Morningstar Rating

Stock Research and Analysis

by David Whiston, CFA, CPA, CFE

Bulls Say

As baby boomers retire and begin to spend some of their accumulated wealth, their spending on recreation and leisure products is expected to surge.
The company's strong balance sheet provides financial strength and flexibility to withstand cyclical downturns.
Because RV consumers are relatively affluent, rising gas prices will probably not hinder a consumer's ability to purchase a motor home. A 2011 study by travel consulting firm PKF Consulting found that for a family of four, gas prices would have to more than quadruple to make RV travel more expensive than other forms of travel. Read more 

Bears Say

Management's desire to keep making acquisitions could prove to be a poor use of capital.
Demand for motor homes is historically cyclical and can be influenced by factors outside Winnebago's control, including interest rates, employment, gas prices, and gross domestic product growth. This cyclicality makes the stock price extremely volatile.
Fuel prices could increase or be volatile, affecting consumers' ability or desire to purchase RVs. Read more 

Management

The company named Randy Potts, 55, president in January 2011, added the CEO title that June, and named him chairman in February 2012. Potts is the firm's third CEO since 1998. Potts has over 30 years of tenure at Winnebago in a variety of strategy and   Read more 

Profile

Winnebago manufactures Class A, B, and C motor homes, along with customized specialty vehicles and parts and services. With headquarters in Forest City, Iowa, Winnebago   Read more 

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