LCI Industries (LCII)

FairStock Score: 66/100 — STEADY

Key Financials

Strengths

• Generates $164 million in annual free cash flow (5.7% yield on market cap)
• Solid return on equity of 13.7% above cost of capital
• Revenue growth of 16.1% demonstrates strong top-line momentum
• Attractive 3.8% dividend yield providing steady income returns
• Established organization with 12,300 employees providing operational scale

AI Analysis

LCI Industries is a small-cap consumer cyclical company valued at $2.9 billion. The business generates $4.1 billion in annual revenue with a 0.5% net margin and $164 million in free cash flow. From a quality standpoint, LCI shows Altman Z-Score of 2.2 in the grey zone and adequate 14% ROE. On valuation, the stock is reasonably priced at 15.9x earnings, with trades above its Graham Number with a negative 22% margin. Growth dynamics show revenue growing at 16.1% and profit growth of 95.7%. The 3.8% dividend yield adds an income component for patient holders. Our composite FairStock Score of 66/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

LCI's 16% revenue growth trajectory could accelerate as it captures additional market share in the consumer cyclical sector. With $164 million in annual free cash flow (5.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer