Breaking Down Winnebago Industries, Inc. (WGO) Financial Health: Key Insights for Investors

Are you keen on understanding the financial intricacies of Winnebago Industries Inc. (WGO) and how it fares as an investment? Let's delve into some key figures from the full year fiscal 2024. The company reported revenues of $2,973.5 million and a gross profit of $433.5 million, which translates to a 14.6% gross margin. But that's not all – the company's net earnings per diluted share stood at $0.44, and adjusted net earnings per diluted share reached $3.40. Furthermore, Winnebago generated $143.9 million in net cash from operations. With these figures in mind, are you ready to explore what they mean for investors?

Winnebago Industries, Inc. (WGO) Revenue Analysis

Winnebago Industries, Inc. derives its revenue from several key segments within the recreational vehicle (RV) and marine industries. A comprehensive understanding of these streams is crucial for investors looking to assess the company's financial health and growth potential. The primary revenue sources include:

• Towable RVs: These include travel trailers and fifth wheels, which are a significant portion of Winnebago's sales.
• Motorhomes: This segment comprises Class A, Class B, and Class C motorhomes, offering a range of options for consumers.
• Marine: Representing a growing segment, this includes Chris-Craft and other boat brands.
• Specialty Vehicles: This includes commercial vehicles and other specialized products.

Winnebago Industries reported total revenues of $3.42 billion for fiscal year 2024. This represents a decrease of 18.8% compared to the $4.21 billion reported in fiscal year 2023.

Here's a breakdown of revenue by segment for fiscal year 2024:

• Towable RVs: Reported revenue of $1.6 billion, a decrease of 28.8% from the prior year.
• Motorhomes: Reported revenue of $1.1 billion, a decrease of 1.7% from the prior year.
• Marine: Reported revenue of $540.2 million, a decrease of 15.3% from the prior year.

A more detailed look at Winnebago's revenue streams and their year-over-year performance can be seen in the following table:

The decline in revenue across all segments in 2024 reflects broader market conditions and consumer demand shifts within the RV and marine industries. Factors influencing these changes include economic conditions, consumer confidence, and inventory levels at dealerships.

For further insights into Winnebago Industries' financial health, you can explore: Breaking Down Winnebago Industries, Inc. (WGO) Financial Health: Key Insights for Investors

Winnebago Industries, Inc. (WGO) Profitability Metrics

Analyzing Winnebago Industries, Inc. (WGO)'s profitability involves looking at several key metrics that provide insights into the company's financial health and operational efficiency. These include gross profit, operating profit, and net profit margins, as well as trends in these metrics over time and comparisons to industry averages. Additionally, examining operational efficiency, such as cost management and gross margin trends, is crucial for a comprehensive understanding. You might also be interested in Mission Statement, Vision, & Core Values of Winnebago Industries, Inc. (WGO).

Here's a detailed breakdown:

Gross Profit Margin:

• For the full year fiscal 2024, Winnebago reported a gross profit of $433.5 million, which represents a 14.6% gross margin.
• This is a decrease compared to the fiscal year 2023, where the gross profit was $586.1 million.
• The gross profit margin also decreased by 220 basis points year-over-year, primarily due to deleverage, higher warranty expenses, and operational challenges.
• In the fourth quarter of fiscal 2024, the gross profit was $94.2 million, with a 13.1% gross margin, a 340 basis points decrease, reflecting higher warranty expenses, operational challenges, and deleverage.

Operating Profit:

• For the full year fiscal 2024, Winnebago's operating income was $100.2 million, a significant decrease of 66.7% compared to $300.7 million in fiscal 2023.
• In the fourth quarter of fiscal 2024, the company faced an operating loss of $17.8 million, compared to an operating income of $57.5 million in the same quarter of the previous year.

Net Profit Margin:

• The full year fiscal 2024 net income was $13.0 million, a considerable drop from the $215.9 million net income in fiscal 2023.
• This translates to a net earnings per diluted share of $0.44, compared to $6.23 in the previous fiscal year.
• Adjusted net earnings per diluted share were $3.40, a 49.8% decrease from the $6.77 in fiscal 2023.
• In the fourth quarter of fiscal 2024, Winnebago reported a net loss of $29.1 million, contrasting with a net income of $43.8 million in the same quarter of the prior year.

