LCI Industries (LCII) supplies a large number of highly engineered components for the leading original equipment manufacturers.
Recently, LCI announced the Q3 earnings report and the stock looks like a good option for value investors.
By Gorica Gligorijevic
LCI Industries (LCII), announced a few days ago that the Board of Directors authorized a quarterly dividend of $0.65/share of common stock on December 20, 2019. The dividend is payable to the stockholders that record at the close of business on December 6, 2019. Almost at the same time the company LCI Industries appointed Johnny Sirpilla to Board of Directors. Johnny Sirpilla is the founder of Encourage LLC. It is a small equity firm investing in population health management, employee health, medical device development, cancer prevention testing, fashion, interior design, senior living communities, residential and commercial development projects, etc.
This stock could easily provide a 204% profit in just over 5 years. Insider information claims that there is a strong buying activity of this stock.
It is currently traded at $104.71.
On November 5 the company issued a Q3 earnings report and had an earnings call presentation.
LCI Industries revenue
The company reported third-quarter revenues of $586 million which is down 3% from the same quarter last year. Its wholesale shipments declined double-digits. Also, LCI reported a content increase in towable RVs, innovations that provide them to perform better than the other similar companies in the market.
LCI’s international markets now exceed 41% of the total net sales. The operating margins are improved, according to the report.
Despite the increase in the content of towable RV increasing 2.2%, there was a drop in content for the motorhome. That decreased 2.9% over the past 12 months due to a shift to smaller motorhomes this year. The bright side of this report is the increase in sales RVs among younger buyers.
LCI Industries reported $1.42 EPS for the quarter, beating the consensus estimate of $1.40 by $0.02. As we said, the company had revenue of $586.20 million for the quarter. The consensus estimation was of $578.87 million. LCI Industries has made $5.86 earnings per share over the last year. The current price-to-earnings ratio is 17.9. LCI Industries’ next earnings publication date is Thursday, February 6th, 2020 based on last year’s report dates.
Investors interested in stocks from this industry estimate the LCI value opportunity in the future.
Why LCII stock has a buy signal?
LCII’s earnings have an improving outlook. Value investors examine figures to determine whether a company is undervalued.
LCII forward P/E ratio is 18.88 and a PEG ratio of 1.18, which is a very important figure for a company’s expected earnings growth rate.
The P/B ratio is 3.41. For value investors, the P/B ratio is important to compare a stock’s market value to its book value.
LCII stands above others due to its stable earnings outlook.
So Traders-Paradise opinion is that LCII is an excellent value option with more possibilities in the future.
LCI Industries has increased its EPS by an average of 2.2% per year, during the last 3 years. In the last year, but its revenue is down by 5.7%. To be honest, it is always better to see revenue growth, but never forget how EPS growth is important. For LCI Industries, these two metrics are running in diverse directions, so despite the fact that it is difficult to be sure of future performance, we think this stock deserves to be watched. Moreover, this stock looks undervalued in comparison to its fair value. LCII is trading at $104.71 which is below some experts estimations of the stock’s fair value at $150.64.
About LCI Industries
LCI Industries manufactures recreational vehicles, popular RVs, and accessories. The company sells toolboxes, truck caps, running boards, side-outs, mattresses, alignment systems, shock absorber, power stabilizer jacks, baggage doors, and sliders. LCI Industries sells its products globally.
Customers are extremely satisfied with this company claiming the workers and support service at this company are great. Investors could be satisfied since the estimations show that the company has offices in Elkhart, Bradenton, Chesaning, Denver, and in 32 other locations. LCI has over 10.000 employees across 55 locations. The company’s headquarters is in White Plains, New York, United States.