WGO Weiss

April 10, 2022
NYSE: WGO
WINNEBAGO INDUSTRIES
BUY HOLD SELL
BUY
RATING SINCE 12/21/2020
A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F TARGET PRICE $64.01
Annual Dividend Rate Annual Dividend Yield Beta Market Capitalization 52-Week Range Price as of 4/7/2022
$0.72 1.36% 1.80 $1.7 Billion $51.29-$85.15 $52.64
Sector: Manufacturing Industry Group: Motor Vehicle Body and Trailer Manufacturing
Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years
WGO BUSINESS DESCRIPTION
Winnebago Industries, Inc. manufactures and sells 85
recreation vehicles and marine products primarily 80
for use in leisure travel and outdoor recreation 75
activities.
70
STOCK PERFORMANCE (%) 65
TARGET
TARGET
TARGET PRICE
TARGETPRICE $64.01
PRICE$64.01
PRICE $64.01
$64.01
3 Mo. 1 Yr. 3 Yr (Ann) 60
Price Change -32.03 -34.05 16.78 55
50
GROWTH (%)
Last Qtr 12 Mo. 3 Yr CAGR 45
Revenues 38.67 55.67 28.71 40
Net Income 32.00 121.06 48.33 35
EPS 31.86 118.39 44.56 Rating History
HOLD HOLD BUY
RETURN ON EQUITY (%)
Volume in Millions
WGO Subsector Avg S&P 500 10
Q2 2022 28.63 18.44 18.28
Q2 2021 16.62 9.36 11.01 5
Q2 2020 12.40 31.26 14.94
0
2020 2021 2022
P/E COMPARISON COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History
RECOMMENDATION
We rate WINNEBAGO INDUSTRIES (WGO) a BUY. This is driven by several positive factors, which we believe
should have a greater impact than any weaknesses, and should give investors a better performance
opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its
robust revenue growth, impressive record of earnings per share growth, notable return on equity, attractive
valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel its
strengths outweigh the fact that the company shows low profit margins.
5.22 100.76 25.66
WGO Subsector Avg S&P 500 HIGHLIGHTS
The revenue growth came in higher than the subsector average of 21.3%. Since the same quarter one year
prior, revenues rose by 38.7%. Growth in the company's revenue appears to have helped boost the earnings
EPS ANALYSIS¹ ($) per share.
WINNEBAGO INDUSTRIES has improved earnings per share by 31.9% in the most recent quarter compared to
the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth
over the past two years. We feel that this trend should continue. During the past fiscal year, WINNEBAGO
Q2 0.51
Q1 0.44
INDUSTRIES increased its bottom line by earning $8.24 versus $1.83 in the prior year. This year, the market
Q3 -0.37
Q4 1.25
Q1 1.70
Q2 2.04
Q3 2.05
Q4 2.45
Q1 2.90
Q2 2.69
expects an improvement in earnings ($12.43 versus $8.24).
The company's current return on equity greatly increased when compared to its ROE from the same quarter
one year prior. This is a signal of significant strength within the corporation. Compared to other companies in
2020 2021 2022 the Transportation Equipment Manufacturing subsector and the overall market, WINNEBAGO INDUSTRIES's
NA = not available NM = not meaningful
return on equity significantly exceeds that of both the subsector average and the S&P 500.
1 Compustat fiscal year convention is used for all fundamental
data items. Despite currently having a low debt-to-equity ratio of 0.48, it is higher than that of the subsector average,
inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat
mixed results with the debt-to-equity ratio, the company's quick ratio of 1.11 is sturdy.
This report is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither TheStreet nor any other party guarantees its accuracy or Report Date: April 10, 2022 PAGE 1
makes warranties regarding results from its usage. Redistribution is prohibited without the express written consent of TheStreet, Inc. Copyright(c) 2006-2022. All rights reserved.
April 10, 2022
NYSE: WGO
Sector: Manufacturing Motor Vehicle Body and Trailer Manufacturing
$0.72 1.36% 1.80 $1.7 Billion $51.29-$85.15 $52.64
PEER GROUP ANALYSIS SUBSECTOR ANALYSIS

REVENUE GROWTH AND EBITDA MARGIN*
WINNEBAGO INDUSTRIES falls within the Manufacturing sector and the Motor Vehicle Body and Trailer
Manufacturing industry group of the North American Industry Classification System or NAICS. More
800%
precisely, a significant portion of company activities involve Travel Trailer and Camper Manufacturing.
FA
VO
TheStreet Quant Ratings is currently tracking 2153 companies in the Manufacturing sector that total around
RA
BL
$25,834 billion in market capitalization as well as $9,894 billion in annual sales.

