📊 WGO Key Takeaways
Is Winnebago Industries Inc. (WGO) a Good Investment?
Winnebago demonstrates strong earnings recovery (97.7% net income growth YoY) from a depressed base, but absolute fundamentals remain weak with revenue declining 5.9%, net margins at anemic 1.2%, and ROE of only 2%. The RV industry cyclicality combined with structurally thin margins and extremely low free cash flow conversion (0.5%) warrant cautious observation pending evidence of sustainable margin expansion and revenue stabilization.
Winnebago's nearly doubled net income and improved EPS indicate an earnings recovery, but declining revenue, thin margins, and minimal free cash flow suggest the improvement is not yet high quality. The balance sheet remains reasonably sound, with strong current liquidity, moderate leverage, and adequate interest coverage, supporting a HOLD while awaiting stronger operating momentum and cash conversion.
Winnebago Industries Inc. Key Strengths (WGO)
- Strong earnings and EPS recovery with 97.7% net income growth and 106.8% EPS growth demonstrating operational improvement trajectory
- Adequate liquidity and leverage position with 2.37x current ratio, 0.36x debt/equity ratio, and 5.2x interest coverage ratio providing financial stability
- Moderate debt burden manageable within current asset base with no immediate solvency concerns
- Net income increased 97.7% and diluted EPS increased 106.8% year over year
- Current ratio of 2.37x and debt-to-equity of 0.36x indicate manageable financial risk
- Interest coverage of 5.2x provides a reasonable buffer for debt service
WGO Stock Risks: Winnebago Industries Inc. Investment Risks
- Revenue contraction of 5.9% YoY during purported recovery cycle indicates persistent market weakness or share loss in cyclical RV industry
- Critically thin profit margins (1.2% net, 2.4% operating, 13.1% gross) provide minimal resilience against operational challenges or demand shifts
- Severely depressed capital efficiency with 2.0% ROE and 1.2% ROA; free cash flow margin of only 0.5% ($9.4M on $2.1B revenue) insufficient for sustainable reinvestment or shareholder returns
- Revenue declined 5.9% year over year, signaling continued demand pressure
- Operating margin of 2.4% and net margin of 1.2% leave little protection against further weakness
- Free cash flow was only $9.4 million, representing a very low 0.5% margin
Key Metrics to Watch
- Revenue growth trajectory - critical to confirm cycle inflection and market stabilization
- Operating margin expansion - must demonstrate path to 4-5% operating margins to validate improved profitability
- Free cash flow dollars and conversion rate - essential indicator of business model sustainability and cash generation capability
- Revenue growth and operating margin
- Free cash flow margin
Winnebago Industries Inc. (WGO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.5% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.37x current ratio provides a solid financial cushion.
WGO Profit Margin, ROE & Profitability Analysis
WGO vs Market Sector: How Winnebago Industries Inc. Compares
How Winnebago Industries Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Winnebago Industries Inc. Stock Overvalued? WGO Valuation Analysis 2026
Based on fundamental analysis, Winnebago Industries Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Winnebago Industries Inc. Balance Sheet: WGO Debt, Cash & Liquidity
WGO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Winnebago Industries Inc.'s revenue has remained relatively flat over the 5-year period, with a 4% decline. The most recent EPS of $6.23 reflects profitable operations.
WGO Revenue Growth, EPS Growth & YoY Performance
WGO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $698.7M | $12.0M | $0.42 |
| Q2 2026 | $620.2M | -$400.0K | $-0.02 |
| Q1 2026 | $625.6M | -$5.2M | $-0.18 |
| Q3 2025 | $775.1M | $12.0M | $0.42 |
| Q2 2025 | $620.2M | -$400.0K | $-0.02 |
| Q1 2025 | $625.6M | -$5.2M | $-0.18 |
| Q3 2024 | $786.0M | $29.0M | $0.96 |
| Q2 2024 | $703.6M | -$12.7M | $-0.43 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Winnebago Industries Inc. Dividends, Buybacks & Capital Allocation
WGO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Winnebago Industries Inc. (CIK: 0000107687)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WGO
What is the AI rating for WGO?
Winnebago Industries Inc. (WGO) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are WGO's key strengths?
Claude: Strong earnings and EPS recovery with 97.7% net income growth and 106.8% EPS growth demonstrating operational improvement trajectory. Adequate liquidity and leverage position with 2.37x current ratio, 0.36x debt/equity ratio, and 5.2x interest coverage ratio providing financial stability. ChatGPT: Net income increased 97.7% and diluted EPS increased 106.8% year over year. Current ratio of 2.37x and debt-to-equity of 0.36x indicate manageable financial risk.
What are the risks of investing in WGO?
Claude: Revenue contraction of 5.9% YoY during purported recovery cycle indicates persistent market weakness or share loss in cyclical RV industry. Critically thin profit margins (1.2% net, 2.4% operating, 13.1% gross) provide minimal resilience against operational challenges or demand shifts. ChatGPT: Revenue declined 5.9% year over year, signaling continued demand pressure. Operating margin of 2.4% and net margin of 1.2% leave little protection against further weakness.
What is WGO's revenue and growth?
Winnebago Industries Inc. reported revenue of $2.1B.
Does WGO pay dividends?
Winnebago Industries Inc. pays dividends, with $30.1M distributed to shareholders in the trailing twelve months.
Where can I find WGO SEC filings?
Official SEC filings for Winnebago Industries Inc. (CIK: 0000107687) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WGO's EPS?
Winnebago Industries Inc. has a diluted EPS of $0.87.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is WGO's fundamental grade?
Based on our AI fundamental analysis in August 2026, Winnebago Industries Inc. has a B grade with 73% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is WGO stock overvalued or undervalued?
Valuation metrics for WGO: ROE of 2.0% (sector avg: 15%), net margin of 1.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is WGO's AI grade for 2026?
Our dual AI analysis gives Winnebago Industries Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WGO's free cash flow?
Winnebago Industries Inc.'s operating cash flow is $26.2M, with capital expenditures of $16.8M. FCF margin is 0.5%.
How does WGO compare to other Market stocks?
Vs Default sector averages: Net margin 1.2% (avg: 12%), ROE 2.0% (avg: 15%), current ratio 2.37 (avg: 1.8).