LCI INDUSTRIES (LCII) Stock Fundamental Analysis
NYSE:LCII - New York Stock Exchange, Inc. - US50189K1034 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to LCII. LCII was compared to 81 industry peers in the Automobile Components industry. LCII has only an average score on both its financial health and profitability. LCII has a correct valuation and a medium growth rate. Finally LCII also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
LCII had positive earnings in the past year.
In the past year LCII had a positive cash flow from operations.
In the past 5 years LCII has always been profitable.
LCII had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
LCII has a Return On Assets (4.94%) which is in line with its industry peers.
With an excellent Return On Equity value of 10.30%, 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 6.72%, 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 | 4.94% | ||
| ROE | 10.3% | ||
| ROIC | 6.72% |
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
LCII has a Profit Margin of 3.82%. This is comparable to the rest of the industry: LCII outperforms 40.74% of its industry peers.
LCII's Profit Margin has declined in the last couple of years.
LCII has a Operating Margin of 5.83%. This is in the lower half of the industry: LCII underperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of LCII has declined.
With a Gross Margin value of 23.51%, LCII is not doing good in the industry: 65.43% of the companies in the same industry are doing better.
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 | 5.83% | ||
| PM (TTM) | 3.82% | ||
| GM | 23.51% |
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
LCII has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for LCII has been increased compared to 1 year ago.
Compared to 5 years ago, LCII has more shares outstanding
LCII has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.32 indicates that LCII is not in any danger for bankruptcy at the moment.
LCII has a Altman-Z score of 3.32. This is in the better half of the industry: LCII outperforms 74.07% of its industry peers.
The Debt to FCF ratio of LCII is 2.31, which is a good value as it means it would take LCII, 2.31 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.31, LCII belongs to the best of the industry, outperforming 93.83% of the companies in the same industry.
LCII has a Debt/Equity ratio of 0.55. This is a neutral value indicating LCII is somewhat dependend on debt financing.
LCII's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. LCII is outperformed by 72.84% of its industry peers.
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 | 0.55 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 3.32 |
ROIC/WACC0.77
WACC8.7%
2.3 Liquidity
LCII has a Current Ratio of 2.82. This indicates that LCII is financially healthy and has no problem in meeting its short term obligations.
LCII has a better Current ratio (2.82) than 83.95% of its industry peers.
LCII has a Quick Ratio of 1.03. This is a normal value and indicates that LCII is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of LCII (1.03) is worse than 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 1.03 |
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.
LCII shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.80% yearly.
Looking at the last year, LCII shows a decrease in Revenue. The Revenue has decreased by -1.15% in the last year.
The Revenue has been growing by 9.55% on average over the past years. This is quite good.
EPS 1Y (TTM)72.55%
EPS 3Y-20.96%
EPS 5Y-0.8%
EPS Q2Q%52.08%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y-5.78%
Revenue growth 5Y9.55%
Sales Q2Q%8.01%
3.2 Future
LCII is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.56% yearly.
LCII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.01% yearly.
EPS Next Y20.18%
EPS Next 2Y14.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.86%
Revenue Next 2Y5.01%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.72, the valuation of LCII can be described as correct.
LCII's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.25, LCII is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.86, which indicates a very decent valuation of LCII.
LCII's Price/Forward Earnings ratio is in line with the industry average.
LCII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 11.86 |
4.2 Price Multiples
60.49% of the companies in the same industry are cheaper than LCII, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LCII is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.71 | ||
| EV/EBITDA | 8.21 |
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.
A more expensive valuation may be justified as LCII's earnings are expected to grow with 14.56% in the coming years.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y14.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.18%, LCII is a good candidate for dividend investing.
LCII's Dividend Yield is rather good when compared to the industry average which is at 4.19. LCII pays more dividend than 98.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, LCII pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
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
LCII pays out 76.62% of its income as dividend. This is not a sustainable payout ratio.
The dividend of LCII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP76.62%
EPS Next 2Y14.56%
EPS Next 3YN/A
87.14
-1.26 (-1.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners106.31%
Inst Owner Change1.63%
Ins Owners2.04%
Ins Owner Change2.54%
Market Cap2.20B
Analysts73.33
Price Target113.6 (30.36%)
Short Float %9.25%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
Yearly Dividend4.31
Dividend Growth(5Y)11.01%
DP76.62%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.84%
Min EPS beat(2)-0.22%
Max EPS beat(2)25.91%
EPS beat(4)3
Avg EPS beat(4)51.65%
Min EPS beat(4)-0.22%
Max EPS beat(4)171.82%
EPS beat(8)5
Avg EPS beat(8)162.38%
EPS beat(12)7
Avg EPS beat(12)27.41%
EPS beat(16)9
Avg EPS beat(16)22.77%
Revenue beat(2)0
Avg Revenue beat(2)-3%
Min Revenue beat(2)-3.27%
Max Revenue beat(2)-2.74%
Revenue beat(4)0
Avg Revenue beat(4)-2.3%
Min Revenue beat(4)-3.27%
Max Revenue beat(4)-1.19%
Revenue beat(8)1
Avg Revenue beat(8)-1.04%
Revenue beat(12)3
Avg Revenue beat(12)0.2%
Revenue beat(16)7
Avg Revenue beat(16)1.55%
PT rev (1m)-5.88%
PT rev (3m)-6.76%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-3.72%
EPS NY rev (1m)-2.13%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)1.39%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 11.86 | ||
| P/S | 0.59 | ||
| P/FCF | 6.71 | ||
| P/OCF | 5.94 | ||
| P/B | 1.59 | ||
| P/tB | 5.38 | ||
| EV/EBITDA | 8.21 |
EPS(TTM)6.35
EY7.29%
EPS(NY)7.35
Fwd EY8.43%
FCF(TTM)12.99
FCFY14.91%
OCF(TTM)14.67
OCFY16.84%
SpS148.23
BVpS54.95
TBVpS16.21
PEG (NY)0.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 10.3% | ||
| ROCE | 8.79% | ||
| ROIC | 6.72% | ||
| ROICexc | 7.2% | ||
| ROICexgc | 12.45% | ||
| OM | 5.83% | ||
| PM (TTM) | 3.82% | ||
| GM | 23.51% | ||
| FCFM | 8.77% |
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-Score7
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 2.2 | ||
| Cap/Depr | 33.68% | ||
| Cap/Sales | 1.13% | ||
| Interest Coverage | 6.93 | ||
| Cash Conversion | 107.66% | ||
| Profit Quality | 229.55% | ||
| Current Ratio | 2.82 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 3.32 |
F-Score7
WACC8.7%
ROIC/WACC0.77
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 Y20.18%
EPS Next 2Y14.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y-5.78%
Revenue growth 5Y9.55%
Sales Q2Q%8.01%
Revenue Next Year4.86%
Revenue Next 2Y5.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y76.81%
EBIT growth 3Y-18.18%
EBIT growth 5Y1.74%
EBIT Next Year70.6%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-29.48%
FCF growth 3YN/A
FCF growth 5Y9.19%
OCF growth 1Y-29.77%
OCF growth 3YN/A
OCF growth 5Y6.56%