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LCII

LCI Industries NYSE:LCII Stock Report

Last Price

US$130.41

Market Cap

US$3.3b

7D

1.6%

1Y

-9.0%

Updated

08 Aug, 2022

Data

Company Financials +
LCII fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance6/6
Financial Health3/6
Dividends2/6

LCII Stock Overview

LCI Industries, together with its subsidiaries, manufactures and supplies components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally.

LCI Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for LCI Industries
Historical stock prices
Current Share PriceUS$130.41
52 Week HighUS$163.33
52 Week LowUS$96.32
Beta1.45
1 Month Change8.93%
3 Month Change16.02%
1 Year Change-8.95%
3 Year Change43.32%
5 Year Change31.99%
Change since IPO25,982.00%

Recent News & Updates

Jul 25
Here's Why We Think LCI Industries (NYSE:LCII) Is Well Worth Watching

Here's Why We Think LCI Industries (NYSE:LCII) Is Well Worth Watching

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Jul 11
Is LCI Industries (NYSE:LCII) A Risky Investment?

Is LCI Industries (NYSE:LCII) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jul 06

LCI Industries: Recent Declines Ignore Real Strength

LCI Industries has followed the market lower in recent months, but this has occurred even as fundamental performance improves. At present, shares of the business look cheap and they aren't overvalued even if we assign results from 2022 to the business. This seems to offer investors a good buying opportunity right now even though near-term pain might still be on the table. When it comes to the automotive market, one of the companies that I find most attractive at this time is LCI Industries (LCII). The company produces a variety of products, such as steel chassis, axles, thermoformed baths, kitchens, and other products, and other related offerings for recreation and transportation customers, largely focused on RVs and other related vehicles. For the most part, the fundamental performance of the company has been robust. But that has not stopped the company's share price from taking a beating as the broader market has declined. Today, shares of the business are much cheaper than they were previously. And this ignores the prospect of a strong 2022 fiscal year. So while I wouldn't be surprised at fundamentals eventually weakening if the economy truly does suffer some blows, I do think the long-term outlook for shareholders is favorable at this time. The market is ignoring the fundamentals Both a positive and negative thing about the market is that, when fear permeates, even high-quality companies can experience some pain. The downside to this is that investors who already own shares in the companies in question see a short-term hit to their portfolios. But the positive side is that it gives you the opportunity to buy into a firm that you liked previously at a price that is even more appealing than it was before. This latter example might be exactly what we are seeing today with LCI Industries. You see, back in January of this year, I wrote a bullish article about the enterprise. In that article, I acknowledged that the company had experienced an increase in price in the prior months, eliminating much of the upside potential the company offered. Having said that, I was impressed by its fundamental condition and I felt that while shares were not as cheap as they were previously, it still warranted a ‘buy’ rating. Since then, things have not played out exactly as I would have anticipated. While the S&P 500 is down by 17.7%, shares of LCI Industries have dropped by 19.2%. Author - SEC EDGAR Data Given this decline, you would be forgiven for thinking that the fundamental condition of the company was worsening. But the exact opposite is true. When I last wrote about the firm, we only had data covering through the third quarter of its 2021 fiscal year. Today, that data now extends through the first quarter of its 2022 fiscal year. To start with, let's touch on how the company ended 2021. For the final quarter of that year, sales came in at $1.21 billion. That represented a 54.9% increase over the $783 million reported just one year earlier. As a result of this robust performance, total revenue for the year came in at $4.47 billion. That's 60% higher than the $2.80 billion reported for the 2020 fiscal year. This was driven in large part by strong demand across the RV industry, with the increase in units attributable to wholesale customers totaling 40%, while for the retail space demand rose by 10%. The company also benefited from various acquisitions that, combined, added $269.9 million to the firm's revenue last year. Author - SEC EDGAR Data Profitability for the company followed a similar path. Net income of $82.3 million in the final quarter of 2021 dwarfed the $48.7 million reported the same quarter one year earlier. This brought total net profits for 2021 up to $287.7 million. That's 81.6% above the $158.4 million reported for 2020. Other profitability metrics came in strong as well. While operating cash flow declined from a positive $231.4 million to a negative $111.6 million, the picture changes if we adjust for changes in working capital, with the metric climbing from $275.6 million to $431.4 million. Meanwhile, EBITDA increased from $328.2 million to $511.7 million. Once again, these were aided by largely strong and positive results in the final quarter of 2021 compared to the same quarter of 2020. Author - SEC EDGAR Data Growth for the company has continued into the 2022 fiscal year. Revenue for the first quarter came in at $1.67 billion. That's roughly 66.5% higher than the $1 billion reported just one year earlier. According to management, wholesale unit volumes for RVs increased by 16%, even as retail demand dropped by 18%. The company also benefited from price increases as well as from a particular acquisition that added $79 million to its top line year-over-year. As revenue increased, profitability rose as well. Net income increased from $74.1 million to $196.2 million. Operating cash flow surged from $4.8 million to $134.9 million. If we adjust for changes in working capital, it would have risen from $107.4 million to $236.3 million. Even EBITDA showed improvement, skyrocketing from $125.9 million to $301.5 million. Although these year-over-year improvements may seem unbelievably strong relative to the increase in sales, the beauty of capital-intensive companies that have fairly low margins is that even a small improvement in price and volume can have a large impact on the company's bottom line. Author - SEC EDGAR Data We don't really know what to expect for the rest of the current fiscal year. But instead of projecting out what that picture might look like, I have decided to take the more conservative approach and value the company based on 2021 results, as well as on 2020 results for those who are concerned that the business may experience a return to more normal levels of profitability. Using the 2021 results, the firm is trading at a price-to-earnings multiple of 10.1. This compares to the 18.4 reading that we get if we use the 2020 figures. The price to adjusted operating cash flow multiple should be 6.7. That's down from 10.6 using its 2020 figures. And the EV to EBITDA multiples declined from 12.6 in 2020 to 8.1 for 2021. To put the pricing of the firm into perspective, I compared it to five similar companies. On a price-to-earnings basis, these companies ranged from a low of 3.7 to a high of 61.9. Using the price to operating cash flow approach, the range was from 1.4 to 111.4. In both cases, only one of the companies was cheaper than LCI Industries. Using the EV to EBITDA approach, meanwhile, the range was from 3.1 to 17.2. In this scenario, two of the five companies were cheaper than our prospect.

