Lsi Industries (LYTS) AI Stock Analysis

• Market Cap: $528.38M
• Dividend Yield: 1.14%
• Average Volume (3M): 105.00K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.84
• Revenue Growth: 17.89%
• EPS Growth: -23.37%
• Country: US
• Employees: 2,000
• Sector: Technology
• Sector Strength: 87
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.20
• Shares Outstanding: 30,004,460
• 10 Day Avg. Volume: 116,289
• 30 Day Avg. Volume: 105,000
• PEG Ratio: 0.20
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.62
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 2.86
• Enterprise Value/Ebitda: 2.11
• 1Y Price Target: $26.00
• Price Target Upside: 45.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $18.50 ▲(3.64%Upside)

Lsi Industries' strong financial performance and positive earnings call are the most significant factors in the stock score. Robust sales growth, successful strategic acquisitions, and effective cash flow management support the positive outlook. However, moderate technical indicators and a need to monitor debt increases and logistics inefficiencies slightly temper the overall score.

Positive Factors

Acquisitions

Management completed the acquisition of Canada's Best Store, showing continued business growth through acquisitions.

Financial Performance

Sales continue to show healthy YoY growth despite a volatile macro environment.

Revenue Growth

The company's revenues and adjusted EBITDA grew by 36% and 20% YoY, respectively, supported by both organic and acquisition driven contributions.

Negative Factors

Gross Margins

LSI reported adjusted gross margins and adjusted EBITDA margin below estimates.

Margins

Margins were a little weaker than expected, and the Lighting segment was weaker.

Tariff Environment

The company is expected to deliver YoY revenue and EBITDA growth in FY2026 despite the prevailing tariff environment.

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 makes money primarily through the sale of its lighting and graphics products and solutions. The company's revenue model is built on providing comprehensive lighting and visual solutions to both large and small businesses. Key revenue streams include the sale of LED lighting fixtures, digital signage, and related installation and maintenance services. LSI Industries also generates income through custom graphics solutions, which involve creating branded environments for its clients. Significant partnerships with leading retailers, petroleum companies, and automotive brands contribute to its earnings by securing large-scale, long-term contracts. Additionally, the company's focus on innovation and energy-efficient technologies boosts its competitive position in the market, supporting its revenue growth.

Lsi Industries Financial Statement Overview

Summary

Lsi Industries shows strong financial performance with significant revenue growth and solid profit margins. The balance sheet is stable with manageable leverage, and cash flows are robust, supporting operational needs. However, there's a notable increase in debt and slowing free cash flow growth.

Income Statement

Lsi Industries has shown impressive revenue growth over the past years, with a notable increase in total revenue in the TTM period compared to previous periods. The gross profit margin remains strong, indicating effective cost management. However, the net profit margin has slightly decreased in the TTM period, suggesting some pressure on net profitability. EBIT and EBITDA margins remain healthy, contributing positively to the company's financial health.

Balance Sheet

The company's balance sheet reflects a solid equity position, with an increasing equity ratio over time, suggesting financial stability. The debt-to-equity ratio is moderate, indicating prudent leverage levels. Return on equity is stable, showcasing efficient use of shareholders' capital. However, there is a notable increase in total debt in the TTM period, which could pose future financial risk if not managed properly.

Cash Flow

Lsi Industries exhibits a robust cash flow position with consistent operating cash flow exceeding net income, reflecting strong cash generation from operations. Free cash flow has improved significantly, demonstrating effective capital expenditure management. However, the free cash flow growth rate has slowed in the TTM period, which could indicate potential challenges in maintaining growth at this pace.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	547.32M	469.64M	496.98M	455.12M	315.61M	305.56M
Gross Profit	135.18M	133.68M	136.98M	109.21M	78.97M	73.53M
EBITDA	45.41M	45.25M	46.68M	31.17M	16.35M	21.25M
Net Income	21.88M	24.98M	25.76M	15.03M	5.87M	9.59M
Balance Sheet
Total Assets	380.87M	348.80M	296.15M	311.08M	286.82M	172.26M
Cash, Cash Equivalents and Short-Term Investments	4.30M	4.11M	1.83M	2.46M	2.28M	3.52M
Total Debt	74.57M	72.02M	45.96M	90.63M	82.28M	11.39M
Total Liabilities	159.15M	144.44M	118.57M	163.31M	155.65M	46.56M
Stockholders Equity	221.71M	204.35M	177.58M	147.77M	131.17M	125.70M
Cash Flow
Free Cash Flow	36.44M	38.00M	46.38M	-5.99M	25.78M	26.97M
Operating Cash Flow	39.71M	43.39M	49.59M	-3.86M	28.01M	29.71M
Investing Cash Flow	-75.98M	-55.25M	-3.20M	-1.57M	-92.96M	17.41M
Financing Cash Flow	33.50M	14.31M	-47.15M	5.63M	63.58M	-44.40M

Lsi Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LYTS, the sentiment is Positive. The current price of 17.85 is above the 20-day moving average (MA) of 16.55, above the 50-day MA of 16.10, and above the 200-day MA of 17.72, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 68.69 is Neutral, neither overbought nor oversold. The STOCH value of 85.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LYTS.

Lsi Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	79 Outperform	$5.41B	23.42	11.03%	―	-1.50%	1.84%
LYTS	75 Outperform	$528.38M	24.64	10.42%	1.14%	17.89%	-23.37%
DAKT	69 Neutral	$807.91M	32.01	-3.96%	―	-7.53%	-126.35%
ROG	63 Neutral	$1.36B	80.86	1.34%	―	-8.06%	-75.10%
FARO	62 Neutral	$848.40M	―	-0.34%	―	-4.76%	97.93%
MVIS	50 Neutral	$284.16M	―	-135.21%	―	-41.76%	5.56%
Sector *	49 Neutral	C$2.96B	2.13	-80.92%	2.67%	12.55%	-24.47%

Lsi Industries Corporate Events

LSI Industries Reports 22% Sales Increase in Q3

On April 24, 2025, LSI Industries reported a 22% increase in net sales for the fiscal third quarter ending March 31, 2025, driven by strong performance in the Display Solutions segment and contributions from recent acquisitions. The company completed the acquisition of Canada’s Best Holdings, enhancing its market reach in Canada. LSI’s strategic initiatives, including managing supply chain adjustments due to new tariffs, have positioned it to continue delivering growth and value to shareholders. The company declared a quarterly cash dividend and highlighted its robust backlog and stable order activity, reflecting its competitive advantage in managing large custom projects.