What Winnebago Industries (WGO) Investors Need to Know

Shares of Small-cap industrials company Winnebago Industries moved 3.2% this afternoon, and are now trading at $57.43 per share. The average analyst target price for the stock is $66.75.

Winnebago Industries, Inc. manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. The company currently returns an annual dividend yield of 1.6% and has moved 13.5% over the last year.

Based on its trailing earning per share of 9.51, Winnebago Industries has a trailing 12 month Price to Earnings (P/E) ratio of 6.0 WGO has a forward P/E ratio of 7.5 based on its earnings guidance of None.

The company has a price to earnings growth (PEG) ratio of 0.49. A number between 0 and 1 could mean that the market is undervaluing Winnebago Industries's estimated growth potential

The Business Has Weak Operating Margins

2019-08-31 2020-08-31 2021-08-31 2022-08-31
Revenue (MM) $1,986 $2,356 $3,630 $4,958
Gross Margins 15.5% 13.3% 17.9% 18.8%
Operating Margins 7.8% 4.8% 11.2% 11.8%
Net Margins 5.63% 2.61% 7.77% 7.88%
Net Income (MM) $112 $61 $282 $391
Net Interest Income -$17,939 -$37,461 -$40,365 -$41,313
Depreciation & Amort. -$23,317 -$38,101 -$32,562 -$53,657
Earnings Per Share $3.52 $1.84 $8.28 $9.51
EPS Growth n/a -47.73% 350.0% 14.86%
Diluted Shares (MM) 32 33 34 31
Free Cash Flow (MM) $93 $238 $192 $313
Capital Expenditures (MM) -$41 -$32 -$45 -$88
Net Current Assets (MM) -$61 -$173 $53 -$60
Current Ratio 2.08 2.38 2.6 2.1
Long Term Debt (MM) $245 $513 $529 $546
Net Debt / EBITDA 1.2 nan nan nan

Winnebago Industries benefits from growing revenues and increasing reinvestment in the business, exceptional EPS growth, and an excellent current ratio. The company's financial statements show low leverage and consistent free cash flow. However, the firm suffers from slimmer gross margins than its peers and weak operating margins with a positive growth rate.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.