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Thor Industries (Thor Industries) Free Cash Flow

: $566 Mil (TTM As of Jan. 2024)
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Thor Industries's total free cash flow for the months ended in Jan. 2024 was $-145 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Jan. 2024 was $566 Mil.

Thor Industries's Free Cash Flow per Share for the months ended in Jan. 2024 was $-2.69. Its free cash flow per share for the trailing twelve months (TTM) ended in Jan. 2024 was $10.50.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Thor Industries was -11.90% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 22.40% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 19.00% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 19.10% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Free Cash Flow Growth Rate using Free Cash Flow per Share data.

During the past 13 years, Thor Industries's highest 3-Year average Free Cash Flow per Share Growth Rate was 562.30% per year. The lowest was -67.00% per year. And the median was 19.80% per year.


Thor Industries Free Cash Flow Historical Data

The historical data trend for Thor Industries's Free Cash Flow can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Thor Industries Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Free Cash Flow
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 377.80 434.24 397.65 747.76 773.44

Thor Industries Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Free Cash Flow Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 46.20 239.32 449.79 21.46 -144.56

Thor Industries Free Cash Flow Calculation

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Thor Industries's Free Cash Flow for the fiscal year that ended in Jul. 2023 is calculated as

Free Cash Flow (A: Jul. 2023 )=Cash Flow from Operations+Capital Expenditure
=981.633+-208.194
=773

Thor Industries's Free Cash Flow for the quarter that ended in Jan. 2024 is calculated as

Free Cash Flow (Q: Jan. 2024 )=Cash Flow from Operations+Capital Expenditure
=-103.868+-40.69
=-145

Free Cash Flow for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $566 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Thor Industries  (NYSE:THO) Free Cash Flow Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Jan24, Thor Industries's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Jan24)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=9.228/113.02+0.2
=28.16 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.


Thor Industries Free Cash Flow Related Terms

Thank you for viewing the detailed overview of Thor Industries's Free Cash Flow provided by GuruFocus.com. Please click on the following links to see related term pages.


Thor Industries (Thor Industries) Business Description

Traded in Other Exchanges
Address
601 East Beardsley Avenue, Elkhart, IN, USA, 46514-3305
Based in Elkhart, Indiana, Thor Industries manufactures Class A, Class B, and Class C motor homes along with travel trailers and fifth wheel towables across over 30 brands. Through the acquisition of Erwin Hymer in 2019, the company expanded its geographic footprint and now produces various motorized and towable recreational vehicles for Europe, including motorcaravans, campervans, urban vehicles, caravans, and other RV-related products and services. The company has also begun generating revenue through aftermarket component parts through the acquisition of Airxcel in 2021, however, this is still a nascent part of the business as it accounts for less than 10% of total sales. In fiscal 2023, the company wholesaled 187,015 units and generated over $11.1 billion in revenue.
Executives
W. Todd Woelfer officer: Sr. VP, Gen Counsel & Sec. PO BOX 3300, ELKHART IN 46515
Kenneth D Julian officer: VP of Admin. and HR 3080 WINDSOR CT., ELKHART IN 46514
Peter Busch Orthwein director, officer: Exec. Chairman of the Board ONE LAGAYETTE PLACE, GREENWICH CT 06830
James L Ziemer director C/O HARLEY DAVIDSON, 3700 W. JUNEAU AVE, MILWAUKEE WI 53208
Amelia Huntington director C/O THOR INDUSTRIES, INC., 601 EAST BEARDSLEY AVE., ELKHART IN 46514-3305
Trevor Q. Gasper officer: VP, General Counsel and Sec. 601 EAST BEARDSLEY AVE., ELKHART IN 46514
Laurel Hurd director C/O NEWELL BRANDS INC., 6655 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328
Christina Hennington director 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
J Allen Kosowsky director C/O THOR INDUSTRIES, INC., 419 WEST PIKE STREET, JACKSON CENTER OH 45334-0629
Kelley William J. Jr director USG CORPORATION, 550 WEST ADAMS STREET, CHICAGO IL 60661
Josef Hjelmaker officer: Chief Innovation Officer C/O THOR INDUSTRIES, INC., 601 E. BEARDSLEY AVE., ELKHART IN 46514-3305
Christopher J Klein director 520 LAKE COOK ROAD, DEERFIELD IL 60015
Jan Suwinski director 9450 SEWARD RD, C/O OHIO CASUALTY GROUP, FAIRFIELD OH 45014
Robert W Martin director, officer: Chief Exec. Officer & Pres. C/O KEYSTONE RV COMPANY, 2642 HACKBERRY DRIVE, GOSHEN IN 46526
Troy James officer: SVP International Operations C/O THOR INDUSTRIES, INC., 601 EAST BEARDSLEY AVENUE, ELKHART IN 46514-3305