While the market is in a correction, some segments are
whistling a more optimistic tune.
As of Friday's IBD, the Building-Mobile Manufacturing & RV
group was No. 6 of 197 industry groups. Seven months ago, it was
No. 56. Three weeks ago, it was No. 29.
Here's a surprise: The improved rating comes from the RV part
of the group, not the housing part.
Within the group,Thor Industries (
) tiesDrew Industries (
) for the highest Composite Rating in the group -- a
Apart from the lowly rated and low-pricedSkyline (
), Thor is the only dividend payer in the group.
The quarterly dividend is 18 cents a share, which pegs the
annualized yield at roughly 1.8%.
The company gets about 74% of revenue from towable RVs and 12%
from motorized RVs. About 14% of revenue is from small and
midsize buses -- the kind used as airport shuttles or tour buses.
The Ohio-based company also makes ambulances.
Thor has no long-term debt. Operating cash flow per share was
22% greater than EPS in fiscal 2012 ended in July.
The company relies on internal cash flow to finance growth.
Borrowing to make an acquisition is done only if the acquired
company's cash flow offers a fast payback.
Return on equity was 14.4% last fiscal year, below the 17%
minimum associated with elite stocks.
Earnings increased 27% on a 15% gain in revenue in fiscal Q4.
Seasonality and the cyclical nature of the RV business hurts the
five-year EPS Stability Factor for the stocks in the RV
Thor has the best five-year Stability Factor -- 47. The gauge
runs from 0 (calm) to 99 (wild).
Drew and Thor are the only stocks in the group with five-year
stability factors because the other companies suffered losses in
one or more years.
On Nov. 26, the company will report results for fiscal Q1
ended in October. The Street expects a 51% gain in EPS on a 30%
pop in sales.
Funds holding shares rose from 303 at the end of 2011 to 385
The overall stake owned by these funds, though, inched up only