Did you take a recreational vehicle (RV) during the epidemic? If you don’t, one of your neighbors probably did, or someone else you know drowned.
According to the RV Industry Association, annual RV shipments fell 16% from 483,700 in 2018 to 406,000 in 2019. Production increased in 2020, with 430,412 shipments for the year but still not above pre-epidemic levels. By the end of 2021, shipments had logged 600,240, exceeding total annual production at any given time.
Let’s learn more about why we should buy RV stocks and three great RV stocks that you may want to buy while you are well.
Why buy RV stock?
Despite high petrol and diesel prices, RV purchases continue to drive endless consumer demand across the United States and the desire of consumers to continue to experience an active outdoor lifestyle.
About two-thirds (64%) of campers expect a camping trip in 2022. The KOA monthly research report from March states that one in five campers is planning a spring break. More than half of the campers have already booked trips for this year and the look ahead for 2022 is strong.
The KOA will release its annual North America Camping Report this month. According to experts, campers and leisure travelers will continue to turn outside as COVID-19 decreases.
3 RV stocks to invest in right now
You will see lots of reports from 2020 and 2021 urging consumers to buy RV stock and you may think you missed the boat. Not so. Check out our top three picks for RV stock to buy right now.
Winnebago Industries Inc. (NYSE: WGO)
Winnebago Industries Inc., headquartered in Forest City, Iowa, manufactures and sells recreational vehicles and marine products for use in leisure travel and outdoor recreation activities. The company operates six segments: Grand Design Towels, Winnebago Towels, Winnebago Motorhomes, Numer Motorhomes, Chris-Craft Marine and Winnebago Specialty Go.
- Towel products: Including non-motorized vehicles, the company manufactures automobiles, pickup trucks, SUVs or vans-drawn products for recreational travel, including conventional travel trailers, fifth wheels, folding camper trailers and truck campers under the Winnebago and Grand Design brand names.
- Motorhome: Self-propelled mobile shelters are primarily used as temporary accommodation during vacations and camping trips.
- Special Commercial Vehicles: Winnebago Law Enforcement Command Center manufactures vehicles, mobile medical clinics and mobile office spaces; Commercial vehicles as a bare shell for third-party up fitters; And boats in the recreational powerboat industry under the Chris-Craft and Barletta brand names.
- Equipment production: The company also manufactures and sells commercial vehicle parts through independent dealers in the United States, Canada, and internationally.
Winnebago posted second-quarter revenue of 1.2 billion, up 39% from a strong organic growth of 29%. The company reported a quarterly EPS of $ 2.69 and a consistent EPS of $ 3.14, up 42% from the previous year. RV retail market share profit also increased, 14.3% and cash was returned to $ 72 million shareholders.
Camping World Holdings (NYSE: CWH)
Camping World Holdings Inc., headquartered in Lincolnshire, Illinois, retails its Good Sam Services and plans and recreational vehicles (RVs) and related products and services under the RV and Outdoor retail divisions. The company offers the following:
- Safety plan
- RV Industrial Products and Resources
- Extended Vehicle Service Agreement
- Roadside assistance plan
- Property and Accident Insurance Program
- Travel Assistance Travel Safety Plan
- RV and outdoor related consumer shows
- RV-centric consumer magazine
- New and used RVs
- Vehicle financing
- RV repair and maintenance service
- RV Parts, equipment, supplies and accessories
- Camping, hunting, fishing, skiing, snowboarding, cycling, skateboarding and supplies for marine and water sports equipment and supplies
The company operates more than 180 retail locations in 40 states through its dealerships and online and e-commerce platforms.
In 2021, revenue was $ 6.9 billion, $ 1.5 billion more than last year (26.9%). Total profits were $ 2.5 billion, an increase of $ 753.8 million or 44.3%. Net income was $ 642.1 million, an increase of $ 297.9 million or 86.5%. Net income margin for 2021 was 9.3% vs. 6.3% for 2020
The adjusted EBITA was $ 942.1 million, an increase of $ 377.1 million or 66.8% and the adjusted EBITDA margin was 13.6% for 2021 vs. 10.4% for 2020.
In 2021, the company opened 16 locations, including twelve RV dealerships acquired in 2021, three RV dealerships acquired in 2020, and one Greenfield location.
The company has increased its regular quarterly dividend for Class A ordinary stock holders from $ 0.23 to $ 0.50 per share – from $ 0.92 per share to $ 2 per share on an annual basis. On February 18, the company’s board of directors approved a 25% quarterly dividend.
In Q4, revenue was recorded at $ 1.4 billion, an increase of $ 243.8 million or 21.5%. Total profits were $ 484.6 million, an increase of $ 106.6 million or 28.2%. Net income was $ 59.3 million, an increase of $ 18.9 million or 46.9%.
LCI Industries (NYSE: LCII)
LCI Industries, headquartered in Elkhart, Indiana, manufactures and supplies components for manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It has two sections:
- OEM segment: The OM segment of LCI Industries manufactures and distributes various engineering components such as steel chassis and related components, excel and suspension solutions, slide-out mechanisms, bath and kitchen products, vinyl, aluminum and frameless windows; Manual, electrical and hydraulic stabilizers and leveling systems as well as entrance, luggage, patio and ramp doors. It includes furniture and mattresses, electrical and manual entry steps, awnings and awning accessories, towing products, truck accessories, electronic components, appliances, air conditioners, televisions and sound systems. It produces items for RVs, buses, boat trailers, livestock equipment, trucks, boats, trains, ready-made houses and modular housing. Also, it makes parts for travel trailers, fifth-wheel travel trailers, folding camping trailers and truck campers.
- Aftermarket segment: This department supplies RV components to retailers, wholesalers and service centers as well as replacement glass and sheets to meet insurance claims. It also provides bimini, cover, boy and fender in the marine industry.
The company posted record net sales of 1. 1.2 billion in the fourth quarter of 2021, an increase of 55% year-on-year and record net income of $ 82.3 million or $ 3.22 per share per year, up $ 33.6 million or 69% year-over-year. The company had a consistent EBITDA of $ 146.3 million, or% 58.2 million, or 66%, year after year.
For the full year 2021, record net sales peaked at $ 4.5 billion, an increase of 60% year-over-year to আ 287.7 million in net income and E 511.7 million in EBITDA, $ 183.5 million or 56% year-over-year.
The company returned $ 87.2 million to shareholders through dividends.
Excited about RV stocks
Everyone else is excited about the 2022 season, so why not take advantage of the buzz, especially if you’re an avid RVer yourself? Pop some stocks while you are in your portfolio and enjoy the benefits of dividends.