DCF Tool

LCII

LCI Industries – Motor Vehicle Gasoline Engine and Engine Parts Manufacturing
From over 90 manufacturing and distribution facilities located throughout North America and Europe, LCI Industries, through its wholly-owned subsidiary, LCI, supplies, domestically and internationally, a broad array of highly engineered components for the leading OEMs in the recreation and transportation product markets, consisting primarily 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 engineered components to the related aftermarkets of these industries primarily by selling to retail dealers, wholesale distributors, and service centers. LCI's products include steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; and other accessories.
Analysis Results
Intrinsic Value $4,938.90
Latest Price $137.94
Relative Value 97% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 66.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 66.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.32 1.22
2023 2.19 1.88
2024 3.63 2.89
2025 6.02 4.44
2026 10.0 6.82
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 171 billion. This corresponds to a present value of 108 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 17.2 billion. Adding in the terminal value gives a total present value of 126 billion.

There are presently 25.4 million outstanding shares, so the intrinsic value per share is 4938.9.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,566,885,000
Current Cash 62,896,000
Current Liabilities 627,216,000
Current Debt 71,003,000
Non-Cash Working Capital (NCWC) 947,776,000
Change in NCWC 528,359,000
EBIT 398,410,000
Tax Provision 94,305,000
Depreciation and Amortization 112,320,000
Capital Expenditure -98,534,000
Unlevered Free Cash Flow 842,210,162
Current Assets 869,801,000
Current Cash 51,821,000
Current Liabilities 416,394,000
Current Debt 17,831,000
Non-Cash Working Capital (NCWC) 419,417,000
Change in NCWC 37,360,000
EBIT 222,934,000
Tax Provision 51,041,000
Depreciation and Amortization 97,980,000
Capital Expenditure -57,346,000
Unlevered Free Cash Flow 246,609,115
Current Assets 670,791,000
Current Cash 35,359,000
Current Liabilities 271,258,000
Current Debt 17,883,000
Non-Cash Working Capital (NCWC) 382,057,000
Change in NCWC 47,916,000
EBIT 200,210,000
Tax Provision 44,905,000
Depreciation and Amortization 75,358,000
Capital Expenditure -58,202,000
Unlevered Free Cash Flow 218,313,491
Current Assets 526,651,000
Current Cash 14,928,000
Current Liabilities 177,582,000
Current Debt 0
Non-Cash Working Capital (NCWC) 334,141,000
Change in NCWC 125,124,000
EBIT 198,788,000
Tax Provision 43,801,000
Depreciation and Amortization 67,526,000
Capital Expenditure -119,827,000
Unlevered Free Cash Flow 226,344,440
Current Assets 417,079,000
Current Cash 26,049,000
Current Liabilities 182,013,000
Current Debt 0
Non-Cash Working Capital (NCWC) 209,017,000
Change in NCWC 77,144,000
EBIT 214,281,000
Tax Provision 79,960,000
Depreciation and Amortization 54,727,000
Capital Expenditure -87,221,000
Unlevered Free Cash Flow 178,431,156
Current Assets 367,394,000
Current Cash 86,170,000
Current Liabilities 149,351,000
Current Debt 0
Non-Cash Working Capital (NCWC) 131,873,000
Change in NCWC -25,402,000
EBIT 200,850,000
Tax Provision 69,501,000
Depreciation and Amortization 46,167,000
Capital Expenditure -44,671,000
Unlevered Free Cash Flow 106,857,462
Current Assets 268,442,000
Current Cash 12,305,000
Current Liabilities 98,862,000
Current Debt 0
Non-Cash Working Capital (NCWC) 157,275,000
Change in NCWC 56,828,000
EBIT 119,970,000
Tax Provision 40,024,000
Depreciation and Amortization 41,624,000
Capital Expenditure -28,989,000
Unlevered Free Cash Flow 147,448,902
Current Assets 207,636,000
Current Cash 4,000
Current Liabilities 107,185,000
Current Debt 0
Non-Cash Working Capital (NCWC) 100,447,000
Change in NCWC 59,388,000
EBIT 97,441,000
Tax Provision 32,791,000
Depreciation and Amortization 32,596,000
Capital Expenditure -42,458,000
Unlevered Free Cash Flow 113,353,611
Current Assets 225,530,000
Current Cash 66,280,000
Current Liabilities 118,191,000
Current Debt 0
Non-Cash Working Capital (NCWC) 41,059,000
Change in NCWC -33,245,000
EBIT 80,174,000
Tax Provision 27,828,000
Depreciation and Amortization 27,500,000
Capital Expenditure -32,595,000
Unlevered Free Cash Flow 13,210,934
Current Assets 154,023,000
Current Cash 9,939,000
Current Liabilities 69,780,000
Current Debt 0
Non-Cash Working Capital (NCWC) 74,304,000
Change in NCWC -4,769,000
EBIT 59,588,000
Tax Provision 20,462,000
Depreciation and Amortization 25,665,000
Capital Expenditure -32,026,000
Unlevered Free Cash Flow 27,363,753

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