LCII - Embedded Expectations Analysis - 2020 03 25
ï€ LCI Industries (LCII:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 13.3x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management appears concerned about sales declines, their marine and cargo portfolio, and the potential of new productsï€ Specifically, management may be concerned about declines in North American RV OEM sales. Moreover, they may be exaggerating the progress of their CURT integration, the breadth of their marine and cargo OEM product portfolio, and the potential of their cargo management hitch and towing business. They may also be concerned about the number of units removed from dealer systems and the sustainability of OneControl and Electric Leveling and Stabilizer system performance. Finally, they may lack confidence in their ability to sustain international business growth and sustain EPS improvements, and they may be overstating the size of their content opportunities and the potential of their electric Bimini for pontoons
LCI Industries supplies an array of components for the original equipment manufacturers in the recreation and industrial product markets, consisting of recreational vehicles and adjacent industries including buses; trailers used to haul boats, livestock, equipment and other cargo; trucks; boats; trains; manufactured homes; and modular housing. The company also supplies components to the related aftermarkets of these industries, primarily by selling to retail dealers, wholesale distributors and service centers. The company's products include steel chassis and related components, axles and suspension solutions, slide-out mechanisms and solutions, and thermoformed bath, kitchen and other products.
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