Attractive stocks have exceptional fundamentals. In the case of Thor Industries Inc (NYSE:THO), there’s is a financially-healthy company with a a great history of performance, trading at a great value. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Thor Industries here.

Outstanding track record with excellent balance sheet and pays a dividend

THO delivered a bottom-line expansion of 36.66% in the prior year, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 24.73% return to shareholders, which is an notable feat for the company. THO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that THO manages its cash and cost levels well, which is an important determinant of the company’s health. THO appears to have made good use of debt, producing operating cash levels of 5.42x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

THO’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if THO’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of US companies with similar levels of earnings, THO’s share price is trading below the group’s average. This supports the theory that THO is potentially underpriced.

Next Steps:

For Thor Industries, I’ve compiled three pertinent aspects you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for THO’s future growth? Take a look at our free research report of analyst consensus for THO’s outlook.

2. Dividend Income vs Capital Gains: Does THO return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from THO as an investment.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of THO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.