Thor IndustriesTHO +4.29%73 Gross Margin % is 12.75% as of Apr. 2026, which is 11% below its 10-year median of 14.38. GuruFocus rates THO with a GF Score™ of 73/100 and a GF Value™ of $96.22 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,313 Vehicles & Parts companies, Thor Industries ranks worse than 76.85% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Thor Industries had a gross margin of 12.75% for the quarter that ended in Apr. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Thor Industries Gross Margin % Related Terms
Thor Industries Gross Margin % Historical Data
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The historical data trend for Thor Industries's Gross Margin % 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.
For the Recreational Vehicles subindustry, Thor Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Thor Industries Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Thor Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Thor Industries's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Thor Industries (THO) has a Gross Margin % of 12.75% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Thor Industries and its competitors. This is 11% below median its historical median of 14.38. Over the past decade, Thor Industries' Gross Margin % has ranged from 12.37 to 17.20. According to the industry distribution chart, Thor Industries ranks #1009 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 76.8%.
Is Thor Industries' Gross Margin % too high?
Thor Industries' current Gross Margin % of 12.75% is 11% below median its 10-year median of 14.38. Over the past 10 years, this metric has ranged from a low of 12.37 to a high of 17.20. The Vehicles & Parts industry median Gross Margin % is 19.84. Thor Industries' value of 12.75% is 35.7% below this industry median. Based on the distribution chart, Thor Industries ranks #1009 out of 1313 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Thor Industries has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Thor Industries' Gross Margin % compare to PII and PATK?
According to the Vehicles & Parts industry distribution chart, Thor Industries ranks #1009 out of 1313 companies for Gross Margin %. This places Thor Industries in the lower half of its industry. The industry median Gross Margin % is 19.84. Thor Industries' value of 12.75% is 35.7% below this benchmark. Historically, Thor Industries' own Gross Margin % has ranged from 12.37 to 17.20 over the past decade. While the company's 10-year median is 14.38 vs. the industry median of 19.84, Thor Industries has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Thor Industries's current Gross Margin % of 12.75% is 35.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Thor Industries and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Thor Industries's current Gross Margin % is 12.75%, which is 11% below median its own 10-year median of 14.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Thor Industries stock overvalued right now?
Based on GuruFocus' analysis, Thor Industries (THO) is currently considered Modestly Undervalued. The stock's GF Value™ is $96.22, compared to a current price of $78.73 — trading 18.2% below its estimated fair value. The current Gross Margin % is 12.75%, which is 11% below median its 10-year median of 14.38 and 35.7% below the Vehicles & Parts industry median of 19.84. Thor Industries' overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Thor Industries (THO), the current Gross Margin % is 12.75% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Thor Industries (THO) Overvalued in 2026?
Based on GuruFocus' analysis, Thor Industries stock appears to be undervalued.
The current stock price of $78.73 is trading 18.2% below its estimated GF Value™ of $96.22.
GuruFocus considers Thor Industries to be Modestly Undervalued.
Key valuation signals for THO:
Gross Margin %: 12.75% (11% below median its 10-year median of 14.38)
GF Value™: $96.22 vs. price of $78.73 (18.2% below fair value)
Industry Position: 35.7% below the Vehicles & Parts median (#1009 of 1313)
No single metric tells the full story. See the THO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 about 35 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 motor caravans, camper vans, urban vehicles, caravans, and other RV-related products and services. The company has also begun generating revenue through aftermarket component parts via the acquisition of Airxcel in 2021; however, this is still a nascent part of the business, as it accounted for less than 10% of fiscal 2025 total sales. In fiscal 2025, the company wholesaled 181,388 units and generated $9.6 billion in revenue.
73GF Score
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