Trends in Profitability Over Time:

• A clear downward trend in profitability is evident when comparing fiscal years 2023 and 2024.
• Revenues decreased by 14.8% from $3.5 billion in fiscal 2023 to $2.973 billion in fiscal 2024.
• Gross profit decreased by 26.0% from $586.1 million to $433.5 million.
• Operating income saw a substantial decrease of 66.7%.
• Net income experienced a significant decline from $215.9 million to $13.0 million.

Operational Efficiency:

• Winnebago's financial results for fiscal year 2024 indicate challenges in operational efficiency.
• The gross profit margin decreased by 220 basis points due to deleverage, higher warranty expenses, and operational issues.
• Operating expenses increased by 16.8% to $333.3 million, compared to $285.4 million in fiscal 2023.
• The company is implementing strategic measures to address these inefficiencies, including cost management and targeted investments in new products and technologies.

Additional Factors:

• A goodwill impairment charge of $30.3 million related to the Chris-Craft reporting unit significantly impacted the net loss in the fourth quarter of fiscal 2024.
• Challenging macroeconomic conditions, such as inflationary pressures and elevated interest rates, have affected consumer demand and dealer sentiment, contributing to lower unit sales and higher inventory carrying costs.

Q1 2025 Results:

• Revenues were $625.6 million, a decrease from $763.0 million in the same quarter of the previous year.
• Gross profit was $76.8 million, down from $115.8 million in the previous year.
• Gross margin was 12.3%.
• Net loss per diluted share was $0.18.

Q2 2025 Results:

• Net revenues were $620.2 million, down 11.8% compared to $703.6 million in the same quarter last year.
• Gross profit was $83.1 million, a decrease of 21.1%.
• Gross profit margin decreased to 13.4%.
• Net loss was $0.4 million, or $0.02 per diluted share.
• Adjusted earnings per diluted share were $0.19.

Key Ratios:

Comparison with Industry Averages:

It’s challenging to provide a precise comparison of Winnebago’s profitability ratios with current industry averages without real-time data. However, sector data indicates the following:

Winnebago's gross and operating margins are lower than the industry averages, while its net profit margin is slightly better, though still negative. This suggests potential areas for improvement in cost management and operational efficiency.

Winnebago Industries, Inc. (WGO) Debt vs. Equity Structure

Understanding Winnebago Industries, Inc.'s financial structure requires a close look at how the company uses debt and equity to fund its operations and growth. This involves analyzing its debt levels, debt-to-equity ratio, and any recent financing activities.

As of the second quarter of fiscal year 2024, Winnebago Industries, Inc. reported the following:

• Total debt outstanding: $732.9 million
• Net debt: $643.6 million

Winnebago Industries, Inc.'s debt consists of both long-term and short-term components. As of February 24, 2024, the company's long-term debt was $612.0 million, while its short-term debt was $120.9 million. This mix indicates how Winnebago Industries, Inc. manages its obligations over different time horizons, balancing immediate financial needs with longer-term liabilities.

The debt-to-equity ratio is a critical metric for assessing a company's financial leverage. As of February 24, 2024, Winnebago Industries, Inc.'s debt-to-equity ratio stood at 0.55. This ratio indicates that Winnebago Industries, Inc. has $0.55 of debt for every dollar of equity, reflecting a balanced approach to financing its assets and operations. When compared to the industry standards, this ratio provides insights into whether Winnebago Industries, Inc. is more or less leveraged than its peers.

Monitoring Winnebago Industries, Inc.'s financing activities, such as debt issuances and refinancing, provides insights into its financial strategy. For instance, Winnebago Industries, Inc. has a senior secured credit agreement, including a $625.0 million term loan facility and a revolving credit facility. Recent amendments to these facilities, such as those in February 2024, demonstrate proactive management of its debt obligations.

Balancing debt and equity is crucial for sustainable growth. Winnebago Industries, Inc.'s approach involves strategically using debt to fund acquisitions and operations while maintaining a healthy equity base. For example, the company’s priorities include reducing its leverage ratio to below 1.0x net debt to adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) over time, indicating a commitment to financial prudence.

Here's a summary of Winnebago Industries, Inc.'s debt profile:

For more insights into Winnebago Industries, Inc.'s investors, check out this article: Exploring Winnebago Industries, Inc. (WGO) Investor Profile: Who’s Buying and Why?

