Lsi Industries (LYTS) AI Stock Analysis

• Market Cap: $519.44M
• Dividend Yield: 1.15%
• Average Volume (3M): 144.77K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.79
• Revenue Growth: 10.45%
• EPS Growth: -15.98%
• Country: US
• Employees: 1,900
• Sector: Technology
• Sector Strength: 42
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.77
• Shares Outstanding: 29,921,385
• 10 Day Avg. Volume: 149,333
• 30 Day Avg. Volume: 144,771
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.99
• Price to Cash Flow (P/CF): 13.10
• P/FCF Ratio: 13.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.00
• Price Target Upside: 60.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

LSI Industries shows strong financial performance and positive earnings call sentiment, which are significant strengths. However, technical analysis indicates a bearish trend, and valuation metrics are average. While the company has a solid foundation for growth, certain operational challenges and market trends temper the outlook.

Positive Factors

Acquisitions

Adding Canada's Best Holdings to the acquisition roster is expected to create synergy value through M&A as articulated in the company’s Fast Forward strategy.

Financial Performance

F2Q25 results mostly exceeded consensus expectations with sales of ~$147.7M, driven by strong performance across all verticals.

Order Growth

Management highlighted that order rates for the company's fiscal second quarter are outpacing those of the same period last year, supporting backlog growth of 12% YoY.

Negative Factors

Market Headwinds

The company continues to put up a solid topline performance despite grocery and lighting end-markets still trying to overcome segment specific macro headwinds.

Market Weakness

Weakness in grocery and lighting markets appears to be more than offset by strength in the Display segment alongside strong contribution from the recent EMI acquisition.

Lsi Industries Business Overview & Revenue Model

Company Description

LSI Industries Inc. manufactures and sells non-residential lighting and retail display solutions in the United States, Canada, Mexico, Australia, and Latin America. It operates in two segments, Lighting and Display Solutions. The Lighting segment manufactures, markets, and sells non-residential outdoor and indoor lighting solutions. It also offers lighting control products, including sensors, photocontrols, dimmers, motion detection, and Bluetooth systems to support lighting fixtures; and designs, engineers, and manufactures electronic circuit boards, assemblies, and sub-assemblies. The Display Solutions segment manufactures, sells, and installs exterior and interior visual image and display elements, including printed and structural graphics, digital signage, menu board systems, display fixtures, refrigerated displays, and custom display elements. Its products comprise signage and canopy graphics, pump dispenser graphics, building fascia graphics, decals, interior signage and marketing graphics, aisle markers, wall mural graphics, and refrigerated and non-refrigerated merchandising displays. This segment also implements, installs, and provides program management services, such as installation management, site surveys, permitting, and content management; and manages and executes the implementation of large rollout programs. It serves petroleum/convenience, parking lot and garage, quick-service restaurant, retail and grocery store, automotive, warehouse, and sports complex markets. The company was founded in 1976 and is headquartered in Cincinnati, Ohio.

How the Company Makes Money

LSI Industries generates revenue primarily through the sale of its lighting products and services. The company's key revenue streams include the manufacturing and distribution of outdoor, indoor, and specialty lighting fixtures as well as lighting control systems. LSI also offers custom-designed graphics products that cater to branding and visual communication needs. A significant portion of its earnings is derived from long-term contracts and partnerships with businesses that require ongoing lighting solutions, such as retailers, gas stations, and industrial facilities. The company's ability to innovate and deliver energy-efficient products is a critical factor contributing to its financial success, alongside leveraging strategic alliances to expand its market reach.

Lsi Industries Financial Statement Overview

Summary

LSI Industries presents a promising financial outlook with strong revenue and profitability metrics. The income statement shows robust revenue growth and efficient cost management. Cash flow is strong, indicating good cash generation capability. However, balance sheet concerns about asset and liability management reduce the score.

