LCI Industries Fundamental Analysis (NYSE: LCII)
LCI Industries Fundamental Analysis (NYSE: LCII)
LCI Industries (NYSE: LCII) shows moderate financial fundamentals with a PE ratio of 12.10, profit margin of 5.24%, and ROE of 15.25%. The company generates $4.0B in annual revenue with strong year-over-year growth of 10.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LCII's fundamental strength across five key dimensions:
Efficiency Score
WeakLCII struggles to generate sufficient returns from assets.
Valuation Score
ExcellentLCII trades at attractive valuation levels.
Growth Score
ExcellentLCII delivers strong and consistent growth momentum.
Financial Health Score
ExcellentLCII maintains a strong and stable balance sheet.
Profitability Score
ModerateLCII maintains healthy but balanced margins.
Key Financial Metrics
Is LCII Expensive or Cheap?
P/E Ratio
LCII trades at 12.10 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LCII's PEG of 0.27 indicates potential undervaluation.
Price to Book
The market values LCI Industries at 1.79 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.68 times EBITDA. This is generally considered low.
How Well Does LCII Make Money?
Net Profit Margin
For every $100 in sales, LCI Industries keeps $5.24 as profit after all expenses.
Operating Margin
Core operations generate 7.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.25 in profit for every $100 of shareholder equity.
ROA
LCI Industries generates $6.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LCI Industries generates limited operating cash flow of $346.22M, signaling weaker underlying cash strength.
Free Cash Flow
LCI Industries produces free cash flow of $286.93M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $11.80 in free cash annually.
FCF Yield
LCII converts 11.17% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How LCII Stacks Against Its Sector Peers
| Metric | LCII Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.10 | 27.16 | Better (Cheaper) |
| ROE | 15.25% | 951.00% | Weak |
| Net Margin | 5.24% | -4915.00% (disorted) | Weak |
| Debt/Equity | 0.80 | 0.61 | Weak (High Leverage) |
| Current Ratio | 2.49 | 2.33 | Strong Liquidity |
| ROA | 6.46% | 314.00% | Weak |
LCII outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LCI Industries's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.38%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
20.40%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
44.94%
Industry Style: Cyclical, Growth, Discretionary
High Growth