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.
