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Camping World Holdings (CWH)
NYSE:CWH
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Camping World Holdings
(NYSE:CWH)44Neutral
Positive Factors
Demographics
Camping World is expected to benefit from favorable demographics, as millennials represent the largest cohort of campers and are likely to increase RV usage with age.
Market Share
Camping World is significantly outperforming the industry across all segments and should continue to benefit from market share gains.
Negative Factors
Industry Challenges
Persistently soft RV industry metrics, particularly regarding new and used RV pricing, pose challenges.
Camping World Holdings (CWH) vs. S&P 500 (SPY)
Market Cap
$1.81B
Dividend Yield2.81%
Average Volume (3M)1.31M
Price to Earnings (P/E)―
Beta (1Y)1.90
Revenue Growth-2.03%
EPS Growth-202.23%
CountryUS
Employees12,656
SectorConsumer Cyclical
Sector Strength53
IndustryVehicles
Share Statistics
EPS (TTM)-0.77
Shares Outstanding62,541,424
10 Day Avg. Volume1,669,430
30 Day Avg. Volume1,313,637
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.30
Price to Cash Flow (P/CF)-2.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$27.20Price Target Upside70.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Camping World Holdings Business Overview & Revenue Model
Company DescriptionCamping World Holdings, Inc. (CWH) is a leading American retailer specializing in recreational vehicles (RVs) and related products and services. The company operates under well-known brand names including Camping World, Gander RV & Outdoors, and Good Sam, catering to the needs of outdoor and camping enthusiasts. With a comprehensive network of retail locations across the United States, Camping World offers a wide array of RVs, camping gear, RV maintenance and repair services, and membership clubs for outdoor enthusiasts, making it a one-stop-shop for outdoor adventure.
How the Company Makes MoneyCamping World Holdings generates revenue through multiple streams. The primary source of income is the sale of new and used recreational vehicles (RVs) through its extensive network of retail locations. In addition to vehicle sales, the company earns money by providing RV-related products and services, including parts and accessories, maintenance and repair services, and financing and insurance products. The Good Sam Club membership program also contributes to Camping World's earnings by offering services such as roadside assistance, vehicle insurance, and extended RV warranties. Furthermore, the company's revenue is bolstered by strategic partnerships with RV manufacturers, suppliers, and service providers, which enhance product offerings and customer reach.
Camping World Holdings Financial Statement Overview
Summary
Camping World Holdings shows a mixed financial performance with declining revenue and profit margins, high leverage, yet improving cash flows. The company faces challenges in managing debt levels and sustaining profitability amid revenue contractions.Income Statement
Camping World Holdings faces challenges with declining revenue and profit margins. The TTM data shows a drop in total revenue to $6.1 billion from $6.2 billion in 2023, resulting in a negative net profit margin of -0.63%. The gross profit margin stands at 29.28%, indicating some capacity to manage cost of goods sold effectively, but the trend of declining revenues and EBIT margin, which is now 2.77%, are concerning. The EBITDA margin has also contracted significantly to 2.75% from healthier levels in previous years. These factors suggest a need for strategic initiatives to stabilize and grow profitability.45
Neutral
Balance Sheet
The balance sheet reveals high leverage with a debt-to-equity ratio of 6.58, indicating substantial reliance on debt financing. Stockholders' equity remains low at $326.56 million, although an improvement from previous years. The equity ratio is weak at 6.71%, highlighting a high-risk financial structure. Despite some increase in equity over the years, the overall financial health is precarious, with liabilities significantly outweighing equity.40
Negative
Cash Flow
The cash flow analysis shows positive developments with operating cash flow at $408.54 million and free cash flow at $340.21 million for the TTM period. The free cash flow to net income ratio is not meaningful due to negative net income, but the firm has achieved a significant improvement in free cash flow, indicating better cash management. However, the operating cash flow to net income ratio is also skewed by the net loss, suggesting the need for ongoing improvements in profitability.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.10B | 6.23B | 6.97B | 6.91B | 5.45B | Gross Profit |
| 1.83B | 1.88B | 2.18B | 2.39B | 1.65B | EBIT |
| 148.57M | 267.07M | 568.53M | 799.54M | 476.19M | EBITDA |
| 226.50M | 336.39M | 707.84M | 908.42M | 563.75M | Net Income Common Stockholders |
| -38.64M | 31.04M | 351.03M | 642.08M | 344.21M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 208.42M | 39.65M | 130.13M | 267.33M | 166.07M | Total Assets |
| 4.86B | 4.85B | 4.80B | 4.37B | 3.26B | Total Debt |
| 2.15B | 3.86B | 3.78B | 3.34B | 2.58B | Net Debt |
| 1.94B | 3.82B | 3.65B | 3.08B | 2.41B | Total Liabilities |
| 4.38B | 4.63B | 4.55B | 4.14B | 3.27B | Stockholders Equity |
| 326.56M | 124.58M | 147.83M | 158.06M | 26.77M |
| Cash Flow | Free Cash Flow | |||
| 154.32M | 110.31M | -21.69M | -99.50M | 662.57M | Operating Cash Flow |
| 245.16M | 310.81M | 189.78M | 154.00M | 747.67M | Investing Cash Flow |
| -88.17M | -369.41M | -422.54M | -355.77M | -125.94M | Financing Cash Flow |
| 11.79M | -31.89M | 95.55M | 303.03M | -603.18M |
Camping World Holdings Technical Analysis
Negative
15.98
Price Trends
21.54
Negative
22.17
Negative
21.47
Negative
Market Momentum
-1.39
Positive
19.69
Positive
14.75
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWH, the sentiment is Negative. The current price of 15.98 is below the 20-day moving average (MA) of 20.52, below the 50-day MA of 21.54, and below the 200-day MA of 21.47, indicating a bearish trend. The MACD of -1.39 indicates Positive momentum. The RSI at 19.69 is Positive, neither overbought nor oversold. The STOCH value of 14.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CWH.
