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 5 out of 10. We evaluated LCII against 81 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. 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.
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 4.94%, LCII perfoms like the industry average, outperforming 41.98% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.30%, LCII belongs to the top of the industry, outperforming 87.65% of the companies in the same industry.
LCII has a worse Return On Invested Capital (6.72%) than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LCII is in line with the industry average of 8.98%.
| 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 (3.82%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of LCII has declined.
The Operating Margin of LCII (5.83%) is worse than 66.67% of its industry peers.
LCII's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 23.51%, LCII is doing worse than 65.43% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LCII is destroying value.
Compared to 1 year ago, LCII has more shares outstanding
LCII has more shares outstanding than it did 5 years ago.
LCII has a better debt/assets ratio than last year.
2.2 Solvency
LCII has an Altman-Z score of 3.23. This indicates that LCII is financially healthy and has little risk of bankruptcy at the moment.
LCII's Altman-Z score of 3.23 is fine compared to the rest of the industry. LCII outperforms 75.31% 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.
A Debt/Equity ratio of 0.55 indicates that LCII is somewhat dependend on debt financing.
The Debt to Equity ratio of LCII (0.55) is worse than 74.07% of its industry peers.
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 | 0.55 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 3.23 |
ROIC/WACC0.79
WACC8.54%
2.3 Liquidity
A Current Ratio of 2.82 indicates that LCII has no problem at all paying its short term obligations.
LCII's Current ratio of 2.82 is amongst the best of the industry. LCII outperforms 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.
LCII has a worse Quick ratio (1.03) than 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 121.34% over the past year.
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.
LCII shows a decrease in Revenue. In the last year, the revenue decreased by -1.15%.
Measured over the past years, LCII shows a quite strong growth in Revenue. The Revenue has been growing by 9.55% on average per year.
EPS 1Y (TTM)121.34%
EPS 3Y-20.96%
EPS 5Y-0.8%
EPS Q2Q%511.11%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y-5.78%
Revenue growth 5Y9.55%
Sales Q2Q%-4.11%
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 18.39% yearly.
LCII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.
EPS Next Y22.8%
EPS Next 2Y18.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.42%
Revenue Next 2Y4.21%
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.
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
LCII is valuated correctly with a Price/Earnings ratio of 14.06.
LCII's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of LCII to the average of the S&P500 Index (28.10), we can say LCII is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.45, the valuation of LCII can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LCII is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of LCII to the average of the S&P500 Index (20.74), we can say LCII is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 11.45 |
4.2 Price Multiples
LCII's Enterprise Value to EBITDA is on the same level as the industry average.
82.72% of the companies in the same industry are more expensive than LCII, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.06 | ||
| EV/EBITDA | 7.5 |
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 18.39% in the coming years.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y18.39%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LCII has a Yearly Dividend Yield of 5.89%, which is a nice return.
The stock price of LCII dropped by -21.99% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
LCII's Dividend Yield is rather good when compared to the industry average which is at 4.38. LCII pays more dividend than 98.77% of the companies in the same industry.
LCII's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
5.2 History
The dividend of LCII is nicely growing with an annual growth rate of 11.01%!
LCII has paid a dividend for at least 10 years, which is 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.
LCII's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP76.62%
EPS Next 2Y18.39%
EPS Next 3YN/A
78.73
-1.09 (-1.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners106.31%
Inst Owner Change-0.73%
Ins Owners2.04%
Ins Owner Change1.19%
Market Cap1.99B
Analysts73.33
Price Target116.79 (48.34%)
Short Float %9.14%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
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)-3.24%
PT rev (3m)-2.23%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)-0.8%
EPS NY rev (1m)0.4%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 11.45 | ||
| P/S | 0.53 | ||
| P/FCF | 6.06 | ||
| P/OCF | 5.37 | ||
| P/B | 1.43 | ||
| P/tB | 4.86 | ||
| EV/EBITDA | 7.5 |
EPS(TTM)5.6
EY7.11%
EPS(NY)6.88
Fwd EY8.73%
FCF(TTM)12.99
FCFY16.5%
OCF(TTM)14.67
OCFY18.63%
SpS148.23
BVpS54.95
TBVpS16.21
PEG (NY)0.62
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 | 3.23 |
F-Score7
WACC8.54%
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)121.34%
EPS 3Y-20.96%
EPS 5Y-0.8%
EPS Q2Q%511.11%
EPS Next Y22.8%
EPS Next 2Y18.39%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y-5.78%
Revenue growth 5Y9.55%
Sales Q2Q%-4.11%
Revenue Next Year3.42%
Revenue Next 2Y4.21%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y76.81%
EBIT growth 3Y-18.18%
EBIT growth 5Y1.74%
EBIT Next Year71.4%
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%