LCI IndustriesLCII +2.04%72 Operating Margin % is 8.73% as of Mar. 2026, which is 6% above its 10-year median of 8.24. GuruFocus rates LCII with a GF Score™ of 72/100 and a GF Value™ of $122.56 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,325 Vehicles & Parts companies, LCI Industries ranks better than 64.6% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
LCI Industries Operating Margin % Related Terms
LCI Industries Operating Margin % Historical Data
* Premium members only.
The historical data trend for LCI Industries's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LCII vs HOG, PATK, PII: Operating Margin % Comparison
For the Recreational Vehicles subindustry, LCI Industries's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
LCI Industries Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, LCI Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where LCI Industries's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
LCI Industries's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LCI Industries (LCII) has a Operating Margin % of 8.73% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on LCI Industries and its competitors. This is near median its historical median of 8.24. Over the past decade, LCI Industries' Operating Margin % has ranged from 3.26 to 11.96. According to the industry distribution chart, LCI Industries ranks #469 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 35.4%.
Is LCI Industries' Operating Margin % too high?
LCI Industries' current Operating Margin % of 8.73% is near median its 10-year median of 8.24. Over the past 10 years, this metric has ranged from a low of 3.26 to a high of 11.96. The Vehicles & Parts industry median Operating Margin % is 4.86. LCI Industries' value of 8.73% is 79.6% above this industry median. Based on the distribution chart, LCI Industries ranks #469 out of 1325 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, LCI Industries has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LCI Industries' Operating Margin % compare to HOG and PATK?
According to the Vehicles & Parts industry distribution chart, LCI Industries ranks #469 out of 1325 companies for Operating Margin %. This puts LCI Industries in the upper half of its industry. The industry median Operating Margin % is 4.86. LCI Industries' value of 8.73% is 79.6% above this benchmark. Historically, LCI Industries' own Operating Margin % has ranged from 3.26 to 11.96 over the past decade. While the company's 10-year median is 8.24 vs. the industry median of 4.86, LCI Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LCI Industries's current Operating Margin % of 8.73% is 79.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on LCI Industries and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LCI Industries's current Operating Margin % is 8.73%, which is near median its own 10-year median of 8.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LCI Industries stock overvalued right now?
Based on GuruFocus' analysis, LCI Industries (LCII) is currently considered Modestly Undervalued. The stock's GF Value™ is $122.56, compared to a current price of $94.14 — trading 23.2% below its estimated fair value. The current Operating Margin % is 8.73%, which is near median its 10-year median of 8.24 and 79.6% above the Vehicles & Parts industry median of 4.86. LCI Industries' overall GF Score™ is 72/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For LCI Industries (LCII), the current Operating Margin % is 8.73% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is LCI Industries (LCII) Overvalued in 2026?
Based on GuruFocus' analysis, LCI Industries stock appears to be undervalued.
The current stock price of $94.14 is trading 23.2% below its estimated GF Value™ of $122.56.
GuruFocus considers LCI Industries to be Modestly Undervalued.
Key valuation signals for LCII:
Operating Margin %: 8.73% (near median its 10-year median of 8.24)
GF Value™: $122.56 vs. price of $94.14 (23.2% below fair value)
Industry Position: 79.6% above the Vehicles & Parts median (#469 of 1325)
No single metric tells the full story. See the LCII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LCI Industries Inc supplies domestically and internationally components for the original equipment manufacturers of recreational vehicles and adjacent industries, including buses and trailers used to haul boats, livestock, equipment, and other cargo. It has two reportable segments: the original equipment manufacturers segment and the aftermarket segment. The OEM Segment manufactures or distributes components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; pontoon boats; trains; manufactured homes; and modular housing. Its products are sold to manufacturers of RVs such as Thor Industries, Forest River, Winnebago, and other RV OEMs, and to manufacturers in adjacent industries.
72GF Score
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