Lci Industries

LCII

Motor Vehicle Parts & Accessories

Mkt Cap

$2.722B

PE

29.12

Debt

$855.9M

Cash

$22.63M

EV

$3.556B

FCF

$391.2M

Market Cap

$2.722B

P/E Ratio

29.12

Debt

$855.9M

Cash

$22.63M

EV

$3.556B

FCF

$391.2M

Charts data: {"Earnings":[{"time":"2014-12-30","value":62266000},{"time":"2015-12-30","value":74345000},{"time":"2016-12-30","value":129671000},{"time":"2017-12-30","value":132884000},{"time":"2018-12-30","value":148551000},{"time":"2019-12-30","value":146509000},{"time":"2020-12-30","value":158440000},{"time":"2021-12-30","value":287739000},{"time":"2022-12-30","value":394974000},{"time":"2023-12-30","value":64195000}],"Sales":[{"time":"2014-12-30","value":1190782000},{"time":"2015-12-30","value":1403066000},{"time":"2016-12-30","value":1678898000},{"time":"2017-12-30","value":2147770000},{"time":"2018-12-30","value":2475807000},{"time":"2019-12-30","value":2371482000},{"time":"2020-12-30","value":2796166000},{"time":"2021-12-30","value":4472697000},{"time":"2022-12-30","value":5207143000},{"time":"2023-12-30","value":3784808000}],"Net Margins":[{"time":"2014-12-30","value":0.05229000774281103},{"time":"2015-12-30","value":0.05298752874062945},{"time":"2016-12-30","value":0.0772357820427447},{"time":"2017-12-30","value":0.06187068447738817},{"time":"2018-12-30","value":0.060001042084459735},{"time":"2019-12-30","value":0.061779511714615584},{"time":"2020-12-30","value":0.05666330253640163},{"time":"2021-12-30","value":0.0643323256639115},{"time":"2022-12-30","value":0.07585234359801526},{"time":"2023-12-30","value":0.016961230265841756}],"Assets":[{"time":"2014-12-30","value":543841000},{"time":"2015-12-30","value":622946000},{"time":"2016-12-30","value":786904000},{"time":"2017-12-30","value":945858000},{"time":"2018-12-30","value":1243893000},{"time":"2019-12-30","value":1862595000},{"time":"2020-12-30","value":2298031000},{"time":"2021-12-30","value":3288094000},{"time":"2022-12-30","value":3246912000},{"time":"2023-12-30","value":2959319000}],"Stockholders Equity":[{"time":"2014-12-30","value":394898000},{"time":"2015-12-30","value":438575000},{"time":"2016-12-30","value":550269000},{"time":"2017-12-30","value":652745000},{"time":"2018-12-30","value":706255000},{"time":"2019-12-30","value":800672000},{"time":"2020-12-30","value":908326000},{"time":"2021-12-30","value":1092875000},{"time":"2022-12-30","value":1381008000},{"time":"2023-12-30","value":1355036000}],"ROE":[{"time":"2014-12-30","value":0.15767615941331686},{"time":"2015-12-30","value":0.1695149062304053},{"time":"2016-12-30","value":0.23565020017482358},{"time":"2017-12-30","value":0.2035772008977472},{"time":"2018-12-30","value":0.2103362100091327},{"time":"2019-12-30","value":0.1829825446624835},{"time":"2020-12-30","value":0.17443076604655156},{"time":"2021-12-30","value":0.26328628617179456},{"time":"2022-12-30","value":0.2860041361092767},{"time":"2023-12-30","value":0.04737512508892753}],"ROA":[{"time":"2014-12-30","value":0.1755788916245741},{"time":"2015-12-30","value":0.18661970700510155},{"time":"2016-12-30","value":0.2552407917611297},{"time":"2017-12-30","value":0.22654669094092347},{"time":"2018-12-30","value":0.15981117346910065},{"time":"2019-12-30","value":0.10748981931122976},{"time":"2020-12-30","value":0.09701087583239738},{"time":"2021-12-30","value":0.12116746054096994},{"time":"2022-12-30","value":0.17032429582323141},{"time":"2023-12-30","value":0.04170824436297675}]}

LCI Industries, together with its subsidiaries, manufactures and supplies components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates in two segments, Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures and distributes a range of engineered components, such as steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; electronic components; appliances; air conditioners; televisions and sound systems; tankless water heaters; towing products; truck accessories; and other accessories. This segment serves OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing, as well as travel trailers, fifth-wheel travel trailers, folding camping trailers, and truck campers. The Aftermarket segment supplies various components of RV and adjacent industries to retail dealers, wholesale distributors, and service centers. This segment also sells replacement glass and awnings to fulfill insurance claims; and biminis, covers, buoys, and fenders to the marine industry. The company was formerly known as Drew Industries Incorporated and changed its name to LCI Industries in December 2016. LCI Industries was incorporated in 1984 and is based in Elkhart, Indiana.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Lci Industries

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$391.2M	$481.7M	$583.3M	$694.6M	$813.2M	$935.7M	$1.058B	$1.175B	$1.281B	$1.37B	$1.439B	$14.39B
DCF		$418.8M	$441.1M	$456.7M	$465M	$465.2M	$457.3M	$441.6M	$418.6M	$389.6M	$355.7M	$3.557B
Value	$7.867B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 8.2%

Earnings Stability 14%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	5.3%	7.7%	6.2%	6%	6.2%	5.7%	6.4%	7.6%	1.7%	2.5%
ROA	19%	26%	23%	16%	11%	9.7%	12%	17%	4.2%	5.4%
ROE	17%	24%	20%	21%	18%	17%	26%	29%	4.7%	6.9%

What is the average Net Margin?

The average Net Margin over the past 5 years is +5.59%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.47%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +11.63%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.08%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +19.41%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.19%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	0.76	0.31	0.74	8.01	3.07	4.34	-6.54	2.42	1.82	2.19
Debt Equity	0.11	0.09	0.08	0.42	0.81	0.83	1.26	0.83	0.63	0.63
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	23%	23%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.19.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -1.25.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.23.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	12%	8.9%	11%	-27%	-2.1%
Net Income	-9.6%	-15%	-26%	-84%	-6.2%
Stockholders Equity	14%	14%	14%	-1.9%	-0.67%
FCF	17%	66%	39%	-1.5%	1.4%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +8.86%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -2.06%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -15.45%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -6.16%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +13.92%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.67%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +66.1%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +1.39%.