Is Thor Industries (THO) a Smart Long-Term Buy?

Tweedy, Browne Company LLC, an investment management firm, published its “International Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. A portfolio quarterly return of ‐3.27% was recorded by the fund for the first quarter of 2022, while its benchmark, the MSCI EAFE Index, by comparison, returned ‐3.51% for the same period.  Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Tweedy, Browne Company mentioned Thor Industries, Inc. (NYSE:THO) and explained its insights for the company. Founded in 1980, Thor Industries, Inc. (NYSE:THO)  is an Elkhart, Indiana-based recreational vehicles manufacturer with a $4.1 billion market capitalization. Thor Industries, Inc. (NYSE:THO)  delivered a -27.75% return since the beginning of the year, while its 12-month returns are down by -47.50%. The stock closed at $75.33 per share on April 26, 2022.

Here is what Tweedy, Browne Company has to say about Thor Industries, Inc. (NYSE:THO) in its Q1 2022 investor letter:

“The volatility since year-end generated a significant amount of trading opportunity for our Funds. On the buy side, we added 11 new names across our Fund portfolios including US-based Thor Industries, the largest maker of recreational vehicles in the world. Thor Industries (paid approximately $94.30 per share) » Largest maker of RV’s in the world. 45% market share in US/Canada, 22% in Europe. 1.5x net debt to EBITDA. Highly variable cost structure resulting in profit every year since 1980, despite cyclical end demand. Material insider buying ($31 million at $107 per share average price). Paid 7x trailing twelve months P/E, or 11x our estimate of normalized P/E (based on pre-pandemic sales and 10-year average margin).”

Photo by Blake Wisz on Unsplash

Our calculations show that Thor Industries, Inc. (NYSE:THO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Thor Industries, Inc. (NYSE:THO) was in 32 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 29 funds in the previous quarter. Thor Industries, Inc. (NYSE:THO) delivered a -18.58% return in the past 3 months.

In October 2021, we published an article that includes Thor Industries, Inc. (NYSE:THO) in 10 Key Earnings Reports to Watch. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.