WGO - Embedded Expectations Analysis - 2018 03 26
Winnebago Industries (WGO:USA) currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a 13.5x Uniform P/E. At these levels, markets have bearish expectations for the firm, despite bullish expectations from analysts, and given management's confidence about their costs, balance sheet, and inventory, further upside may be warrantedSpecifically, management is confident in their fixed-cost leverage improving margins, and in their Outlook product. Additionally, they are confident in the RVIA's updated forecast for 2018, and in the increasingly positive state of their balance sheet. Furthermore, they are confident in their focus on achieving their 10%-plus operating income goal, and in Grand Design's inventory turns. Moreover, they are confident in making their employees larger owners of the company through the recently announced employee stock purchase plan
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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