Income Statement

Lsi Industries has shown a strong revenue growth trajectory with recent figures indicating positive momentum. The gross profit margin and net profit margin are both healthy, showcasing efficient cost management and profitability. EBIT and EBITDA margins demonstrate robust operational earnings, reflecting effective core business strategies.

Balance Sheet

While the company maintains a stable debt-to-equity ratio, indicating prudent leverage, the lack of reported equity and total assets in TTM data suggests potential discrepancies. The historical data shows consistent equity growth, which is a positive sign, yet the recent figures raise concerns about asset and liability management.

Cash Flow

Operating cash flow and free cash flow have both shown substantial growth, indicating strong cash generation capabilities. The free cash flow to net income ratio is favorable, suggesting that the company effectively converts its earnings into cash. However, negative investing cash flow highlights significant capital expenditures, which could impact liquidity if not managed carefully.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
523.02M	469.64M	496.98M	455.12M	315.61M	305.56M
	Gross Profit
133.68M	133.17M	136.94M	109.21M	78.97M	73.53M
	EBIT
35.40M	37.06M	37.03M	10.95M	-32.00K	-4.42M
	EBITDA
46.09M	45.25M	46.68M	31.17M	16.35M	21.25M
	Net Income Common Stockholders
23.37M	24.98M	25.76M	15.03M	5.87M	9.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.63M	4.11M	1.83M	2.46M	2.28M	3.52M
	Total Assets
167.31M	348.80M	296.15M	311.08M	286.82M	172.26M
	Total Debt
1.11M	72.02M	35.20M	79.60M	68.18M	11.39M
	Net Debt
-14.52M	67.91M	33.37M	77.13M	65.90M	7.87M
	Total Liabilities
24.18M	144.44M	118.57M	163.31M	155.65M	46.56M
	Stockholders Equity
143.13M	204.35M	177.58M	147.77M	131.17M	125.70M
Cash Flow		Free Cash Flow
41.40M	38.00M	46.38M	-5.99M	25.78M	26.97M
	Operating Cash Flow
45.26M	43.39M	49.59M	-3.86M	28.01M	29.71M
	Investing Cash Flow
-53.77M	-55.25M	-3.20M	-1.57M	-92.96M	17.41M
	Financing Cash Flow
10.90M	14.31M	-47.15M	5.63M	63.58M	-44.40M

Lsi Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LYTS, the sentiment is Negative. The current price of 17.43 is above the 20-day moving average (MA) of 17.37, below the 50-day MA of 19.05, and below the 200-day MA of 17.44, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 22.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LYTS.

Lsi Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLED	73 Outperform	$6.59B	29.87	14.46%	1.19%	12.36%	9.70%
LYTS	71 Outperform	$519.44M	22.62	11.40%	1.15%	10.45%	-15.98%
HUBB	71 Outperform	$17.83B	23.15	25.26%	1.53%	4.76%	2.27%
AYI	66 Neutral	$8.16B	19.40	18.94%	0.23%	-0.80%	17.61%
Sector *	57 Neutral	$20.94B	10.43	-13.41%	2.52%	4.53%	-23.34%
LPL	52 Neutral	$3.00B	―	-37.33%	―	19.52%	24.03%
LEDS	52 Neutral	$17.52M	―	-173.82%	―	-19.21%	45.04%

Lsi Industries Corporate Events

LSI Industries Reports Strong Q2 Growth and Sales

On January 23, 2025, LSI Industries reported substantial year-over-year growth in sales and profitability for its fiscal second quarter, ending December 31, 2024. The company’s net sales increased by 36% to $147.7 million, with organic growth at 14%, driven by strong demand and contributions from the EMI acquisition. The Display Solutions segment saw remarkable growth with a 50% increase in organic sales, particularly in refueling and c-store markets. Despite a 10% decline in the Lighting segment sales due to the absence of large projects, the company remains optimistic about future growth, backed by a strong backlog and robust demand across key markets. LSI declared a regular cash dividend, reflecting confidence in sustained cash generation and operational success.