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LCI Industries (LCII)
NYSE:LCII

LCI Industries (LCII) AI Stock Analysis

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LCI Industries

(NYSE:LCII)

75Outperform
LCI Industries demonstrates a solid financial position with strong cash flow generation, supported by favorable valuation metrics. The company's strategic initiatives and recent corporate actions bolster its growth prospects, though challenges like tariff uncertainties and marine sector softness pose risks. Overall, LCII presents a balanced risk-reward profile with potential upside.
Positive Factors
Earnings
LCII reported results that meaningfully beat expectations, maintaining a Buy rating and $130 price target.
Innovation
LCI grew share across key RV OEM categories and expanded its total addressable market by $500M with innovations like Furrion Chill Cube and CURT Touring Coil Suspension.
Market Share
LCI continues to see market share gains in its aftermarket business, supporting overall profitability.
Negative Factors
Market Conditions
Adjacent markets remain soft, largely a result of decreased sales.
Product Mix
LCII's results will be pressured near term from outperformance of affordable RVs and outsized tariff risk.
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)

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
75
Positive
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.
Balance Sheet
70
Positive
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.
Cash Flow
80
Positive
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.74B3.78B5.21B4.47B2.80B
Gross Profit
879.72M776.19M1.27B1.04B706.09M
EBIT
218.24M123.43M553.03M398.41M222.93M
EBITDA
218.24M255.20M682.24M510.73M320.91M
Net Income Common Stockholders
142.87M64.19M394.97M287.74M158.44M
Balance SheetCash, Cash Equivalents and Short-Term Investments
165.76M66.16M47.50M62.90M51.82M
Total Assets
2.89B2.96B3.25B3.29B2.30B
Total Debt
239.02M1.11B1.38B1.48B846.39M
Net Debt
73.27M1.04B1.33B1.41B794.57M
Total Liabilities
1.51B1.60B1.87B2.20B1.39B
Stockholders Equity
1.39B1.36B1.38B1.09B908.33M
Cash FlowFree Cash Flow
327.95M465.02M471.87M-210.11M174.05M
Operating Cash Flow
370.28M527.23M602.51M-111.57M231.40M
Investing Cash Flow
-61.10M-83.75M-241.79M-281.22M-232.30M
Financing Cash Flow
-208.22M-426.18M-374.87M404.56M14.05M

LCI Industries Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price91.56
Price Trends
50DMA
84.41
Positive
100DMA
93.72
Negative
200DMA
103.65
Negative
Market Momentum
MACD
2.15
Negative
RSI
64.83
Neutral
STOCH
89.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCII, the sentiment is Neutral. The current price of 91.56 is above the 20-day moving average (MA) of 83.32, above the 50-day MA of 84.41, and below the 200-day MA of 103.65, indicating a neutral trend. The MACD of 2.15 indicates Negative momentum. The RSI at 64.83 is Neutral, neither overbought nor oversold. The STOCH value of 89.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$2.31B14.9511.44%4.82%1.04%65.90%
THTHO
68
Neutral
$4.38B21.885.13%2.40%-8.45%-25.41%
BCBC
63
Neutral
$3.48B43.875.16%3.19%-15.42%-77.50%
61
Neutral
$6.97B11.382.88%3.90%2.64%-22.07%
PIPII
61
Neutral
$2.20B55.203.09%6.78%-17.86%-89.55%
WGWGO
61
Neutral
$1.02B-0.45%3.65%-12.29%-105.55%
60
Neutral
$612.38M-1.68%-27.18%84.33%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LCII
LCI Industries
91.98
-13.92
-13.14%
BC
Brunswick
52.80
-26.06
-33.05%
PII
Polaris
40.50
-38.47
-48.71%
THO
Thor Industries
83.66
-13.42
-13.82%
WGO
Winnebago Industries
36.61
-22.78
-38.36%
MBUU
Malibu Boats
31.91
-2.62
-7.59%

