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Winnebago Industries (WGO)
NYSE:WGO
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Winnebago Industries
(NYSE:WGO)
61Neutral
Positive Factors
Earnings
WGO shares have traded higher after beating 2Q25 earnings expectations.
Market Performance
The RV sector has seen the best relative performance in the Leisure coverage, and WGO's new product initiatives should help return the company to market share growth.
Sales Growth
WGO's new Grand Design Lineage models are expected to add approximately $100M in sales from initial dealer stocking this year.
Negative Factors
Consumer Confidence
A downward revision in guidance reflects declining consumer confidence and softening macroeconomic conditions.
Guidance
Guidance was reduced due to ongoing macro headwinds and consumer uncertainty.
Profitability
There is an expected softness in the market for the remainder of the quarter, which will pressure profitability.
Winnebago Industries (WGO) vs. S&P 500 (SPY)
Market Cap
$925.68M
Dividend Yield4.03%
Average Volume (3M)1.02M
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth-12.29%
EPS Growth-105.55%
CountryUS
Employees5,700
SectorConsumer Cyclical
Sector Strength59
IndustryAuto - Recreational Vehicles
Share Statistics
EPS (TTM)0.19
Shares Outstanding28,025,372
10 Day Avg. Volume544,837
30 Day Avg. Volume1,022,798
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.79
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit3.83
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$44.63Price Target Upside35.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Winnebago Industries Business Overview & Revenue Model
Company DescriptionWinnebago Industries, Inc. manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. The company operates in six segments: Grand Design Towables, Winnebago Towables, Winnebago Motorhomes, Newmar motorhomes, Chris-Craft Marine, and Winnebago Specialty Vehicles. It provides towable products that are non-motorized vehicles to be towed by automobiles, pickup trucks, SUVs, or vans for use as temporary living quarters for recreational travel, such as conventional travel trailers, fifth wheels, folding camper trailers, and truck campers under the Winnebago and Grand Design brand names. The company also offers motorhomes, which are self-propelled mobile dwellings used primarily as temporary living quarters during vacation and camping trips, or to support active and mobile lifestyles under the Winnebago and Newmar brand names. In addition, it offers other specialty commercial vehicles for law enforcement command centers, mobile medical clinics, and mobile office spaces; commercial vehicles as bare shells to third-party up fitters; and boats in the recreational powerboat industry under the Chris-Craft and Barletta brand names. Further, the company is involved in the original equipment manufacturing of parts for other manufacturers and commercial vehicles. The company sells its products primarily through independent dealers in the United States, Canada, and internationally. Winnebago Industries, Inc. was incorporated in 1958 and is based in Forest City, Iowa.
How the Company Makes MoneyWinnebago Industries generates revenue primarily through the sale of its recreational vehicles and related products. The company operates several key business segments, including Motorhomes, Towables, and Boats. Motorhomes, which include Class A, B, and C vehicles, represent a significant portion of the company's revenue, driven by consumer demand for mobile and flexible travel solutions. The Towables segment, featuring travel trailers and fifth wheels, also contributes substantially to revenue, with products designed for various consumer preferences and price points. Additionally, the Boats segment, particularly through the Chris-Craft brand, adds to the company's revenue streams by offering luxury and performance boats. Winnebago's earnings are further supported by its extensive dealer network, which helps distribute its products across North America. Strategic acquisitions, like the purchase of Grand Design and Newmar, have also bolstered its market position and expanded its product offerings, contributing to overall growth and profitability.
Winnebago Industries Financial Statement Overview
Summary
Winnebago Industries demonstrates resilience in a challenging market, with strong equity and cash management. However, declining revenues and profitability pose risks. The company should focus on boosting sales and enhancing operational efficiency to improve future financial performance.Income Statement
Winnebago Industries has faced declining revenue and profit margins over the past periods. The TTM data shows a contraction in total revenue and a negative net income, indicating challenges in maintaining profitability. However, the company demonstrated resilience in gross profit margin, which remains relatively stable.67
Positive
Balance Sheet
The balance sheet suggests financial stability, with a manageable debt-to-equity ratio and a positive equity base. The equity ratio is strong, reflecting a solid proportion of assets financed by equity. However, the decrease in cash reserves over time is a concern.72
Positive
Cash Flow
The cash flow analysis shows a decline in free cash flow, though it remains positive, indicating efficient cash management despite decreasing revenues. Operating cash flow to net income ratio is healthy, suggesting effective operations, but the decline in free cash flow growth rate is a concern.70
Positive
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.97B | 3.49B | 4.96B | 3.63B | 2.36B | Gross Profit |
| 433.50M | 586.10M | 929.34M | 650.36M | 312.93M | EBIT |
| 100.20M | 300.70M | 583.50M | 407.42M | 113.76M | EBITDA |
| 118.10M | 346.60M | 609.69M | 440.70M | 152.84M | Net Income Common Stockholders |
| 13.00M | 215.90M | 390.60M | 281.90M | 61.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 330.90M | 309.90M | 282.17M | 434.56M | 292.57M | Total Assets |
| 2.38B | 2.43B | 2.42B | 2.06B | 1.71B | Total Debt |
| 741.80M | 634.40M | 586.28M | 555.30M | 539.68M | Net Debt |
| 410.90M | 324.50M | 304.11M | 120.74M | 247.10M | Total Liabilities |
| 1.11B | 1.06B | 1.15B | 1.01B | 886.23M | Stockholders Equity |
| 1.27B | 1.37B | 1.26B | 1.06B | 827.47M |
| Cash Flow | Free Cash Flow | |||
| 98.90M | 211.30M | 312.65M | 192.39M | 238.06M | Operating Cash Flow |
| 143.90M | 294.50M | 400.62M | 237.28M | 270.43M | Investing Cash Flow |
| -45.90M | -170.00M | -315.67M | -33.01M | -293.08M | Financing Cash Flow |
| -77.00M | -96.80M | -237.34M | -62.28M | 277.79M |
Winnebago Industries Technical Analysis
Neutral
33.03
Price Trends
34.46
Negative
41.17
Negative
49.03
Negative
Market Momentum
-0.55
Negative
50.87
Neutral
69.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WGO, the sentiment is Neutral. The current price of 33.03 is above the 20-day moving average (MA) of 31.51, below the 50-day MA of 34.46, and below the 200-day MA of 49.03, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 69.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WGO.
