Investment Thesis
Camping World is operationally unprofitable with negative net income of -$16.4M despite $1.4B revenue, coupled with severe negative operating cash flow of -$65.6M and devastating free cash flow of -$276.2M. The company carries extremely high leverage (6.59x debt-to-equity) with minimal equity cushion ($215M) against $4.8B liabilities, creating significant financial distress risk.
Strengths
- Revenue base of $1.4B with modest 4.4% YoY growth
- Positive operating income of $22.1M indicating some operational profitability before other expenses
- Cash position of $199.8M provides near-term liquidity buffer
Risks
- Severe negative free cash flow of -$276.2M indicating unsustainable cash burn
- Negative operating cash flow of -$65.6M despite positive GAAP operating income signals operational distress
- Extremely high debt-to-equity ratio of 6.59x with only $215M equity against $4.8B liabilities creates insolvency risk
- Poor liquidity with quick ratio of 0.23x indicates inability to meet short-term obligations
- Net loss of -$16.4M and negative net margin of -1.2% despite revenue growth shows inability to convert sales to profits
Key Metrics to Watch
- Operating cash flow trend - must turn positive
- Free cash flow and working capital management
- Debt levels and refinancing capability
- Net profitability and operating margin expansion
Financial Metrics
Revenue
1.4B
Net Income
-16.4M
EPS (Diluted)
$3.99
Free Cash Flow
-276.2M
Total Assets
5.1B
Cash
199.8M
Profitability Ratios
Gross Margin
N/A
Operating Margin
1.6%
Net Margin
-1.2%
ROE
-7.6%
ROA
-0.3%
FCF Margin
-20.4%
Balance Sheet & Liquidity
Current Ratio
1.17x
Quick Ratio
0.23x
Debt/Equity
6.59x
Debt/Assets
93.2%
Interest Coverage
N/A
Long-term Debt
1.4B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T14:55:25.689174 |
Data as of: 2026-03-31 |
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