E
The Transportation Equipment Manufacturing subsector accounts for 13.6% of those revenues.
Industries in the Transportation Equipment Manufacturing subsector produce equipment for transporting
AYRO
Revenue Growth (TTM)
people and goods. Transportation equipment is a type of machinery. Establishments in this subsector utilize
production processes similar to those of other machinery manufacturing establishments including bending,
forming, welding, machining, and assembling metal or plastic parts into components and finished products.
UN
FA
However, the assembly of components and subassemblies and their further assembly into finished vehicles
-100%
VO
THO
WGO tends to be a more common production process in this subsector than in the Machinery Manufacturing
RA
RACE HMC
SOLO
B
subsector. There are industry groups for the manufacture of equipment for each mode of transport such as
LE
-350000% WKHS50000%
road, rail, air and water. Parts for motor vehicles have their own industry group because of they require less
EBITDA Margin (TTM) assembly than complete vehicles.
Companies with higher EBITDA margins and
revenue growth rates are outperforming companies PEER GROUP: Transportation Equipment Manufacturing
with lower EBITDA margins and revenue growth Recent Market Price/ Net Sales Net Income
rates. Companies for this scatter plot have a market Ticker Company Name Price ($) Cap ($M) Earnings TTM ($M) TTM ($M)
capitalization between $42.4 Million and $47.1
WGO WINNEBAGO INDUSTRIES 52.64 1,725 5.22 4,317.30 346.19
Billion. Companies with NA or NM values do not
appear. WKHS WORKHORSE GROUP INC 4.26 646 NM 0.25 -401.35
*EBITDA – Earnings Before Interest, Taxes, Depreciation and HMC HONDA MOTOR CO LTD 25.99 47,079 6.63 120,343.45 6,745.32
Amortization. THO THOR INDUSTRIES INC 79.43 4,371 4.80 14,885.47 922.40
REVENUE GROWTH AND EARNINGS YIELD AYRO AYRO INC 1.15 42 NM 2.65 -30.06
RACE FERRARI NV 221.40 40,703 43.41 4,857.40 944.85
LI
800%
NIO NIO INC 20.36 30,958 NM 5,158.38 -1,566.99

SOLO ELECTRAMECCANICA VEHS CORP 2.01 238 NM 0.80 -79.96
FA
VO
LI LI AUTO INC 26.39 22,562 NM 3,213.74 -81.33

RA
BL
FSR FISKER INC 13.08 2,151 NM 0.11 -471.34

E
XPEV XPENG INC 28.15 18,361 NM 3,303.96 -765.55

The peer group comparison is based on Major Transportation Equipment Manufacturing companies of comparable size.
XPEV
AYRO
Revenue Growth (TTM)
NIO
UN
FA
-100%
VO
SOLO THO
WGO
RA
RACE
B
LE
-100% WKHS HMC

25%
Earnings Yield (TTM)
Companies that exhibit both a high earnings yield
and high revenue growth are generally more
attractive than companies with low revenue growth
and low earnings yield. Companies for this scatter
plot have revenue growth rates between -82.2% and
769.2%. Companies with NA or NM values do not
appear.
April 10, 2022
NYSE: WGO
$0.72 1.36% 1.80 $1.7 Billion $51.29-$85.15 $52.64
COMPANY DESCRIPTION STOCK-AT-A-GLANCE