Jun 26
Is It Time To Consider Buying LCI Industries (NYSE:LCII)?

Is It Time To Consider Buying LCI Industries (NYSE:LCII)?

While LCI Industries ( NYSE:LCII ) might not be the most widely known stock at the moment, it saw a decent share price...

Shareholder Returns

LCIIUS Auto ComponentsUS Market
7D1.6%0.6%1.1%
1Y-9.0%-29.2%-13.0%

Return vs Industry: LCII exceeded the US Auto Components industry which returned -30.7% over the past year.

Return vs Market: LCII exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is LCII's price volatile compared to industry and market?
LCII volatility
LCII Average Weekly Movement7.3%
Auto Components Industry Average Movement8.2%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: LCII is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: LCII's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198413,900Jason Lipperthttps://www.lci1.com

LCI Industries, together with its subsidiaries, manufactures and supplies components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates in two segments, Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures and distributes a range of engineered components, such as steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; appliances; air conditioners; televisions and sound systems; and other accessories.

LCI Industries Fundamentals Summary

How do LCI Industries's earnings and revenue compare to its market cap?
LCII fundamental statistics
Market CapUS$3.31b
Earnings (TTM)US$496.44m
Revenue (TTM)US$5.56b

6.7x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LCII income statement (TTM)
RevenueUS$5.56b
Cost of RevenueUS$4.14b
Gross ProfitUS$1.42b
Other ExpensesUS$920.53m
EarningsUS$496.44m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)19.53
Gross Margin25.49%
Net Profit Margin8.93%
Debt/Equity Ratio80.5%

How did LCII perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

19%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LCII undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LCII?

Other financial metrics that can be useful for relative valuation.

LCII key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA5.6x
PEG Ratio-0.2x

Price to Earnings Ratio vs Peers

How does LCII's PE Ratio compare to its peers?

