Why this company's stock underperformed the market by 50%.

Because the total number of shares rose and P/S multiple decreased over the time period, stock of the company did not outperform S&P which returned around 50% during this time frame.

   UKRAINE - 2021/07/02: In this photo illustration a Thor Industries logo is seen on a smartphone and ... [+] a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) 
  SOPA Images/LightRocket via Getty Images
Thor Industries logo is seen on a smartphone and ...   a computer screen. (Photo: Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)

Thor Industries Inc stock price has risen only 46% from $52 at the end of 2018, to around $76 currently, primarily due to favorable changes in its revenues.The company, in fact, witnessed an increase in its outstanding share count and a drop in its P&S multiple over this period, which is why the company’s stock has failed to outperform the S&P that returned around 50% over this period.

In our interactive dashboard, we break down the factors behind this move. THO Stock Has Gained 46% Since 2018, in our interactive dashboard, we analyze why it happened.

Thor’s total revenue has increased to $16.7 billion, a 97% increase from $8.5 billion in the last fiscal year

  • Thor's total revenue has increased sharply from $8.5 billion in FY ’18 to $12.5 billion in FY ’21 (Thor's fiscal year ends in July), and is currently even higher at over $16 billion.
  • Thor's Towables recreational vehicle segment accounted for 50% of the company’s sales in FY ’21, which was over $6.2 billion.
  • European recreational vehicles were the second largest segment, accounting for 26% of the market and $3.2 billion in revenue as of FY '21.
  • For details about Thor Industries, see Thor Industries Revenue Comparison
   Factors of THO Stock Price Change 
   Trefis's analysis of the factors affecting THO stock price change

In the fiscal year ended March 31, 2018, the company's per share income increased from $161.50 to $304.97

  • In the past year, THO's revenue increased from $8.5 billion to $12.5 billion, while its outstanding share count grew from 52.7 million to 54.9 million.
  • As a result, the RPS has increased from $161.50 in FY '18 to $304.97 at present.

The Price-To-Sales (P/S) multiple for Thor Industries increased from 0.3x in 2018 end to 0.6x by 2020 end, but has since fallen back to 0.2x, which is below its 2018 level

  • Thor's stellar performance in 2018-end and the first quarter of 2019 led to a sharp increase in its P/S multiple, which rose from 0.3x at 2018-end to as high as 0.6x by 2020.
  • The P/S multiple has decreased to 0.2x, as a result of the increase in economic uncertainty affecting the broader markets.
  • For more in-depth information about the company's stock returns and relative to peers, see Thor Industries Stock Return Comparison.

With inflation rising and the Fed raising interest rates, Thor Industries has fallen 37% this year. How much further can it drop? See how low can THO stock go by comparing its decline in previous market crashes. Here is a

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   THO Return Compared With Trefis Multi-Strategy Portfolio  
Trefis was the only multi-strategy portfolio of its time that could match THO's returns.