Lci IndustriesLCII · NYSE

Why the market may be pricing it low

• Purchases of these products are viewed as discretionary consumer spending, so demand swings heavily with the economy.

  purchase of such products is viewed as a consumer discretionary purchaseRisk factors

• Tariff policy turmoil has raised sourcing costs and added ongoing supply-chain risk.

  increased our costs of sourcing goods and resulted in additional risks to our supply chainRisk factors

• When dealer floor-plan financing tightens, it has in the past forced dealers to cut inventory and orders.

  have in the past caused, and would in the future again likely cause, many dealers to reduce inventoriesRisk factors

What could close the gap

• A Supreme Court ruling against IEEPA tariff authority could ease policy uncertainty and prompt a reassessment.

  U.S. Supreme Court ruled against the U.S. presidential administration's use of tariffsRisk factors

• Sales outside the North American RV OEM market already reached 56-57%, and further diversification could support a re-rating.

  56 percent and 57 percent of net sales for the years ended December 31, 2025 and 2024MD&A

How a buyer could still lose (value trap)

• Cash of $221.5M against debt of $852.6M means a downturn could hit earnings harder given the leverage.

  Based on the figures below

• Retail demand already fell 1% in 2025, so the apparent cheapness could simply reflect a continuing slowdown.

  Retail demand decreased 1 percent to 305,300 units compared with 2024MD&A

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✓ROA up on last year
• ✓Cash flow exceeds net profit
• ✗Leverage down on last year
• ✓Current ratio up on last year
• ✓No new shares issued
• ✓Gross margin up on last year
• ✓Asset turnover up on last year

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

$4.0bn

Operating profit

$302m

Net profit

$211m

Operating cash flow

$346m

Cash

$222m

Debt

$853m

Equity

$1.4bn

Latest twelve months to 2026-06-30; F-score for the fiscal year to 2025-12-31