LCI Industries, formerly known as Drew Industries, supplies a broad array of components for the leading manufacturers of recreational vehicles and manufactured homes, and to a lesser extent supplies components for adjacent industries including buses; trailers used to haul boats, livestock, equipment and other cargo; modular housing; and factory-built mobile office units. The company was founded in 1962 and is based in Elkhart, Indiana.
LCII Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Lci Industries. To summarize, we found that Lci Industries ranked in the 65th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 130.5%. As for the metrics that stood out in our discounted cash flow analysis of Lci Industries, consider:
Interest coverage, a measure of earnings relative to interest payments, is 17.13 -- which is good for besting 83.33% of its peer stocks (US stocks in the Consumer Cyclical sector with positive cash flow).
Lci Industries's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 17.19% of tickers in our DCF set.
LCII's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 17.19% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BTN, CBRL, BSET, LGF.B, and JOUT can be thought of as valuation peers to LCII, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.