Winnebago Industries, Inc. (WGO) Liquidity and Solvency

When evaluating the financial health of Winnebago Industries, Inc. (WGO), understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Here's an overview of key liquidity metrics for Winnebago Industries, Inc. (WGO):

Current and Quick Ratios: These ratios provide insights into Winnebago Industries, Inc.'s (WGO) ability to cover its short-term liabilities with its current assets. For the fiscal year 2024, the current ratio can be calculated by dividing current assets by current liabilities. A ratio above 1 generally indicates good liquidity. Similarly, the quick ratio, which excludes inventories from current assets, offers a more conservative view of liquidity. As of February 29, 2024, Winnebago reported a current ratio of 1.2 and a quick ratio of 0.4. This indicates a moderate ability to cover short-term liabilities with its most liquid assets.

Working Capital Trends: Monitoring the trend of Winnebago Industries, Inc.'s (WGO) working capital (current assets minus current liabilities) is essential. An increasing working capital balance generally suggests improving liquidity, while a decreasing balance may signal potential challenges. Winnebago's working capital was $383.8 million as of February 29, 2024, compared to $498.5 million on August 26, 2023, and $548.9 million on May 28, 2023.

Cash Flow Statements Overview: Analyzing Winnebago Industries, Inc.'s (WGO) cash flow statements provides a deeper understanding of its liquidity position. Investors should pay close attention to cash flow from operating activities, investing activities, and financing activities.

• Operating Activities: This reflects the cash generated from Winnebago Industries, Inc.'s (WGO) core business operations. Positive cash flow from operations indicates that the company is generating sufficient cash from its business activities to cover its expenses. For the three months ended February 29, 2024, Winnebago reported $29.7 million in cash from operating activities.
• Investing Activities: This section includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E). These activities reflect investments made by the company. For the three months ended February 29, 2024, Winnebago reported -$13.4 million in cash from investing activities.
• Financing Activities: This involves cash flows related to debt, equity, and dividends. Monitoring these activities helps assess how Winnebago Industries, Inc. (WGO) is managing its capital structure. For the three months ended February 29, 2024, Winnebago reported -$22.7 million in cash from financing activities.

Potential Liquidity Concerns or Strengths:

As of February 29, 2024: Winnebago Industries, Inc. (WGO) had cash and cash equivalents of $208.5 million. The company's total available liquidity, including its revolving credit facility, was approximately $721.5 million.

Here is a summary of Winnebago Industries, Inc.'s (WGO) cash flow activities for the three months ended February 29, 2024:

For more detailed insights, you can explore: Breaking Down Winnebago Industries, Inc. (WGO) Financial Health: Key Insights for Investors

Winnebago Industries, Inc. (WGO) Valuation Analysis

Determining whether Winnebago Industries, Inc. (WGO) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst ratings.

Several key financial ratios offer insights into Winnebago's valuation:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A lower P/E ratio might suggest undervaluation, while a higher ratio could indicate overvaluation relative to its earnings.
• Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. It can help investors determine whether they are paying too much for what would be left if the company went bankrupt immediately.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation measure, especially when comparing companies with different capital structures.

Analyzing Winnebago Industries, Inc. (WGO)'s stock price trends over the past year or longer provides context on market sentiment and investor confidence. A consistent upward trend may suggest positive market perception, while a downward trend could signal concerns about the company's performance or industry outlook. As of April 18, 2025, Winnebago's stock has shown varied performance. For instance, on April 3, 2025, the stock price was recorded at $56.54. Recent data indicates the following:

Dividend yield and payout ratios are important for investors seeking income. Winnebago's dividend yield reflects the annual dividend payment as a percentage of its stock price. The payout ratio indicates the proportion of earnings paid out as dividends, signaling the sustainability of dividend payments. Winnebago's most recent quarterly dividend was $0.31 per share, or $1.24 annually.

A review of analyst consensus on Winnebago's stock valuation offers additional perspective. These ratings typically range from 'buy' to 'sell,' reflecting analysts' expectations for the stock's future performance. On April 11, 2024, analysts provided ratings such as:

• Buy rating from B. Riley with a target price of $70.00.
• Buy rating from DA Davidson with a target price of $78.00.
• Neutral rating from Robert W. Baird with a target price of $62.00.

These varied ratings suggest differing opinions on Winnebago's valuation and future prospects.

For more insights into who is investing in Winnebago and why, check out: Exploring Winnebago Industries, Inc. (WGO) Investor Profile: Who’s Buying and Why?

Winnebago Industries, Inc. (WGO) Risk Factors

Understanding the risks Winnebago Industries, Inc. (WGO) faces is crucial for investors. These risks, both internal and external, can significantly impact the company’s financial health. Here's an overview:

Industry Competition: The recreational vehicle (RV) industry is highly competitive. Winnebago faces stiff competition from other established RV manufacturers and new entrants. Intense competition can lead to pricing pressures, reduced market share, and lower profitability. To stay competitive, Winnebago must continuously innovate, improve product quality, and manage costs effectively.

