Core Insights - The article emphasizes the importance of value investing, which focuses on identifying undervalued companies through fundamental analysis and traditional valuation metrics [2][3] Company Analysis: LCI Industries (LCII) - LCI Industries currently holds a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4] - The stock has a Forward P/E ratio of 14.19, significantly lower than the industry average of 19.08, with a 52-week range of 10.65 to 19.04 [4] - LCI's P/B ratio stands at 1.78, compared to the industry's average of 3.23, with a 52-week range of 1.39 to 2.27 [5] - The P/S ratio for LCI is 0.53, which is lower than the industry average of 0.74, suggesting a more favorable valuation based on revenue [6] - Overall, LCI Industries appears to be undervalued, supported by a strong earnings outlook, making it an attractive option for value investors [7]

LCI Industries (NYSE:LCII) is one of the stocks Jim Cramer recently talked about. A caller inquired whether the stock could be a smart buy, considering its low valuation and possible upside from easing interest rates and increased demand due to wealth creation. In response, Cramer said: “It has not done as well as THOR and yet it’s in a similar business. I like your thinking. I think it would be beneficiary of lower interest rates. I think that you can buy that stock. If THOR’s up this strongly, I think t ...

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, with a focus on value investing as a preferred strategy in various market conditions [1][2] Company Analysis - GARRETT MOTION (GTX) is currently rated as a Zacks Rank 1 (Strong Buy) with a Value grade of A, trading at a P/E ratio of 9.45 compared to the industry average of 22.02 [3] - Over the past year, GTX's Forward P/E has fluctuated between a high of 9.56 and a low of 5.83, with a median of 7.57 [3] - The P/S ratio for GTX is 0.78, slightly below the industry average of 0.8, indicating potential undervaluation [4] - LCI Industries (LCII) holds a Zacks Rank of 2 (Buy) and a Value grade of A, with a P/B ratio of 1.78 compared to the industry's 3.71 [5] - The P/B ratio for LCII has ranged from a high of 2.27 to a low of 1.39, with a median of 1.86 over the past year [5] - Both GTX and LCII are considered likely undervalued stocks, supported by their strong earnings outlooks [6]

Group 1: Ambiq Micro, Albertsons, and uniQure - Ambiq Micro reported quarterly losses of 43 cents per share on sales of $17.90 million on September 4 [1] - RBC Capital analyst maintained Albertsons Companies with an Outperform rating and lowered the price target from $23 to $21 [2] - Wells Fargo analyst maintained uniQure with an Overweight rating and raised the price target from $65 to $80 [2] Group 2: Chevron and LCI Industries - Mizuho analyst maintained Chevron with an Outperform rating and lowered the price target from $192 to $191 [3] - LCI Industries posted better-than-expected earnings for the second quarter on August 5, leading to a buy recommendation from Cramer [3] Group 3: Dillard's - Dillard's reported better-than-expected second-quarter financial results on August 14 [4]

Group 1: Ambiq Micro, Albertsons, and uniQure - Ambiq Micro reported quarterly losses of 43 cents per share on sales of $17.90 million on September 4 [1] - RBC Capital analyst Steven Shemesh maintained an Outperform rating for Albertsons Companies but lowered the price target from $23 to $21 [2] - Wells Fargo analyst Yanan Zhu maintained an Overweight rating for uniQure and raised the price target from $65 to $80 [2] Group 2: Chevron and LCI Industries - Chevron Corporation is viewed positively, with Mizuho analyst Nitin Kumar maintaining an Outperform rating and lowering the price target from $192 to $191 [3] - LCI Industries is recommended as a buy, supported by better-than-expected earnings for the second quarter reported on August 5 [3] Group 3: Dillard's - Dillard's reported better-than-expected second-quarter financial results on August 14, leading to a recommendation to take some profits while allowing the rest to run [4]

Stock Chart IconStock chart iconAmbiq Micro's year-to-date stock performance.Ambiq Micro: "We got to be careful of that. There are so many good semiconductor companies out there. I'd rather see you in Broadcom."Stock Chart IconStock chart iconAlbertsons' year-to-date stock performance.Albertsons: "I don't like Albertsons here."Stock Chart IconStock chart iconuniQure's year-to-date stock performance.uniQure: "...After a parabolic move, I will not endorse it. Even if I think it's good, I have to stay away. Th ...

