Price movements of Thor Industries
Thor Industries (THO) has a market capitalization of $3.6 billion. It rose by 6.9% to close at $69.18 per share on July 1, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 10.0%, 7.4%, and 24.4%, respectively, on the same day.
THO is trading 6.9% above its 20-day moving average, 7.9% above its 50-day moving average, and 20.7% above its 200-day moving average.
Related ETFs and peers
The iShares Morningstar Small Core ETF (JKJ) invests 0.57% of its holdings in Thor Industries. The ETF tracks a market cap–weighted index of US small-cap core stocks. The index selects stocks in the 90%–97% range of market capitalization that fall into Morningstar’s core style categorization. The YTD price movement of JKJ was 5.5% on July 1.
The Vanguard Small-Cap Value ETF (VBR) invests 0.17% of its holdings in Thor Industries. The ETF aims to track the CRSP US Small-Cap Value Index. The index selects from a list of stocks in the 85%–99% range of market capitalization based on five value factors.
The market capitalizations of Thor Industries’ competitors are as follows:
- Berkshire Hathaway (BRK.A) — $354.7 billion
- Drew Industries (DW) — $2.1 billion
Thor Industries’ new acquisition
In a press release on July 1, 2016, Thor Industries stated, “Thor Industries Inc. [THO] today announced the acquisition of Jayco, Corporation for ~$576 million in cash. This transaction represents a unique and significant opportunity to enhance the growth of Thor and advance the company’s strategic focus on growing its recreational vehicle [RV] business. In particular, Jayco brings complementary products in travel trailers, folding camping trailers, higher-end diesel Class A motorhomes and larger Class C motorhomes. Jayco will be a wholly owned subsidiary of Thor, and the existing senior management team will continue to lead the business.”
This acquisition of Jayco includes Jayco, Starcraft RV, Highland Ridge, and Entegra Coach subsidiaries.
Thor Industries’ performance in fiscal 3Q16
Thor Industries reported fiscal 3Q16 net sales of $1.3 billion, a rise of 8.3% compared to net sales of $1.2 billion in fiscal 3Q15. Sales of its towable recreational vehicles (RV) and motorized RVs rose by 1.7% and 20.7%, respectively, in fiscal 3Q16 compared to fiscal 3Q15. The company’s gross profit margin and income from continuing operations before income taxes rose by 10.6% and 22.9%, respectively, in fiscal 3Q16 compared to fiscal 3Q15.
Its net income and EPS (earnings per share) rose to $78.6 million and $1.49, respectively, in fiscal 3Q16 compared to $62.8 million and $1.17, respectively, in fiscal 3Q15.
Thor Industries’ cash and cash equivalents and inventories rose by 34.8% and 11.9%, respectively, in fiscal 3Q16 compared to fiscal 3Q15. Its current ratio and debt-to-equity ratio rose to 2.2x and 0.42x, respectively, compared to 2.1x and 0.41x, respectively, in fiscal 3Q15. It reported consolidated RV backlogs of $1.1 billion in fiscal 3Q16, a rise of 51.3% compared to fiscal 3Q15.
In the next part of this series, we’ll take a look at General Motors.