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:
Below please find a table outlining a discounted cash flow forecast for LCII, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Lci Industries ranked in the 47th percentile in terms of potential gain offered. The most interesting components of our discounted cash flow analysis for Lci Industries ended up being:
Interest coverage, a measure of earnings relative to interest payments, is 11.6; that's higher than 82.62% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
Lci Industries's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 17.18% 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 only 17.18% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Lci Industries? See ORLY, SGA, UFI, VSTO, and MYE.
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Source: Reuters COVID-19 practically brought business activity to a halt in March and April. It hurt the RV industry in particular, as temporary shutdowns of manufacturing plants caused revenue to fall hard. LCI Industries (LCII) was negatively impacted by knock-on effects of COVID-19. The company reported revenue of $525.77 million,...
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