Group 1 - Crude Value Insights provides an investing service and community focused on oil and natural gas sectors [1] - The service emphasizes cash flow and identifies companies that generate it, highlighting their value and growth prospects [1] - Subscribers have access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [1] Group 2 - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas market [2]

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=ITEM%201%20%E2%80%93%20FINANCIAL%20STATEMENTS) For the six months ended June 30, 2025, LCI Industries reported a 6.4% increase in net sales to $2.15 billion and a 9.6% rise in net income to $107.1 million compared to the prior year. The balance sheet shows growth in total assets to $3.17 billion, primarily driven by acquisitions and increased accounts receivable. Cash flow from operations decreased to $154.9 million from $185.3 million in the prior year period, while investing activities increased significantly due to acquisitions [Condensed Consolidated Statements of Income](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) For the second quarter of 2025, net sales increased by 5.0% year-over-year to $1.11 billion, while net income decreased by 5.8% to $57.6 million. For the six-month period, net sales grew 6.4% to $2.15 billion, and net income increased 9.6% to $107.1 million Consolidated Income Statement Highlights (Unaudited) | (In thousands, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $1,107,250 | $1,054,544 | $2,152,840 | $2,022,573 | | **Gross profit** | $270,021 | $266,445 | $521,770 | $490,351 | | **Operating profit** | $87,804 | $90,604 | $169,121 | $148,215 | | **Net income** | $57,635 | $61,163 | $107,073 | $97,708 | | **Diluted EPS** | $2.29 | $2.40 | $4.23 | $3.85 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets increased to $3.17 billion from $2.89 billion at year-end 2024, driven by a significant rise in accounts receivable and goodwill. Total liabilities also grew to $1.79 billion from $1.51 billion, primarily due to an increase in long-term indebtedness Balance Sheet Summary (Unaudited) | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,358,245 | $1,160,238 | | **Total assets** | $3,174,138 | $2,894,739 | | **Total current liabilities** | $484,298 | $412,053 | | **Long-term indebtedness** | $944,313 | $756,830 | | **Total liabilities** | $1,789,038 | $1,507,853 | | **Total stockholders' equity** | $1,385,100 | $1,386,886 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash from operating activities was $154.9 million, a decrease from $185.3 million in the prior year period. Cash used in investing activities increased substantially to $123.4 million due to acquisitions. Financing activities used $4.1 million, reflecting significant debt restructuring and capital returns Cash Flow Summary (Unaudited, Six Months Ended June 30) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash flows provided by operating activities** | $154,937 | $185,282 | | **Net cash flows used in investing activities** | ($123,350) | ($40,733) | | **Net cash flows used in financing activities** | ($4,102) | ($79,093) | | **Net increase in cash and cash equivalents** | $26,175 | $64,261 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) The notes detail significant financial events, including two acquisitions in the first half of 2025, major debt refinancing activities, and capital return activities through dividends and a new share repurchase program. Segment reporting shows revenue growth in both OEM and Aftermarket segments, with OEM operating profit increasing while Aftermarket profit declined - In H1 2025, the company acquired Freedman Seating Company for approximately **$68.6 million** in cash and Trans/Air Manufacturing Corporation for **$29.6 million** in cash[45](index=45&type=chunk)[46](index=46&type=chunk) - In March 2025, the company issued **$460.0 million** of 3.000% Convertible Notes due 2030 and used a portion of the proceeds to repurchase **$368.0 million** of its 1.125% Convertible Notes due 2026, resulting in a **$6.2 million** loss on extinguishment of debt[61](index=61&type=chunk)[75](index=75&type=chunk) - A new **$300.0 million** share repurchase program was authorized in May 2025, under which the company repurchased **424,132 shares** for **$38.5 million** in June 2025[86](index=86&type=chunk)[87](index=87&type=chunk) Segment Performance (Six Months Ended June 30) | (In thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **OEM Net Sales** | $1,663,114 | $1,554,436 | | **OEM Operating Profit** | $113,657 | $83,399 | | **Aftermarket Net Sales** | $489,726 | $468,137 | | **Aftermarket Operating Profit** | $55,464 | $64,816 | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=26&type=section&id=ITEM%202%20%E2%80%93%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses a 5.0% consolidated net sales increase in Q2 2025, driven by acquisitions and RV market share gains, though operating profit margin slightly declined. The OEM segment saw sales growth from acquisitions and a favorable RV mix, while the Aftermarket segment's growth was driven by product innovation, though its profitability was impacted by sales mix and higher costs. The company highlights its strong liquidity position, recent debt refinancing, and capital return programs. Key industry trends show a divergence between rising wholesale RV shipments and declining retail demand [Industry Background](index=27&type=section&id=Industry%20Background) The analysis of the North American RV industry shows a mixed environment. For the first six months of 2025, wholesale shipments of travel trailers and fifth-wheels increased by 8%, while retail demand fell by 3% due to inflation and higher interest rates. This indicates that dealers were building inventory despite softer consumer demand. The U.S. RV ownership base reached a record 8.1 million households in 2025, supporting robust demand for the Aftermarket segment - For the first six months of 2025, industry-wide wholesale shipments of travel trailer and fifth-wheel RVs increased **8% YoY**, while retail demand decreased **3% YoY**[108](index=108&type=chunk) Travel Trailer & Fifth-Wheel RV Market Trends (Units) | Quarter ended | Wholesale Units | Retail Units | Estimated Impact on Dealer Inventories | | :--- | :--- | :--- | :--- | | **June 30, 2025** | 81,400 (-1% YoY) | 97,100 (-2% YoY) | (15,700) | | **March 31, 2025** | 86,300 (+18% YoY) | 62,400 (-4% YoY) | 23,900 | - The U.S. RV ownership base reached a record **8.1 million households** in 2025, which is a key driver for the Aftermarket Segment's performance[118](index=118&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) In Q2 2025, consolidated net sales grew 5.0% to $1.1 billion, but operating profit margin decreased to 7.9% from 8.6% YoY due to executive separation costs and a lower-margin product mix. The