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.
To read this Embedded Expectations Analysis report in its entirety, please log into the Valens Research web app. If you don't have an account, you can sign up for the 30-day trial.