Thor Industries, Inc. (THO)
Valuation Overview•Is Thor Industries, Inc. Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Fragile underlying quality score of 42/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant growth concerns.
Wall Street is highly bullish, projecting significant upside. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
THO struggles with subpar profitability and pressured margins. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company is facing top-line contraction (-16.3% 3Y CAGR) however, earnings have severely contracted over the same period. However, profitability remains a major concern with severely compressed operating margins (2.5%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $2.8B | -4.6% | -16.3% | +3.2% | +9.1% | |
| EBITDA | $162.0M | — | -32.0% | — | — | |
| Net Income | $95.5M | -2.5% | -39.0% | — | +2.6% | |
| EPS (Diluted) | $1.86 | -2.0% | -38.3% | +3.7% | +2.6% | |
| Free Cash Flow | $196.0M | +12.1% | -15.3% | +0.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 12.3% | 13.8% | 14.8% | 14.3% |
| Operating Margin | 2.5% | 4.2% | 5.9% | 6.3% |
| Net Margin | 2.7% | 2.9% | 4.2% | 4.1% |
| FCF Margin | 2.0% | 5.2% | 4.7% | 4.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.92 | $1.86 | -3.1% | ||
| Q1'26 | $0.03 | $0.04 | +33.3% | ||
| Q4'25 | $-0.07 | $0.41 | +652.2% | ||
| Q3'25 | $1.16 | $2.31 | +99.1% | ||
| Q2'25 | $1.79 | $2.77 | +54.7% | ||
| Q1'25 | $0.07 | $-0.01 | -114.3% | ||
| Q4'24 | $0.70 | $0.26 | -62.9% | ||
| Q3'24 | $1.30 | $1.68 | +29.2% |
Total return is -13.3% (1Y), lagging the benchmark by -38.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -30.4% | -39.7% | — |
| 1Y | -13.3% | -38.3% | +2.4% |
| 3YCAGR | -6.2% | -25.9% | +6.3% |
| 5YCAGR | -4.8% | -17.4% | +9.0% |
| 10YCAGR | +3.3% | -10.3% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Thor Industries, Inc. (THO) valuation, health, and returns.
Thor Industries, Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. trading near fair value (DCF: $74.88)
Thor Industries, Inc. has multiple valuation anchors: DCF Intrinsic Value: $74.88 | Peer Relative Fair Value: $70.27 | Wall Street Analyst Target: $95.00 (implying +31.3% upside). A convergence of these signals offers higher conviction.
Thor Industries, Inc. displays fair financial health with a composite quality score of 42/100, supported by a Altman Z-Score of 3.2 (safe zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 4.8%.
Thor Industries, Inc. pays a 2.7% dividend yield, covered by a 41% payout ratio with 16 years of growth, supplemented by a 1.4% buyback yield.
Thor Industries, Inc.'s current growth trajectory is Accelerating. The company achieved -4.6% 1Y revenue growth and -2.0% 1Y EPS growth, compared to its 3Y revenue CAGR of -16.3%.
Wall Street consensus is Hold based on 41 analysts, beating EPS expectations in 67% of recent quarters with a -1-quarter streak. The consensus price target represents a +31.3% change from current levels.
Investment risks for Thor Industries, Inc. include: -40.2% 1-year max drawdown. Volatility risk is characterized by a beta of 1.15x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.