Winnebago Industries Inc (WGO) stock analysis

P/E above its 5-year median

Winnebago Industries's P/E of 26.1 is above its own 5-year median of 10.5.

P/E above the industry

Winnebago Industries's P/E of 26.1 is above the Motor Vehicles and Motor Vehicle Equipment median of 18.7.

EV/EBITDA below its 5-year median

Winnebago Industries's EV/EBITDA of 9.2 is below its 5-year median of 9.5.

P/B below the industry

Winnebago Industries's price-to-book of 0.73 is below the Motor Vehicles and Motor Vehicle Equipment median of 1.56.

Trading above fair value

The share price of $31.53 is above our fair value estimate of $29.81.

Margin of safety under 20%

The price is 5.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -8.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -42.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 34.2% over the last twelve months, against a 5-year average of -34.3% a year.

Growing slower than the industry

Revenue grew -3.4% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Guidance lowered

Winnebago Industries lowered its Fiscal 2026 Consolidated net revenues outlook on Jun 25, 2026.

Gross margin slipping

Gross margin was 13.0% over the last twelve months, against 13.0% a year earlier.

Return on equity under 15%

Return on equity was 2.8% over the last twelve months and averaged 11.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 3.3%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Winnebago Industries's return on equity of 2.8% is below the Motor Vehicles and Motor Vehicle Equipment median of 3.5%.

Earnings shrank over 5 years

Net income shrank 34.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 1.3% over the last twelve months, against a 5-year average of 3.3%.

Net margin below the industry

Winnebago Industries's net margin of 1.3% is below the Motor Vehicles and Motor Vehicle Equipment median of 1.9%.

Low debt

Debt is 35.8% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 50.0% five years ago to 35.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 38.1% of total debt.

Interest not well covered

Operating income covers interest expense 3.2 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.17 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

Winnebago Industries paid dividends worth 4.5% of the share price over the last twelve months.

Yield above Treasuries

The 4.5% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Winnebago Industries yields 4.5%.

Dividend not cut

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

Not covered by earnings

Dividends take 116% of net income, leaving little room.

Covered by free cash flow

Dividends take 27.6% of free cash flow.