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Camping World: Debt Is A Double-Edged Sword

Oct. 03, 2022 3:38 AM ETCamping World Holdings, Inc. (CWH)5 Comments
Equanimity Investing profile picture
Equanimity Investing


  • Camping World continues to do well enough in a challenging environment.
  • Debt financing enabled aggressive growth but has become an earnings headwind.
  • Falling FY23 EPS estimates remain an overhang.
  • Ideally, capex spending trends will decelerate.
  • This idea was discussed in more depth with members of my private investing community, Equanimity Research. Learn More »
Holidays in Germany - summer recreation at the river

ewg3D/iStock via Getty Images

Camping World Holdings, Inc. (NYSE:NYSE:CWH) continues to be a top holding in my investment portfolio. The bull case though is the diversified business model, growth execution, and shareholder friendliness, i.e. a sustainably high dividend yield combined with share buybacks. The main challenges are a fiercely

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This article was written by

Equanimity Investing profile picture
Equanimity Research helps you focus on protecting your principal and thinking long-term with your investments. I'm long treasuries, select high-quality companies, and will never use margin. As a generalist, I cover multiple sectors with a dividend and non-dividend long-only stock strategy over a 5-10+ year investment horizon. I also cover macroeconomics regarding monetary policy and excessive debt levels globally.All articles/blogs are for informational and entertainment purposes only. Under no circumstances should any of these articles/blogs or any published information be interpreted as investment advice, or as an offer to buy/sell any financial security. Perform your own due diligence. I welcome comments and corrections of all kinds.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of CWH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (5)

CWH is cheap any way you look at it......
just keep up the dividends
In $CWH due to dividend/buybacks and spent months in RV and the parks recently and they are PACKED (despite 20% price increases) and 4-6 DAYS to get a service appt. at CW (Non college needed technicians can write their own ticket for years). Is there a SA post on debt IR stack? Thxs,
Pillpoppinpuppy profile picture
You said "all RV categories declined by 41% year-over-year in August". Actually, 5,757 motorhomes were sold at wholesale in August, up16.8% from the prior year, so that category rose. The 5,757 was an all-time high for August, beating out 5,552 in 2017. Now, 28,026 towables were sold and that was down by 41.5% in August. Motorized also was up 6.6% in July. I would've been interested in a discussion of why motorized is holding up and what the additional risks are if it stops holding up. Or maybe a discussion of how quickly RV demand rebounds after a recession (spoiler alert: very quickly in '01-'02 and '08-'09).

I also would have liked to see a discussion of the competitive environment, particularly any inroads that Outdoorsy is making in areas in which CWH operates.

BTW, Airstream released a really cool plant tour video on Friday: www.airstream.com/... . (Oh, and not to be nit-picky, but you said "floor plant debt interest expense" in your report.)

I noticed today that a Wall Street analyst downgraded THO to Hold from Buy, so it may indeed be time to start accumulating RV stocks....


Five days later: No effort by Equanimity Investing to correct their error. Kind of sad.
Good article, thanks
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