Back to top

Image: Bigstock

If You Invested $1000 in Thor Industries 10 Years Ago, This Is How Much You'd Have Now

Read MoreHide Full Article

For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Thor Industries (THO - Free Report) ten years ago? It may not have been easy to hold on to THO for all that time, but if you did, how much would your investment be worth today?

Thor Industries' Business In-Depth

With that in mind, let's take a look at Thor Industries' main business drivers.

Founded in 1980, Indiana-based Thor Industries is the largest manufacturer of RVs in the world. The American company builds a variety of RVs in North America and Europe, and sells those vehicles along with related parts and accessories to independent, non-franchise dealers throughout the United States, Canada and Europe.

Thor, through its subsidiaries, is the leading RV maker in North America in terms of unit sales and revenues.  The company’s North American operating subsidiaries include Airstream, Thor Motor Coach, Keystone, Hearland, KZ and Jayco. Under the company’s decentralised structure, each of the subsidiaries operate independently. Thor is the #1 player in travel trailers, fifth wheels and motorized RVs in North America.

It has emerged as one of the leaders in the European RV industry through the acquisition of Erwin Hymer Group, which was closed last February. European RV operations include eight production facilities that manufactured noted brands within Europe including Hymer, Buerstner, Carado, Eriba, Etrusco, Laika, Xplore, Elddis, Compass, Buccaneer, and CrossCamp.

Thor operates under three reportable segments: North American Towable Recreational Vehicles (accounting for 51.6% of total RV revenues in fiscal 2020), North American Motorized Recreational Vehicles (17.4%) and European Recreational Vehicles (31%). Operations of Thor’s Postle unit are included in “Other,” which is a non-reportable segment. This mainly includes the sale of aluminum extrusions and specialized component products.Thor reported a record backlog of $5.74 billion at the end of fiscal year 2020

As the RV market is fiercely competitive amid low barriers of entry, Thor counts Forest River, Inc. and Winnebago Industries, Inc. as its closest peers within North American towable and motorized segments. Its major competitors within the European segment include Trigano, Hobby/Fendt and Knaus Tabbert.

The recreational vehicle industry is influenced by many strong macroeconomic factors and is extremely sensitive to overall strength of the economy. The Global RV Market has enjoyed exponential growth since 2008 on the back of rising popularity of van life movement among millennials and changing customer lifestyles. The demand for RVs in luxury camping and travel amenities is likely to keep growing in the future.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Thor Industries a decade ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in August 2011 would be worth $5,213.94, or a gain of 421.39%, as of August 3, 2021, and this return excludes dividends but includes price increases.

In comparison, the S&P 500 gained 249.84% and the price of gold went up 5.03% over the same time frame.

Looking ahead, analysts are expecting more upside for THO.

Erwin Hymer Group buyout has boosted Thor’s position in the European market. The acquisition of Tiffin Homes has further expanded Thor's portfolio. The recreational vehicle (RV) maker's rising cash flow from operations is fueling investors' confidence. Thor’s record backlog of new orders across both the segments offers good visibility to growth through fiscal 2021 and beyond. Demand for towable RVs is expected to keep growing in the foreseeable future, thereby buoying Thor's earnings. Increased Airstream production capabilities and growth in outdoor camping and RV rentals augur well for the firm. On an encouraging note, the RV Industry Association forecasts 2021 industry-wide wholesale shipments to be 576,100 units, up 33.8% year over year. Amid the tailwinds, Thor is viewed as an attractive bet. 

Over the past four weeks, shares have rallied 5.42%, and there have been 5 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.

In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Thor Industries, Inc. (THO) - free report >>

Published in