Winnebago Industries, Inc. manufactures and sells Below is a summary of the major fundamental and technical factors we consider when determining our
recreation vehicles and marine products primarily for use overall recommendation of WGO shares. It is provided in order to give you a deeper understanding of our
in leisure travel and outdoor recreation activities. The rating methodology as well as to paint a more complete picture of a stock's strengths and weaknesses. It is
company operates in six segments: Grand Design important to note, however, that these factors only tell part of the story. To gain an even more comprehensive
Towables, Winnebago Towables, Winnebago understanding of our stance on the stock, these factors must be assessed in combination with the stock’s
Motorhomes, Newmar motorhomes, Chris-Craft Marine, valuation. Please refer to our Valuation section on page 5 for further information.
and Winnebago Specialty Vehicles. It provides towable
products that are non-motorized vehicles to be towed by FACTOR SCORE
automobiles, pickup trucks, SUVs, or vans for use as
temporary living quarters for recreational travel, such as Growth out of 5 stars 4.5
conventional travel trailers, fifth wheels, folding camper Measures the growth of both the company's income statement and weak strong
trailers, and truck campers under the Winnebago and cash flow. On this factor, WGO has a growth score better than 80% of
Grand Design brand names. The company also offers the stocks we rate.
motorhomes, which are self-propelled mobile dwellings
used primarily as temporary living quarters during
vacation and camping trips, or to support active and
Total Return out of 5 stars 1.5
mobile lifestyles under the Winnebago and Newmar Measures the historical price movement of the stock. The stock weak strong
brand names. In addition, it offers other specialty performance of this company has beaten 20% of the companies we
commercial vehicles for law enforcement command cover.
centers, mobile medical clinics, and mobile office
spaces; commercial vehicles as bare shells to third-party Efficiency out of 5 stars 5.0
up fitters; and boats in the recreational powerboat Measures the strength and historic growth of a company's return on weak strong
industry under the Chris-Craft and Barletta brand names. invested capital. The company has generated more income per dollar of
Further, the company is involved in the original capital than 90% of the companies we review.
equipment manufacturing of parts for other
manufacturers and commercial vehicles. The company
sells its products primarily through independent dealers
Price volatility out of 5 stars 2.0
in the United States, Canada, and internationally. Measures the volatility of the company's stock price historically. The weak strong
Winnebago Industries, Inc. was incorporated in 1958 and stock is less volatile than 30% of the stocks we monitor.
is based in Forest City, Iowa.
Solvency out of 5 stars 4.5
WINNEBAGO INDUSTRIES Measures the solvency of the company based on several ratios. The weak strong
P.O. Box 152 company is more solvent than 80% of the companies we analyze.
Forest City, IA 50436
USA Income out of 5 stars 3.5
Phone: 641 585 3535
Measures dividend yield and payouts to shareholders. The company's weak strong
http://www.winnebagoind.com
dividend is higher than 60% of the companies we track.
THESTREET QUANT RATINGS RESEARCH METHODOLOGY
TheStreet Quant Ratings' stock model projects a stock's total return potential over a 12-month period
including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these
stocks to perform against a general benchmark of the equities market and interest rates. While our model is
quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include
expected equities market returns, future interest rates, implied industry outlook and forecasted company
earnings. Objective elements include volatility of past operating revenues, financial strength, and company
cash flows.
Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown
as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of
acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings
growth; and the financial strength of the underlying company as compared to its stock's valuation as
compared to projected earnings growth; and the financial strength of the underlying company as compared
to its stock's performance. These and many more derived observations are then combined, ranked, weighted,
and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of
selecting stocks.
April 10, 2022
NYSE: WGO
$0.72 1.36% 1.80 $1.7 Billion $51.29-$85.15 $52.64
Consensus EPS Estimates² ($) FINANCIAL ANALYSIS

