Is Camping World Holdings Too Cheap to Ignore?

Photo of author
Written By Keziah Monique Gayo

Camping World Holdings is a prominent provider of recreational vehicles (RVs) and camping-related gear. The company has pursued an accretive RV dealership roll-up strategy and increased reliance on the less cyclical used RV market.

Despite challenges in the RV industry, such as softer demand post-pandemic, the company’s latest quarters have shown lower EBITDA as it navigates cyclical headwinds.

This presents an opportunity for Camping World, given low investor sentiment and a potential trough in consumer demand for RVs.

Company Overview

Credits: DepositPhotos

Camping World specializes in selling RVs, camping gear, and related outdoor products. It operates as both a retailer and a service provider for RV enthusiasts across the United States.

Founded by Marcus Lemonis, Camping World has become one of the largest RV dealerships in the country, offering a wide range of RVs, from motorhomes to travel trailers, as well as accessories and camping supplies.

The company also provides maintenance and repair services for RVs, making it a comprehensive resource for both new and experienced RV owners.

Camping World operates over 100 dealership locations, making it the largest player in the market for RV sales and supplies. In a fragmented industry, the company benefits from its scale, which provides it with a wider assortment of inventory, better gross margins, and more favorable terms with lenders.


Shares of Camping World have been trading close to 52-week lows, providing a disappointing return of 29% year-to-date. Over the last ten years, shares have essentially been flat, delivering a total return of 191%, primarily driven by the company’s 2.7% dividend.

Compared to the S&P 500’s return over the same period, Camping World’s shares have significantly underperformed.

When looking at the financial performance of Camping World over time, the company has grown revenues and EBITDA at CAGRs of 10.2% and 6.7%, respectively. In the last five years, the company has exhibited a decelerating growth rate, with revenues and EBITDA growing at 5.4% and 3.2%, respectively.

This shows that Camping World hasn’t been able to extract margin expansion consistently over time.

One of the biggest challenges is that the camping industry is highly cyclical. After a strong demand pull-forward during the pandemic era, the RV market has seen a decline. In 2023, new RV sales fell roughly 20%, making it a buyer’s market for RVs.

Higher interest rates and the cost of borrowing have made consumers more sensitive to the overall price tag of recreational vehicles.

Recent Results

In its latest Q1 results, Camping World reported revenue of $1.36 billion, down 8.3% year-over-year, missing estimates by $62.5 million. Earnings per share were -$0.38, missing estimates by a penny.

Management noted that new RV units delivered rose 21.35% year-over-year. Despite the revenue miss due to softer pricing on new RVs, the increase in new RV units sold indicates that much of the inventory is being sold through.

Approximately 90% of Camping World’s new RV inventory is from the 2024 model year, suggesting that inventory has been right-sized to correspond to revenue. The combination of volume increases and moderated pricing could lead to better EBITDA growth in the coming quarters.

Adjusted EBITDA came in at $8.2 million, primarily due to pressure on used vehicle gross profit. Management has a goal of 30% adjusted EBITDA growth for the year, most of which is expected to be realized in the second half.

Additionally, the company announced the divestiture of its RV furniture manufacturing business, expected to close in Q2. This move, along with strategic alternatives for the Good Sam business, could improve the company’s margin profile.

Valuation and Wrap Up

Credits: DepositPhotos

Camping World trades at 11.1x EV/EBITDA. On a forward basis, it trades at 14.3x FY’24 EBITDA and 10.9x FY’25 EBITDA. Compared to the historical ten-year average EV/EBITDA of 6.9x, Camping World appears to be trading above its historical multiple.

However, the company’s valuation may be skewed by over-earning during 2021-22.

Despite appearing expensive, the current valuation reflects low investor expectations amid potentially bottoming RV volumes industry-wide. While pricing remains soft, Camping World is managing to grow volumes, signaling a potential turnaround.

With the potential for rapid EBITDA improvement, Camping World presents an interesting investment opportunity for those considering initiating a position.




You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at; the Financial Industry Regulatory Authority (the "FINRA") at, and relevant State Securities Administrator website and the OTC Markets website at The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: and

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.