Winnebago Industries Inc (NYSE: WGO)

Sector: Consumer Cyclical Industry: Recreational Vehicles CIK: 0000107687
Market Cap 1.38 Bn
P/B 1.08
P/E 106.02
P/S 0.46
ROIC (Qtr) 2.60
Div Yield % 3.47
Rev 1y % (Qtr) 12.32
Total Debt (Qtr) 578.60 Mn
Debt/Equity (Qtr) 0.47
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About

Winnebago Industries Inc., known by its ticker symbol WGO, is a prominent player in the leisure travel and outdoor recreational activities industry. The company's main business activities involve the design, manufacture, and distribution of recreational vehicles (RVs) and marine products, primarily in the United States and Canada. Winnebago's product portfolio is diverse, encompassing towable RVs, motorhome RVs, and marine products. Towable RVs, such as conventional travel trailers and fifth wheels, are designed for temporary living quarters during...

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Investment thesis

Bull case

  • Operating cash flow of 171M provides strong 10.75x coverage of stock compensation 15.90M, indicating sustainable incentive practices.
  • Robust free cash flow of 138.20M exceeds capital expenditure of 32.80M by 4.21x, indicating strong organic growth funding capability.
  • Retained earnings of 1.72B provide full 2.96x coverage of long-term debt 578.60M, indicating strong internal capital position.
  • Tangible assets of 1.19B provide robust 6.63x coverage of other current liabilities 179.60M, indicating strong asset backing.
  • Cash reserves of 181.70M provide solid 7.13x coverage of other non-current liabilities 25.50M, indicating strong liquidity.

Bear case

  • Operating cash flow of 171M barely covers its investment activities of (32.30M), with a coverage ratio of -5.29, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 171M provides thin coverage of dividend payments of (39M) with a -4.38 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 70.80M show weak coverage of depreciation charges of 60.50M, with a 1.17 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 138.20M represents just -0.86x of debt issuance (159.90M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of 1.72B provide limited buffer against comprehensive income items of (400000), which is -4288.75x, indicating elevated exposure to market risks.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Recreational Vehicles
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 THO Thor Industries Inc 6.02 Bn 23.47 1.31 0.98 Bn
2 BC Brunswick Corp 5.79 Bn -42.13 1.08 2.25 Bn
3 HOG Harley-Davidson, Inc. 4.54 Bn 6.22 0.77 5.21 Bn
4 LCII Lci Industries 3.86 Bn 29.02 1.80 1.20 Bn
5 PII Polaris Inc. 3.76 Bn -8.07 0.53 1.54 Bn
6 WGO Winnebago Industries Inc 1.38 Bn 106.02 0.46 0.58 Bn
7 MBUU Malibu Boats, Inc. 0.62 Bn 43.18 0.76 0.02 Bn
8 MCFT MasterCraft Boat Holdings, Inc. 0.38 Bn 24.66 1.30 0.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.85 0.70
EV to Cash from Ops. EV/CFO 12.53 6.55
EV to Debt EV to Debt 3.12 3.14
EV to EBIT EV/EBIT 30.30 -18.45
EV to EBITDA EV/EBITDA 11.35 10.49
EV to Free Cash Flow [EV/FCF] EV/FCF 18.16 12.72
EV to Market Cap EV to Market Cap 1.31 -21.47
EV to Revenue EV/Rev 0.61 0.65
Price to Book Value [P/B] P/B 1.08 1.89
Price to Earnings [P/E] P/E 106.02 18.23
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.93 0.48
Dividend Payout Ratio % Div Payout % (Qtr) 107.00 17.83
Dividend per Basic Share Div per Share (Qtr) 1.37 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 27.95 20.02
Interest Coverage Int. cover (Qtr) 2.77 11.87
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 23.36 55.44
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -30.78 -6.35
Dividend Growth (1y) % Div 1y % (Qtr) 7.87 -1.69
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -57.45 21.79
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 9.97 2.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 252.24 80.41
EBT Growth (1y) % EBT 1y % (Qtr) 1,774.07 119.88
EPS Growth (1y) % EPS 1y % (Qtr) 309.84 23.97
FCF Growth (1y) % FCF 1y % (Qtr) 30.62 548.19
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -4.36 93.02
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.35 0.93
Cash Payout Ratio Cash Payout (Qtr) 0.19 0.15
Cash Ratio Cash Ratio (Qtr) 0.63 0.54
Current Ratio Curr Ratio (Qtr) 2.69 2.54
Debt to Equity Ratio Debt/Equity (Qtr) 0.47 1.02
Interest Cover Ratio Int Coverage (Qtr) 2.77 11.87
Times Interest Earned Times Interest Earned (Qtr) 2.77 11.87
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.60 -5.77
EBIT Margin % EBIT Margin % (Qtr) 2.46 -12.97
EBT Margin % EBT Margin % (Qtr) 1.57 -10.90
Gross Margin % Gross Margin % (Qtr) 13.10 21.59
Net Profit Margin % Net Margin % (Qtr) 1.30 -11.85