- LCII is a reasonably valued stock worth paying attention to due to its potential to benefit from the stronger RV market in 2021 and relatively high organic FCF.
- Surging recreational vehicle sales ensued from the pandemic allowed LCI to deliver the highest annual revenue in history, $2.8 billion.
- 2020 organic FCF was lower than in 2019 due to the increase in inventory. Still, it reached $174 million and more than excessively covered dividends paid of $70.4 million.
- The essential drawback of LCII is high volatility. The 24-month beta of 1.36 implies that in a market collapse, the stock falls quicker than the market overall, while it also rebounds much steeply.
For further details see:
Consider LCI Industries For Dividend, Sales Growth