$Thor Industries (THO.US)$ In the past 5 years, in addition ...

In the past 5 years, in addition to a 5.6% contraction in 2019, revenue grew for 4 years; after plummeting in 2019, operating profit and net profit did not actually bottom out until 2021. Net profit grew at an average rate of 21% over the past 5 years, and an average growth rate of 15.4% in the past 3 years. The earnings per share curve is basically in line with the net profit curve. In the first two quarters of 2022, revenue increased 49%, operating profit increased 98%, and net profit increased 106%.

The income statement shows that interest expenses reached 100 million in 2020, accounting for 26% of operating profit, and decreased to 93.54 million in 2021, accounting for 10% of operating profit. Net profit in 2019 and 2020 was not as good as previous years mainly due to the rapid increase in operating expenses in these two years.

The return on net assets is around 25%, fell to 6.6% and 10.1% in 2020 and 2021, respectively, and recovered to 25% in 2021. This level is not bad.

The balance ratio increased from 38.4% to 63% over the past 5 years, then gradually declined back to 57.6%. It is a relatively asset-heavy company.

Accounts receivable account for 9.4% of revenue, and inventory accounts for 14% of revenue. The level is normal. Goodwill and intangible assets were $3.23 billion, accounting for 42% of total assets, exceeding total equity of $3.25 billion.

Currently, the price-earnings ratio is 6.6. If you calculate the two-year average profit of 440 million, the price-earnings ratio is 9.8. The valuation is not very high, so you can choose carefully (⭐️)