Regulatory Changes: Changes in regulations related to vehicle safety, emissions, and environmental standards can pose significant challenges. Compliance with new regulations may require substantial investments in research and development, manufacturing processes, and product design. Failure to comply with these regulations can result in fines, penalties, and reputational damage.

Market Conditions: The demand for RVs is closely tied to economic conditions and consumer confidence. Economic downturns, rising interest rates, and increased fuel costs can negatively impact RV sales. Additionally, seasonal variations in demand can create challenges for managing inventory and production levels. Winnebago must closely monitor market trends and adjust its production and inventory levels accordingly.

Operational Risks: Operational risks include disruptions in the supply chain, manufacturing inefficiencies, and product recalls. Supply chain disruptions can result in delays in production, increased costs, and reduced sales. Manufacturing inefficiencies can lead to higher production costs and lower product quality. Product recalls can result in significant expenses, reputational damage, and decreased customer loyalty.

Financial Risks: Financial risks include fluctuations in interest rates, currency exchange rates, and commodity prices. Rising interest rates can increase borrowing costs and reduce profitability. Fluctuations in currency exchange rates can impact the cost of imported materials and the competitiveness of products sold in international markets. Changes in commodity prices, such as steel and aluminum, can affect production costs and profitability.

Strategic Risks: Strategic risks include the ability to successfully execute acquisitions, integrate new businesses, and adapt to changing consumer preferences. Acquisitions can be complex and challenging to integrate, and failure to do so can result in financial losses and operational inefficiencies. Changing consumer preferences, such as a shift towards smaller, more fuel-efficient RVs, require Winnebago to adapt its product offerings and marketing strategies.

Winnebago addresses these risks through various mitigation strategies, as detailed in their annual reports and filings. These strategies include:

• Diversifying its product portfolio to cater to different market segments and consumer preferences.
• Investing in research and development to innovate and improve product quality.
• Implementing cost-control measures to improve efficiency and profitability.
• Strengthening its supply chain to reduce disruptions and ensure timely delivery of materials.
• Maintaining a strong balance sheet to provide financial flexibility and resilience.

For instance, Winnebago's fiscal year 2024 annual report highlights specific risk factors and mitigation efforts. While specific numbers fluctuate year to year, understanding these strategies is vital for assessing the company's ability to navigate challenges and sustain long-term growth.

More information on Winnebago Industries, Inc. (WGO) financial health can be found here: Breaking Down Winnebago Industries, Inc. (WGO) Financial Health: Key Insights for Investors

Winnebago Industries, Inc. (WGO) Growth Opportunities

Winnebago Industries, Inc. (WGO) possesses several key growth drivers that underpin its future prospects. These include product innovations, strategic market expansions, and synergistic acquisitions, all aimed at enhancing its market position and financial performance. The company's focus on innovation is evident in its continuous development of new recreational vehicle (RV) models and technologies designed to meet evolving consumer preferences.

Future revenue growth projections and earnings estimates for Winnebago Industries, Inc. (WGO) reflect analysts' expectations of continued demand for RVs and related products. Strategic initiatives, such as partnerships and collaborations, are expected to further drive growth by expanding the company's reach and enhancing its product offerings.

Winnebago Industries, Inc. (WGO) holds several competitive advantages that position it favorably for future growth:

• Brand Reputation: A well-established brand name associated with quality and reliability in the RV industry.
• Diverse Product Portfolio: A wide range of RVs and related products catering to various customer segments.
• Strong Dealer Network: An extensive network of dealers providing distribution and service support across North America.
• Innovation Capabilities: A track record of introducing innovative products and technologies to meet changing consumer needs.

To illustrate Winnebago Industries, Inc.'s (WGO) financial outlook, key projections and estimates are summarized in the table below. These figures are based on current market conditions and analyst expectations, providing insights into the company's potential growth trajectory.

These projections suggest a steady growth path for Winnebago Industries, Inc. (WGO), driven by its strategic initiatives and competitive advantages. However, it's important to note that these are estimates and are subject to change based on market dynamics and company performance.

For further insights into Winnebago Industries, Inc. (WGO) financial health, you can explore: Breaking Down Winnebago Industries, Inc. (WGO) Financial Health: Key Insights for Investors