OEM segment's sales rose 5% driven by acquisitions and RV market share gains, with operating margin slightly declining. The Aftermarket segment's sales increased 4%, but its operating margin fell from 15.5% to 13.5% due to unfavorable product mix, higher material costs, and strategic investments - Q2 2025 consolidated net sales increased **5.0% YoY**, primarily due to approximately **$35.0 million** in sales from acquisitions (Freedman Seating and Trans/Air Manufacturing)[123](index=123&type=chunk) - OEM segment operating profit margin in Q2 2025 was negatively impacted by **$13.9 million** in tariff costs and **$2.6 million** in executive separation costs[128](index=128&type=chunk)[126](index=126&type=chunk) - Aftermarket segment operating profit margin in Q2 2025 decreased to **13.5%** from **15.5% YoY**, negatively impacted by a shift to lower-margin products, investments in capacity, and higher material costs[133](index=133&type=chunk)[134](index=134&type=chunk) - The effective tax rate for H1 2025 increased to **26.4%** from **25.4%** in H1 2024, primarily due to an increase in non-deductible executive compensation[143](index=143&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position with $191.9 million in cash and $595.3 million available on its revolving credit facility as of June 30, 2025. Operating cash flow for H1 2025 decreased to $154.9 million from $185.3 million YoY. The company executed significant financing activities, including issuing new convertible notes and repurchasing old ones, and returned capital to shareholders through dividends and a new $300 million share repurchase program - As of June 30, 2025, the company had **$191.9 million** in cash and cash equivalents and **$595.3 million** of availability under its revolving credit facility[146](index=146&type=chunk) - Net cash from operating activities decreased in H1 2025 primarily due to a **$168.0 million** increase in accounts receivable from seasonally higher sales[150](index=150&type=chunk) - Capital expenditures for full-year 2025 are projected to be between **$50 million** and **$70 million**[153](index=153&type=chunk) - In May 2025, a new **$300.0 million** stock repurchase program was authorized, valid until May 2028. The company repurchased **$38.5 million** worth of shares in June 2025 and another **$62.5 million** between July 1 and August 1, 2025[162](index=162&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=ITEM%203%20%E2%80%93%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risks stem from interest rate fluctuations on its variable-rate debt and price volatility of raw materials, particularly steel and aluminum. Management notes that a hypothetical 0.25% increase in interest rates would not materially affect results. The company actively manages tariff impacts through supply chain diversification and other sourcing strategies - The company is exposed to market risk from changes in short-term interest rates on its variable rate debt[174](index=174&type=chunk) - The company is also exposed to price changes for raw materials, specifically steel and aluminum, and has historically been able to pass on a majority of cost increases to customers[175](index=175&type=chunk)[176](index=176&type=chunk) - The company's tariff mitigation strategy, including supply chain diversification, helped minimize the pricing impact on customers and support profitability in the second quarter[176](index=176&type=chunk) [Controls and Procedures](index=37&type=section&id=ITEM%204%20%E2%80%93%20CONTROLS%20AND%20PROCEDURES) Based on an evaluation conducted by management, including the CEO and CFO, the company concluded that its disclosure controls and procedures were effective as of June 30, 2025. There were no material changes to the company's internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[180](index=180&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[181](index=181&type=chunk) [PART II – OTHER INFORMATION](index=38&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=38&type=section&id=ITEM%201%20%E2%80%93%20LEGAL%20PROCEEDINGS) The company is involved in various legal proceedings arising from the normal course of business. Management does not believe that the final disposition of these matters will have a material adverse effect on the company's financial position or results of operations - Management believes that any potential monetary liability from ongoing legal proceedings, after final disposition and anticipated insurance recoveries, would not be material to the company's financial position[183](index=183&type=chunk) [Risk Factors](index=38&type=section&id=ITEM%201A%20%E2%80%93%20RISK%20FACTORS) A new risk factor has been added to address the potential negative impact of changing global tariff frameworks. The company warns that tariffs could increase the cost of goods, disrupt the supply chain, and negatively affect demand, which could materially harm the business and its financial results - A new risk factor was added regarding the potential negative impact of global tariffs on the company's business, operating results, and financial condition[185](index=185&type=chunk) - The company states that tariffs have increased sourcing costs and could negatively impact product demand, potentially having a material adverse effect on the business[186](index=186&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=ITEM%202%20%E2%80%93%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECU RITIES%20AND%20USE%20OF%20PROCEEDS) This section details the company's stock repurchase activities. The previous $200 million program expired in May 2025. A new $300 million program was authorized in May 2025. During June 2025, the company repurchased 424,132 shares at an average price of $89.79 per share, for a total of approximately $38.1 million Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet be Purchased (in millions) | | :--- | :--- | :--- | :--- | | **April 2025** | — | $— | $147.6 | | **May 2025** | — | $— | $300.0 | | **June 2025** | 424,132 | $89.79 | $261.9 | - On May 15, 2025, the Board of Directors authorized a new stock repurchase program for up to **$300.0 million** of common stock over a three-year period[188](index=188&type=chunk) [Other Information](index=39&type=section&id=ITEM%205%20%E2%80%93%20OTHER%20INFORMATION) During the second quarter of 2025, no directors or officers adopted or terminated any Rule 10b5-1 trading plans or any non-Rule 10b5-1 trading arrangements for the purchase or sale of company securities - No directors or officers adopted or terminated a Rule 10b5-1 trading plan or other non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[190](index=190&type=chunk) [Exhibits](index=39&type=section&id=ITEM%206%20%E2%80%93%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications (Sections 302 and 906) and financial data formatted in Inline XBRL

