LCI Industries Return On Asset vs. Net Income
| LCII Stock | USD 126.70 5.75 4.75% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.26 | 0.2051 |
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| Net Profit Margin | 0.0274 | 0.017 |
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| Operating Profit Margin | 0.0567 | 0.0326 |
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| Pretax Profit Margin | 0.0208 | 0.0219 |
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| Return On Assets | 0.0206 | 0.0217 |
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| Return On Equity | 0.088 | 0.0474 |
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For LCI Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of LCI Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well LCI Industries utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between LCI Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of LCI Industries over time as well as its relative position and ranking within its peers.
LCI |
LCI Industries' Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Automotive Parts & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LCI Industries. If investors know LCI will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LCI Industries listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.363 | Dividend Share 4.2 | Earnings Share 5.13 | Revenue Per Share 148.575 | Quarterly Revenue Growth (0.05) |
The market value of LCI Industries is measured differently than its book value, which is the value of LCI that is recorded on the company's balance sheet. Investors also form their own opinion of LCI Industries' value that differs from its market value or its book value, called intrinsic value, which is LCI Industries' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LCI Industries' market value can be influenced by many factors that don't directly affect LCI Industries' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LCI Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if LCI Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LCI Industries' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
LCI Industries Net Income vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining LCI Industries's current stock value. Our valuation model uses many indicators to compare LCI Industries value to that of its competitors to determine the firm's financial worth. LCI Industries is rated fifth overall in return on asset category among its peers. It is rated below average in net income category among its peers making up about 1,521,208,507 of Net Income per Return On Asset. As of now, LCI Industries' Net Income is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the LCI Industries' earnings, one of the primary drivers of an investment's value.LCI Net Income vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
LCI Industries |
| = | 0.0422 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
LCI Industries |
| = | 64.19 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
LCI Net Income Comparison
LCI Industries is currently under evaluation in net income category among its peers.
LCI Industries Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in LCI Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, LCI Industries will eventually generate negative long term returns. The profitability progress is the general direction of LCI Industries' change in net profit over the period of time. It can combine multiple indicators of LCI Industries, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 14.3 M | 15 M | |
| Operating Income | 123.4 M | 85.1 M | |
| Income Before Tax | 83 M | 80.1 M | |
| Total Other Income Expense Net | -40.4 M | -38.4 M | |
| Net Income | 64.2 M | 61 M | |
| Income Tax Expense | 18.8 M | 23.9 M | |
| Net Income Applicable To Common Shares | 454.2 M | 476.9 M | |
| Net Income From Continuing Ops | 49.4 M | 47 M | |
| Interest Income | 10.1 M | 10.6 M | |
| Net Interest Income | -39.2 M | -37.2 M | |
| Change To Netincome | 20.6 M | 19.3 M | |
| Net Income Per Share | 2.54 | 1.63 | |
| Income Quality | 8.21 | 8.62 | |
| Net Income Per E B T | 0.77 | 0.81 |
LCI Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on LCI Industries. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of LCI Industries position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the LCI Industries' important profitability drivers and their relationship over time.
Use LCI Industries in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if LCI Industries position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in LCI Industries will appreciate offsetting losses from the drop in the long position's value.LCI Industries Pair Trading
LCI Industries Pair Trading Analysis
The ability to find closely correlated positions to LCI Industries could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LCI Industries when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back LCI Industries - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling LCI Industries to buy it.
The correlation of LCI Industries is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as LCI Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if LCI Industries moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for LCI Industries can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your LCI Industries position
In addition to having LCI Industries in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Banks
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Check out Correlation Analysis. For more detail on how to invest in LCI Stock please use our How to Invest in LCI Industries guide.You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
To fully project LCI Industries' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of LCI Industries at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include LCI Industries' income statement, its balance sheet, and the statement of cash flows.