LCI Industries Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 16.30%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
LCI Industries showed strong growth and operational improvements in the first quarter, marked by record sales and successful acquisitions. However, challenges such as tariff uncertainties and softness in the marine sector pose potential risks to future performance.
Q1-2025 Updates
Positive Updates
Record Quarterly Sales
LCI Industries achieved over $1 billion in sales during the first quarter, marking an 8% year-over-year increase and the highest quarterly growth since June 2022.
Operating Margin Improvement
Operating margin increased by nearly 200 basis points due to disciplined manufacturing execution and cost actions.
Strong Performance in RV OEM Segment
RV OEM net sales totaled $531 million, up 15% year-over-year, driven by a double-digit rise in North American RV wholesale shipments.
Successful M&A Activities
The acquisition of Freedman Seating and Trans/Air strengthened LCI's position in the bus market, which is insulated from general economic cycles.
Aftermarket Growth
Aftermarket net sales were $222 million for the quarter, up 6% year-over-year due to higher volumes in RV and marine sectors and market share gains in automotive aftermarket.
Strong Financial Position
LCI Industries reported a strong cash and cash equivalents balance of $231 million and generated $43 million of operating cash flow during the quarter.
Negative Updates
Decline in Adjacent Industries Sales
Sales in adjacent industries decreased by 2% to $293 million, primarily due to softness in the marine sector as dealers focused on inventory rebalancing.
Tariff Uncertainty
Tariff uncertainties pose a potential 180 basis points margin impact for the year, creating challenges in pricing and supply chain strategies.
Softness in Marine Sector
Marine sales were down 15% due to the impact of inflation and high interest rates on retail demand, with expectations of continued softness.
Company Guidance
During the first quarter of fiscal year 2025, LCI Industries reported over $1 billion in sales, marking an 8% year-over-year increase, which is the highest quarterly growth since June 2022. The company aims to achieve $5 billion in revenue by 2027. Operating margins improved by nearly 200 basis points, driven by structural improvements and a 14% expansion in the wholesale environment compared to the previous year. RV OEM net sales rose 15% to $531 million due to a double-digit increase in North American RV wholesale shipments, while aftermarket net sales grew 6% to $222 million. The company made strategic acquisitions in the bus market with Freedman Seating and Trans/Air, strengthening its position in this sector. LCI also focused on supply chain efficiencies, reducing salary labor, and achieving an 85 basis point overhead and G&A reduction target for 2025. The company's balance sheet remains strong, with a net debt position at around 2x EBITDA, and it executed $28.3 million of share repurchases, maintaining a strong dividend with over a 5% yield.

LCI Industries Corporate Events

Stock BuybackDividends
LCI Industries Announces Dividend and Stock Buyback Plan
Positive
May 15, 2025

On May 15, 2025, LCI Industries announced a quarterly cash dividend of $1.15 per share and a new $300 million stock repurchase program over the next three years. This move reflects the company’s commitment to strategic capital deployment to enhance shareholder value, supported by strong operating cash flows and financial flexibility.

The most recent analyst rating on (LCII) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Spark’s Take on LCII Stock

According to Spark, TipRanks’ AI Analyst, LCII is a Outperform.

LCI Industries demonstrates a solid financial position with strong cash flows, efficient operations, and strategic growth plans. The technical outlook is positive, supported by recent upward trends. Attractive valuation metrics further enhance the investment thesis, though risks from tariffs and the marine sector remain.

To see Spark’s full report on LCII stock, click here.

Executive/Board Changes
David Reed Retires from LCI Industries Board
Neutral
May 15, 2025

On May 15, 2025, David Reed retired from the Board of Directors of LCI Industries after 22 years of service. His retirement was not due to any disagreements with the company. Reed, who has had a distinguished career at Ernst & Young LLP and other organizations, contributed significantly to LCI Industries’ growth and transformation, serving on various committees. His departure marks the end of an era of steady leadership and governance that has been instrumental in shaping the company.

The most recent analyst rating on (LCII) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Spark’s Take on LCII Stock

According to Spark, TipRanks’ AI Analyst, LCII is a Outperform.

LCI Industries demonstrates a solid financial position with strong cash flows, efficient operations, and strategic growth plans. The technical outlook is positive, supported by recent upward trends. Attractive valuation metrics further enhance the investment thesis, though risks from tariffs and the marine sector remain.

To see Spark’s full report on LCII stock, click here.

