WGO - Embedded Expectations Analysis - 2020 07 17
Winnebago Industries, Inc. (WGO:USA) currently trades below corporate averages relative to Uniform earnings, with a 17.7x Uniform P/E. At these levels, the market has overly bearish expectations for the firm, but management's confidence about market share, Newmar acquisition benefits, and consumer interest suggest longer-term equity upside is warranted for WGOSpecifically, management is confident the Newmar acquisition positions them to more effectively compete in the high-end motorhome market and that their Grand Design business, Newmar motorhomes, and Class B products continue to gain market share. In addition, they are confident consumer interest and investment in outdoor products have been robust, that they are blending employee health protocols with their productivity to meet rising demand, and that they have not had any outbreaks within the company
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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