Thor Industries Inc (THO) stock analysis

P/E above its 5-year median

Thor Industries's P/E of 23.2 is above its own 5-year median of 15.6.

P/E above the industry

Thor Industries's P/E of 23.2 is above the Motor Vehicles and Motor Vehicle Equipment median of 18.7.

EV/EBITDA above its 5-year median

Thor Industries's EV/EBITDA of 8.0 is above its 5-year median of 7.2.

P/B below the industry

Thor Industries's price-to-book of 0.95 is below the Motor Vehicles and Motor Vehicle Equipment median of 1.56.

Trading above fair value

The share price of $78.36 is above our fair value estimate of $72.10.

Margin of safety under 20%

The price is 8.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -4.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -21.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -31.3% over the last twelve months, against a 5-year average of -23.1% a year.

Growing slower than the industry

Revenue grew 0.3% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Guidance raised

Thor Industries raised its fiscal 2026 total tax rate outlook on Jun 3, 2026.

Gross margin slipping

Gross margin was 12.6% over the last twelve months, against 14.0% a year earlier.

Return on equity under 15%

Return on equity was 4.2% over the last twelve months and averaged 12.4% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Thor Industries's return on equity of 4.2% is above the Motor Vehicles and Motor Vehicle Equipment median of 3.5%.

Earnings shrank over 5 years

Net income shrank 23.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 1.8% over the last twelve months, against a 5-year average of 3.5%.

Net margin below the industry

Thor Industries's net margin of 1.8% is below the Motor Vehicles and Motor Vehicle Equipment median of 1.9%.

Low debt

Debt is 20.4% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 55.0% five years ago to 20.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 37.0% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.77 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.39; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Thor Industries paid dividends worth 2.0% of the share price over the last twelve months.

Yield below Treasuries

The 2.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Thor Industries yields 2.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.