Lsi Industries (LYTS) AI Stock Analysis

• Market Cap: $692.75M
• Dividend Yield: 1.07%
• Average Volume (3M): 130.78K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 1.24
• Revenue Growth: 22.35%
• EPS Growth: 2.59%
• Country: US
• Employees: 2,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.26
• Shares Outstanding: 31,092,787
• 10 Day Avg. Volume: 191,889
• 30 Day Avg. Volume: 130,779
• PEG Ratio: -4.49
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 14.68
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 4.86
• Enterprise Value/Ebitda: 14.34
• 1Y Price Target: $29.33
• Price Target Upside: 32.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.11
• Revenue Forecast (FY): $605.35M

• Rating: 68 Neutral
• Price Target: $25.00 ▲(12.66% Upside)

The score is led by solid financial health (profitability and low leverage) and a supportive earnings update highlighted by strong cash flow and debt reduction. These positives are moderated by stretched technical conditions (overbought signals) and a valuation that offers limited yield and less margin of safety.

Positive Factors

Balance sheet & liquidity

Material FCF generation and deliberate debt paydown materially strengthen financial flexibility. With ~0.4x net leverage and roughly $100M in liquidity, the company can fund working capital, pursue tuck-in M&A, sustain dividends and absorb shocks without immediate refinancing risk.

Lighting segment momentum

Consistent double-digit lighting growth with margin expansion and book-to-bill above one shows durable demand and improving unit economics. This segment’s scale and improving profitability provide a structural earnings driver even if other end markets soften, supporting multi-quarter resilience.

Diversified solutions model & M&A integration

A combinations of product sales and project-based solutions across Lighting and Display reduces cyclicality and enables cross-selling. Successful acquisition integration (material margin uplift at EMI) demonstrates repeatable synergy capture and bolsters medium-term margin expansion potential.

Negative Factors

Stalled top-line growth

Flat consolidated revenue despite segment gains indicates reliance on timing/event-driven demand and weak organic growth. Limited top-line expansion constrains operating leverage, caps sustainable EPS growth and increases dependence on M&A or commodity pricing to drive future revenue gains.

Weakening cash-generation efficiency

A noticeable decline in FCF and low OCF conversion of net income signal deteriorating cash quality. Sustained weakness would reduce capacity for debt reduction, acquisitions and shareholder returns, and could reintroduce refinancing or liquidity stress if the trend persists over several quarters.

Tariff and sourcing exposure

Dependence on global component sourcing leaves margins vulnerable to prolonged tariff increases or supply disruptions. Persistent cost pressure can erode recent margin gains in Lighting and force price passes that hurt competitiveness with large retail and QSR customers.

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 and graphics products. The company benefits from a diversified revenue model encompassing direct sales to end-users, distribution partnerships, and collaborations with electrical contractors and wholesalers. Key revenue streams include the sale of LED lighting systems, fixtures, and related controls, as well as graphics solutions that cater to signage needs. Additionally, Lsi Industries has established strategic partnerships with other firms in the construction and design industries, enhancing its market reach and allowing for bundled solutions that attract larger clients. The growing trend towards energy-efficient and sustainable lighting solutions further contributes to the company's earnings, as customers increasingly seek to reduce energy costs and comply with environmental regulations.

Lsi Industries Financial Statement Overview

Summary

Solid overall fundamentals supported by consistent revenue growth and stable profitability (gross margin ~25%, net margin ~4%) plus low leverage (debt-to-equity 0.20). Offsetting factors include weakening cash generation trends (TTM free cash flow down ~33%) and a low operating cash flow to net income ratio (0.28).

Income Statement

Lsi Industries has demonstrated consistent revenue growth, with a TTM revenue growth rate of 3.34%. The gross profit margin is stable at 25.05%, and the net profit margin is 4.21%, indicating solid profitability. EBIT and EBITDA margins are healthy at 6.31% and 8.48%, respectively, showing efficient operational management. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.20, reflecting prudent financial leverage. Return on equity is reasonable at 10.96%, indicating effective use of shareholder funds. The equity ratio stands at 59.60%, showcasing a solid capital structure. However, the slight increase in debt levels over the past year could pose future risks if not managed carefully.

