One-glance verdict
Undervalued
$119.12 our estimate vs market $75.80
Wall Street consensus: $90.50 (-24.0% lower than our fair-value estimate)
36% below our estimate, below the bear case
Fundamentals snapshot
THOR Industries, Inc.
THO · NYQ · Consumer Cyclical · Recreational Vehicles
Current price
$75.80
52-week range
$69.71 - $122.83
Market cap
$3.95B
Balance sheet
Watch
6.17x Adequate
Net debt $547.32M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 2.5% last year.
- Reward Returns 6.1% on equity, ahead of 40% of its peers.
- Risk Forward P/E (16.5x) is higher than trailing (15.3x) - earnings are expected to drop.
- Risk Operating margin compressed from 9.4% to 3.5% 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 popular brands like Airstream and Jayco to a network of independent dealers. Because RVs are a major purchase, the company’s success is often linked to the overall economy and how confident people feel about spending money on travel and leisure.
How the company got here
THOR Industries began in 1980 when its founders bought the iconic but struggling Airstream travel trailer company. They turned it around to be profitable within a year by focusing on quality and cost control. The company then grew by making numerous acquisitions (a business term for buying other companies), adding well-known brands like Keystone, Jayco, and Tiffin Motorhomes to its portfolio over several decades. A key turning point was the 2019 purchase of Germany's Erwin Hymer Group, which transformed THOR into the world's largest manufacturer of recreational vehicles (RVs) with a major presence in Europe.
What it actually does
THOR Industries doesn't sell RVs under its own name; instead, it owns a large collection of different RV brands. Think of it like a parent company for famous names like Airstream, Jayco, and Thor Motor Coach. It builds a wide variety of vehicles for outdoor travel, from classic silver Airstream trailers you tow behind a truck to large motorhomes you can drive. The company makes its money by selling these finished RVs to a network of independent dealers, who then sell them to the public.
North American Towable RVs
This is the company's largest business segment, making up the biggest piece of its sales. It builds vehicles that you tow with a truck or SUV, such as conventional travel trailers and larger 'fifth wheels' that connect to a hitch in a truck bed. This division includes some of the most popular and high-volume brands in the United States and Canada, like Keystone and Jayco. Customers who want a separate vehicle for driving and a living space for camping are the main buyers for this segment.
North American Motorized RVs
This part of the business builds the all-in-one vehicles that you can drive, often called motorhomes or camper vans. These range from smaller 'Class B' vans that are easy to drive in cities to very large 'Class A' motorhomes that resemble buses and offer luxury living on the road. This segment includes brands like Thor Motor Coach and the high-end Tiffin Motorhomes. It represents a significant portion of the company's revenue, serving customers who prefer the convenience of a single, self-contained vehicle.
European RVs
This segment sells a variety of RVs specifically for the European market, which has different tastes and road sizes than North America. It became a major part of THOR's business after the acquisition of the German-based Erwin Hymer Group. The products include camper vans and 'motorcaravans' sold under well-known European brands like Hymer and Bürstner. This business gives THOR geographic diversification (a strategy to reduce risk by operating in different markets, so that a slowdown in one region might be offset by growth in another).
What management is betting on now
The company is focused on carefully managing its production to match what customers are actually buying from dealers, a key step to avoid excess inventory (the supply of unsold goods). They are also undergoing a strategic restructuring (reorganizing how the company operates) of their North American businesses to improve efficiency and save on costs. Another priority is improving the customer experience through better product quality and service after the sale. Finally, THOR is investing in innovation, such as developing lighter and more sustainable products, including exploring electric RVs for the future.
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.
FY2024 Q4
$301.29M
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
$2.78B
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
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Sources
Revenue
$2.52B
Net income
$125.76M
Diluted EPS
2.35
Operating cash flow
$258.67M
Free cash flow
$221.58M
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Sources
Revenue
$2.89B
Net income
$135.19M
Diluted EPS
2.53
Operating cash flow
$257.67M
Free cash flow
$222.50M
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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
Revenue
$2.53B
Net income
$90.02M
Diluted EPS
1.69
Operating cash flow
$338.02M
Free cash flow
$301.29M
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Sources
Is it cheap or expensive?
Fair value $119.12 vs current price $75.80
Wall Street consensus is the average analyst price target: $90.50 (-24.0% lower than our fair-value estimate).
Our most-likely fair value is $119.12 a share — about 57.1% above today's price of $75.80, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $547.3M. Interest coverage 6.2x.
Net debt
$547.32M
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 $919.26M 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
3 Risks
Rewards
-
Revenue grew 2.5% last year.
-
Returns 6.1% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (16.5x) is higher than trailing (15.3x) - earnings are expected to drop.
-
Operating margin compressed from 9.4% to 3.5% over 3 years.
-
Stock trades 0.6% above its 5-year average P/E.
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)
15.34x
Forward P/E
16.55x
P/B
0.91x
P/S
0.40x
EV/EBITDA
8.43x
PEG ratio
0.72x
Profitability
How much profit each dollar creates
Gross margin
13.2%
Operating margin
3.5%
Net margin
2.7%
ROE
6.1%
ROA
2.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.21x
Current ratio
1.71x
Quick ratio
0.74x
Total debt
$919.26M
Total cash
$371.95M
Growth
How the business has been compounding
Revenue TTM
$9.82B
Revenue 5Y CAGR
-6.1%
EPS TTM
4.94
EPS 5Y CAGR
-38.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$335.72M
Free CF TTM
$456.31M
FCF margin
4.6%
Dividend
Shareholder payout
Yield
2.8%
Payout ratio
41.7%
Last ex-div date
2026-07-01