Winnebago Industries Risk Analysis
Winnebago Industries disclosed 23 risk factors in its most recent earnings report. Winnebago Industries reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Winnebago Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.01B | 14.25 | 10.42% | 5.51% | -1.15% | 121.43% | |
70 Outperform | $2.91B | 8.77 | 10.86% | 2.97% | -17.15% | -40.76% | |
68 Neutral | $3.99B | 19.92 | 5.13% | 2.64% | -8.45% | -25.41% | |
63 Neutral | $3.11B | 39.02 | 5.16% | 3.57% | -15.42% | -77.50% | |
61 Neutral | $925.68M | ― | -0.45% | 4.03% | -12.29% | -105.55% | |
61 Neutral | $6.65B | 11.64 | 3.00% | 3.98% | 2.61% | -21.41% | |
60 Neutral | $1.96B | 48.99 | 3.09% | 7.61% | -17.86% | -89.55% |
* Consumer Cyclical Sector Average
Performance Comparison
WGO
Winnebago Industries
33.03
-27.36
-45.31%
BC
Brunswick
47.33
-32.69
-40.85%
LCII
LCI Industries
79.82
-23.43
-22.69%
HOG
Harley-Davidson
23.51
-11.34
-32.54%
PII
Polaris
34.83
-46.65
-57.25%
THO
Thor Industries
75.06
-24.16
-24.35%
Winnebago Industries Earnings Call Summary
Earnings Call Date:Mar 27, 2025
(Q2-2025)
| % Change Since: -3.90%|
Next Earnings Date:Jun 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted successful product launches and market share gains, particularly in the motorized RV and marine segments, indicating strategic growth. However, this is tempered by a challenging sales environment and macroeconomic uncertainties that have led to a reduction in fiscal year guidance. Despite profitability improvements, elevated warranty expenses and tariff concerns pose ongoing challenges.Q2-2025 Updates
Positive Updates
Successful Launch of Grand Design's Motorized Division
Grand Design's new motorized division is off to a strong start with the Series M Class C. Initial shipments of the new Lineage Series F Super C Coach are also underway, with a revenue target of $100 million plus for fiscal 2025.
Market Share Gains in Key Segments
Winnebago's market share in motorhomes rose mid-single digits in 2024 versus 2023. Barletta's market share increased 140 basis points to 9.5%, showing significant growth in the pontoon market.
Improvement in Profitability
Gross margin improved 110 basis points sequentially, driven by lower allowances and discounts.
Marine Segment Performance
Revenues for the Marine segment were up due to unit volume and operational efficiencies, despite a reduction in average selling price per unit.
Negative Updates
Challenging Sales Environment
Soft retail and macroeconomic uncertainty continue to create a challenging sales environment, with reduced consumer confidence affecting revenue projections.
Lowered Fiscal Year 2025 Guidance
Winnebago reduced its adjusted EPS guidance to $2.75 to $3.75 per diluted share, down from $3.10 to $4.40, and consolidated revenue forecast to $2.8 billion to $3 billion.
Elevated Warranty Expenses
Increased warranty expenses in the Towables segment due to historical quality issues and addressing broader quality campaigns, impacting margins.
Tariff Concerns
Potential tariff impacts could require price adjustments. The company is exploring alternative suppliers and pricing strategies to mitigate costs.
Company Guidance
During the Winnebago Industries fiscal 2025 second quarter conference call, the company provided guidance reflecting cautious optimism amidst economic challenges. For fiscal year 2025, the company revised its adjusted EPS guidance to a range of $2.75 to $3.75 per diluted share, down from the previous range of $3.10 to $4.40. Consolidated revenue projections were adjusted to between $2.8 billion and $3.0 billion, from an earlier forecast of $2.9 billion to $3.2 billion. The revision was attributed to reduced consumer confidence and sentiment impacting sales expectations. Additionally, macroeconomic factors such as consumer confidence and inflation, as well as potential tariff impacts, were highlighted as significant considerations in the updated guidance. Despite these challenges, Winnebago remains confident in its long-term strategy, supported by new product introductions and a focus on profitability over market share.Winnebago Industries Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Winnebago Industries Strengthens Board with New Appointment
Positive
Jan 8, 2025
Winnebago Industries announced the appointment of Mike Pack, a senior executive from Oshkosh Corporation, to its Board of Directors, following Richard Moss’s retirement. Pack’s financial and manufacturing expertise is expected to support Winnebago’s strategic goals and enhance its leadership in the outdoor recreation industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.