IBES consensus estimates are provided by Thomson Financial WINNEBAGO INDUSTRIES's gross profit margin for the second quarter of its fiscal year 2022 is essentially
unchanged when compared to the same period a year ago. The company grew its sales and net income
significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the
subsector when comparing revenue growth, but not when comparing net income growth. WINNEBAGO
INDUSTRIES has average liquidity. Currently, the Quick Ratio is 1.11 which shows that technically this
company has the ability to cover short-term cash needs. The company's liquidity has decreased from the
same period last year, indicating deteriorating cash flow.
2.97 12.43 E 10.39 E At the same time, stockholders' equity ("net worth") has greatly increased by 28.29% from the same quarter
Q3 FY22 2022(E) 2023(E) last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will
face financial difficulties in the near future.
INCOME STATEMENT STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the
Q2 FY22 Q2 FY21 next 12-months. To learn more visit www.TheStreetRatings.com.
Net Sales ($mil) 1,164.73 839.89
EBITDA ($mil) 150.24 107.97
EBIT ($mil) 136.77 99.98
Net Income ($mil) 91.18 69.07
BALANCE SHEET
Q2 FY22 Q2 FY21
Cash & Equiv. ($mil) 134.83 333.02
Total Assets ($mil) 2,309.43 1,855.80
Total Debt ($mil) 579.41 546.23
Equity ($mil) 1,208.99 942.36
PROFITABILITY
Q2 FY22 Q2 FY21
Gross Profit Margin 19.06% 19.17%
EBITDA Margin 12.89% 12.85%
Operating Margin 11.74% 11.90%
Sales Turnover 1.87 1.49
Return on Assets 14.99% 8.43%
Return on Equity 28.63% 16.62%
DEBT
Q2 FY22 Q2 FY21
Current Ratio 2.18 2.69
Debt/Capital 0.32 0.37
Interest Expense 10.33 10.05
Interest Coverage 13.25 9.95
SHARE DATA
Q2 FY22 Q2 FY21
Shares outstanding (mil) 33 34
Div / share 0.18 0.12
EPS 2.69 2.04
Book value / share 36.94 28.09
Institutional Own % NA NA
Avg Daily Volume 797,182 606,429
2 Sum of quarterly figures may not match annual estimates due to
use of median consensus estimates.
April 10, 2022
NYSE: WGO
$0.72 1.36% 1.80 $1.7 Billion $51.29-$85.15 $52.64
RATINGS HISTORY VALUATION

Our rating for WINNEBAGO INDUSTRIES has not BUY. WINNEBAGO INDUSTRIES's P/E ratio indicates a significant discount compared to an average of 100.76
changed since 12/21/2020. As of 4/7/2022, the stock for the Transportation Equipment Manufacturing subsector and a significant discount compared to the S&P
was trading at a price of $52.64 which is 38.2% 500 average of 25.66. For additional comparison, its price-to-book ratio of 1.43 indicates a significant discount
below its 52-week high of $85.15 and 2.6% above its versus the S&P 500 average of 4.47 and a significant discount versus the subsector average of 15.93. The
52-week low of $51.29. price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount.
Upon assessment of these and other key valuation criteria, WINNEBAGO INDUSTRIES proves to trade at a
2 Year Chart discount to investment alternatives.
$100
HOLD: $31.83
HOLD: $68.42
BUY: $64.40
Price/Earnings 1 2 3 4 5 Price/CashFlow 1 2 3 4 5
$75 premium discount premium discount
WGO 5.22 Peers 100.76 WGO 7.99 Peers 46.19
$50 • Discount. A lower P/E ratio than its peers can • Discount. The P/CF ratio, a stock’s price divided by
signify a less expensive stock or lower growth the company's cash flow from operations, is useful
expectations. for comparing companies with different capital
2020 2021 • WGO is trading at a significant discount to its requirements or financing structures.
peers. • WGO is trading at a significant discount to its
peers.
MOST RECENT RATINGS CHANGES
Price/Projected Earnings 1 2 3 4 5 Price to Earnings/Growth 1 2 3 4 5
Date Price Action From To premium discount premium discount
12/21/20 $64.40 Upgrade Hold Buy WGO 5.07 Peers 37.72 WGO 0.10 Peers 1.39
6/25/20 $68.42 Downgrade Buy Hold • Discount. A lower price-to-projected earnings ratio • Discount. The PEG ratio is the stock’s P/E divided
6/10/20 $66.92 Upgrade Hold Buy than its peers can signify a less expensive stock or by the consensus estimate of long-term earnings
4/7/20 $31.83 No Change Hold Hold lower future growth expectations. growth. Faster growth can justify higher price
• WGO is trading at a significant discount to its multiples.
Price reflects the closing price as of the date listed, if available
peers. • WGO trades at a significant discount to its peers.
RATINGS DEFINITIONS & Price/Book 1 2 3 4 5 Earnings Growth 1 2 3 4 5

