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LCI Industries (LCII)
NYSE:LCII
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LCI Industries
(NYSE:LCII)
72Outperform
Positive Factors
Financial Performance
Gross margin expanded to 23.5%, operating margins expanded to 5.8%, and EBITDA margin expanded to 9.4%, indicating strong margin expansion.
Market Share
LCI continues to see market share gains in its aftermarket business, supporting overall profitability.
Negative Factors
Tariff Exposure
Concerns persist about outsized tariff exposure and headwinds from ongoing outperformance of affordable RVs lingering longer than expected.
LCI Industries (LCII) vs. S&P 500 (SPY)
Market Cap
$2.45B
Dividend Yield4.37%
Average Volume (3M)306.50K
Price to Earnings (P/E)17.6
Beta (1Y)1.47
Revenue Growth-1.15%
EPS Growth121.43%
CountryUS
Employees11,500
SectorConsumer Cyclical
Sector Strength49
IndustryVehicles
Share Statistics
EPS (TTM)5.60
Shares Outstanding25,463,226
10 Day Avg. Volume317,326
30 Day Avg. Volume306,497
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)N/A
Price to Sales (P/S)0.67
Price to Cash Flow (P/CF)5.90
P/FCF Ratio5.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$119.80Price Target Upside30.97% Upside
Rating ConsensusHold
Number of Analyst Covering5
LCI Industries Business Overview & Revenue Model
Company DescriptionLCI Industries (LCII) is a leading supplier of components and solutions for the recreational vehicle (RV) and transportation industries. The company operates through its subsidiary, Lippert Components, Inc., and is known for its extensive range of products including RV chassis, axles, slide-out mechanisms, awnings, windows, and furniture. LCI Industries serves OEMs and aftermarket customers, contributing to the RV, marine, and manufactured housing markets.
How the Company Makes MoneyLCI Industries generates revenue primarily through the sale of its components and products to original equipment manufacturers (OEMs) and the aftermarket sector. The company benefits from its strong relationships with major RV manufacturers and its extensive distribution network. Key revenue streams include sales of chassis, axles, and related components for RVs, marine products, as well as aftermarket services such as replacement parts and accessories. Strategic acquisitions and partnerships also play a significant role in expanding its product portfolio and market reach, contributing to overall earnings.
LCI Industries Financial Statement Overview
Summary
LCI Industries exhibits solid financial health with strong cash flow and profitability metrics. While revenue has slightly declined, the company has maintained strong margins and a robust balance sheet with low leverage. Cash flow performance is a standout, supporting potential investment and growth opportunities despite revenue challenges.Income Statement
LCI Industries shows strong gross and net profit margins at 23.5% and 3.8% respectively for TTM, indicating good cost control and profitability. The revenue growth shows a decline of -1.15% from the previous year, suggesting challenges in market expansion. However, the EBIT and EBITDA margins have increased to 5.8% and 7.6% respectively, reflecting improved operational efficiency.75
Positive
Balance Sheet
The company's balance sheet is stable with a debt-to-equity ratio of 0.17 in TTM, indicating low leverage. The return on equity is 10.3%, showing decent returns to shareholders, although slightly lower than in previous years. The equity ratio of 47.9% suggests a solid capital structure with a balanced mix of debt and equity.70
Positive
Cash Flow
LCI Industries demonstrates strong cash flow generation, with a significant free cash flow growth rate of 49.5% in TTM. The operating cash flow to net income ratio of 1.85 indicates effective cash conversion from earnings. The free cash flow to net income ratio is 1.63, highlighting strong cash flow relative to net income.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.74B | 3.78B | 5.21B | 4.47B | 2.80B | Gross Profit |