Cash Flow

Operating cash flow is positive, but the operating cash flow to net income ratio of 0.28 suggests room for improvement in cash generation efficiency. Free cash flow has decreased by 32.83% in the TTM, indicating potential challenges in maintaining cash reserves. The free cash flow to net income ratio of 0.86 is strong, but the decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	592.53M	573.38M	469.64M	496.98M	455.12M	315.61M
Gross Profit	148.41M	141.78M	133.17M	136.94M	109.21M	78.97M
EBITDA	50.25M	48.74M	45.25M	46.68M	31.17M	16.32M
Net Income	24.96M	24.38M	24.98M	25.76M	15.03M	5.87M
Balance Sheet
Total Assets	404.87M	396.36M	348.80M	296.15M	311.08M	286.82M
Cash, Cash Equivalents and Short-Term Investments	7.14M	3.46M	4.11M	1.83M	2.46M	2.28M
Total Debt	68.06M	66.64M	72.02M	45.96M	90.63M	82.28M
Total Liabilities	163.55M	165.64M	144.44M	118.57M	163.31M	155.65M
Stockholders Equity	241.33M	230.72M	204.35M	177.58M	147.77M	131.17M
Cash Flow
Free Cash Flow	23.27M	34.65M	38.00M	46.38M	-5.99M	25.78M
Operating Cash Flow	26.95M	38.12M	43.39M	49.59M	-3.86M	28.01M
Investing Cash Flow	-27.86M	-27.97M	-55.25M	-3.20M	-1.57M	-92.96M
Financing Cash Flow	543.00K	-11.43M	14.31M	-47.15M	5.63M	63.58M

Lsi Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 22.19 is above the 20-day moving average (MA) of 20.85, above the 50-day MA of 19.50, and above the 200-day MA of 19.21, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 65.18 is Neutral, neither overbought nor oversold. The STOCH value of 39.17 is Neutral, 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
DAKT	72 Outperform	$1.17B	177.21	2.64%	―	-6.13%	-76.92%
LYTS	68 Neutral	$692.75M	27.09	11.03%	1.07%	22.35%	2.59%
VPG	67 Neutral	$715.74M	90.68	2.37%	―	-7.46%	-39.98%
BHE	64 Neutral	$2.00B	82.38	3.37%	1.44%	-2.93%	-40.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RELL	58 Neutral	$167.62M	174.77	0.11%	2.25%	6.17%	―
MEI	50 Neutral	$305.93M	-4.88	-8.87%	5.93%	-9.51%	29.57%

Lsi Industries Corporate Events

LSI Industries Reports Solid Q2 Results and Dividend

On January 22, 2026, LSI Industries reported fiscal 2026 second-quarter results for the period ended December 31, 2025, posting flat year-on-year sales of $147.0 million while absorbing the fade-out of prior-year, event-driven grocery revenues, and delivering net income of $6.3 million ($0.20 per diluted share), adjusted net income of $8.4 million ($0.26 adjusted diluted EPS), adjusted EBITDA of $13.4 million, and robust free cash flow of $23.3 million. Management highlighted double-digit growth and margin expansion in the Lighting segment, stabilizing demand in the grocery vertical, improving project momentum in Display Solutions, and a strengthened balance sheet marked by a leverage ratio of 0.4x net debt to trailing 12-month adjusted EBITDA and $103.4 million of liquidity, while the board declared a $0.05 per-share quarterly dividend payable February 10, 2026, underscoring the company’s capacity to fund organic growth, pursue acquisitions and sustain shareholder returns.

The most recent analyst rating on (LYTS) stock is a Buy with a $21.50 price target. To see the full list of analyst forecasts on Lsi Industries stock, see the LYTS Stock Forecast page.

LSI Industries Holds Annual Shareholders Meeting

On November 4, 2025, LSI Industries held its Annual Meeting of Shareholders where key decisions were made, including the election of seven directors and the ratification of Grant Thornton LLP as the independent public accounting firm for fiscal 2026. Additionally, shareholders participated in advisory votes on the company’s executive compensation, reflecting continued engagement in corporate governance matters.

The most recent analyst rating on (LYTS) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Lsi Industries stock, see the LYTS Stock Forecast page.

LSI Industries Reports Strong Start to Fiscal 2026

On November 6, 2025, LSI Industries reported a strong start to fiscal 2026 with a 14% increase in net sales for the first quarter, driven by demand in its Lighting and Display Solutions segments. The company achieved significant growth in net income and adjusted EBITDA, supported by strategic pricing and cost management, and declared a quarterly cash dividend. LSI’s strategic acquisitions and focus on innovation have expanded its market reach, positioning it for continued growth despite challenges in the grocery vertical and tariff impacts.

The most recent analyst rating on (LYTS) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Lsi Industries stock, see the LYTS Stock Forecast page.

LSI Industries Expands Credit Facility with PNC Bank

On November 3, 2025, LSI Industries Inc. entered into a Second Amended and Restated Loan Agreement with PNC Bank, which became effective on September 30, 2025. This agreement increases LSI’s borrowing availability under its Revolving Credit Facility from $75 million to $125 million, while terminating a $25 million term loan from the previous agreement. The facility will support LSI’s working capital and general corporate purposes, with interest based on an increment over the SOFR. The agreement also allows LSI to make certain acquisitions using cash without additional lender consent.

The most recent analyst rating on (LYTS) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Lsi Industries stock, see the LYTS Stock Forecast page.