THOR Industries, Inc.

“THOR is the world's largest RV manufacturer trading at trough earnings and 1.0x book value with a clean balance sheet — conditions that look attractive on the surface. But at current ROIC of ~5.5% (below WACC), no reinvestment flywheel, a mature North American market, and $2.6B in goodwill from the poorly timed Erwin Hymer acquisition, the realistic 10-year return of 1.2–2x delivers 2–7% annualized — inadequate compensation for a beta-1.45 cyclical with meaningful impairment risk. The business is not a compounder; it is a cycle recovery story, and the recovery timeline is uncertain. Capital is better deployed in businesses that earn above their cost of capital through the cycle.”