Camping World Holdings Risk Analysis
Camping World Holdings disclosed 54 risk factors in its most recent earnings report. Camping World Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Camping World Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.97B | 21.51 | 12.73% | 1.74% | 7.14% | -4.01% | |
72 Outperform | $2.50B | 17.56 | 10.42% | 4.37% | -1.15% | 121.43% | |
65 Neutral | $4.31B | 22.64 | 35.85% | 1.50% | -20.75% | -78.02% | |
62 Neutral | $4.56B | 22.74 | 5.13% | 2.29% | -7.86% | -27.80% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
56 Neutral | $1.04B | ― | -1.39% | 3.45% | -14.10% | -110.55% | |
44 Neutral | $1.81B | ― | -17.13% | 2.81% | -2.03% | -202.23% |
* Consumer Cyclical Sector Average
Performance Comparison
CWH
Camping World Holdings
15.98
-10.53
-39.72%
LCII
LCI Industries
96.07
-15.43
-13.84%
PATK
Patrick Industries
87.77
14.49
19.77%
THO
Thor Industries
82.13
-19.24
-18.98%
WGO
Winnebago Industries
36.54
-27.00
-42.49%
TSE:DOO
BRP
58.48
-25.10
-30.03%
Camping World Holdings Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -23.17% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call was generally positive with significant achievements in market share growth and revenue increases. The company has a strong outlook for 2025 with expected explosive EBITDA growth, driven by strategic improvements in SG&A and used inventory procurement. However, challenges such as higher insurance costs, weather impacts on sales, and potential tariff issues present obstacles to navigate.Highlights
Record Market Share Achievements
Camping World Holdings ended 2024 with a record combined new and used market share of 11.2% and expects to set a new record at 12% in 2025, selling over 130,000 units, up from 121,500 in 2024.
Revenue and Unit Sales Growth
The company recorded Q4 revenue of $1.2 billion, an increase of 9%, driven by an 8% increase in new unit sales and an 11% increase in used unit sales.
Used Inventory Procurement Success
January and February set respective records for used inventory procurement, with expectations for purchase volume to accelerate entering the core selling season.
Significant SG&A Improvement
The company is targeting a 600 to 700 basis point improvement in SG&A as a percentage of gross profit for the year.
Strong Start to 2025
2025 started with used same-store sales increasing in the high teens during January and new same-store unit sales up low single digits.
Explosive EBITDA Growth Expected
The company expects explosive EBITDA growth in Q1 2025, driven by gross margin and profit improvements and significant SG&A improvements.
Lowlights
Insurance Claim Costs
Higher than expected insurance claim costs impacted SG&A for the quarter, with a $6 million hit year over year.
Weather Impact on Sales
February sales were affected by erratic weather patterns, causing some sales to move into March.
Potential Tariff Impact
The company anticipates potential increases in new model year prices due to impending tariffs, which could affect new inventory costs.
Pressure on Gross Margins
New vehicle gross margins were driven down due to lower promotional support compared to the previous year.
Company Guidance
During the Camping World Holdings Conference Call to discuss the financial results for the fourth quarter and the year ended December 31, 2024, several key metrics and guidance points were provided. The company reported a revenue increase to $1.2 billion, driven by an 8% rise in new unit sales and an 11% increase in used unit sales. New vehicle gross margin was noted at 15.2%, while used vehicle gross margin improved to 18.7%. The company ended 2024 with a combined new and used market share of 11.2% and projected to hit a new record of 12% in 2025, targeting 130,000 unit sales, up from 121,500 in 2024. Early 2025 results indicated healthy mid-single-digit growth, with an expected annual average selling price (ASP) of $40,000 for new units and $32,000 for used units. The company also announced a 600 to 700 basis point improvement in SG&A and anticipated explosive EBITDA growth in the first quarter of 2025, driven by gross margin and profit improvements. Additionally, the company plans to add six to seven new rooftops, focusing on strategic acquisitions to fuel growth while maintaining a disciplined approach to cost management and capital allocation.Camping World Holdings Corporate Events
Executive/Board Changes
Camping World Holdings Amends CEO Employment Agreement
Neutral
Jan 27, 2025
On January 26, 2025, Camping World Holdings’ Board approved an amended employment agreement with CEO Marcus Lemonis, effective January 1, 2025, through January 1, 2028, with provisions for salary, bonuses, and equity awards. The agreement also defines terms for termination benefits, non-competition, and confidentiality obligations, potentially impacting leadership continuity and shareholder interests.
Business Operations and StrategyFinancial Disclosures
Camping World to Discuss Sales Trends with Investors
Positive
Jan 14, 2025
On January 14, 2025, Camping World Holdings, Inc. plans to meet with investors to discuss sales trends and provide a business update. The company has shown strong performance in 2024, with positive momentum in new and used unit sales, outperforming the industry in new unit registrations. Camping World is focusing on affordability and consumer value, introducing private label products in 2025 at competitive price points. This strategic move is expected to capture additional market share and drive growth, particularly in the used vehicle segment, where the company sees significant opportunities.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.