NYSE:LCII

Stock Analysis Report

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.

Snowflake

Fundamentals

Excellent balance sheet with questionable track record.


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


Market Performance


7 Day Return

5.0%

LCII

3.3%

US Auto Components

0.5%

US Market


1 Year Return

27.9%

LCII

-2.4%

US Auto Components

6.8%

US Market

Return vs Industry: LCII exceeded the US Auto Components industry which returned -2.4% over the past year.

Return vs Market: LCII exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

LCIIIndustryMarket
7 Day5.0%3.3%0.5%
30 Day1.7%2.7%-0.8%
90 Day7.4%1.1%-0.9%
1 Year32.0%27.9%-0.9%-2.4%9.2%6.8%
3 Year12.0%4.1%10.9%-0.5%45.6%36.2%
5 Year137.9%111.6%19.7%3.3%63.2%45.4%

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?

17.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LCII ($95.23) is trading above our estimate of fair value ($86.33)

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


Price To Earnings Ratio

PE vs Industry: LCII is poor value based on its PE Ratio (17.6x) compared to the Auto Components industry average (16.5x).

PE vs Market: LCII is good value based on its PE Ratio (17.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: LCII is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: LCII is overvalued based on its PB Ratio (3.2x) compared to the US Auto Components industry average (1.2x).


Next Steps

Future Growth

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

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LCII's forecast earnings growth (12.9% per year) is above the savings rate (2.7%).

Earnings vs Market: LCII's earnings (12.9% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: LCII's earnings are forecast to grow, but not significantly.

Revenue vs Market: LCII's revenue (2.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: LCII's revenue (2.9% 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?

18.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LCII's earnings have grown by 18.6% 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 (-5.7%) over the past year, making it difficult to compare to the Auto Components industry average (8.1%).


Return on Equity

High ROE: LCII's Return on Equity (18%) is considered low.


Return on Assets

ROA vs Industry: LCII has a higher Return on Assets than the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: LCII's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is LCI Industries's financial position?


Financial Position Analysis

Short Term Liabilities: LCII's short term assets ($538.1M) exceeds its short term liabilities ($220.4M)

Long Term Liabilities: LCII's short term assets (538.1M) exceeds its long term liabilities (357.0M)


Debt to Equity History and Analysis

Debt Level: LCII's debt to equity ratio (32.7%) is considered satisfactory

Reducing Debt: LCII's debt to equity ratio has increased from 6.3% to 32.7% over the past 5 years.

Debt Coverage: LCII's debt is well covered by operating cash flow (104.8%).

Interest Coverage: LCII's interest payments on its debt are well covered by EBIT (22.8x coverage).


Balance Sheet

Inventory Level: LCII has a high level of physical assets or inventory.

Debt Coverage by Assets: LCII's debt is covered by short term assets (assets are 2.188070x debt).


Next Steps

Dividend

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

2.73%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years2.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LCII's dividend (2.73%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: LCII's dividend (2.73%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.2%), LCII's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of LCI Industries's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Jason Lippert (47yo)

6.4yrs

Tenure

US$5,992,695

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 ($USD5.99M) is about average for companies of similar size in the US market ($USD4.00M).

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


Management Age and Tenure

2.9yrs

Average Tenure

46yo

Average Age

Experienced Management: LCII's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

57yo

Average Age

Experienced Board: LCII's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$134,31413 Mar 19
Nick Fletcher
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares1,688
Max PriceUS$79.57
BuyUS$948,60019 Dec 18
James Gero
EntityIndividual
Role
Chairman of the Board
Chairman & Lead Director
Shares15,000
Max PriceUS$63.24

Ownership Breakdown


Management Team

  • Nick Fletcher (59yo)

    Chief Human Resources Officer

    • Tenure: 4.8yrs
    • Compensation: US$559.79k
  • Jason Lippert (47yo)

    CEO, President & Director

    • Tenure: 6.4yrs
    • Compensation: US$5.99m
  • Jamie Schnur (47yo)

    Group President of Aftermarket

    • Tenure: 0yrs
    • Compensation: US$1.04m
  • Brian Hall (44yo)

    Chief Financial Officer

    • Tenure: 2.9yrs
    • Compensation: US$801.38k
  • Kip Emenhiser (45yo)

    Corporate Controller

    • Tenure: 2.6yrs
  • Andrew Namenye (38yo)

    VP, Chief Legal Officer & Corporate Secretary

    • Tenure: 1.9yrs
    • Compensation: US$868.80k

Board Members

  • Leigh Abrams (76yo)

    Chairman Emeritus

    • Tenure: 0yrs
    • Compensation: US$37.22k
  • Jim Gero (74yo)

    Chairman & Lead Director

    • Tenure: 5.4yrs
    • Compensation: US$338.46k
  • David Reed (71yo)

    Independent Director

    • Tenure: 16.4yrs
    • Compensation: US$255.66k
  • Ron Fenech (62yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$234.88k
  • Jason Lippert (47yo)

    CEO, President & Director

    • Tenure: 6.4yrs
    • Compensation: US$5.99m
  • Kieran O'Sullivan (57yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$253.89k
  • Brendan Deely (53yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$252.21k
  • Tracy Graham (46yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$234.88k
  • Ginnie Henkels (50yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$246.88k
  • Frank Crespo (57yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$252.21k

Company Information

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


Key Information

  • Name: LCI Industries
  • Ticker: LCII
  • Exchange: NYSE
  • Founded: 1962
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$2.383b
  • Shares outstanding: 25.03m
  • 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

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 Analysis2019/10/20 23:33
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.