted range of 0.9x to 1.5x.
Company Guidance
In the Q1 2025 earnings call for Winnebago Industries (WGO), the executives provided guidance emphasizing a cautious but optimistic outlook for the fiscal year. They reaffirmed their fiscal year 2025 revenue expectations in the range of $2.9 billion to $3.2 billion and adjusted EPS guidance between $3.10 and $4.40 per diluted share, maintaining the midpoint at $3.75. The company anticipates RV wholesale shipments for calendar year 2025 to be between 320,000 and 350,000 units, with a median expectation of 335,000 units, slightly below the RV Industry Association's forecast. Despite a challenging start, with Q1 revenues down 18% and a net debt-to-EBITDA ratio of approximately 3x, the management expects improved demand and profitability in the latter half of the year, driven by strategic investments, operational efficiencies, and a proactive approach to production and cost management. The Marine segment stood out as a strong performer, with positive revenue and margin growth, while the RV segments experienced pressures due to soft retail demand and a cautious dealer network.Winnebago Industries Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Winnebago Industries Strengthens Board with New Appointment
Positive
Jan 8, 2025
Winnebago Industries announced the appointment of Mike Pack, a senior executive from Oshkosh Corporation, to its Board of Directors, following Richard Moss’s retirement. Pack’s financial and manufacturing expertise is expected to support Winnebago’s strategic goals and enhance its leadership in the outdoor recreation industry.
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.