LCII PE Ratio vs Peers
The above table shows the PE ratio for LCII vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average36.3x
FOXF Fox Factory Holding
24.7x16.7%US$4.5b
DORM Dorman Products
22.5x15.4%US$3.2b
XPEL XPEL
55.4x36.0%US$1.8b
VC Visteon
42.6x36.0%US$3.5b
LCII LCI Industries
6.7x-28.2%US$3.3b

Price-To-Earnings vs Peers: LCII is good value based on its Price-To-Earnings Ratio (6.7x) compared to the peer average (36.3x).


Price to Earnings Ratio vs Industry

How does LCII's PE Ratio compare vs other companies in the US Auto Components Industry?

Price-To-Earnings vs Industry: LCII is good value based on its Price-To-Earnings Ratio (6.7x) compared to the US Auto Components industry average (17.2x)


Price to Earnings Ratio vs Fair Ratio

What is LCII's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LCII PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.7x
Fair PE Ratio8.8x

Price-To-Earnings vs Fair Ratio: LCII is good value based on its Price-To-Earnings Ratio (6.7x) compared to the estimated Fair Price-To-Earnings Ratio (8.8x).


Share Price vs Fair Value

What is the Fair Price of LCII when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LCII ($130.41) is trading above our estimate of fair value ($106.42)

Significantly Below Fair Value: LCII is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is LCI Industries forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-28.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LCII's earnings are forecast to decline over the next 3 years (-28.2% per year).

Earnings vs Market: LCII's earnings are forecast to decline over the next 3 years (-28.2% per year).

High Growth Earnings: LCII's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LCII's revenue is expected to decline over the next 3 years (-7% per year).

High Growth Revenue: LCII's revenue is forecast to decline over the next 3 years (-7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LCII's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has LCI Industries performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


24.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LCII has high quality earnings.

Growing Profit Margin: LCII's current net profit margins (8.9%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: LCII's earnings have grown significantly by 24.6% per year over the past 5 years.

Accelerating Growth: LCII's earnings growth over the past year (91.6%) exceeds its 5-year average (24.6% per year).

Earnings vs Industry: LCII earnings growth over the past year (91.6%) exceeded the Auto Components industry 4.8%.


Return on Equity

High ROE: LCII's Return on Equity (35.6%) is considered high.


Discover strong past performing companies

Financial Health

How is LCI Industries's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LCII's short term assets ($1.7B) exceed its short term liabilities ($638.2M).

Long Term Liabilities: LCII's short term assets ($1.7B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: LCII's net debt to equity ratio (76.6%) is considered high.

Reducing Debt: LCII's debt to equity ratio has increased from 8% to 80.5% over the past 5 years.

Debt Coverage: LCII's debt is not well covered by operating cash flow (18.9%).

Interest Coverage: LCII's interest payments on its debt are well covered by EBIT (30.7x coverage).


Balance Sheet


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Dividend

What is LCI Industries's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.22%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LCII's dividend (3.22%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: LCII's dividend (3.22%) is low compared to the top 25% of dividend payers in the US market (4.1%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, LCII has been paying a dividend for less than 10 years.

Growing Dividend: LCII's dividend payments have increased, but the company has only paid a dividend for 9 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.1%), LCII's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (125.3%), LCII's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Jason Lippert (50 yo)

9.25yrs

Tenure

US$10,993,750

Compensation

Mr. Jason D. Lippert serves as an Independent Director at Quanex Building Products Corporation. since November 02, 2021. He has been the Chief Executive Officer of LCI Industries since May 10, 2013 and has...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD10.99M) is above average for companies of similar size in the US market ($USD6.58M).

Compensation vs Earnings: Jason's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LCII's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: LCII's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LCII insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

LCI Industries's employee growth, exchange listings and data sources


Key Information

  • Name: LCI Industries
  • Ticker: LCII
  • Exchange: NYSE
  • Founded: 1984
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Implied Market Cap: US$3.314b
  • Shares outstanding: 25.42m
  • Website: https://www.lci1.com

Number of Employees


Location

  • LCI Industries
  • 3501 County Road 6 East
  • Elkhart
  • Indiana
  • 46514
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/08 00:00
End of Day Share Price2022/08/08 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.