Camping World Holdings, Inc.

Camping World is the largest U.S. RV retailer but ran a loss with negative operating cash flow and extreme leverage.

Strengths

• Category-leading scale (196 stores, ~4.2M active customers) and high blended gross margin (90.9th pct) helped by high-margin F&I and Good Sam
• Cash position adequate (84.6th pct) and dealership rationalization improving same-store results

Risks

• Net margin -1.4%, ROE -39%, and negative operating cash margin (25th pct) on debt-to-equity of 6.2 (96.9th pct)
• Highly cyclical RV demand, weak operating margin (11th pct), and prior material-weakness/litigation flags

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• High leverageHigh leverage (debt/equity 6.18)
• Net lossNet loss (net margin -1.4%)
• Material weakness● Material weaknesses in our internal control over financial reporting could have a significant adverse effect on our business and the price of our Class A common stock
• Chronic dilutionShare count +234%/yr over 1y (dilution)