Thor Industries, Inc. reports 48.1% EBITDA growth in 2020 and 3.9% Revenue growth
09/28/2020 • About Thor Industries, Inc. (
$THO) • By InTwits
Thor Industries, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Thor Industries, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's in pair with industry average of 1.3%
- CAPEX is quite volatile: $0m in FY2020, $1m in FY2019, $2m in FY2018, $0m in FY2017, $0m in FY2016
- The company has business model with low profitability: ROIC is 9.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.0x while industry average is 2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 3.9%. Revenue growth showed slowdown in FY20Q4 - it was 0.5% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.5 pp from 1.5% to 3.1% in FY2020. During FY2016-FY2020 EBITDA Margin bottomed in FY2019 at 5.0%.
Gross Margin increased slightly on 1.3 pp from 12.4% to 13.7% in FY2020. During FY2016-FY2020 Gross Margin bottomed in FY2019 at 12.4%. SG&A as a % of Revenue increased slightly on 0.95 pp from 6.8% to 7.8% in FY2020. During the last 5 years SG&A as a % of Revenue bottomed in FY2018 at 5.7% and was growing since that time.
Net Income margin increased slightly on 1.0 pp from 1.7% to 2.7% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.3% in FY2020. The company's CAPEX/Revenue showed almost no change from FY2017 to FY2020. Average CAPEX/Revenue for the last three years was 1.5%. During FY2016-FY2020 CAPEX as a % of Revenue topped in FY2018 at 1.7% and was declining since that time.
Return on investment
The company operates at low ROIC (9.1%) and ROE (10.1%). ROIC increased slightly on 1.1 pp from 8.0% to 9.1% in FY2020. ROE increased on 3.5 pp from 6.6% to 10.1% in FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.0x and Debt / EBITDA is 2.9x. Net Debt / EBITDA dropped on 1.8x from 3.8x to 2.0x in FY2020. Debt dropped on 10.6% while cash jumped on 26.5%.
Thor Industries, Inc. has no short term refinancing risk: cash is higher than short term debt (2,738.5%).
Valuation and dividends
The company's trades at EV/EBITDA 11.7x and P/E 25.5x.
Management team
The company's CEO is Robert W Martin "Bob". Robert W Martin "Bob" has 7 years tenure with the company. Thor Industries, Inc.'s CFO is Colleen A Zuhl. Colleen A Zuhl has 7 years tenure at the company.
Financial and operational results
FY ended 07/31/2020
Thor Industries, Inc. ($THO) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 4,582 | 7,247 | 8,329 | 7,865 | 8,168 | 3.9% |
| Gross Profit | 726 | 1,044 | 1,165 | 973 | 1,118 | 14.9% |
| SG&A | 306 | 420 | 477 | 536 | 634 | 18.3% |
| EBITDA | 436 | 658 | 725 | 395 | 586 | 48.1% |
| Net Income | 257 | 374 | 430 | 133 | 223 | 67.3% |
Balance Sheet
|
|---|
| Cash | 210 | 223 | 275 | 426 | 539 | 26.5% |
| Short Term Debt | 0 | 0 | 0 | 18 | 20 | 10.4% |
| Long Term Debt | 366 | 151 | 6 | 1,890 | 1,686 | -10.8% |
Cash flow
|
|---|
| Capex | 52 | 115 | 138 | 130 | 107 | -18.1% |
Ratios
|
|---|
| Revenue growth | 14.4% | 58.2% | 14.9% | -5.6% | 3.9% | |
| EBITDA growth | 35.3% | 51.1% | 10.2% | -45.5% | 48.1% | |
|
|---|
| Gross Margin | 15.9% | 14.4% | 14.0% | 12.4% | 13.7% | 1.3% |
| EBITDA Margin | 9.5% | 9.1% | 8.7% | 5.0% | 7.2% | 2.1% |
| SG&A, % of revenue | 6.7% | 5.8% | 5.7% | 6.8% | 7.8% | 0.9% |
| Net Income Margin | 5.6% | 5.2% | 5.2% | 1.7% | 2.7% | 1.0% |
| CAPEX, % of revenue | 1.1% | 1.6% | 1.7% | 1.7% | 1.3% | -0.3% |
|
|---|
| ROIC | 28.9% | 34.0% | 33.9% | 8.0% | 9.1% | 1.1% |
| ROE | 22.0% | 26.3% | 24.5% | 6.6% | 10.1% | 3.5% |
| Net Debt/EBITDA | 0.4x | -0.1x | -0.4x | 3.8x | 2.0x | -1.8x |
Thor Industries, Inc. ($THO) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 2,159 | 2,003 | 1,682 | 2,324 | | 22.9% | 55.2% | -32.9% | 0.5% |
| EBITDA | 149 | 112 | 102 | 232 | | 157.7% | 339.0% | -20.3% | 25.8% |
| Net Income | 51 | 29 | 24 | 119 | | 266.0% | - | -26.4% | 29.5% |
Balance Sheet
|
|---|
| Cash | 232 | 242 | 651 | 539 | | 3.0% | -20.8% | 41.3% | 26.5% |
| Short Term Debt | 23 | 23 | 23 | 20 | | - | - | -63.0% | 10.4% |
| Long Term Debt | 1,813 | 1,779 | 1,998 | 1,686 | | - | - | -8.5% | -10.8% |
Ratios
|
|---|
| Gross Margin | 14.3% | 12.8% | 12.2% | 14.9% | | 2.5% | 1.8% | 0.6% | 0.6% |
| EBITDA Margin | 6.9% | 5.6% | 6.1% | 10.0% | | 3.6% | 3.6% | 1.0% | 2.0% |
| Net Income Margin | 2.4% | 1.4% | 1.4% | 5.1% | | 1.6% | 1.9% | 0.1% | 1.1% |
Peers in Automobile Manufacturers
Below you can find Thor Industries, Inc. benchmarking vs. other companies in Automobile Manufacturers industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
