July 15, 2019

WGO – Market expectations are for a decline in Uniform ROA, but management is confident about growth, cost management, and manufacturing


  • Winnebago Industries, Inc. (WGO:USA) currently trades below corporate averages relative to Uniform Earnings, with an 11.0x Uniform P/E. At these levels, markets have overly bearish expectations for the firm given management’s confidence in their growth trajectory, cost management improvements, and manufacturing capabilities
  • Specifically, management is confident in their continued growth momentum across the whole business and in their investment in a new manufacturing complex. Additionally, they are confident in the sustainability of recent improvements in cost management and in their ability to leverage their manufacturing relationships to efficiently produce chassis.
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