LCI INDUSTRIES (LCII) Stock Fundamental Analysis
NYSE:LCII - New York Stock Exchange, Inc. - US50189K1034 - Common Stock - Currency: USD
Overall LCII gets a fundamental rating of 6 out of 10. We evaluated LCII against 81 industry peers in the Automobile Components industry. While LCII has a great health rating, its profitability is only average at the moment. LCII has a correct valuation and a medium growth rate. Finally LCII also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year LCII was profitable.
In the past year LCII had a positive cash flow from operations.
Each year in the past 5 years LCII has been profitable.
LCII had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 5.02%, LCII perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
With an excellent Return On Equity value of 11.40%, LCII belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.00%, LCII is doing worse than 67.90% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LCII is in line with the industry average of 9.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.02% | ||
| ROE | 11.4% | ||
| ROIC | 7% |
ROA(3y)6.42%
ROA(5y)6.98%
ROE(3y)14.55%
ROE(5y)17.48%
ROIC(3y)8.45%
ROIC(5y)9.17%
1.3 Margins
With a Profit Margin value of 4.08%, LCII perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
LCII's Profit Margin has declined in the last couple of years.
LCII has a worse Operating Margin (6.34%) than 66.67% of its industry peers.
LCII's Operating Margin has declined in the last couple of years.
The Gross Margin of LCII (23.77%) is worse than 64.20% of its industry peers.
LCII's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.34% | ||
| PM (TTM) | 4.08% | ||
| GM | 23.77% |
OM growth 3Y-13.16%
OM growth 5Y-7.13%
PM growth 3Y-15.96%
PM growth 5Y-9.17%
GM growth 3Y0.28%
GM growth 5Y0.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LCII is destroying value.
LCII has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LCII has more shares outstanding
Compared to 1 year ago, LCII has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.20 indicates that LCII is not in any danger for bankruptcy at the moment.
LCII's Altman-Z score of 3.20 is fine compared to the rest of the industry. LCII outperforms 72.84% of its industry peers.
The Debt to FCF ratio of LCII is 2.48, which is a good value as it means it would take LCII, 2.48 years of fcf income to pay off all of its debts.
LCII's Debt to FCF ratio of 2.48 is amongst the best of the industry. LCII outperforms 92.59% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that LCII is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, LCII is doing worse than 75.31% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for LCII, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.48 | ||
| Altman-Z | 3.2 |
ROIC/WACC0.74
WACC9.43%
2.3 Liquidity
A Current Ratio of 2.96 indicates that LCII has no problem at all paying its short term obligations.
The Current ratio of LCII (2.96) is better than 87.65% of its industry peers.
A Quick Ratio of 1.41 indicates that LCII should not have too much problems paying its short term obligations.
The Quick ratio of LCII (1.41) is better than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.96 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
LCII shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 72.55%, which is quite impressive.
Measured over the past years, LCII shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.80% on average per year.
The Revenue has been growing slightly by 1.04% in the past year.
LCII shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.55% yearly.
EPS 1Y (TTM)72.55%
EPS 3Y-20.96%
EPS 5Y-0.8%
EPS Q2Q%52.08%
Revenue 1Y (TTM)1.04%
Revenue growth 3Y-5.78%
Revenue growth 5Y9.55%
Sales Q2Q%8.01%
3.2 Future
Based on estimates for the next years, LCII will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.58% on average per year.
LCII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y19.77%
EPS Next 2Y14.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.84%
Revenue Next 2Y4.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.48, which indicates a correct valuation of LCII.
LCII's Price/Earnings ratio is in line with the industry average.
LCII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.92.
With a Price/Forward Earnings ratio of 12.51, LCII is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LCII is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.49. LCII is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 12.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LCII indicates a slightly more expensive valuation: LCII is more expensive than 60.49% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LCII is valued cheaply inside the industry as 82.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.14 | ||
| EV/EBITDA | 8.31 |
4.3 Compensation for Growth
The 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 14.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y14.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.08%, LCII is a good candidate for dividend investing.
LCII's Dividend Yield is rather good when compared to the industry average which is at 4.42. LCII pays more dividend than 98.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, LCII pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
5.2 History
On average, the dividend of LCII grows each year by 11.01%, which is quite nice.
LCII has been paying a dividend for at least 10 years, so it has a reliable track record.
As LCII did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)11.01%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
71.97% of the earnings are spent on dividend by LCII. This is not a sustainable payout ratio.