| 879.72M | 776.19M | 1.27B | 1.04B | 706.09M | EBIT |
| 218.24M | 123.43M | 553.03M | 398.41M | 222.93M | EBITDA |
| 218.24M | 255.20M | 682.24M | 510.73M | 320.91M | Net Income Common Stockholders |
| 142.87M | 64.19M | 394.97M | 287.74M | 158.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 165.76M | 66.16M | 47.50M | 62.90M | 51.82M | Total Assets |
| 2.89B | 2.96B | 3.25B | 3.29B | 2.30B | Total Debt |
| 239.02M | 1.11B | 1.38B | 1.48B | 846.39M | Net Debt |
| 73.27M | 1.04B | 1.33B | 1.41B | 794.57M | Total Liabilities |
| 1.51B | 1.60B | 1.87B | 2.20B | 1.39B | Stockholders Equity |
| 1.39B | 1.36B | 1.38B | 1.09B | 908.33M |
| Cash Flow | Free Cash Flow | |||
| 327.95M | 465.02M | 471.87M | -210.11M | 174.05M | Operating Cash Flow |
| 370.28M | 527.23M | 602.51M | -111.57M | 231.40M | Investing Cash Flow |
| -61.10M | -83.75M | -241.79M | -281.22M | -232.30M | Financing Cash Flow |
| -208.22M | -426.18M | -374.87M | 404.56M | 14.05M |
LCI Industries Technical Analysis
Negative
91.47
Price Trends
102.90
Negative
108.46
Negative
108.27
Negative
Market Momentum
-1.97
Positive
35.36
Neutral
19.77
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCII, the sentiment is Negative. The current price of 91.47 is below the 20-day moving average (MA) of 103.24, below the 50-day MA of 102.90, and below the 200-day MA of 108.27, indicating a bearish trend. The MACD of -1.97 indicates Positive momentum. The RSI at 35.36 is Neutral, neither overbought nor oversold. The STOCH value of 19.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LCII.
LCI Industries Risk Analysis
LCI Industries disclosed 39 risk factors in its most recent earnings report. LCI Industries reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LCI Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.83B | 20.37 | 15.44% | ― | 4.11% | 50.07% | |
74 Outperform | $2.95B | 21.51 | 12.73% | 1.74% | 7.14% | -4.01% | |
72 Outperform | $2.45B | 17.56 | 10.42% | 4.37% | -1.15% | 121.43% | |
62 Neutral | $4.37B | 22.74 | 5.13% | 2.39% | -8.45% | -25.41% | |
60 Neutral | $12.39B | 10.47 | 1.07% | 3.58% | 1.64% | -18.33% | |
56 Neutral | $1.04B | ― | -1.39% | 3.45% | -14.10% | -110.55% | |
55 Neutral | $2.76B | 40.07 | 1.49% | ― | -5.92% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
LCII
LCI Industries
91.47
-16.42
-15.22%
DORM
Dorman Products
126.66
35.89
39.54%
GT
GoodYear Tire
9.38
-3.27
-25.85%
PATK
Patrick Industries
85.19
13.69
19.15%
THO
Thor Industries
78.77
-21.80
-21.68%
WGO
Winnebago Industries
35.65
-26.94
-43.04%
LCI Industries Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -9.26% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The call presented a mixed view with significant achievements in market leadership, financial performance improvements, and strategic partnerships. However, these were balanced by challenges such as declines in OEM sales, adverse mix shifts, and ongoing weakness in the marine sector, resulting in a neutral sentiment overall.Highlights
Near Stable Revenue Amid Challenges
LCI Industries reported annual revenue of $3.7 billion, a decrease of only 1% despite a challenging RV and marine market backdrop.
Expansion in Key Product Categories
The company expanded its market leadership across its top 5 product categories, accounting for 71% of North America RV OEM sales.
Growth in Automotive Aftermarket
The automotive aftermarket saw 7% organic growth due to market share gains.
Significant Increase in EBITDA
EBITDA increased by $89 million despite a weaker sales and mix backdrop.
Successful Partnership with Camping World
Sales through the Camping World partnership increased by 62%, with plans to expand to 100 more stores in 2025.