Shareholder Meetings
LCI Industries Holds Annual Stockholders Meeting
Neutral
May 15, 2025

On May 15, 2025, LCI Industries held its Annual Meeting of Stockholders, where 23,304,218 shares were represented out of the total 25,236,482 outstanding shares. During the meeting, ten directors were elected to serve until the next annual meeting, the compensation of executive officers was approved in a non-binding advisory vote, and KPMG LLP was ratified as the independent auditor for the year ending December 31, 2025.

The most recent analyst rating on (LCII) stock is a Buy with a $145.00 price target. To see the full list of analyst forecasts on LCI Industries stock, see the LCII Stock Forecast page.

Spark’s Take on LCII Stock

According to Spark, TipRanks’ AI Analyst, LCII is a Outperform.

LCI Industries demonstrates a solid financial position with strong cash flows, efficient operations, and strategic growth plans. The technical outlook is positive, supported by recent upward trends. Attractive valuation metrics further enhance the investment thesis, though risks from tariffs and the marine sector remain.

To see Spark’s full report on LCII stock, click here.

Business Operations and StrategyFinancial Disclosures
LCI Industries Reports Strong Q1 2025 Financial Results
Positive
May 7, 2025

LCI Industries reported strong financial results for the first quarter of 2025, achieving over $1 billion in sales, marking an 8% year-over-year increase. The company attributed this growth to its diverse market presence, strategic acquisitions, and operational efficiencies, including facility consolidations and supply chain improvements. LCI Industries also highlighted significant market share gains in its top product categories and continued expansion in the RV and marine aftermarkets, supported by partnerships and innovative products. The company remains optimistic about future growth, projecting increased wholesale shipments and continued content expansion in its offerings.

Spark’s Take on LCII Stock

According to Spark, TipRanks’ AI Analyst, LCII is a Outperform.

LCI Industries demonstrates a solid financial position with strong cash flows and profitability, which are key strengths. Technical analysis suggests potential for recovery, while valuation is attractive with a low P/E ratio and high dividend yield. The earnings call provides confidence in strategic growth plans but notes some risks. Overall, the stock presents a balanced risk-reward profile with potential upside from strategic initiatives.

To see Spark’s full report on LCII stock, click here.

M&A TransactionsBusiness Operations and Strategy
LCI Industries Acquires Freedman Seating Company
Positive
Apr 29, 2025

On April 29, 2025, LCI Industries announced the acquisition of Freedman Seating Company, a historic Illinois-based manufacturer of transportation seating solutions. This acquisition, following Lippert’s recent purchase of Trans Air, marks a strategic expansion into the transportation vehicle markets, enhancing Lippert’s product offerings and reinforcing its market position. The integration of Freedman will maintain its operations in Chicago, preserving its local workforce and community ties, while aiming to expand its legacy and reach.

Spark’s Take on LCII Stock

According to Spark, TipRanks’ AI Analyst, LCII is a Outperform.

LCI Industries maintains a robust financial position with strong cash flow and profitability metrics, despite a slight revenue decline. The technical indicators suggest potential recovery from oversold levels, while the valuation remains attractive with a good dividend yield. The earnings call and corporate events highlight strategic growth plans and market leadership, though challenges in OEM and marine sales persist. Overall, the stock presents a balanced risk-reward profile with potential upside from strategic initiatives.

To see Spark’s full report on LCII stock, click here.

Financial Disclosures
LCI Industries to Announce Q1 2025 Financial Results
Neutral
Apr 22, 2025

On April 22, 2025, LCI Industries announced it will release its first quarter 2025 financial results on May 6, 2025, before the market opens. The company will also host a conference call on the same day to discuss these results, including a Q&A session with institutional investors and analysts, highlighting its proactive engagement with stakeholders.

Spark’s Take on LCII Stock

According to Spark, TipRanks’ AI Analyst, LCII is a Outperform.

LCI Industries maintains a robust financial position with strong cash flow and profitability metrics, despite a slight revenue decline. The technical indicators suggest potential recovery from oversold levels, while the valuation remains attractive with a good dividend yield. The earnings call and corporate events highlight strategic growth plans and market leadership, though challenges in OEM and marine sales persist. Overall, the stock presents a balanced risk-reward profile with potential upside from strategic initiatives.

To see Spark’s full report on LCII stock, click here.

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.

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.