premium discount lower higher
DISTRIBUTION OF THESTREET RATINGS
WGO 1.43 Peers 15.93 WGO 118.39 Peers 322.52
(as of 4/7/2022)
• Discount. A lower price-to-book ratio makes a • Lower. Elevated earnings growth rates can lead to
stock more attractive to investors seeking stocks capital appreciation and justify higher
40.26% Buy - We believe that this stock has the
opportunity to appreciate and produce a total return of with lower market values per dollar of equity on the price-to-earnings ratios.
more than 10% over the next 12 months. balance sheet. • However, WGO is expected to significantly trail its
• WGO is trading at a significant discount to its peers on the basis of its earnings growth rate.
30.39% Hold - We do not believe this stock offers peers.
conclusive evidence to warrant the purchase or sale of Price/Sales 1 2 3 4 5 Sales Growth 1 2 3 4 5
shares at this time and that its likelihood of positive total premium discount lower higher
return is roughly in balance with the risk of loss. WGO 0.40 Peers 54.48 WGO 55.67 Peers 41.15
• Discount. In the absence of P/E and P/B multiples, • Higher. A sales growth rate that exceeds the
29.34% Sell - We believe that this stock is likely to the price-to-sales ratio can display the value subsector implies that a company is gaining market
decline by more than 10% over the next 12 months, with
investors are placing on each dollar of sales. share.
the risk involved too great to compensate for any
• WGO is trading at a significant discount to its • WGO has a sales growth rate that significantly
possible returns.
subsector on this measurement. exceeds its peers.
The Arena Group DISCLAIMER:

200 Vesey Street, 24th Floor The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but
New York, NY 10281 TheStreet Quant Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is
www.thestreet.com provided via the COMPUSTAT® Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as
well as other third-party data providers.
Research Contact: 212-321-5381
Sales Contact: 866-321-8726 TheStreet Quant Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is
provided for informational purposes only. You should not rely solely upon the research herein for purposes of transacting
securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the
advice of a qualified securities professional, before you make any investment. None of the information contained in this report
constitutes, or is intended to constitute a recommendation by TheStreet Quant Ratings of any particular security or trading
strategy or a determination by TheStreet Quant Ratings that any security or trading strategy is suitable for any specific person.
To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal
and not tailored to the investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of
Use found at http://www.thestreet.com/static/about/terms-of-use.html.
NAICS is the North American Industry Classification System which provides the Sector, Subsector, and Industry Group
structure used in this report. As many companies are diversified, the companies may also operate in other industry segments
than the one listed.

WGO Weiss

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

WGO Weiss

Uploaded by

Copyright:

Available Formats

April 10, 2022

expects an improvement in earnings ($12.43 versus $8.24).

PEER GROUP ANALYSIS SUBSECTOR ANALYSIS

$25,834 billion in market capitalization as well as $9,894 billion in annual sales.

NIO NIO INC 20.36 30,958 NM 5,158.38 -1,566.99

LI LI AUTO INC 26.39 22,562 NM 3,213.74 -81.33

FSR FISKER INC 13.08 2,151 NM 0.11 -471.34

XPEV XPENG INC 28.15 18,361 NM 3,303.96 -765.55

-100% WKHS HMC

COMPANY DESCRIPTION STOCK-AT-A-GLANCE

THESTREET QUANT RATINGS RESEARCH METHODOLOGY

Consensus EPS Estimates² ($) FINANCIAL ANALYSIS

RATINGS HISTORY VALUATION

RATINGS DEFINITIONS & Price/Book 1 2 3 4 5 Earnings Growth 1 2 3 4 5

The Arena Group DISCLAIMER:

You might also like