Camping World Stock Discussion

Marcus Lemonis' recent sale at around US$25.62 raises caution. The lack of insider buying and insignificant insider ownership suggest careful consideration before buying shares.

Camping World Holdings' diminishing returns on capital and high current liabilities to total assets ratio pose risks. Despite stock's growth, fundamentals do not inspire confidence.

The author sees Nvidia's AI growth extending into fiscal 2025 and beyond, and views a $20 entry level for CWH stock as a great long-term investment, given its 2.0% yield from a $0.50 annual dividend. They back CWH's decision to slash its dividend by 80% to finance acquisitions, arguing that the extra revenue and cash flow from new locations will compensate for the dividend loss. The author recommends buying CWH, with or without options.

The company's performance this quarter was mediocre, with revenue and same-store sales declining. However, it exceeded analysts' gross margin expectations. Its used vehicle revenue missed estimates by a wide margin, while its new vehicle revenue beat estimates significantly. The company's stock is down 4.5% on the results.

Camping World outperformed analysts' earnings estimates, while Lithia Motors and CarMax had mixed results. America's Car-Mart underperformed with increased credit losses.

CEO Marcus Lemonis expressed that the acquisition of Roth RV strengthens Camping World's presence in Minnesota and aligns with their expansion strategy.

Insiders owning large parts of Camping World is viewed favorably, despite no recent transactions. However, several warning signs suggest it may not be an ideal investment choice.

Analysts anticipate difficulties for the company to maintain its stock prices due to slow revenue growth. A potential risk looms of share prices falling if investors get swayed by this sluggish revenue growth.

The company's ROE is less impressive due to substantial debt, indicating potential risks. High multiples of earnings, future profit growth, and required future investments need consideration for a full analysis.