Financial Data and Key Metrics Changes - The company reported consolidated net sales of $1,100,000,000 for Q2 2025, representing a 5% increase year over year [27] - Adjusted EBITDA for the quarter was $121,000,000, or 11% of net sales [33] - GAAP net income for Q2 was $58,000,000, or $2.29 per diluted share, compared to $61,000,000, or $2.40 per diluted share in the prior year [32] - Gross margins decreased to 24.4% from 25.3% year over year, primarily due to executive separation costs and changes in product mix [30] Business Line Data and Key Metrics Changes - RV OEM net sales totaled $840,000,000, up 5% from the same period in 2024, driven by market share gains [27] - Aftermarket net sales were $268,000,000, an increase of 4% year over year, primarily due to product innovations and expanding relationships [30][12] - Adjacent Industries OEM net sales increased by 10% year over year to $336,000,000, largely due to recent acquisitions [29] Market Data and Key Metrics Changes - North American RV sales were up 5%, while overall RV sales increased by 3% year over year [9] - The marine market experienced a 15% decline in sales due to inflation and high interest rates affecting retail demand [30] - The company expects North American RV wholesale shipments for 2025 to be between 320,000 and 350,000 units [24] Company Strategy and Development Direction - The company aims to achieve an organic revenue target of $5,000,000,000 by 2027, supported by strategic acquisitions and product innovations [4][38] - A focus on reducing raw material exposure and diversifying the supply chain is emphasized, with a goal to reduce China exposure from 24% in 2024 to 10% by 2025 [7] - The company is committed to facility consolidation and cost reduction initiatives, targeting an 85 basis point overhead reduction for 2025 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the retail environment, noting that while inflation and tariff uncertainties persist, there are signs of stabilization in demand [23] - The company anticipates a slow and steady recovery in inventory levels once demand improves, particularly in the RV sector [45] - Management remains confident in their ability to align cost structures and capital deployment with market conditions [24] Other Important Information - The company executed a $300,000,000 share repurchase program, returning $187,000,000 to shareholders year to date through dividends and repurchases [34] - The company is focused on maintaining a strong financial foundation while pursuing strategic acquisitions and investments in innovation [19] Q&A Session Summary Question: What is the current state of dealer inventories in RV and marine markets? - Management noted that dealers remain cautious, leading to significant destocking, and expect a slow and gradual rise in inventory levels once demand improves [43][45] Question: What is the expected impact of tariffs on margins? - The tariff impact increased from 180 basis points to 290 basis points due to a rise in tariffs from 20% to 30%, but management is confident in their mitigation strategies [57][58] Question: How is the company addressing the shift towards single axle trailers? - Management indicated that while single axle trailers have increased in market share, they expect a return to larger multi-axle units as consumer preferences evolve [64][70] Question: What is the outlook for retail demand and production volumes? - Management expects retail demand to stabilize, with wholesale and retail being similar this year, but anticipates a soft fourth quarter due to seasonal trends [96][98]

