Winnebago Industries, Inc. manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. The company manufactures Class A, B, and C motor homes along with towables, customized specialty vehicles, boats, and parts. This week, I fundamentally analyze Winnebago’s stock. I review Winnebago’s annual report and its two operating segments, analyze the key ratios, and derive the intrinsic value using Discounted Cash Flow (DCF) analysis. Since this is a long video, please feel free to use the time stamps in the video if you only wish to watch certain topics.
I review various key ratios such as Revenue, Net Income, Shares outstanding, Dividends, Payout Ratio, Free Cash Flows (FCF), Financial Leverage, Current Ratio, Debt to Equity Ratio, Return on Equity (ROE), Days Sales Outstanding (DSO), Days Inventory, Payable Period, Cash Conversion Cycle, Inventory Turnover, etc.
After taking into account Winnebago’s 2021 free cash flow of $192 million figure, a 6% growth rate of FCF (growth for the next 10 years), 10% discount rate, 2.125% long term growth rate (growth from 10 year mark in the future to perpetuity), 34 million shares outstanding, and $529 million of long term debt, the DCF analysis yields us an intrinsic value of $79.49 per share.
0:24 Business Overview
6:44 Key Ratios Analysis
16:24 Discounted Cash Flow Analysis / Intrinsic Value
Winnebago Industries, Inc’s Website: here.
Morningstar Key Ratios Link: here.
Useful Resources here.
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