WGO - Embedded Expectations Analysis - 2018 10 22
Winnebago Industries (WGO:USA) currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 9.0x Uniform P/E (Fwd V/E'). At these levels, markets have overly bearish expectations for the firm, and given management's confidence in their Towable segment growth, expanded product lines, and brand equity, further upside is warrantedSpecifically, management is confident that no other RV company in North America organically gained the Towable segment market share that they did in FY 2018. Additionally, they are confident in their expanded product lines, particularly in Grand Design RV, and in their ability to maintain accelerated growth in the Towable segment. They are also confident that customers are searching for premium companies with strong brands, and that they will look to minimize expenses across their income statement to offset increased input costs. Moreover, they are confident in their focus on building a high-performance culture through a unique blend of leadership, accountability, and giving
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.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.