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How Did Thor Industries Perform in 4Q16?

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Price movement

Thor Industries (THO) has a market cap of $4.3 billion. It rose 1.3% to close at $82.74 per share on September 26. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 3.2%, 3.0%, and 48.7%, respectively, on the same day. THO is trading 2.8% above its 20-day moving average, 5.8% above its 50-day moving average, and 29.0% above its 200-day moving average.

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Related ETFs and peers

The iShares Morningstar Small Core ETF (JKJ) invests 0.62% of its holdings in Thor Industries. The ETF tracks a market-cap-weighted index of US small-cap core stocks. The index selects stocks from 90%–97% of market cap that falls into Morningstar’s core style categorization. The YTD price movement of JKJ was 12.2% on September 26.

The Vanguard Small-Cap Value ETF (VBR) invests 0.20% 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 cap, based on five value factors.

The market caps of Thor Industries’ competitors are as follows:

  • Berkshire Hathaway (BRK.A) — $354.5 billion
  • Drew Industries (DW) — $2.4 billion

Performance of Thor Industries in fiscal 4Q16

Thor Industries reported fiscal 4Q16 net sales of $1.3 billion, a rise of 18.2% compared to net sales of $1.1 billion in fiscal 4Q15. Sales of towable RVs and motorized RVs rose 19.8% and 35.3%, respectively, in fiscal 4Q16 compared to fiscal 4Q15. The company’s gross profit margin and income from continuing operations before income taxes rose 6.8% and 26.7%, respectively, in fiscal 4Q16 compared to the prior year period.

Its net income and EPS (earnings per share) rose to $82.8 million and $1.57, respectively, in fiscal 4Q16 compared to $69.0 million and $1.31, respectively, in fiscal 4Q15.

Fiscal 2016 results

In fiscal 2016, THO reported net sales of $4.6 billion, a rise of 15.0% YoY (year-over-year). The company’s gross profit margin rose 13.9% in fiscal 2016. It reported impairment charges of $9.1 million in fiscal 2016.

Its net income and EPS rose to $256.5 million and $4.88, respectively, in fiscal 2016 compared to $199.4 million and $3.74, respectively, in fiscal 2015.

Thor’s cash and cash equivalents and inventories rose 14.4% and 64.1%, respectively, in fiscal 2016. Its current ratio fell to 1.6x, and its debt-to-equity ratio rose to 0.84x in fiscal 2016 compared to a current ratio and a debt-to-equity ratio of 2.1x and 0.41x, respectively, in fiscal 2015. It reported consolidated RV backlog of $1.2 billion on July 31, 2016, a rise of 109.1% compared to July 31, 2015.

Next, we’ll discuss Nike (NKE).

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