Quality Investor

LCI Industries

Rank #224Capital Return

LCII · NYSE · Consumer Cyclical

LCI Industries (LCII) — Rank #224 by gross profitability (GP/assets 0.30) · ROE 13.1% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0000763744 · all metrics point-in-time as of the filing date.

About

LCI Industries, together with its subsidiaries, manufactures and supplies engineered components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally.

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It operates through two segments, Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures and distributes a range of engineered components, such as steel chassis, axles, anti-lock braking systems, and suspension systems; manual, electric, and hydraulic stabilizer and leveling systems; awnings, slide-out mechanisms, and accessories; vinyl, aluminum, and frameless windows; entry, luggage, patio, and ramp doors; electric and manual entry steps and awnings; thermoformed bath and kitchen products; furniture, mattresses, tankless water heaters, air conditioners, appliances, electronic components, televisions, and sound systems; windshields; and hitches, pin boxes, grill guards, towing electrical, and towing and truck accessories. This segment serves OEMs of RVs and adjacent industries, including boats, buses, cargo and utility trailers used to haul boats, livestock, equipment, and other cargo; trucks; trains; manufactured homes; and modular housing. The Aftermarket segment supplies engineered components to aftermarket channels of the recreation and transportation markets for retail dealers, wholesale distributors, and service centers, as well as direct-to-consumer sales through online platforms. This segment also sells replacement glass and awnings to fulfill insurance claims; and biminis, covers, buoys, fenders, towing products, truck accessories, appliances, air conditioners, televisions, sound systems, and tankless water heaters. LCI Industries was formerly known as Drew Industries Incorporated and changed its name to LCI Industries in December 2016.

The company was founded in 1956 and is headquartered in Elkhart, Indiana.

Industry
Recreational Vehicles
Sector
Consumer Cyclical
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

LCII-19.1% · -4.2% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$2.12B

P/E (annual)

11.5

P/S (annual)

0.5

P/B

1.5

P/OCF (annual)

6.4

Shareholder Yield

7.9%

Employees

12,300

Industry

Recreational Vehicles

Exchange

NYSE

Signal Flags

3 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.30
Return on equity
13.1%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.28
Current ratio
2.49×
Net cash
-$636.08M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.6%

Growth

2/2 pass
Revenue growth
10.2%
Piotroski F-Score
8 / 9
Share dilution
-2.6%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

-5.4%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -2.6% — per-share value needs a total required return of -8.0% once share-count change is priced in.

vs. own 6-year median revenue growth: 13.3%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-8.9%

r = 10% (base)

-5.4%

r = 12%

-2.4%

Net debt / market cap: 29.4%

Base FCF: $278.3M3Y mean FCF: $357.1M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

17.9xFair
7.4xmed 16.3x48.4x

P / S

Price / revenue per share

0.8xFair
0.6xmed 0.8x1.3x

P / B

Price / book value per share

2.5xFair
1.9xmed 2.9x3.9x

P / GP

Price / gross profit per share

3.4xFair
2.3xmed 4.0x5.0x

P / FCF

Price / free cash flow per share

12.1xFair
6.2xmed 12.1x56.7x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.30

Primary signal (Novy-Marx).

1st of 12 SIC 3714 peers

Return on equity

13.1%

Gross margin

23.8%

5th of 12 SIC 3714 peers

Revenue growth (YoY)

10.2%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-7.5%

Revenue CAGR (5Y)

8.1%

Earnings CAGR (3Y)

-21.9%

FCF CAGR (3Y)

-16.1%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.28

6th of 11 SIC 3714 peers (best = lowest)

Current ratio

2.49×

5th of 12 SIC 3714 peers

Quick ratio

1.00×

Net cash

-$636.08M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$278.33M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.48

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.6%

Stock-based comp intensity.

Dividend safety

Composite score

3.2 / 5

Good
Payout ratio
60.6%2/5 Fair
FCF coverage
2.44×4/5 Strong
Dividend growth streak
9 yr4/5 Strong
Balance-sheet health
D/E 1.28 · IC 7.84×3/5 Good

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Capital Return
Hypergrowth
Decline
Value