In This Article:
Measuring Thor Industries Inc’s (NYSE:THO) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess THO’s recent performance announced on 30 April 2018 and compare these figures to its historical trend and industry movements.
See our latest analysis for Thor Industries
Could THO beat the long-term trend and outperform its industry?
THO’s trailing twelve-month earnings (from 30 April 2018) of US$461.41m has jumped 36.66% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 22.85%, indicating the rate at which THO is growing has accelerated. What’s enabled this growth? Let’s take a look at whether it is only owing to industry tailwinds, or if Thor Industries has seen some company-specific growth.
In the past few years, Thor Industries increased its bottom line faster than revenue by efficiently controlling its costs. This resulted in a margin expansion and profitability over time. Viewing growth from a sector-level, the US auto industry has been growing its average earnings by double-digit 18.85% in the prior year, and 10.95% over the past five years. This growth is a median of profitable companies of 25 Auto companies in US including BAIC Motor, BAIC Motor and Great Wall Motor. This shows that any tailwind the industry is benefiting from, Thor Industries is able to leverage this to its advantage.
In terms of returns from investment, Thor Industries has invested its equity funds well leading to a 24.73% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 16.26% exceeds the US Auto industry of 4.95%, indicating Thor Industries has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Thor Industries’s debt level, has increased over the past 3 years from 25.28% to 33.94%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Thor Industries to get a better picture of the stock by looking at:
-
Future Outlook: What are well-informed industry analysts predicting for THO’s future growth? Take a look at our free research report of analyst consensus for THO’s outlook.
-
Financial Health: Are THO’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
-
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.