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 6 out of 10. We evaluated LCII against 81 industry peers in the Automobile Components industry. LCII has an excellent financial health rating, but there are some minor concerns on its profitability. LCII is not valued too expensively and it also shows a decent growth rate. 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
LCII has a Return On Assets (5.02%) which is in line with its industry peers.
LCII's Return On Equity of 11.40% is amongst the best of the industry. LCII outperforms 88.89% of its industry peers.
With a Return On Invested Capital value of 7.00%, LCII is not doing good in the industry: 67.90% of the companies in the same industry are doing better.
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 | 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
The Profit Margin of LCII (4.08%) is comparable to the rest of the industry.
LCII's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.34%, LCII is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
LCII's Operating Margin has declined in the last couple of years.
LCII has a worse Gross Margin (23.77%) than 64.20% of its industry peers.
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 | 6.34% | ||
| 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
LCII has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, LCII has more shares outstanding
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 3.20 indicates that LCII is not in any danger for bankruptcy at the moment.
LCII's Altman-Z score of 3.20 is fine compared to the rest of the industry. LCII outperforms 72.84% 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.
LCII's Debt to FCF ratio of 2.48 is amongst the best of the industry. LCII outperforms 92.59% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that LCII is somewhat dependend on debt financing.
LCII has a Debt to Equity ratio of 0.68. This is in the lower half of the industry: LCII underperforms 75.31% 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 | 0.68 | ||
| Debt/FCF | 2.48 | ||
| Altman-Z | 3.2 |
ROIC/WACC0.74
WACC9.43%
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 Current ratio of 2.96. This is amongst the best in the industry. LCII outperforms 87.65% of its industry peers.
LCII has a Quick Ratio of 1.41. This is a normal value and indicates that LCII is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.41, LCII is doing good in the industry, outperforming 77.78% of the companies in the same industry.
| 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 72.55% 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 small growth in Revenue. The Revenue has grown by 1.04% 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)1.04%
Revenue growth 3Y-5.78%
Revenue growth 5Y9.55%
Sales Q2Q%8.01%
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 4.95% on average over the next years.
EPS Next Y19.77%
EPS Next 2Y14.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.84%
Revenue Next 2Y4.95%
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
The Price/Earnings ratio is 14.36, which indicates a correct valuation of LCII.
LCII's Price/Earnings is on the same level as the industry average.
LCII's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.15.
The Price/Forward Earnings ratio is 12.40, which indicates a correct valuation of LCII.
LCII's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of LCII to the average of the S&P500 Index (21.60), we can say LCII is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 12.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LCII is valued a bit more expensive than 60.49% of the companies in the same industry.
LCII's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LCII is cheaper than 82.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.09 | ||
| EV/EBITDA | 8.31 |
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)0.73
PEG (5Y)N/A
EPS Next 2Y14.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LCII has a Yearly Dividend Yield of 5.08%, which is a nice return.
LCII's Dividend Yield is rather good when compared to the industry average which is at 4.43. LCII pays more dividend than 98.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, LCII pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
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.
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.
The dividend of LCII is growing, but earnings are growing more, so the dividend growth is sustainable.
DP71.97%
EPS Next 2Y14.58%
EPS Next 3YN/A
91.19
-0.76 (-0.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners109.27%
Inst Owner Change1.61%
Ins Owners2.12%
Ins Owner Change2.54%
Market Cap2.30B
Analysts73.33
Price Target104.17 (14.23%)
Short Float %9.08%
Short Ratio4.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
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)-8.31%
PT rev (3m)-13.7%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-11.4%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-2.08%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 12.4 | ||
| P/S | 0.6 | ||
| P/FCF | 6.09 | ||
| P/OCF | 5.47 | ||
| P/B | 1.68 | ||
| P/tB | 6.01 | ||
| EV/EBITDA | 8.31 |
EPS(TTM)6.35
EY6.96%
EPS(NY)7.35
Fwd EY8.06%
FCF(TTM)14.97
FCFY16.42%
OCF(TTM)16.67
OCFY18.28%
SpS151.3
BVpS54.15
TBVpS15.17
PEG (NY)0.73
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 | 3.2 |
F-Score6
WACC9.43%
ROIC/WACC0.74
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 Y19.77%
EPS Next 2Y14.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.04%
Revenue growth 3Y-5.78%
Revenue growth 5Y9.55%
Sales Q2Q%8.01%
Revenue Next Year4.84%
Revenue Next 2Y4.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y50.28%
EBIT growth 3Y-18.18%
EBIT growth 5Y1.74%
EBIT Next Year70.6%
EBIT Next 3YN/A
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%