Understanding how Winnebago Industries Inc (NYSE:WGO) is performing as a company requires looking at more than just a years’ earnings. Today I will run you through a basic sense check to gain perspective on how Winnebago Industries is doing by comparing its latest earnings with its long-term trend as well as the performance of its auto industry peers. See our latest analysis for Winnebago Industries
How Did WGO’s Recent Performance Stack Up Against Its Past?
For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This method allows me to examine various companies on a similar basis, using new information. For Winnebago Industries, its latest earnings (trailing twelve month) is US$84.36M, which, against the previous year’s figure, has climbed up by a significant 54.69%. Given that these values may be somewhat short-term, I have created an annualized five-year value for Winnebago Industries’s net income, which stands at US$43.75M This means generally, Winnebago Industries has been able to gradually grow its net income over the last few years as well.
How has it been able to do this? Well, let’s take a look at whether it is only owing to an industry uplift, or if Winnebago Industries has seen some company-specific growth. The ascend in earnings seems to be bolstered by a solid top-line increase outstripping its growth rate of costs. Though this has caused a margin contraction, it has made Winnebago Industries more profitable. Looking at growth from a sector-level, the US auto industry has been growing its average earnings by double-digit 25.67% in the past year, and 11.55% over the past five. This suggests that whatever tailwind the industry is deriving benefit from, Winnebago Industries is able to leverage this to its advantage.
What does this mean?
Winnebago Industries’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Winnebago Industries gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Winnebago Industries to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for WGO’s future growth? Take a look at our free research report of analyst consensus for WGO’s outlook.
- Financial Health: Is WGO’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 24 February 2018. This may not be consistent with full year annual report figures.
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.