Investment Thesis
Thor Industries (THO) on the surface has a lot going for it, and this investment certainly carries a significant appeal. However, the underlying valuation does not make for a remarkably attractive investment.
In this article, I'll highlight the positive dynamics in the first instance, followed by aspects that force me to remain on the sidelines.
Tight Control Over Balance Sheet
In February 2019, Thor Industries made a huge acquisition of Erwin Hymer Group ("EHG"). This acquisition cost approximately $1.8 billion. The acquisition was funded through Thor taking on debt:
- $2.1 billion