Thanks for the article. I'm long CWH, but it's always helpful to get to know the bear thesis, which seems to be somewhat similar for boating and RV stocks.
As for comparing boating vs RVs, I'm not sure that I understand this point: "RV's are a more expensive purchase — but boats aren’t cheap, particularly those sold by the small-cap manufacturers." I believe Camping World as the largest RV dealer represents the market overall; their ASP for new RVs was $44k as of Q1 2022. Based on the data that you cite, boat ASP was ~$55k in 2019 (apparently higher these days due to surge in demand). If we take Malibu, their ASP is $134k as of Q3 FY 2022. So, it looks like on average RVs are actually significantly less expensive than boats.
yeah I was a bit lazy there - was thinking more in terms of Class A-C rather than towables/truck campers. Add those in and you're right, the two industries are probably more similar than I described there, my apologies.
Got it. Yep, motorized can be very expensive, sometimes hundreds thousands dollars for Class A. But motorized represent just about 10% of all RV sales in units - the market is dominated by towables. Plus, the majority of RVs are financed (I think the average loan duration is 10+ years), so they become quite affordable if we look at the purchase in terms of monthly payments.
Still a cyclical discretionary item of course, but maybe they will not suffer as badly as some investors expect.
Thought you might also be interested in a bull case for boating - here is a nice pitch of Brunswick stock by PJ Kurzweil, also touching upon the industry in general. https://youtu.be/HkEeUi4X6s0
Thanks for the article. I'm long CWH, but it's always helpful to get to know the bear thesis, which seems to be somewhat similar for boating and RV stocks.
As for comparing boating vs RVs, I'm not sure that I understand this point: "RV's are a more expensive purchase — but boats aren’t cheap, particularly those sold by the small-cap manufacturers." I believe Camping World as the largest RV dealer represents the market overall; their ASP for new RVs was $44k as of Q1 2022. Based on the data that you cite, boat ASP was ~$55k in 2019 (apparently higher these days due to surge in demand). If we take Malibu, their ASP is $134k as of Q3 FY 2022. So, it looks like on average RVs are actually significantly less expensive than boats.
yeah I was a bit lazy there - was thinking more in terms of Class A-C rather than towables/truck campers. Add those in and you're right, the two industries are probably more similar than I described there, my apologies.
Got it. Yep, motorized can be very expensive, sometimes hundreds thousands dollars for Class A. But motorized represent just about 10% of all RV sales in units - the market is dominated by towables. Plus, the majority of RVs are financed (I think the average loan duration is 10+ years), so they become quite affordable if we look at the purchase in terms of monthly payments.
Still a cyclical discretionary item of course, but maybe they will not suffer as badly as some investors expect.
Thanks for that. Had no idea that towables were so dominant.
Yep, I was also surprised. https://www.rvia.org/news-insights/latest-shipment-report-shows-more-rvs-headed-dealer-lots-ahead-summer-travel-season Here is a detailed breakdown by RV type.
Thought you might also be interested in a bull case for boating - here is a nice pitch of Brunswick stock by PJ Kurzweil, also touching upon the industry in general. https://youtu.be/HkEeUi4X6s0