LCI INDUSTRIES (LCII) Stock Fundamental Analysis
NYSE:LCII - New York Stock Exchange, Inc. - US50189K1034 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to LCII. LCII was compared to 80 industry peers in the Automobile Components industry. LCII is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. LCII has a decent growth rate and is not valued too expensively. Finally LCII also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
LCII had positive earnings in the past year.
LCII had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 5.02%, LCII belongs to the top of the industry, outperforming 88.75% 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 91.25% 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 68.75% of the companies in the same industry.
LCII had an Average Return On Invested Capital over the past 3 years of 8.45%. This is in line with the industry average of 8.74%.
| 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 is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of LCII has declined.
LCII's Operating Margin of 6.34% is on the low side compared to the rest of the industry. LCII is outperformed by 67.50% of its industry peers.
LCII's Operating Margin has declined in the last couple of years.
LCII's Gross Margin of 23.77% is on the low side compared to the rest of the industry. LCII is outperformed by 65.00% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LCII is destroying value.
The number of shares outstanding for LCII has been increased compared to 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
An Altman-Z score of 3.23 indicates that LCII is not in any danger for bankruptcy at the moment.
LCII's Altman-Z score of 3.23 is fine compared to the rest of the industry. LCII outperforms 70.00% 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.
The Debt to FCF ratio of LCII (2.48) is better than 92.50% of its industry peers.
LCII has a Debt/Equity ratio of 0.68. This is a neutral value indicating 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 76.25% of the companies in the same industry.
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 | 0.68 | ||
| Debt/FCF | 2.48 | ||
| Altman-Z | 3.23 |
ROIC/WACC0.79
WACC8.9%
2.3 Liquidity
LCII has a Current Ratio of 2.96. This indicates that LCII is financially healthy and has no problem in meeting its short term obligations.
LCII has a better Current ratio (2.96) than 87.50% of its industry peers.
A Quick Ratio of 1.41 indicates that LCII should not have too much problems paying its short term obligations.
LCII has a better Quick ratio (1.41) than 78.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.96 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.91% over the past year.
The Earnings Per Share has been decreasing by -0.80% on average over the past years.
Looking at the last year, LCII shows a decrease in Revenue. The Revenue has decreased by -1.15% in the last 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)32.91%
EPS 3Y-20.96%
EPS 5Y-0.8%
EPS Q2Q%-0.42%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y-5.78%
Revenue growth 5Y9.55%
Sales Q2Q%5%
3.2 Future
The Earnings Per Share is expected to grow by 14.58% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.93% on average over the next years.
EPS Next Y19.67%
EPS Next 2Y14.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.57%
Revenue Next 2Y4.52%
Revenue Next 3Y3.93%
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
The Price/Earnings ratio is 15.11, 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 26.99.
Based on the Price/Forward Earnings ratio of 13.03, the valuation of LCII can be described as correct.
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 36.36. LCII is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 13.03 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LCII.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LCII indicates a rather cheap valuation: LCII is cheaper than 95.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.4 | ||
| EV/EBITDA | 8.59 |
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)0.77
PEG (5Y)N/A
EPS Next 2Y14.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.80%, LCII is a good candidate for dividend investing.
LCII's Dividend Yield is rather good when compared to the industry average which is at 4.01. LCII pays more dividend than 100.00% of the companies in the same industry.
LCII's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
5.2 History
The dividend of LCII is nicely growing with an annual growth rate of 11.01%!
LCII has been paying a dividend for at least 10 years, so it has a reliable track record.
LCII has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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
95.82
-0.21 (-0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners109.27%
Inst Owner Change1.44%
Ins Owners2.12%
Ins Owner Change2.54%
Market Cap2.42B
Analysts73.33
Price Target104.44 (9%)
Short Float %10.26%
Short Ratio7.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
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)-1.31%
PT rev (3m)-11.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.89%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-2.55%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.11 | ||
| Fwd PE | 13.03 | ||
| P/S | 0.63 | ||
| P/FCF | 6.4 | ||
| P/OCF | 5.75 | ||
| P/B | 1.77 | ||
| P/tB | 6.32 | ||
| EV/EBITDA | 8.59 |
EPS(TTM)6.34
EY6.62%
EPS(NY)7.35
Fwd EY7.67%
FCF(TTM)14.97
FCFY15.63%
OCF(TTM)16.67
OCFY17.39%
SpS151.3
BVpS54.15
TBVpS15.17
PEG (NY)0.77
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 | 3.23 |
F-Score6
WACC8.9%
ROIC/WACC0.79
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)32.91%
EPS 3Y-20.96%
EPS 5Y-0.8%
EPS Q2Q%-0.42%
EPS Next Y19.67%
EPS Next 2Y14.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y-5.78%
Revenue growth 5Y9.55%
Sales Q2Q%5%
Revenue Next Year4.57%
Revenue Next 2Y4.52%
Revenue Next 3Y3.93%
Revenue Next 5YN/A
EBIT growth 1Y50.28%
EBIT growth 3Y-18.18%
EBIT growth 5Y1.74%
EBIT Next Year69.96%
EBIT Next 3Y22.57%
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%