LCI Industries (LCII) AI Stock Analysis

• Market Cap: $1.95B
• Dividend Yield: 5.71%
• Average Volume (3M): 541.72K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.10
• Revenue Growth: -1.15%
• EPS Growth: 121.43%
• Country: US
• Employees: 11,500
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Auto - Recreational Vehicles
• EPS (TTM): 5.60
• Shares Outstanding: 25,236,483
• 10 Day Avg. Volume: 543,019
• 30 Day Avg. Volume: 541,720
• PEG Ratio: 0.11
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.95
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $107.67
• Price Target Upside: 39.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

LCI Industries maintains strong financial health with excellent cash flow and profitability metrics, despite a slight revenue decline. The stock's valuation is attractive due to a low P/E ratio and high dividend yield. However, technical analysis indicates potential downward pressure, though the stock approaches oversold levels. The earnings call and corporate events support strategic growth plans, balancing near-term challenges in OEM and marine sales. Overall, the stock presents a balanced risk-reward profile with potential upside from strategic initiatives.

Positive Factors

Earnings

LCII's January net sales were ~$328 million due to a +17% increase in RV OEM sales and aftermarket sales increasing +6%.

Market Expansion

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.

Profitability

Gross margin expanded to 23.5%, operating margins expanded to 5.8%, and EBITDA margin expanded to 9.4%, indicating strong margin expansion.

Negative Factors

Market Conditions

Soft consumer demand and limited appetite for inventory in key end markets are limiting near-term growth opportunities.

Sales Decline

Adjacent markets remain soft, largely a result of decreased sales.

Tariff Exposure

Concerns persist about outsized tariff exposure and headwinds from ongoing outperformance of affordable RVs lingering longer than expected.

LCI Industries Business Overview & Revenue Model

Company Description

LCI 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 Money

LCI 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 77.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 77.08 is below the 20-day moving average (MA) of 78.37, below the 50-day MA of 88.03, and below the 200-day MA of 105.06, indicating a bearish trend. The MACD of -2.75 indicates Negative momentum. The RSI at 41.93 is Neutral, neither overbought nor oversold. The STOCH value of 42.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LCII.

LCI Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LCII	71 Outperform	$1.95B	13.76	10.42%	5.71%	-1.15%	121.43%
THO	68 Neutral	$3.85B	19.22	5.13%	2.71%	-8.45%	-25.41%
BC	64 Neutral	$3.04B	38.11	5.16%	3.67%	-15.42%	-77.50%
WGO	61 Neutral	$872.15M	―	-0.45%	3.99%	-12.29%	-105.55%
Sector *	61 Neutral	$6.55B	11.72	3.07%	4.01%	2.66%	-21.27%
PII	60 Neutral	$1.95B	48.84	3.09%	7.80%	-17.86%	-89.55%
MBUU	48 Neutral	$560.78M	―	-15.71%	―	-39.56%	-238.09%

LCI Industries Corporate Events

LCI Industries Acquires Freedman Seating Company

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.

LCI Industries to Announce Q1 2025 Financial Results

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.

LCI Industries Announces $400M Convertible Notes Offering

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.

LCI Industries Targets $5 Billion Revenue by 2027

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.

LCI Industries Shows Resilience in Q4 2024 Earnings

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.