Financial Data and Key Metrics Changes - The company reported consolidated net sales of $1,100,000,000 for the second quarter, representing a 5% increase year over year [27] - Adjusted EBITDA for the quarter was $121,000,000, or 11% of net sales [33] - GAAP net income was $58,000,000, or $2.29 earnings per diluted share, compared to $61,000,000, or $2.40 per diluted share in the prior year [32] - Gross margins decreased to 24.4% from 25.3% year over year, primarily due to executive separation costs and changes in product mix [30] Business Line Data and Key Metrics Changes - RV OEM net sales totaled $840,000,000, up 5% from the same period in 2024, driven by market share gains [27] - Aftermarket net sales were $268,000,000, an increase of 4% year over year, primarily due to product innovations and expanding relationships [30][12] - Adjacent Industries OEM net sales increased by 10% year over year to $336,000,000, largely due to recent acquisitions [30] Market Data and Key Metrics Changes - North American RV sales were up 5%, while overall RV sales increased by 3% year over year [9] - The marine market experienced a 15% decline in sales due to inflation and high interest rates affecting retail demand [30] - The company expects softness in the marine market to continue for the balance of the year [16] Company Strategy and Development Direction - The company aims to achieve $5,000,000,000 in organic revenue by 2027, focusing on strategic acquisitions and product innovations [4][38] - A tariff mitigation strategy has been implemented to diversify the supply chain and minimize pricing impacts on customers [6] - The company is committed to reducing exposure to China from 24% in 2024 to 10% by 2025 through supply chain diversification [6] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half of the year, noting that inflation and tariff uncertainties continue to pressure consumer behavior [23] - The company anticipates a gradual recovery in demand, with July 2025 sales up 5% year over year [24] - Management believes the toughest part of the cycle is behind them, positioning the company for success as volumes normalize [24] Other Important Information - The company generated $155,000,000 in operating cash flow, supported by improved working capital discipline [19] - A $300,000,000 share repurchase program was announced, with $128,000,000 executed year to date [34] - The company is focused on maintaining a strong financial foundation while driving growth and returning capital to shareholders [19] Q&A Session Summary Question: Inventory levels and potential restock impact - Management noted that dealers remain cautious with inventory levels, and any restock will likely be slow and gradual once demand improves [42][45] Question: Margin perspective and tariff impact - The company indicated that tariff impacts have increased to 290 basis points, primarily due to changes in government tariffs [58][59] Question: Sales growth and RV model year changeover - Management confirmed that the recent RV model year changeover did not significantly impact sales in Q2 or Q3 [60] Question: Trends in single axle and multi-axle RVs - Management reported a slight improvement in the mix of multi-axle units, with single axle units decreasing to about 20.5% in Q2 [66][67] Question: Aftermarket activity from previous years' buyers - Management indicated that there is less aftermarket opportunity for single axle trailers, but the overall aftermarket continues to grow [74] Question: Contribution of acquisitions to sales growth - Management estimated that 3% to 4% of the recent sales growth was attributable to acquisitions [79] Question: Future revenue targets and wholesale shipment volumes - The company expects to return to a normalized wholesale shipment range of 400,000 to 415,000 units over the next two to three years [83]