Thor IndustriesTHO +3.26%73 Interest Coverage is 9.95 as of Apr. 2026, which is 25% above its 10-year median of 7.94. 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 1,066 Vehicles & Parts companies, Thor Industries ranks worse than 55.91% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Thor Industries's
Operating Income
for the
three
months ended in Apr. 2026 was $96 Mil. Thor Industries's Interest Expense for the
three
months ended in Apr. 2026 was $-10 Mil.
Thor Industries's interest coverage for the quarter that ended in Apr. 2026 was 9.95.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Thor Industries's Interest Coverage or its related term are showing as below:
THO'
s Interest Coverage Range Over the Past 10 Years
Min: 3.6 Med: 7.94 Max: 246.29
Current: 6.53
THO's Interest Coverage is ranked worse than 55.91% of 1066
companies
in the Vehicles & Parts industry
Industry Median: 8.295
vs THO: 6.53
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Thor Industries Interest Coverage Related Terms
Thor Industries Interest Coverage Historical Data
* Premium members only.
The historical data trend for Thor Industries's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
THO vs PII, PATK, BC: Interest Coverage Comparison
For the Recreational Vehicles subindustry, Thor Industries's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Thor Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Thor Industries's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (THO) has a Interest Coverage of 9.95 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Thor Industries and its competitors. This is 25% above median its historical median of 7.94. Over the past decade, Thor Industries' Interest Coverage has ranged from 3.60 to 246.29. According to the industry distribution chart, Thor Industries ranks #596 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 55.9%.
Is Thor Industries' Interest Coverage too high?
Thor Industries' current Interest Coverage of 9.95 is 25% above median its 10-year median of 7.94. Over the past 10 years, this metric has ranged from a low of 3.60 to a high of 246.29. The Vehicles & Parts industry median Interest Coverage is 8.30. Thor Industries' value of 9.95 is 20% above this industry median. Based on the distribution chart, Thor Industries ranks #596 out of 1066 companies in the Vehicles & Parts industry, which is below the industry midpoint. 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' Interest Coverage compare to PII and PATK?
According to the Vehicles & Parts industry distribution chart, Thor Industries ranks #596 out of 1066 companies for Interest Coverage. This places Thor Industries in the lower half of its industry. The industry median Interest Coverage is 8.30. Thor Industries' value of 9.95 is 20% above this benchmark. Historically, Thor Industries' own Interest Coverage has ranged from 3.60 to 246.29 over the past decade. While the company's 10-year median is 7.94 vs. the industry median of 8.30, Thor Industries has consistently been above 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 Interest Coverage for a Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Thor Industries's current Interest Coverage of 9.95 is 20% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Thor Industries and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Thor Industries's current Interest Coverage is 9.95, which is 25% above median its own 10-year median of 7.94. 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 $77.95 — trading 19% below its estimated fair value. The current Interest Coverage is 9.95, which is 25% above median its 10-year median of 7.94 and 20% above the Vehicles & Parts industry median of 8.30. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Thor Industries (THO), the current Interest Coverage is 9.95 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 $77.95 is trading 19% below its estimated GF Value™ of $96.22.
GuruFocus considers Thor Industries to be Modestly Undervalued.
Key valuation signals for THO:
Interest Coverage: 9.95 (25% above median its 10-year median of 7.94)
GF Value™: $96.22 vs. price of $77.95 (19% below fair value)
Industry Position: 20% above the Vehicles & Parts median (#596 of 1066)
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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