Should You Buy Thor Industries Stock Today?
Thor Industries (NYSE: THOR) is a midcap company that operates within the automobile industry. Its market cap is $5 billion today, and the total one-year return is 46.93% for shareholders.
Thor Industries stock is beating the market, and it reports earnings Monday. But does that make it a good buy today? To answer this question, we've turned to the Investment U Stock Grader. Our Research Team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✓ Earnings-per-Share (EPS) Growth: Thor Industries reported a recent EPS growth rate of 43.02%. That's above the automobile industry average of 21.89%. That's a great sign. Thor Industries' earnings growth is outpacing that of its competitors.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the automobile industry is 90.64. And Thor Industries' ratio comes in at 16.23. It's trading at a better value than many of its competitors.
✓ Debt-to-Equity : The debt-to-equity ratio for Thor Industries stock is 23.63%. That's below the automobile industry average of 64.22%. The company is less leveraged.
✗ Free Cash Flow per Share Growth : Thor Industries' FCF has been lower than that of its competitors over the last year. That's not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth. It's one of our most important fundamental factors.
✓ Profit Margins : The profit margin of Thor Industries comes in at 4.08% today. And generally, the higher, the better. We also like to see this margin above that of its competitors. Thor Industries' profit margin is above the automobile average of -10.92%. So that's a positive indicator for investors.
✓ Return on Equity : Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for Thor Industries is 24.32%, and that's above its industry average ROE of 12.29%.
Thor Industries stock passes five of our six key metrics today. That's why our Investment U Stock Grader rates it as a Strong Buy.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth. For more details, click here.