4 models fit LCI Industries and they partly agree: 2 of 4 land within 15% of the average. The price is below every model.
Two or more of our models back this value.
Large discount(i)Bronze58
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionLCI Industries (LCII)
Fair value (4 models)
$127
ACCE price target
$85.00
Rating
Undervalued
Horizon
12 months
Fair value published on 18 Oct 2026, 00:00 CEST; previously $157 since 14 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Price used: $84.87 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, Graham number, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
33.3% below
+50.0% to fair value
ACCE score
52
out of 100
Analysts
45% buy
11 covering
P/E
10.0x
forward 9.5x
1-year return
-6.7%
Dividend yield
5.53%
LCI Industries in four questions
Plain answers, details below
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Overview
ACCE thesis
LCI Industries makes the components that go inside recreational vehicles: chassis, axles, suspension, windows, doors, steps and lighting for towables and motorhomes, plus aftermarket parts sold through its own distribution network. Its moat is mostly scale and distribution depth rather than patents, since it supplies most of the major RV builders and runs a large replacement-parts business that keeps earning when new unit production slows. The current setup is cyclical trough economics: revenue is down 12.5%, operating margin is barely positive at 0.5%, and the stock trades at 9.7 times earnings with a 25.7% gross margin, so the market is pricing in a slow recovery in RV wholesale shipments. The thesis needs a rebound in dealer restocking and a recovery in operating leverage, and the aftermarket share of sales is the piece to check first because it is the least cyclical part of the business. At a 15.0% ROE and a 9.5 forward multiple, the question is whether volumes stabilize before the margin compression becomes structural, which is worth a deeper look given the 52/100 score.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Revenue falling sharply
Revenue is down 12.5% year on year, and operating margin is only 0.5%. Earnings growth of 20.1% looks weak next to a shrinking top line, so the cushion is thin.
high
Heavy insider selling
Insiders sold $11.61M of stock across the last 10 disclosed transactions and bought nothing, with insider ownership at just 3.5%.
moderate
Elevated short interest
Short interest sits at 11.5%, a meaningful bearish bet on a company with 0.5% operating margin and a 52 ACCE score.
moderate
Score deteriorated over 90 days
The ACCE score fell 8 points from 60 to 52 over 90 days, with the margin sub-score at 25 and growth at 35.
AI research notes
AI-assisted·How I use AIWritten Oct 20, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $278M, and the stock yields 13.6% on that cash flow.
Consensus model fair value sits at $127.33, with all four valuation models pointing above the current price.
The stock trades at 9.5x forward earnings against a sector median of 18.1x, and the dividend yields 5.5%.
Why it could disappoint
Revenue fell 12.5% year over year, well below the 8.1% annual average growth of the past five years.
Net margin of 5.2% and return on invested capital of 5.9% show thin profitability for the capital deployed.
Debt equals 0.91 of shareholders' equity, and the price implies only 1.5% yearly cash flow growth, so the market doubts a recovery.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 5, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where LCII's valuation models land
Price
$84.87
Model fair value
$127
Model range
$97.59 to $158
Fair value $127
Price $84.87
The price is below the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
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Quality and conviction INVESTOR FEATURE
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