LCI Industries Story

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LCII -- USA Stock  

USD 105.91  1.93  1.86%

LCI Industries is scheduled to announce its earnings today. The next earnings report is expected on the 3rd of November 2020. LCI Industries Invested Capital is most likely to increase significantly in the upcoming years. The last year's value of Invested Capital was reported at 1.6 Billion. The current Invested Capital Average is estimated to increase to about 1.3 B, while Net Income Per Employee is projected to decrease to roughly 12.2 K. While some baby boomers are getting worried about consumer cyclical space, it is reasonable to concentrate on LCI Industries as an investment alternative. Let's try to examine if LCI Industries shares are reasonably priced going into September.
Published over a month ago
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Will current LCI Industries (NYSE:LCII) debt levels change next quarter?
LCI Industries currently holds 874.08 M in liabilities with Debt to Equity (D/E) ratio of 1.08, which is about average as compared to similar companies. On a scale of 0 to 100, LCI Industries holds a performance score of 17. The firm secures a Beta (Market Risk) of 0.0134, which conveys not very significant fluctuations relative to the market. Let's try to break down what LCI Industries's beta means in this case. As returns on the market increase, LCI Industries returns are expected to increase less than the market. However, during the bear market, the loss on holding LCI Industries will be expected to be smaller as well. Although it is vital to follow LCI Industries price patterns, it is good to be conservative about what you can do with the information regarding equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-eight technical indicators for LCI Industries, which you can use to evaluate the performance of the entity. Please exercises LCI Industries total risk alpha, expected short fall, market facilitation index, as well as the relationship between the value at risk and daily balance of power to make a quick decision on whether LCI Industries current price movements will revert.
LCI Industries financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of LCI Industries, including all of LCI Industries's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of LCI Industries assets, the company is considered highly leveraged. Understanding the composition and structure of overall LCI Industries debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding LCI Industries Total Debt

LCI Industries liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. LCI Industries has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on LCI Industries balance sheet include debt obligations and money owed to different LCI Industries vendors, workers, and loan providers. Below is the chart of LCI Industries main long-term debt accounts currently reported on its balance sheet.
You can use LCI Industries financial leverage analysis tool to get a better grip on understanding its financial position

How important is LCI Industries's Liquidity

LCI Industries financial leverage refers to using borrowed capital as a funding source to finance LCI Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. LCI Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between LCI Industries's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for LCI Industries, but it might be worth checking our own buy vs. sell analysis

LCI Industries exotic insider transaction detected

Legal trades by LCI Industries insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
LCI Industries insider trading alert for general transaction of restricted stock unit by Brendan Deely, the corporate stakeholder, on 23rd of September 2020. This event was filed by Lci Industries with SEC on 2020-09-23. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for LCI Industries

The current price rise of LCI Industries may encourage stockholders to take a closer look at the entity as it closed today at a share price of 122.01 on 266,301 in trading volume. The company management teams may have good odds in positioning the entity resources to exploit market volatility in September. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.14. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from LCI Industries partners.

Asset Breakdown

1.3 B
Assets Non Current
747.2 M
723.7 M
Current Assets
Total Assets2.01 Billion
Current Assets723.75 Million
Assets Non Current1.29 Billion
Goodwill747.21 Million
Tax Assets15.54 Million

Will LCI Industries drop impact its fundamentals?

Semi variance is down to 6.4. It may hint to a possible volatility drop. LCI Industries currently demonstrates below-verage downside deviation. It has Information Ratio of 0.14 and Jensen Alpha of 0.66. However, we do advice investors to further question LCI Industries expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Bottom Line On LCI Industries

While some firms in the recreational vehicles industry are either recovering or due for a correction, LCI Industries may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither take over new shares of LCI Industries nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to LCI Industries.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of LCI Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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