LCI INDUSTRIES (LCII) Stock Fundamental Analysis
USA - NYSE:LCII - US50189K1034 - Common Stock
98.65 USD
-0.75 (-0.75%)
98.65 USD
0 (0%)
Taking everything into account, LCII scores 6 out of 10 in our fundamental rating. LCII was compared to 80 industry peers in the Automobile Components industry. LCII has an excellent financial health rating, but there are some minor concerns on its profitability. LCII has a correct valuation and a medium growth rate. 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.
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
With an excellent Return On Assets value of 4.81%, LCII belongs to the best of the industry, outperforming 91.25% of the companies in the same industry.
With an excellent Return On Equity value of 11.01%, LCII belongs to the best of the industry, outperforming 91.25% of the companies in the same industry.
The Return On Invested Capital of LCII (6.79%) is worse than 67.50% of its industry peers.
LCII had an Average Return On Invested Capital over the past 3 years of 8.44%. This is in line with the industry average of 8.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 11.01% | ||
| ROIC | 6.79% |
ROA(3y)6.42%
ROA(5y)6.98%
ROE(3y)14.54%
ROE(5y)17.48%
ROIC(3y)8.44%
ROIC(5y)9.16%
1.3 Margins
With a Profit Margin value of 3.94%, 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.
With a Operating Margin value of 6.17%, LCII is not doing good in the industry: 66.25% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of LCII has declined.
With a Gross Margin value of 23.53%, LCII is not doing good in the industry: 65.00% 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 | 6.17% | ||
| PM (TTM) | 3.94% | ||
| GM | 23.53% |
OM growth 3Y-13.19%
OM growth 5Y-7.15%
PM growth 3Y-15.93%
PM growth 5Y-9.15%
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 about the same amount of shares outstanding.
The number of shares outstanding for LCII remains at a similar level compared to 5 years ago.
Compared to 1 year ago, LCII has an improved debt to assets ratio.
2.2 Solvency
LCII has an Altman-Z score of 3.16. This indicates that LCII is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.16, LCII is doing good in the industry, outperforming 70.00% of the companies in the same industry.
The Debt to FCF ratio of LCII is 3.19, which is a good value as it means it would take LCII, 3.19 years of fcf income to pay off all of its debts.
LCII has a Debt to FCF ratio of 3.19. This is amongst the best in the industry. LCII outperforms 92.50% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that LCII is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, LCII is not doing good in the industry: 78.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 3.16 |
ROIC/WACC0.75
WACC9.06%
2.3 Liquidity
A Current Ratio of 2.81 indicates that LCII has no problem at all paying its short term obligations.
LCII has a better Current ratio (2.81) than 86.25% of its industry peers.
LCII has a Quick Ratio of 1.34. 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 Quick ratio of 1.34. This is in the better half of the industry: LCII outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.91% 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.
Looking at the last year, LCII shows a small growth in Revenue. The Revenue has grown by 1.36% 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)32.91%
EPS 3Y-20.96%
EPS 5Y-0.8%
EPS Q2Q%-0.42%
Revenue 1Y (TTM)1.36%
Revenue growth 3Y-5.78%
Revenue growth 5Y9.55%
Sales Q2Q%5%
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 14.82% yearly.
Based on estimates for the next years, LCII will show a small growth in Revenue. The Revenue will grow by 3.93% on average per year.
EPS Next Y17.7%
EPS Next 2Y14.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.41%
Revenue Next 2Y4.86%
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
A Price/Earnings ratio of 15.56 indicates a correct valuation of LCII.
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 (27.20), we can say LCII is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.36, LCII is valued correctly.
LCII's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of LCII to the average of the S&P500 Index (22.70), we can say LCII is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LCII.
Based on the Price/Free Cash Flow ratio, LCII is valued cheaply inside the industry as 86.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.05 | ||
| EV/EBITDA | 8.79 |
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 14.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y14.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.42%, LCII is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.89, LCII pays a better dividend. On top of this LCII pays more dividend than 100.00% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
5.2 History
The dividend of LCII is nicely growing with an annual growth rate of 11.26%!
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)11.26%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
74.73% 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.