LCII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP71.97%
EPS Next 2Y14.58%
EPS Next 3YN/A
91.95
+1.44 (+1.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners109.27%
Inst Owner Change1.61%
Ins Owners2.12%
Ins Owner Change2.54%
Market Cap2.32B
Analysts73.33
Price Target104.17 (13.29%)
Short Float %9.08%
Short Ratio4.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
Yearly Dividend4.31
Dividend Growth(5Y)11.01%
DP71.97%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.84%
Min EPS beat(2)25.91%
Max EPS beat(2)37.76%
EPS beat(4)3
Avg EPS beat(4)18.14%
Min EPS beat(4)-0.22%
Max EPS beat(4)37.76%
EPS beat(8)5
Avg EPS beat(8)8.29%
EPS beat(12)7
Avg EPS beat(12)26.26%
EPS beat(16)9
Avg EPS beat(16)23.6%
Revenue beat(2)1
Avg Revenue beat(2)1.08%
Min Revenue beat(2)-3.27%
Max Revenue beat(2)5.43%
Revenue beat(4)1
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-3.27%
Max Revenue beat(4)5.43%
Revenue beat(8)1
Avg Revenue beat(8)-1.63%
Revenue beat(12)3
Avg Revenue beat(12)-0.57%
Revenue beat(16)7
Avg Revenue beat(16)1.47%
PT rev (1m)-8.31%
PT rev (3m)-13.7%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-11.4%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-2.08%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.48 | ||
| Fwd PE | 12.51 | ||
| P/S | 0.61 | ||
| P/FCF | 6.14 | ||
| P/OCF | 5.52 | ||
| P/B | 1.7 | ||
| P/tB | 6.06 | ||
| EV/EBITDA | 8.31 |
EPS(TTM)6.35
EY6.91%
EPS(NY)7.35
Fwd EY8%
FCF(TTM)14.97
FCFY16.28%
OCF(TTM)16.67
OCFY18.13%
SpS151.3
BVpS54.15
TBVpS15.17
PEG (NY)0.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.02% | ||
| ROE | 11.4% | ||
| ROCE | 9.17% | ||
| ROIC | 7% | ||
| ROICexc | 7.68% | ||
| ROICexgc | 12.98% | ||
| OM | 6.34% | ||
| PM (TTM) | 4.08% | ||
| GM | 23.77% | ||
| FCFM | 9.9% |
ROA(3y)6.42%
ROA(5y)6.98%
ROE(3y)14.55%
ROE(5y)17.48%
ROIC(3y)8.45%
ROIC(5y)9.17%
ROICexc(3y)8.73%
ROICexc(5y)9.44%
ROICexgc(3y)14.55%
ROICexgc(5y)16.27%
ROCE(3y)11.06%
ROCE(5y)12%
ROICexcg growth 3Y-14.37%
ROICexcg growth 5Y-6.81%
ROICexc growth 3Y-15%
ROICexc growth 5Y-6.05%
OM growth 3Y-13.16%
OM growth 5Y-7.13%
PM growth 3Y-15.96%
PM growth 5Y-9.17%
GM growth 3Y0.28%
GM growth 5Y0.67%
F-Score6
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.48 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 34.9% | ||
| Cap/Sales | 1.12% | ||
| Interest Coverage | 7.72 | ||
| Cash Conversion | 115.41% | ||
| Profit Quality | 242.61% | ||
| Current Ratio | 2.96 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 3.2 |
F-Score6
WACC9.43%
ROIC/WACC0.74
Cap/Depr(3y)60.67%
Cap/Depr(5y)65.64%
Cap/Sales(3y)1.76%
Cap/Sales(5y)1.91%
Profit Quality(3y)357.8%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)72.55%
EPS 3Y-20.96%
EPS 5Y-0.8%
EPS Q2Q%52.08%
EPS Next Y19.77%
EPS Next 2Y14.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.04%
Revenue growth 3Y-5.78%
Revenue growth 5Y9.55%
Sales Q2Q%8.01%
Revenue Next Year4.84%
Revenue Next 2Y4.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y50.28%
EBIT growth 3Y-18.18%
EBIT growth 5Y1.74%
EBIT Next Year70.6%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-13.43%
FCF growth 3YN/A
FCF growth 5Y9.19%
OCF growth 1Y-22.43%
OCF growth 3YN/A
OCF growth 5Y6.56%