Reduction in Net Debt
Net debt was reduced to below 2x EBITDA, with $370 million generated from operating cash flow.
Operational Improvements and Cost Savings
Gross margins improved to 21.1% in Q4 2024 from 19.2% in the prior year period, supported by decreased steel prices and operational improvements.
Lowlights
Decreased OEM Sales
OEM net sales for Q4 2024 were $621.6 million, down 6% from the same period in 2023.
RV OEM Sales Decline
RV OEM net sales for Q4 2024 were $376 million, a decrease of 3% compared to the prior year period.
Weakness in Adjacent Industries
Net sales in adjacent industries decreased 13% to $1.1 billion for the year, largely due to weak demand in the marine market.
Softness in Marine Sales
Marine sales were down 15% due to inflation and high interest rates affecting retail demand, with continued softness expected in the first half of 2025.
Adverse Mix Shift Impact
There was a shift in mix towards lower-content single-axle travel trailers, affecting overall sales and content per unit.
Company Guidance
In the LCI Industries Fourth Quarter and Full Year 2024 Conference Call, several financial metrics and business highlights were provided, offering insight into the company's performance and strategic direction. The company reported full-year revenue of $3.7 billion, a slight decrease of 1% from the previous year. EBITDA increased by $89 million, and the company generated $370 million in cash flow from operations, reducing net debt to below two times EBITDA. RV OEM net sales were $1.7 billion, with a 7% increase in North American travel trailer and fifth-wheel wholesale shipments. The automotive aftermarket segment saw 7% organic growth, contributing to total aftermarket sales of $881 million. Despite a 13% decline in adjacent markets sales, the company maintained a strong operating profit margin of 12.6% in the aftermarket segment. The company set a target of $5 billion in total revenue by 2027, with plans for capital expenditures ranging from $50 million to $70 million in 2025. LCI Industries also anticipates a full-year wholesale shipment range of 335,000 to 350,000 units for 2025, reflecting optimism about market conditions and dealer inventory levels.LCI Industries Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
LCI Industries Announces $400M Convertible Notes Offering
Neutral
Mar 11, 2025
On March 11, 2025, LCI Industries announced its intention to commence a private offering of $400 million in convertible senior notes due 2030, subject to market conditions. This move is part of LCI’s strategy to leverage market opportunities and enhance its financial positioning, potentially impacting its operations and stakeholder interests.
Business Operations and Strategy
LCI Industries Targets $5 Billion Revenue by 2027
Positive
Feb 28, 2025
In its March 2025 investor presentation, LCI Industries outlined its strategic focus on innovation, operational efficiency, and market expansion, aiming for $5 billion in organic revenue by 2027. The company anticipates significant progress in 2025, with a 17% increase in wholesale shipments and $200 million in organic growth across its Lippert end markets, driven by improvements in the RV and marine production environments and cost structure reductions.
Business Operations and StrategyFinancial Disclosures
LCI Industries Shows Resilience in Q4 2024 Earnings
Positive
Feb 12, 2025
In its Q4 2024 earnings call, LCI Industries reported a resilient financial performance despite challenges in the RV and marine sectors, achieving a slight 1% decline in full-year revenue to $3.7 billion. The company emphasized its strategic market leadership, successful acquisitions, and innovative product introductions, such as the CURT Touring Coil Suspension and Furrion Chill Cube, which have strengthened its competitive positioning. Moving into 2025, LCI Industries is optimistic about growth opportunities due to improving RV market conditions and plans to enhance its market leadership through manufacturing excellence, product innovation, and robust customer support.
Financial Disclosures
LCI Industries to Announce 2024 Financial Results
Neutral
Jan 28, 2025
LCI Industries announced it will release its fourth quarter and full year 2024 financial results on February 11, 2025, accompanied by a conference call and webcast. This announcement indicates the company’s commitment to transparency and engagement with stakeholders, providing insights into its financial performance and positioning in the recreation and transportation markets.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.