Thor Industries Story

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THO -- USA Stock  

USD 86.52  1.71  1.94%

Thor Industries is scheduled to announce its earnings today. The next earnings report is expected on the 14th of December 2020. Thor Industries Free Cash Flow is quite stable at the moment as compared to the past year. The company's current value of Free Cash Flow is estimated at 281.2 Million. Invested Capital Average is expected to rise to about 617.4 M this year, although the value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA will most likely fall to about 338.9 M. While some of us are becoming more enthusiastic about consumer cyclical space, let's outline Thor Industries in greater detail to make a better estimate of its debt utilization.
Published over three weeks ago
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Should I exit my Thor Industries (NYSE:THO) position?
This firm has 2.02 B in debt with debt to equity (D/E) ratio of 0.96, which is OK given its current industry classification. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Thor Industries has an asset utilization ratio of 350.9 percent. This suggests that the company is making $3.51 for each dollar of assets. An increasing asset utilization means that Thor Industries is more efficient with each dollar of assets it utilizes for everyday operations.
Thor Industries financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Thor Industries, including all of Thor Industries's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Thor Industries assets, the company is considered highly leveraged. Understanding the composition and structure of overall Thor Industries debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Thor Industries Total Debt

Thor Industries liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Thor Industries has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Thor Industries balance sheet include debt obligations and money owed to different Thor Industries vendors, workers, and loan providers. Below is the chart of Thor Industries main long-term debt accounts currently reported on its balance sheet.
You can use Thor Industries financial leverage analysis tool to get a better grip on understanding its financial position

How important is Thor Industries's Liquidity

Thor Industries financial leverage refers to using borrowed capital as a funding source to finance Thor Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Thor Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Thor Industries's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Thor Industries, but it might be worth checking our own buy vs. sell analysis

Acquisition by Amelia Huntington of 1023 shares of Thor Industries subject to Rule 16b-3

Legal trades by Thor Industries insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Thor Industries insider trading alert for grant of common stock by Amelia Huntington, the corporate stakeholder, on 13th of October 2020. This event was filed by Thor Industries Inc with SEC on 2020-10-13. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Thor Industries Indicators

Thor Industries price slide over the last few months created some momentum for institutional investors as it was traded today as low as 91.6 and as high as 96.74 per share. The company executives were not very successful in positioning the company resources to exploit market volatility in August. However, diversifying your holdings with Thor Industries or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.0. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Thor Industries partners.

Asset Breakdown

1.3 B
Assets Non Current
859.5 M
Goodwill
B
Current Assets
Total Assets5.5 Billion
Current Assets1.98 Billion
Assets Non Current1.27 Billion
Goodwill859.46 Million
Tax Assets62.11 Million

Thor Industries may start a collapse in October

The information ratio is down to -0.12 as of today. Thor Industries exhibits very low volatility with skewness of 0.07 and kurtosis of -0.2. However, we advise investors to further study Thor Industries technical indicators to make sure all market info is available and is reliable.

Our Final Perspective on Thor Industries

Whereas some companies in the recreational vehicles industry are either recovering or due for a correction, Thor Industries may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Thor Industries valuation and our trade advice on Thor Industries is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Thor Industries.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Thor Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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