📊 LCII Key Takeaways
Is Lci Industries (LCII) a Good Investment?
LCI Industries demonstrates strong earnings growth (+31.8% YoY), but this is undermined by critical cash flow deterioration: negative operating cash flow of -$33.5M and negative free cash flow of -$43.1M despite reported profitability, indicating poor earnings quality. The company's high debt burden ($945M) combined with negative cash generation and modest interest coverage (2.7x) create significant financial vulnerability in a cyclical industry.
LCI Industries is delivering double-digit revenue growth with outsized EPS and net income expansion, reflecting improving operating efficiency and solid execution. Strong free cash flow, ample liquidity, and manageable leverage support resilience and reinvestment capacity. While end-market cyclicality is a headwind, current fundamentals indicate durable profitability and cash generation.
Why Buy Lci Industries Stock? LCII Key Strengths
- Strong earnings growth of 31.8% YoY significantly outpacing 10.2% revenue growth, indicating operational leverage and margin expansion
- Solid liquidity position with current ratio of 2.91x and quick ratio of 1.20x providing near-term flexibility
- Established market position in motor vehicle parts & accessories sector with ongoing revenue growth
- Robust free cash flow and strong OCF-to-NI conversion
- Healthy liquidity (current ratio 2.85x) and moderate leverage
- Improving margins with solid ROE (13.8%) and EPS growth
LCII Stock Risks: Lci Industries Investment Risks
- Negative operating cash flow (-$33.5M) and free cash flow (-$43.1M) despite profitability signals poor earnings quality and unsustainable accounting profits
- High debt burden of $945M with weak interest coverage (2.7x) and negative cash generation creates acute refinancing risk if business deteriorates
- Extremely low returns on equity (4.5%) and assets (2.0%) indicate inefficient capital deployment and suggest structural profitability challenges in a cyclical sector
- Cyclical exposure to RV/marine OEM demand and potential destocking
- Margin sensitivity to raw material and labor cost inflation
- Working capital swings could pressure cash conversion in downturns
Key Metrics to Watch
- Operating cash flow trend - must return to positive territory to validate earnings and ensure sustainability
- Debt-to-EBITDA and interest coverage ratios - critical to assess refinancing ability and financial headroom
- Working capital metrics and receivables/inventory levels - to determine if negative FCF is temporary or structural
- Gross margin trajectory
- Operating cash conversion (OCF/NI)
Lci Industries (LCII) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.91x current ratio provides a solid financial cushion.
LCII Profit Margin, ROE & Profitability Analysis
LCII vs Automotive Sector: How Lci Industries Compares
How Lci Industries compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Lci Industries Stock Overvalued? LCII Valuation Analysis 2026
Based on fundamental analysis, Lci Industries has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Lci Industries Balance Sheet: LCII Debt, Cash & Liquidity
LCII Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Lci Industries's revenue has remained relatively flat over the 5-year period, with a 8% decline. The most recent EPS of $2.52 reflects profitable operations.
LCII Revenue Growth, EPS Growth & YoY Performance
LCII Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.0B | $49.4M | $1.94 |
| Q3 2025 | $915.5M | $35.6M | $1.39 |
| Q2 2025 | $1.1B | $36.5M | $2.29 |
| Q1 2025 | $968.0M | $36.5M | $1.44 |
| Q3 2024 | $915.5M | $7.3M | $1.02 |
| Q2 2024 | $1.0B | $7.3M | $1.31 |
| Q1 2024 | $968.0M | $7.3M | $0.29 |
| Q3 2023 | $959.3M | $7.3M | $1.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Lci Industries Dividends, Buybacks & Capital Allocation
LCII SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Lci Industries (CIK: 0000763744)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 13, 2026 | 4 | xslF345X06/wk-form4_1778678469.xml | View → |
| May 13, 2026 | 4 | xslF345X06/wk-form4_1778678357.xml | View → |
| May 13, 2026 | 4 | xslF345X06/wk-form4_1778678257.xml | View → |
| May 13, 2026 | 4 | xslF345X06/wk-form4_1778678213.xml | View → |
| May 13, 2026 | 4 | xslF345X06/wk-form4_1778678156.xml | View → |
❓ Frequently Asked Questions about LCII
What is the AI rating for LCII?
Lci Industries (LCII) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LCII's key strengths?
Claude: Strong earnings growth of 31.8% YoY significantly outpacing 10.2% revenue growth, indicating operational leverage and margin expansion. Solid liquidity position with current ratio of 2.91x and quick ratio of 1.20x providing near-term flexibility. ChatGPT: Robust free cash flow and strong OCF-to-NI conversion. Healthy liquidity (current ratio 2.85x) and moderate leverage.
What are the risks of investing in LCII?
Claude: Negative operating cash flow (-$33.5M) and free cash flow (-$43.1M) despite profitability signals poor earnings quality and unsustainable accounting profits. High debt burden of $945M with weak interest coverage (2.7x) and negative cash generation creates acute refinancing risk if business deteriorates. ChatGPT: Cyclical exposure to RV/marine OEM demand and potential destocking. Margin sensitivity to raw material and labor cost inflation.
What is LCII's revenue and growth?
Lci Industries reported revenue of $1.1B.
Does LCII pay dividends?
Lci Industries pays dividends, with $27.9M distributed to shareholders in the trailing twelve months.
Where can I find LCII SEC filings?
Official SEC filings for Lci Industries (CIK: 0000763744) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LCII's EPS?
Lci Industries has a diluted EPS of $2.53.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LCII a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Lci Industries has a HOLD rating with 71% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LCII stock overvalued or undervalued?
Valuation metrics for LCII: ROE of 4.5% (sector avg: 12%), net margin of 5.8% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy LCII stock in 2026?
Our dual AI analysis gives Lci Industries a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LCII's free cash flow?
Lci Industries's operating cash flow is $-33.5M, with capital expenditures of $9.7M. FCF margin is -4.0%.
How does LCII compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 5.8% (avg: 6%), ROE 4.5% (avg: 12%), current ratio 2.91 (avg: 1.2).