LCI INDUSTRIES (LCII) Stock Fundamental Analysis
NYSE:LCII - New York Stock Exchange, Inc. - US50189K1034 - Common Stock - Currency: USD
LCII gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Automobile Components industry. LCII scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. LCII has a correct valuation and a medium 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.
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 doing worse than 60.24% of the companies in the same industry.
LCII has a Return On Equity of 10.30%. This is in the lower half of the industry: LCII underperforms 60.24% of its industry peers.
The Return On Invested Capital of LCII (6.72%) is worse than 67.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LCII is in line with the industry average of 9.58%.
| 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
The Profit Margin of LCII (3.82%) is worse than 61.45% of its industry peers.
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 68.67% of its industry peers.
In the last couple of years the Operating Margin of LCII has declined.
LCII's Gross Margin of 23.51% is on the low side compared to the rest of the industry. LCII is outperformed by 66.27% of its industry peers.
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
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
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.
Looking at the Debt to FCF ratio, with a value of 2.31, LCII belongs to the top of the industry, outperforming 93.98% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that LCII is somewhat dependend on debt financing.
LCII has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: LCII underperforms 75.90% 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 | N/A |
ROIC/WACC0.75
WACC8.96%
2.3 Liquidity
LCII has a Current Ratio of 2.82. This indicates that LCII is financially healthy and has no problem in meeting its short term obligations.
LCII has a Current ratio of 2.82. This is amongst the best in the industry. LCII outperforms 83.13% 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 Quick ratio of 1.03. This is in the lower half of the industry: LCII underperforms 79.52% 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.
The Revenue has decreased by -1.15% in the past 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)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
The Earnings Per Share is expected to grow by 17.79% on average over the next years. This is quite good.
LCII is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.37% yearly.
EPS Next Y22.31%
EPS Next 2Y17.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.58%
Revenue Next 2Y4.37%
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
The Price/Earnings ratio is 18.81, which indicates a rather expensive current valuation of LCII.
LCII's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.63, LCII is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.37, which indicates a correct valuation of LCII.
Based on the Price/Forward Earnings ratio, LCII is valued a bit more expensive than 60.24% of the companies in the same industry.
LCII is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 15.37 |
4.2 Price Multiples
LCII's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. LCII is more expensive than 66.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LCII is valued a bit cheaper than 67.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.18 | ||
| EV/EBITDA | 9.65 |
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 17.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)N/A
EPS Next 2Y17.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.30%, LCII is a good candidate for dividend investing.
LCII's Dividend Yield is rather good when compared to the industry average which is at 4.03. LCII pays more dividend than 97.59% of the companies in the same industry.
LCII's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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 over 5 years, so it has already some 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
76.62% 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.
DP76.62%
EPS Next 2Y17.79%
EPS Next 3YN/A
105.31
-1.75 (-1.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners106.31%
Inst Owner Change2.08%
Ins Owners2.04%
Ins Owner Change-0.7%
Market Cap2.68B
Analysts72.5
Price Target121.83 (15.69%)
Short Float %6.21%
Short Ratio5.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend4.31
Dividend Growth(5Y)11.01%
DP76.62%
Div Incr Years8
Div Non Decr Years8
Ex-DateN/A
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)-0.57%
PT rev (3m)-2.59%
EPS NQ rev (1m)1.41%
EPS NQ rev (3m)-42.64%
EPS NY rev (1m)0.09%
EPS NY rev (3m)-3.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-47.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 15.37 | ||
| P/S | 0.72 | ||
| P/FCF | 8.18 | ||
| P/OCF | 7.24 | ||
| P/B | 1.93 | ||
| P/tB | 6.55 | ||
| EV/EBITDA | 9.65 |
EPS(TTM)5.6
EY5.32%
EPS(NY)6.85
Fwd EY6.5%
FCF(TTM)12.88
FCFY12.23%
OCF(TTM)14.54
OCFY13.81%
SpS146.94
BVpS54.47
TBVpS16.07
PEG (NY)0.84
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 | 250 | ||
| Cash Conversion | 107.66% | ||
| Profit Quality | 229.55% | ||
| Current Ratio | 2.82 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | N/A |
F-Score7
WACC8.96%
ROIC/WACC0.75
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 Y22.31%
EPS Next 2Y17.79%
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 Year3.58%
Revenue Next 2Y4.37%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y76.81%
EBIT growth 3Y-18.18%
EBIT growth 5Y1.74%
EBIT Next Year79.34%
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%