One-glance verdict
Undervalued
$112.24 our estimate vs market $68.44
Wall Street consensus: $84.30 (-24.9% lower than our fair-value estimate)
39% below our estimate, below the bear case
Fundamentals snapshot
THOR Industries, Inc.
THO · NYQ · Consumer Cyclical · Recreational Vehicles
Current price
$68.44
52-week range
$62.83 - $122.83
Market cap
$3.53B
Balance sheet
Watch
6.17x Adequate
Net debt $427.99M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 0.3% last year.
- Reward Returns 4.1% on equity, ahead of 40% of its peers.
- Risk Stock trades 32.8% above its 5-year average P/E.
- Risk Operating margin compressed from 9.4% to 2.2% over 3 years.
What this company does
THOR Industries, Inc.
THOR Industries is one of the world's largest makers of recreational vehicles (RVs), selling everything from Airstream trailers to large motorhomes to a network of independent dealers. Since buying an RV is a major expense for most families, the company's sales tend to rise and fall with the overall economy, making its business sensitive to how confident people feel about spending on big-ticket leisure items.
How the company got here
THOR Industries began in 1980 when its founders purchased Airstream, the well-known maker of silver, bullet-shaped travel trailers. The company grew by buying many other well-known recreational vehicle (RV) brands over the years, like Dutchmen, Keystone, and Jayco. A major turning point was the 2019 purchase of Erwin Hymer Group, a large European RV maker, which made THOR the world's largest RV manufacturer. This strategy of acquiring established brands, rather than building one single brand, has been a key part of its growth.
What it actually does
THOR Industries designs, builds, and sells a wide variety of recreational vehicles, which are homes-on-wheels that people use for travel and camping. You might recognize some of their famous brand names like Airstream, Jayco, or Keystone. They make everything from small, towable camping trailers to large, luxurious motorhomes that you can drive. The company sells these vehicles to a large network of independent dealers, who then sell them to the public.
North American Towable RVs
This is the company's largest business area, focused on vehicles you tow behind a truck or SUV. This includes everything from small pop-up campers to very large "fifth wheel" trailers that connect to a special hitch in a truck bed. Customers for these products range from families looking for an affordable way to vacation to serious travelers who live in their RVs for long periods. This segment includes many of THOR's most popular and long-standing brands.
North American Motorized RVs
This part of the business builds RVs that have their own engine and driving controls, like a bus or a van. These range from smaller "Class B" camper vans to very large "Class A" motorhomes that resemble luxury buses. This segment caters to customers who want the convenience of an all-in-one vehicle for their travels. Brands like Thor Motor Coach, Tiffin, and Entegra Coach are part of this group, offering products at various price points.
European RVs
Through its purchase of the Erwin Hymer Group, THOR has a very large presence in the European market, which has different styles of RVs. This segment builds and sells vehicles like caravans (the European term for travel trailers) and more compact campervans that are popular on European roads. This was a major expansion for the company, making it a global leader in the RV industry. This division serves a wide network of dealers across Europe.
What management is betting on now
The company is focused on strengthening its supply chain (the network of companies that provide parts and materials) to ensure it can build RVs efficiently. They are also investing in sustainability, aiming to reduce their environmental impact and develop more eco-friendly products, including exploring electric RVs. Another key strategy is to better coordinate among its many brands to improve efficiency and share innovations across the entire company. Management is also focused on expanding its aftermarket business, which involves selling parts and accessories to existing RV owners.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$6.39M
FY2025 Q2
$5.84M
FY2025 Q3
$222.50M
FY2025 Q4
$221.58M
FY2026 Q1
$-74.78M
FY2026 Q2
$-145.21M
Revenue
$2.31B
Net income
$40.84M
Diluted EPS
0.77
Operating cash flow
$244.18M
Free cash flow
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Sources
Revenue
$2.78B
Net income
$97.23M
Diluted EPS
1.86
Operating cash flow
$234.15M
Free cash flow
—
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Sources
Revenue
$2.13B
Net income
$17.80M
Diluted EPS
0.34
Operating cash flow
$-112.24M
Free cash flow
$-145.21M
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Sources
Revenue
$2.39B
Net income
$21.67M
Diluted EPS
0.41
Operating cash flow
$-44.87M
Free cash flow
$-74.78M
Fetching…
Sources
Revenue
$2.52B
Net income
$125.76M
Diluted EPS
2.35
Operating cash flow
$258.67M
Free cash flow
$221.58M
Fetching…
Sources
Revenue
$2.89B
Net income
$135.19M
Diluted EPS
2.53
Operating cash flow
$257.67M
Free cash flow
$222.50M
Fetching…
Sources
Revenue
$2.02B
Net income
$-551.00K
Diluted EPS
-0.01
Operating cash flow
$30.84M
Free cash flow
$5.84M
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Sources
Revenue
$2.14B
Net income
$-1.83M
Diluted EPS
-0.03
Operating cash flow
$30.74M
Free cash flow
$6.39M
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Sources
Is it cheap or expensive?
Fair value $112.24 vs current price $68.44
Wall Street consensus is the average analyst price target: $84.30 (-24.9% lower than our fair-value estimate).
Our most-likely fair value is $112.24 a share — about 64.0% above today's price of $68.44, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $428.0M. Interest coverage 6.2x.
Net debt
$427.99M
Interest coverage
6.17x
THOR Industries, Inc.'s profit covers its interest bill about 6.2 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
THO
BASELINE
THOR Industries, Inc.
Total debt $909.97M Interest coverage 6.17x This is the baseline the peer rows are being compared against.
Total debt $482.90M Interest coverage 2.21x -64% vs THO Carries about 2.8x less debt cushion than THO.
Total debt $1.15B Interest coverage 7.84x +27% vs THO Carries about 1.3x more debt cushion than THO.
Total debt $1.65B Interest coverage 3.70x -40% vs THO Carries about 1.7x less debt cushion than THO.
Total debt $2.06B Interest coverage 0.26x -96% vs THO Carries about 23.7x less debt cushion than THO.
What you should know
The case for and against THO
3 Rewards
2 Risks
Rewards
-
Revenue grew 0.3% last year.
-
Returns 4.1% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 32.8% above its 5-year average P/E.
-
Operating margin compressed from 9.4% to 2.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
20.25x
Forward P/E
14.14x
P/B
0.83x
P/S
0.37x
EV/EBITDA
8.54x
PEG ratio
0.62x
Profitability
How much profit each dollar creates
Gross margin
12.6%
Operating margin
2.2%
Net margin
1.8%
ROE
4.1%
ROA
1.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.21x
Current ratio
1.77x
Quick ratio
0.76x
Total debt
$909.97M
Total cash
$481.99M
Growth
How the business has been compounding
Revenue TTM
$9.61B
Revenue 5Y CAGR
-12.4%
EPS TTM
3.38
EPS 5Y CAGR
-38.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$321.22M
Free CF TTM
$456.31M
FCF margin
4.7%
Dividend
Shareholder payout
Yield
3.2%
Payout ratio
61.5%
Last ex-div date
2026-10-27