One-glance verdict
Undervalued
$178.70 our estimate vs market $83.89
Wall Street consensus: $124.80 (-30.2% lower than our fair-value estimate)
53% below our estimate, below the bear case
Fundamentals snapshot
LCI Industries
LCII · NYQ · Consumer Cyclical · Recreational Vehicles
Current price
$83.89
52-week range
$77.58 - $159.66
Market cap
$2.04B
Balance sheet
Watch
7.84x Adequate
Net debt $929.67M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 15.0% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Operating margin compressed from 10.6% to 0.5% over 3 years.
- Risk Insider ownership is only 3.5% (peer median: 3.7%).
What this company does
LCI Industries
LCI Industries makes and sells almost every part needed to build a recreational vehicle (RV), from the steel frame underneath to the windows and furniture inside. The company earns most of its money by selling these components directly to RV manufacturers, which means its business is closely tied to how many new RVs are being built and sold. It also sells replacement parts and accessories to repair shops and directly to RV owners, providing a second stream of income.
How the company got here
LCI Industries began in 1956 as B&L Industries, founded by Larry Lippert and his partner to make roofing for mobile homes. Over the years, it grew by acquiring other companies and expanding its product lines for recreational vehicles (RVs). A key moment was in 2016 when the parent company, then called Drew Industries, changed its name to LCI Industries to better reflect the importance of its main operating brand, Lippert. More recently, the company has focused on expanding beyond just RVs into related areas like boating, trailers, and truck accessories to create a more stable business.
What it actually does
LCI Industries, mostly known through its brand Lippert, makes and sells a wide variety of parts for RVs, boats, trailers, and other vehicles. Think of them as a major supplier for the things you see and use in a modern RV or boat, from the steel frame underneath to the windows, doors, furniture, and awnings. They sell these parts directly to the companies that build the vehicles and also as replacement or upgrade parts to dealers and customers. Their products range from essential mechanical parts like axles and leveling systems to comfort items like mattresses and appliances.
Original Equipment Manufacturers (OEM)
This is the company's largest business segment, which sells components directly to the manufacturers who are building new vehicles. Customers in this segment are companies that make RVs, boats, buses, and various types of trailers. LCI provides them with engineered parts like steel chassis (the vehicle's frame), slide-out mechanisms that expand the living space in an RV, windows, doors, and furniture. This part of the business is crucial for large sales volumes but can be cyclical (meaning it goes up and down with the economy and new vehicle sales).
Aftermarket
The Aftermarket segment sells parts for vehicles that are already in use. This includes selling to retail dealers, wholesale distributors, repair centers, and directly to customers online. If you own an RV and need to replace a broken awning or want to upgrade your steps, you might buy a Lippert product from this segment. This business is strategically important because it provides a steadier stream of sales that doesn't just depend on new vehicle production.
What management is betting on now
Management's current focus is on reducing the company's dependence on the sometimes unpredictable RV manufacturing industry. They are doing this by growing their Aftermarket business, which provides more stable demand from the large number of existing RVs and trailers that need repairs and upgrades. The company is also pushing into related markets like boating, towing, and truck accessories to create more ways to grow. Another key strategy is to increase the number of components they sell for each vehicle, a concept known as increasing content per unit, by introducing new and innovative products.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$68.34M
FY2024 Q4
$95.65M
FY2025 Q1
$33.68M
FY2025 Q2
$99.48M
FY2025 Q3
$80.87M
FY2025 Q4
$64.30M
FY2026 Q1
$-43.13M
FY2026 Q2
$184.91M
Revenue
$968.67M
Net income
$67.14M
Diluted EPS
2.75
Operating cash flow
$203.68M
Free cash flow
$184.91M
Fetching…
Sources
Revenue
$1.09B
Net income
$62.95M
Diluted EPS
2.53
Operating cash flow
$-33.46M
Free cash flow
$-43.13M
Fetching…
Sources
Revenue
$932.70M
Net income
$18.68M
Diluted EPS
0.79
Operating cash flow
$78.87M
Free cash flow
$64.30M
Fetching…
Sources
Revenue
$1.04B
Net income
$62.49M
Diluted EPS
2.55
Operating cash flow
$97.17M
Free cash flow
$80.87M
Fetching…
Sources
Revenue
$1.11B
Net income
$57.63M
Diluted EPS
2.29
Operating cash flow
$112.22M
Free cash flow
$99.48M
Fetching…
Sources
Revenue
$1.05B
Net income
$49.44M
Diluted EPS
1.94
Operating cash flow
$42.72M
Free cash flow
$33.68M
Fetching…
Sources
Revenue
$803.14M
Net income
$9.55M
Diluted EPS
0.37
Operating cash flow
$106.60M
Free cash flow
$95.65M
Fetching…
Sources
Revenue
$915.50M
Net income
$35.61M
Diluted EPS
1.39
Operating cash flow
$78.41M
Free cash flow
$68.34M
Fetching…
Sources
Is it cheap or expensive?
Fair value $178.70 vs current price $83.89
Wall Street consensus is the average analyst price target: $124.80 (-30.2% lower than our fair-value estimate).
Our most-likely fair value is $178.70 a share — about 113.0% above today's price of $83.89, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $929.7M. Interest coverage 7.8x.
Net debt
$929.67M
Interest coverage
7.84x
LCI Industries's profit covers its interest bill about 7.8 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
LCII
BASELINE
LCI Industries
Total debt $1.15B Interest coverage 7.84x This is the baseline the peer rows are being compared against.
Total debt $1.65B Interest coverage 3.70x -53% vs LCII Carries about 2.1x less debt cushion than LCII.
Total debt $909.97M Interest coverage 6.17x -21% vs LCII Carries about 1.3x less debt cushion than LCII.
Total debt $408.40M Interest coverage 33.62x +329% vs LCII Carries about 4.3x more debt cushion than LCII.
Total debt $2.29B Interest coverage 2.80x -64% vs LCII Carries about 2.8x less debt cushion than LCII.
Total debt $482.90M Interest coverage 2.21x -72% vs LCII Carries about 3.5x less debt cushion than LCII.
What you should know
The case for and against LCII
3 Rewards
2 Risks
Rewards
-
Returns 15.0% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 9/10 years.
-
Trades at 9.7x P/E vs peer median 17.8x (45.3% cheaper).
Risks
-
Operating margin compressed from 10.6% to 0.5% over 3 years.
-
Insider ownership is only 3.5% (peer median: 3.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
9.72x
Forward P/E
8.91x
P/B
1.42x
P/S
0.51x
EV/EBITDA
6.78x
PEG ratio
1.04x
Profitability
How much profit each dollar creates
Gross margin
25.7%
Operating margin
0.5%
Net margin
5.2%
ROE
15.0%
ROA
6.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.80x
Current ratio
2.49x
Quick ratio
1.04x
Total debt
$1.15B
Total cash
$216.51M
Growth
How the business has been compounding
Revenue TTM
$4.03B
Revenue 5Y CAGR
-2.0%
EPS TTM
8.63
EPS 5Y CAGR
-21.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$346.26M
Free CF TTM
$278.33M
FCF margin
6.9%
Dividend
Shareholder payout
Yield
5.5%
Payout ratio
53.3%
Last ex-div date
2026-08-21