LCI Industries Under Pressure to Meet 2024 Results as BMO Initiates Market Perform Rating
December 8, 2023
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LCI ($NYSE:LCII) Industries (LCII) is a publicly traded manufacturing company that specializes in the production of recreational vehicles, chassis, and other related products. Recently, BMO initiated coverage of the stock with a Market Perform rating due to the pressure on its results for the 2024 fiscal year. This decision comes as a surprise to many investors, as LCI Industries has seen strong performance in the past. The Market Perform rating from BMO is based on the projected cash flows and financials of LCI Industries over the next five years, which are not looking promising. The company is facing several headwinds, such as rising labor costs, competition from other manufacturers, and the potential for increasing product liability costs.
Additionally, LCI Industries is having difficulty adjusting to changing consumer trends, as recreational vehicle sales have been declining in recent years. Nonetheless, BMO analysts believe that if LCI Industries can make the necessary adjustments to its business model, the stock could be an attractive long-term investment opportunity. To this end, the analysts are recommending that investors keep a close eye on the company and watch for signs of improvement. They believe that if LCI Industries is able to successfully navigate the current market conditions, it could be poised for strong results come 2024.
Price History
On Thursday, LCI INDUSTRIES opened at $113.0 and closed at $114.9, a 1.0% increase from its last closing price of 113.7. With the pressure mounting, LCI INDUSTRIES is taking steps to ensure that its results meet expectations, though the results of those steps remain to be seen. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lci Industries. More…
| Total Revenues | Net Income | Net Margin |
| 3.84k | 49.44 | 1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lci Industries. More…
| Operations | Investing | Financing |
| 506.27 | -156.1 | -343.39 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lci Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.03k | 1.66k | 54.18 |
Key Ratios Snapshot
Some of the financial key ratios for Lci Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.2% | -20.8% | 2.5% |
| FCF Margin | ROE | ROA |
| 11.2% | 4.5% | 2.0% |
Analysis
Our analysis of the fundamentals of LCI INDUSTRIES revealed that it is classified as a ‘cow’ according to the Star Chart. This means that the company has a track record of paying out consistent and sustainable dividends. Investors who are looking for investments with a steady cash flow and consistent returns may be interested in LCI INDUSTRIES. Additionally, LCI INDUSTRIES has a high health score of 7/10 regarding its cash flows and debt, indicating that it is capable of paying off debt and funding future operations. Moreover, the company is strong in dividend and medium in asset, growth, and profitability, making it a good option for those seeking a combination of steady and growth-oriented investments. More…
Peers
The company’s products include awnings, furniture, and other interior and exterior products. LCI Industries Inc has a market capitalization of $2.2 billion as of May 2020. The company’s competitors include Autoline Industries Ltd, Brunswick Corp, Trigano SA, and Thor Industries, Inc.
– Autoline Industries Ltd ($BSE:532797)
Autoline Industries Ltd. is engaged in the business of manufacturing and marketing of automotive products. The company offers a range of products, including engine parts, transmission parts, and suspension parts. It also manufactures and markets a range of aftermarket products. The company has a market capitalization of 4.28 billion as of 2022 and a return on equity of 39.81%. Autoline Industries Ltd. is a publicly traded company listed on the Bombay Stock Exchange.
– Brunswick Corp ($NYSE:BC)
Brunswick Corporation is an American diversified multi-industry company founded in 1845. It operates in the marine, fitness, bowling and billiards, and golf markets. The company’s headquarters are in Mettawa, Illinois.
Brunswick’s market cap is 4.99B as of 2022. The company has a return on equity of 26.35%. Brunswick Corporation is a diversified multi-industry company that operates in the marine, fitness, bowling and billiards, and golf markets.
– Trigano SA ($LTS:0NX0)
Trigano SA is a French manufacturer of recreational vehicles and caravans. The company has a market cap of 1.84B as of 2022 and a Return on Equity of 20.39%. Trigano is a leading player in the European recreational vehicle market and has a strong presence in France, Italy, Spain, and the United Kingdom. The company manufactures a wide range of recreational vehicles, including caravans, motorhomes, and trailer tents. Trigano is a publicly traded company listed on the Euronext Paris Stock Exchange.
Summary
LCI Industries has recently been given a “Market Perform” rating by BMO Capital Markets, as the company’s 2024 results are uncertain. Investors should be aware of the potential risks and rewards in investing in LCI Industries. The company may struggle to meet their 2024 goals, but there is also the potential for strong performance and growth.
Investors should conduct thorough research to determine their own risk tolerance when making decisions about LCI Industries. It is important to look at the historical trends and future forecasts to determine if LCI Industries is a good fit for your portfolio.
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