LCI INDUSTRIES (LCII) Stock Fundamental Analysis
NYSE:LCII - New York Stock Exchange, Inc. - US50189K1034 - Common Stock - Currency: USD
LCII gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. While LCII has a great health rating, there are worries on its profitability. LCII has a decent growth rate and is not valued too expensively. LCII also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year LCII was profitable.
LCII had a positive operating cash flow in the past year.
In the past 5 years LCII has always been profitable.
Of the past 5 years LCII 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.94%, LCII is in line with its industry, outperforming 40.74% of the companies in the same industry.
With an excellent Return On Equity value of 10.30%, LCII belongs to the best of the industry, outperforming 86.42% of the companies in the same industry.
LCII's Return On Invested Capital of 6.72% is on the low side compared to the rest of the industry. LCII is outperformed by 65.43% of its industry peers.
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 8.88%.
| 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
Looking at the Profit Margin, with a value of 3.82%, LCII is doing worse than 60.49% of the companies in the same industry.
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.
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.
LCII's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LCII is creating some value.
Compared to 1 year ago, LCII has more shares outstanding
LCII has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LCII has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.21 indicates that LCII is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.21, LCII is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
LCII has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as LCII would need 2.31 years to pay back of all of its debts.
LCII has a Debt to FCF ratio of 2.31. This is amongst the best in the industry. LCII outperforms 93.83% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that LCII is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, LCII is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
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 | 3.21 |
ROIC/WACC0.81
WACC8.34%
2.3 Liquidity
A Current Ratio of 2.82 indicates that LCII has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.82, LCII belongs to the top of the industry, outperforming 83.95% of the companies in the same industry.
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's Quick ratio of 1.03 is on the low side compared to the rest of the industry. LCII is outperformed by 80.25% 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.
LCII shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.80% yearly.
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
Based on estimates for the next years, LCII will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.39% on average per year.
Based on estimates for the next years, LCII will show a small growth in Revenue. The Revenue will grow by 4.21% on average per year.
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
Based on the Price/Earnings ratio of 14.08, the valuation of LCII can be described as correct.
LCII's Price/Earnings ratio is in line with the industry average.
LCII is valuated cheaply when we compare the Price/Earnings ratio to 28.33, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.46, the valuation of LCII can be described as very reasonable.
LCII's Price/Forward Earnings is on the same level as the industry average.
LCII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.37, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 11.46 |
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 cheaper than 80.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.07 | ||
| EV/EBITDA | 7.41 |
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
With a Yearly Dividend Yield of 5.94%, LCII is a good candidate for dividend investing.
In the last 3 months the price of LCII has falen by -25.54%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.67, LCII pays a better dividend. On top of this LCII pays more dividend than 98.77% of the companies listed in the same industry.
LCII's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.94% |
5.2 History
On average, the dividend of LCII grows each year by 11.01%, which is quite nice.
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.
The dividend of LCII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP76.62%
EPS Next 2Y18.39%
EPS Next 3YN/A
78.84
+1.32 (+1.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners106.31%
Inst Owner Change0.1%
Ins Owners2.04%
Ins Owner Change1.19%
Market Cap1.99B
Analysts73.75
Price Target120.7 (53.09%)
Short Float %6.88%
Short Ratio4.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.94% |
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)0%
PT rev (3m)0.47%
EPS NQ rev (1m)-0.91%
EPS NQ rev (3m)-0.09%
EPS NY rev (1m)0.4%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 11.46 | ||
| P/S | 0.53 | ||
| P/FCF | 6.07 | ||
| P/OCF | 5.37 | ||
| P/B | 1.43 | ||
| P/tB | 4.86 | ||
| EV/EBITDA | 7.41 |
EPS(TTM)5.6
EY7.1%
EPS(NY)6.88
Fwd EY8.72%
FCF(TTM)12.99
FCFY16.48%
OCF(TTM)14.67
OCFY18.61%
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 | 3.21 |
F-Score7
WACC8.34%
ROIC/WACC0.81
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%