NYSE:LCII

Stock Analysis Report

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Executive Summary

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. More Details


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has LCI Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LCII has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

LCII

2.9%

US Auto Components

-0.4%

US Market


1 Year Return

15.1%

LCII

6.0%

US Auto Components

18.3%

US Market

Return vs Industry: LCII exceeded the US Auto Components industry which returned 6% over the past year.

Return vs Market: LCII underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

LCIIIndustryMarket
7 Day-4.3%2.9%-0.4%
30 Day6.1%18.9%6.6%
90 Day-7.6%15.4%8.6%
1 Year18.1%15.1%7.1%6.0%21.0%18.3%
3 Year-2.8%-10.3%-9.0%-18.8%42.1%32.7%
5 Year109.9%87.8%23.3%3.6%85.6%64.7%

Price Volatility Vs. Market

How volatile is LCI Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LCI Industries undervalued compared to its fair value and its price relative to the market?

26.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LCII ($112.35) is trading above our estimate of fair value ($54.66)

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


Price To Earnings Ratio

PE vs Industry: LCII is good value based on its PE Ratio (26.6x) compared to the US Auto Components industry average (38.9x).

PE vs Market: LCII is poor value based on its PE Ratio (26.6x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: LCII is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: LCII is overvalued based on its PB Ratio (3.5x) compared to the US Auto Components industry average (1.9x).


Next Steps

Future Growth

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

39.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LCII's forecast earnings growth (39% per year) is above the savings rate (2.2%).

Earnings vs Market: LCII's earnings (39% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LCII's revenue (9.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: LCII's revenue (9.1% per year) is forecast to grow slower than 20% 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


Next Steps

Past Performance

How has LCI Industries performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LCII has high quality earnings.

Growing Profit Margin: LCII's current net profit margins (4.5%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: LCII's earnings have grown by 9.6% per year over the past 5 years.

Accelerating Growth: LCII's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LCII had negative earnings growth (-22%) over the past year, making it difficult to compare to the Auto Components industry average (-18.5%).


Return on Equity

High ROE: LCII's Return on Equity (13%) is considered low.


Next Steps

Financial Health

How is LCI Industries's financial position?


Financial Position Analysis

Short Term Liabilities: LCII's short term assets ($697.3M) exceed its short term liabilities ($309.9M).

Long Term Liabilities: LCII's short term assets ($697.3M) do not cover its long term liabilities ($891.8M).


Debt to Equity History and Analysis

Debt Level: LCII's debt to equity ratio (86%) is considered high.

Reducing Debt: LCII's debt to equity ratio has increased from 20.2% to 86% over the past 5 years.

Debt Coverage: LCII's debt is well covered by operating cash flow (27.3%).

Interest Coverage: LCII's interest payments on its debt are well covered by EBIT (11.9x coverage).


Balance Sheet


Next Steps

Dividend

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

2.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LCII's dividend (2.67%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: LCII's dividend (2.67%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.5%), LCII's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LCII's dividends in 3 years are forecast to be well covered by earnings (36.4% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Jason Lippert (48 yo)

7.42yrs

Tenure

US$10,095,637

Compensation

Mr. Jason D. Lippert has been the Chief Executive Officer of LCI Industries since May 10, 2013 and its President. Mr. Lippert has been the Chief Executive Officer at Lippert Components, Inc. since February ...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD10.10M) is above average for companies of similar size in the US market ($USD5.61M).

Compensation vs Earnings: Jason's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jason Lippert
CEO, President & Director7.42yrsUS$10.10m1.12%
$ 31.7m
Brian Hall
Executive VP & CFO3.92yrsUS$1.57m0.043%
$ 1.2m
Jamie Schnur
Chief Administrative Officerno dataUS$2.30m0.082%
$ 2.3m
Andrew Namenye
Executive VP & Chief Legal Officer2.92yrsUS$1.44m0.0047%
$ 134.2k
Nick Fletcher
Executive VP & Chief Human Resources Officer5.75yrsUS$1.24m0%
$ 0
Ryan Smith
Senior Vice President of Operationsno datano data0.018%
$ 502.2k
Kip Emenhiser
VP of Finance3.58yrsno data0.0042%
$ 119.5k
Andy Murray
Chief Sales Officerno datano datano data
Joe Thompson
Chief Marketing Officerno datano datano data
Roch Lambert
President of CURT Groupno datano datano data

3.9yrs

Average Tenure

48yo

Average Age

Experienced Management: LCII's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jason Lippert
CEO, President & Director7.42yrsUS$10.10m1.12%
$ 31.7m
Leigh Abrams
Chairman Emeritusno dataUS$37.22kno data
James Gero
Independent Chairman & Lead Director6.42yrsUS$342.71k1.2%
$ 34.0m
David Reed
Independent Director17.42yrsUS$244.76k0.044%
$ 1.2m
Ronald Fenech
Director2.92yrsUS$239.12k0.10%
$ 2.8m
John Sirpilla
Additional Independent Director0.92yrUS$83.72k0.0040%
$ 112.5k
Kieran O'Sullivan
Independent Director5.42yrsUS$233.29k0.044%
$ 1.3m
Brendan Deely
Independent Director9.08yrsUS$241.76k0.044%
$ 1.2m
Tracy Graham
Independent Director4.58yrsUS$236.72k0.035%
$ 994.2k
Virginia Henkels
Independent Director3.08yrsUS$259.83k0.030%
$ 843.6k
Frank Crespo
Independent Director5.42yrsUS$256.38k0.046%
$ 1.3m

5.4yrs

Average Tenure

58yo

Average Age

Experienced Board: LCII's board of directors are considered experienced (5.4 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 company bio, 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
  • Market Cap: US$2.826b
  • Shares outstanding: 25.15m
  • Website: https://www.lci1.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LCIINYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1985
0DIDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1985
LCII *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 1985

Biography

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. I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 00:34
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.