November 7, 2017

WGO – Markets have bullish expectations for WGO, and management’s confidence about their initiatives, growth opportunities, and new customers imply this is likely warranted


  • Winnebago Industries, Inc. (WGO:USA) currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a 14.0x Uniform P/E. At these levels, markets have bullish expectations, which are likely warranted given management’s confidence about their initiatives, growth opportunities, and new customers
  • Specifically, management is confident about potential outdoor lifestyle related growth opportunities in the future, and that a majority of shipments this year were from users new to the RV lifestyle. They are also confident about their initiatives around their product lineup and Towables business. As such, expectations for continued improvement in profitability appear warranted, and equity is likely fairly valued at worst, with the potential for material further upside should they succeed in efficiently integrating Grand Design

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