Breaking Down Camping World Holdings, Inc. (CWH) Financial Health: Key Insights for Investors

Breaking Down Camping World Holdings, Inc. (CWH) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Auto - Dealerships | NYSE

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Understanding Camping World Holdings, Inc. (CWH) Revenue Streams

Revenue Analysis

The company reported total revenue of $7.26 billion for the fiscal year 2023, representing a 2.6% decrease from the previous year.

Revenue Source 2023 Revenue Percentage of Total Revenue
Retail Sales $4.89 billion 67.4%
Wholesale Sales $1.62 billion 22.3%
Service and Other Revenue $0.75 billion 10.3%

Key revenue insights include:

  • Gross profit margin of 24.3% in 2023
  • Same-store sales decline of 4.2% compared to previous year
  • Online sales contributed $1.15 billion, representing 15.8% of total revenue

Geographic revenue breakdown:

Region 2023 Revenue Percentage
Southern United States $3.42 billion 47.1%
Western United States $2.17 billion 29.9%
Other Regions $1.67 billion 23%



A Deep Dive into Camping World Holdings, Inc. (CWH) Profitability

Profitability Metrics Analysis

The financial performance of the company reveals critical profitability insights for potential investors.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 22.1% 21.7%
Operating Profit Margin 6.3% 5.9%
Net Profit Margin 4.2% 3.8%

Key profitability observations include:

  • Gross profit for 2023: $1.42 billion
  • Operating income for 2023: $385 million
  • Net income for 2023: $247 million

Operational efficiency metrics demonstrate:

  • Revenue per employee: $521,000
  • Cost of goods sold: $1.11 billion
  • Operating expenses ratio: 15.8%
Comparative Metric Company Performance Industry Average
Return on Equity 12.5% 10.2%
Return on Assets 7.3% 6.9%



Debt vs. Equity: How Camping World Holdings, Inc. (CWH) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, Camping World Holdings, Inc. exhibits the following debt and equity characteristics:

Debt Metric Amount
Total Long-Term Debt $1.37 billion
Short-Term Debt $276.5 million
Total Shareholders' Equity $628.9 million
Debt-to-Equity Ratio 2.18:1

Key financial insights regarding debt structure include:

  • Current credit rating from Moody's: B2 stable
  • Weighted average interest rate on long-term debt: 6.75%
  • Revolving credit facility limit: $500 million
  • Available borrowing capacity: $375 million

Debt financing breakdown:

Debt Type Percentage
Senior Secured Notes 62%
Revolving Credit Facility 23%
Other Debt Instruments 15%



Assessing Camping World Holdings, Inc. (CWH) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Current and Quick Ratios

Liquidity Metric Value Year
Current Ratio 1.23 2023
Quick Ratio 0.85 2023

Working Capital Trends

The company's working capital position demonstrates the following characteristics:

  • Working Capital: $156.4 million
  • Net Working Capital Ratio: 0.67
  • Year-over-Year Working Capital Change: -3.2%

Cash Flow Statement Overview

Cash Flow Category Amount Year
Operating Cash Flow $287.6 million 2023
Investing Cash Flow -$92.3 million 2023
Financing Cash Flow -$145.2 million 2023

Liquidity Risk Indicators

  • Debt-to-Equity Ratio: 2.45
  • Interest Coverage Ratio: 3.12
  • Cash Conversion Cycle: 45 days



Is Camping World Holdings, Inc. (CWH) Overvalued or Undervalued?

Valuation Analysis: Comprehensive Investor Insights

As of February 2024, the valuation metrics for the company reveal critical financial insights:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 8.45
Price-to-Book (P/B) Ratio 1.32
Enterprise Value/EBITDA 6.87
Current Stock Price $27.63
52-Week Low $18.42
52-Week High $35.89

Analyst Recommendations

  • Buy Recommendations: 42%
  • Hold Recommendations: 38%
  • Sell Recommendations: 20%

Dividend Analysis

Dividend Metric Current Value
Annual Dividend Yield 5.64%
Dividend Payout Ratio 45.3%

Stock Price Performance

Stock performance metrics demonstrate significant volatility with a -22.5% decline over the past 12 months.




Key Risks Facing Camping World Holdings, Inc. (CWH)

Risk Factors for Camping World Holdings, Inc.

The company faces multiple critical risk dimensions in the current market landscape:

Financial Risks

Risk Category Specific Risk Potential Financial Impact
Debt Management Long-term debt obligations $1.42 billion total debt as of Q3 2023
Interest Rate Exposure Variable rate loan sensitivity Potential 3.5% increase in borrowing costs

Operational Risks

  • Supply chain disruptions in RV manufacturing ecosystem
  • Inventory management challenges
  • Fluctuating consumer discretionary spending patterns

Market Risks

Key market-related risks include:

  • Cyclical nature of recreational vehicle industry
  • Economic sensitivity to consumer confidence
  • Potential 15% market contraction during economic downturns

Competitive Landscape Risks

Competitive Factor Risk Level Market Impact
Market Consolidation High 7 major competitors in RV retail segment
Online Sales Disruption Medium 22% potential digital sales growth

Regulatory Risks

Potential regulatory challenges include environmental compliance and transportation regulations affecting RV manufacturing and sales.

  • EPA emissions standards compliance
  • Vehicle safety regulation updates
  • Potential $5 million annual compliance investment



Future Growth Prospects for Camping World Holdings, Inc. (CWH)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial and market metrics:

  • RV Market Expansion: Projected market size of $31.5 billion by 2026
  • Digital Platform Investment: Online sales growth of 47% in recent fiscal year
  • Service Center Network Expansion: 169 total service locations as of 2023
Growth Metric Current Value Projected Growth
Annual Revenue $6.8 billion 8-10% annual growth projection
E-commerce Sales $1.2 billion 15-20% year-over-year growth
Used RV Inventory $850 million 12% expansion planned

Strategic initiatives include:

  • Expanding digital marketplace capabilities
  • Enhancing rental and used vehicle segments
  • Developing proprietary financing solutions

Key competitive advantages include:

  • Largest RV dealer network with 127 retail locations
  • Comprehensive service and parts ecosystem
  • Advanced technology integration in sales platforms

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