The Price to Cash Flow for LCI Industries (NYSE:LCII) is 12.856382. The price to cash flow formula is a useful tool investors can use in order to determine the value of a company. Generally, a higher P/CF ratio indicates that the company is less capital demanding and the lesser price to cash flow indicates that the company is more capital demanding.
Formula: Price to Cash Flow = Current Stock Price/ Cash Flow per Share
This ratio is calculated by dividing the market value of a company by cash from operating activities. Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability. The price to earnings ratio for LCI Industries (NYSE:LCII) is 12.245587. This ratio is found by taking the current share price and dividing by earnings per share.
Further, Price to Book ratio for LCI Industries NYSE:LCII is 2.475323. A lower price to book ratio indicates that the stock might be undervalued.
When it comes to the stock market, many traders rely on technical analysis to identify trades. With technical analysis, it is generally believed that stock price movements follow trends. When the trend is determined, the thought is that price movements in the future are more likely to go in the same direction as the trend, and not against it. Another aspect of technical analysis is the idea that history tends to repeat itself especially regarding the movement of the stock’s price. Technical analysts will use chart patterns to help study market moves and identify these trends. Some traders will use highly complex charts while others may only follow a few major indicators.
In taking a look at some additional key numbers, LCI Industries (NYSE:LCII) has a current ERP5 Rank of 2033. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.
The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years. The score is a number between one and one hundred (1 being best and 100 being the worst). The Gross Margin Score of LCI Industries (NYSE:LCII) is 13.00000. The more stable the company, the lower the score. If a company is less stable over the course of time, they will have a higher score.
LCI Industries (NYSE:LCII) currently has a Montier C-score of 3.00000. This indicator was developed by James Montier in an attempt to identify firms that were fixing the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to calculate the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing other current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.
LCI Industries (NYSE:LCII) has an M-score Beneish of -2.258307. This M-score model was developed by Messod Beneish in order to detect manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.
The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of LCI Industries (NYSE:LCII) is 24. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of LCI Industries (NYSE:LCII) is 21.
At the time of writing, LCI Industries (NYSE:LCII) has a Piotroski F-Score of 4. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.
Valuation
LCI Industries (NYSE:LCII) presently has a current ratio of 2.70. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.
The Earnings to Price yield of LCI Industries NYSE:LCII is 0.081662. This is calculated by taking the earnings per share and dividing it by the last closing share price. This is one of the most popular methods investors use to evaluate a company’s financial performance. Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company. The Earnings Yield for LCI Industries NYSE:LCII is 0.110316. Earnings Yield helps investors measure the return on investment for a given company. Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value. The Earnings Yield Five Year average for LCI Industries (NYSE:LCII) is 0.073582.
Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow. The FCF Growth of LCI Industries (NYSE:LCII) is -0.770418. Free cash flow (FCF) is the cash produced by the company minus capital expenditure. This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends. The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow. The FCF Score of LCI Industries (NYSE:LCII) is -0.010652. Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.
Volatility
Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of LCI Industries (NYSE:LCII) is 37.869100. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of LCI Industries (NYSE:LCII) is 36.492700. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 36.687200.
Investors can employ various techniques in order to study stocks. Two of the most widely used techniques are fundamental and technical analysis. Fundamental analysis includes crunching the numbers for specific companies. This may involve reviewing the cash flow statement, income statement, and balance sheet. In essence, fundamental analysts are trying to figure out the company’s value. Once the value of a company is determined, the investor can then make investment decisions based on the research. Using this method, a stock that is trading underneath the intrinsic value may be considered a good pick. Technical traders typically hold the view that all the data they need to know about a stock can be discovered to using charts.