DP74.73%
EPS Next 2Y14.82%
EPS Next 3YN/A
98.65
-0.75 (-0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners111.09%
Inst Owner Change0.4%
Ins Owners2.12%
Ins Owner Change1.07%
Market Cap2.39B
Analysts73.33
Price Target107.11 (8.58%)
Short Float %9.63%
Short Ratio7.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
Yearly Dividend4.36
Dividend Growth(5Y)11.26%
DP74.73%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.07%
Min EPS beat(2)2.38%
Max EPS beat(2)37.76%
EPS beat(4)3
Avg EPS beat(4)16.46%
Min EPS beat(4)-0.22%
Max EPS beat(4)37.76%
EPS beat(8)5
Avg EPS beat(8)8.13%
EPS beat(12)7
Avg EPS beat(12)25.23%
EPS beat(16)10
Avg EPS beat(16)23.96%
Revenue beat(2)2
Avg Revenue beat(2)3.32%
Min Revenue beat(2)1.21%
Max Revenue beat(2)5.43%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-3.27%
Max Revenue beat(4)5.43%
Revenue beat(8)2
Avg Revenue beat(8)-1.41%
Revenue beat(12)3
Avg Revenue beat(12)-0.81%
Revenue beat(16)7
Avg Revenue beat(16)1.33%
PT rev (1m)2.56%
PT rev (3m)-0.22%
EPS NQ rev (1m)-6.5%
EPS NQ rev (3m)-10.18%
EPS NY rev (1m)-1.65%
EPS NY rev (3m)-2.07%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0.8%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 13.36 | ||
| P/S | 0.62 | ||
| P/FCF | 8.05 | ||
| P/OCF | 7.03 | ||
| P/B | 1.73 | ||
| P/tB | 6.97 | ||
| EV/EBITDA | 8.79 |
EPS(TTM)6.34
EY6.43%
EPS(NY)7.38
Fwd EY7.48%
FCF(TTM)12.25
FCFY12.42%
OCF(TTM)14.03
OCFY14.22%
SpS159.71
BVpS57.14
TBVpS14.15
PEG (NY)0.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 11.01% | ||
| ROCE | 8.89% | ||
| ROIC | 6.79% | ||
| ROICexc | 7.31% | ||
| ROICexgc | 12.54% | ||
| OM | 6.17% | ||
| PM (TTM) | 3.94% | ||
| GM | 23.53% | ||
| FCFM | 7.67% |
ROA(3y)6.42%
ROA(5y)6.98%
ROE(3y)14.54%
ROE(5y)17.48%
ROIC(3y)8.44%
ROIC(5y)9.16%
ROICexc(3y)8.72%
ROICexc(5y)9.43%
ROICexgc(3y)14.54%
ROICexgc(5y)16.26%
ROCE(3y)11.05%
ROCE(5y)11.99%
ROICexcg growth 3Y-14.41%
ROICexcg growth 5Y-6.83%
ROICexc growth 3Y-15.03%
ROICexc growth 5Y-6.07%
OM growth 3Y-13.19%
OM growth 5Y-7.15%
PM growth 3Y-15.93%
PM growth 5Y-9.15%
GM growth 3Y0.28%
GM growth 5Y0.67%
F-Score5
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 35.54% | ||
| Cap/Sales | 1.11% | ||
| Interest Coverage | 7.97 | ||
| Cash Conversion | 94.43% | ||
| Profit Quality | 194.69% | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 3.16 |
F-Score5
WACC9.06%
ROIC/WACC0.75
Cap/Depr(3y)60.47%
Cap/Depr(5y)65.52%
Cap/Sales(3y)1.76%
Cap/Sales(5y)1.9%
Profit Quality(3y)358.47%
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 Y17.7%
EPS Next 2Y14.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.36%
Revenue growth 3Y-5.78%
Revenue growth 5Y9.55%
Sales Q2Q%5%
Revenue Next Year5.41%
Revenue Next 2Y4.86%
Revenue Next 3Y3.93%
Revenue Next 5YN/A
EBIT growth 1Y21.45%
EBIT growth 3Y-18.21%
EBIT growth 5Y1.72%
EBIT Next Year69.96%
EBIT Next 3Y22.57%
EBIT Next 5YN/A
FCF growth 1Y-31.6%
FCF growth 3YN/A
FCF growth 5Y9.19%
OCF growth 1Y-35.62%
OCF growth 3YN/A
OCF growth 5Y6.54%