WGO - Embedded Expectations Analysis - 2018 01 30
ï€ Winnebago Industries, Inc. (WGO:USA) currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a 12.0x Uniform P/E. At these levels, markets have only somewhat optimistic expectations for the firm post-Grand Design, which is less bullish than analyst projections, and further upside may be warranted given management's confidence about their product development and initiativesï€ Specifically, management is confident in their new, impactful product development culture in their flagship Winnebago brand, and in their new Class A Diesel Horizon after it was awarded RV of the Year by RV Business magazine. Additionally, they are confident in their focus on a 3-year planning horizon, which includes goals related to employee training, and in the future turns of their Towable segment as a result of decreasing inventory aging. As such, equity is likely fairly valued at worst, with the potential for material further upside for WGO should they succeed in integrating their recent acquisition as analysts expect
Winnebago Industries is a manufacturer with a portfolio of recreation vehicles and marine products used primarily in leisure travel and outdoor recreation activities. The company's reportable segments include: Towable, which is comprised of products which are not motorized and are generally towed by another vehicle as well as other related manufactured products and services; and Motorhome, which is comprised of products that include a motorized chassis as well as other related manufactured products and services. The company's subsidiary, Chris-Craft USA, Inc., manufactures and sells boats in the recreational powerboat industry through a network of independent authorized dealers.
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