LCI INDUSTRIES (LCII)
US50189K1034 - Common Stock
Taking everything into account, LCII scores 5 out of 10 in our fundamental rating. LCII was compared to 42 industry peers in the Automobile Components industry. Both the profitability and the financial health of LCII get a neutral evaluation. Nothing too spectacular is happening here. LCII is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LCII was profitable.
LCII had a positive operating cash flow in the past year.
LCII had positive earnings in each of the past 5 years.
LCII had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.17%, LCII perfoms like the industry average, outperforming 54.76% of the companies in the same industry.
LCII's Return On Equity of 4.74% is in line compared to the rest of the industry. LCII outperforms 54.76% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.67%, LCII is in line with its industry, outperforming 42.86% of the companies in the same industry.
LCII had an Average Return On Invested Capital over the past 3 years of 10.00%. This is in line with the industry average of 9.29%.
The 3 year average ROIC (10.00%) for LCII is well above the current ROIC(3.67%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 4.74% | ||
| ROIC | 3.67% |
ROA(3y)7.69%
ROA(5y)7.57%
ROE(3y)19.89%
ROE(5y)19.08%
ROIC(3y)10%
ROIC(5y)9.73%
1.3 Margins
LCII has a Profit Margin of 1.70%. This is comparable to the rest of the industry: LCII outperforms 54.76% of its industry peers.
LCII's Profit Margin has declined in the last couple of years.
LCII has a Operating Margin (3.26%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LCII has declined.
With a Gross Margin value of 20.51%, LCII perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Gross Margin of LCII has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.26% | ||
| PM (TTM) | 1.7% | ||
| GM | 20.51% |
OM growth 3Y-25.76%
OM growth 5Y-16.49%
PM growth 3Y-33.1%
PM growth 5Y-22.33%
GM growth 3Y-6.7%
GM growth 5Y-0.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LCII is destroying value.
LCII has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LCII has been increased compared to 5 years ago.
Compared to 1 year ago, LCII has an improved debt to assets ratio.
2.2 Solvency
LCII has an Altman-Z score of 3.29. This indicates that LCII is financially healthy and has little risk of bankruptcy at the moment.
LCII has a Altman-Z score of 3.29. This is in the better half of the industry: LCII outperforms 76.19% of its industry peers.
The Debt to FCF ratio of LCII is 1.82, which is an excellent value as it means it would take LCII, only 1.82 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.82, LCII belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that LCII is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.62, LCII is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
Although LCII does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 3.29 |
ROIC/WACC0.34
WACC10.68%
2.3 Liquidity
A Current Ratio of 2.83 indicates that LCII has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.83, LCII is doing good in the industry, outperforming 73.81% of the companies in the same industry.
LCII has a Quick Ratio of 2.83. This is a bad value and indicates that LCII is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.88, LCII is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for LCII have decreased strongly by -83.66% in the last year.
The earnings per share for LCII have been decreasing by -15.49% on average. This is quite bad
LCII shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -27.32%.
LCII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.86% yearly.
EPS 1Y (TTM)-83.66%
EPS 3Y-26.95%
EPS 5Y-15.49%
EPS growth Q2Q86.76%
Revenue 1Y (TTM)-27.32%
Revenue growth 3Y10.62%
Revenue growth 5Y8.86%
Revenue growth Q2Q-6.35%
3.2 Future
LCII is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 70.33% yearly.
The Revenue is expected to grow by 7.19% on average over the next years.
EPS Next Y123.37%
EPS Next 2Y70.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8%
Revenue Next 2Y7.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 42.42 indicates a quite expensive valuation of LCII.
LCII's Price/Earnings ratio is in line with the industry average.
LCII's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.92.
A Price/Forward Earnings ratio of 18.99 indicates a rather expensive valuation of LCII.
The rest of the industry has a similar Price/Forward Earnings ratio as LCII.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, LCII is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.42 | ||
| Fwd PE | 18.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LCII is valued a bit more expensive than 64.29% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LCII is valued cheaper than 88.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.87 | ||
| EV/EBITDA | 13.76 |
4.3 Compensation for Growth
LCII's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LCII's earnings are expected to grow with 70.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y70.33%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.93%, LCII has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.77, LCII pays a better dividend. On top of this LCII pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, LCII pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
5.2 History
The dividend of LCII is nicely growing with an annual growth rate of 12.12%!
LCII has been paying a dividend for over 5 years, so it has already some track record.
As LCII did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)12.12%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
165.65% of the earnings are spent on dividend by LCII. This is not a sustainable payout ratio.
The dividend of LCII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP165.65%
EPS Next 2Y70.33%
EPS Next 3YN/A
LCI INDUSTRIES
NYSE:LCII (4/26/2024, 7:04:00 PM)
After market: 107.32 0 (0%)107.32
+0.58 (+0.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.42 | ||
| Fwd PE | 18.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 4.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.26% | ||
| PM (TTM) | 1.7% | ||
| GM | 20.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.83 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-83.66%
EPS 3Y-26.95%
EPS 5Y
EPS growth Q2Q
EPS Next Y123.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-27.32%
Revenue growth 3Y10.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y