Why Has Thor Industries Stock Underperformed The S&P Despite Consistent Sales Growth?

THO: Thor Industries logo
Thor Industries

Thor Industries Inc. (NYSE: THO) stock price has risen just 46% from $52 in 2018 end, to around $76 currently, primarily due to favorable changes in its revenues. The company, in fact, witnessed a rise in its outstanding share count and a drop in its P/S multiple over this period, due to which the company’s stock has failed to outperform the S&P, which returned a little over 50% over this period.

In our interactive dashboard, Why Thor Industries Stock Moved: THO Stock Has Gained 46% Since 2018, we break down the factors behind this move.

(A) Thor’s Total Revenue has grown 97% from $8.5 billion in FY 2018 to $16.7 billion currently

  • Thor’s total revenue has risen strongly from $8.5 billion in FY ’18 to $12.5 billion in FY ’21 (Thor’s fiscal year ends in July), and currently stands even higher at over $16 billion.
  • As of FY ’21, 50% of Thor’s sales come from its North American Towables recreational vehicle segment, which brought in over $6.2 billion in FY ’21.
  • European recreational vehicles came in as the second largest segment at 26%, bringing in $3.2 billion as of FY ’21.
  • For details about Thor Industries revenues and comparison to peers, see Thor Industries (THO) Revenue Comparison
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(B) Revenue per share (RPS) increased 89% from $161.50 in FY ’18 to $304.97 currently

  • THO revenue rose from $8.5 billion in FY ’18 to $12.5 billion currently, while the outstanding share count increased from 52.7 million in FY ’18 to 54.9 million currently.
  • Due to this, RPS has risen from $161.50 in FY ’18 to $304.97 currently.

(C) Price-To-Sales (P/S) multiple for Thor Industries rose from 0.3x in 2018-end to 0.6x by 2020-end, but has pulled back to 0.2x currently, lower than its 2018 level

  • Due to Thor’s stellar performance since 2018-end, its P/S multiple rose strongly from 0.3x in 2018-end to as high as 0.6x in 2020.
  • However, due to the increased economic uncertainty weighing on the broader markets, the P/S multiple has pulled back, currently standing at around 0.2x.
  • For additional details about the company stock returns and comparison to peers, see Thor Industries (THO) Stock Return Comparison.

With inflation rising and the Fed raising interest rates, Thor Industries has fallen 37% this year. Can it drop more? See how low can THO stock go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.

What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.

Returns Jul 2022
MTD [1]
YTD [1]
Total [2]
 THO Return 2% -26% -24%
 S&P 500 Return 0% -21% 69%
 Trefis Multi-Strategy Portfolio 2% -25% 198%

[1] Month-to-date and year-to-date as of 7/1/2022
[2] Cumulative total returns since the end of 2016

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