WGOWinnebago Industries, Inc.
Is the business good?
The checks split: earnings fully cash-backed (3.5×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 3% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is WGO?
Winnebago Industries, Inc. earns 3.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.7 points below what the capital costs: growth destroys value
- Operating margin
- 2.4%
Operating margin · Recreational Vehicles median 0.34% · 12 months to Q3 2026
- Cash conversion
- 3.54×
Cash conversion · −0.77× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- 0.00%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 4.8% |
| FY2021 | 11% |
| FY2022 | 12% |
| FY2023 | 8.6% |
| FY2024 | 3.4% |
| FY2025 | 2.0% |
Details›
- Gross margin12 months to Q3 2026
- 13%
- Operating margin12 months to Q3 2026
- 2.4%
- Net margin12 months to Q3 2026
- 1.4%
- Free cash flow margin
- 6.4%
- Revenue, trailing twelve months
- $2.84B
- Free cash flow, trailing twelve months
- $181M
- Net income, trailing twelve months
- $39M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.