Lsi Industries (LYTS) AI Stock Analysis

• Market Cap: $588.59M
• Dividend Yield: 1.08%
• Average Volume (3M): 177.90K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 1.27
• Revenue Growth: 22.35%
• EPS Growth: 2.59%
• Country: US
• Employees: 2,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.31
• Shares Outstanding: 31,092,787
• 10 Day Avg. Volume: 147,103
• 30 Day Avg. Volume: 177,901
• 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: 1.36
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 5.40
• Enterprise Value/Ebitda: 15.96
• 1Y Price Target: $27.50
• Price Target Upside: 48.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.11
• Revenue Forecast (FY): $595.38M

• Rating: 70 Neutral
• Price Target: $20.50 ▲(10.57% Upside)

LSI Industries demonstrates strong financial performance and a positive earnings outlook, which are the primary drivers of the score. Technical indicators suggest caution due to bearish momentum, and valuation is moderate. The company's strategic growth initiatives and successful acquisition integration further support its potential.

Positive Factors

Revenue Growth

The 14% increase in Q1 sales indicates strong demand and effective market strategies, supporting long-term revenue growth potential.

Strategic Acquisitions

Successful integration of acquisitions enhances operational capabilities and market reach, contributing to sustained business growth.

Expanded Credit Facility

The expanded credit facility provides LSI with greater financial flexibility to support strategic initiatives and manage working capital.

Negative Factors

Free Cash Flow Decline

A significant decline in free cash flow may limit the company's ability to invest in growth opportunities and manage financial obligations.

Supply Chain Challenges

Ongoing supply chain issues can disrupt operations and increase costs, potentially impacting profit margins and customer satisfaction.

Debt Level Increase

Rising debt levels, if not managed carefully, can strain financial resources and limit future investment capabilities.

Lsi Industries Business Overview & Revenue Model

Company Description

Lsi Industries Inc. (LYTS) is a leading provider of lighting and graphics solutions primarily focused on the commercial and industrial sectors. The company operates through two main segments: Lighting and Graphics. Lsi Industries designs, manufactures, and distributes a diverse range of LED lighting products, including outdoor, indoor, and specialty lighting solutions, as well as signage and visual graphics solutions for various applications such as retail, transportation, and municipal sectors.

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

Lsi Industries shows strong revenue growth and profitability, supported by a robust balance sheet with low leverage. However, the decline in free cash flow growth and slight increase in debt levels warrant attention. Overall, the financial health is solid, but careful monitoring of cash flow and debt management is advisable.

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: Negative
• Last Price: 18.54
• 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 18.54 is above the 20-day moving average (MA) of 18.48, below the 50-day MA of 20.36, and below the 200-day MA of 18.77, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 40.95 is Neutral, neither overbought nor oversold. The STOCH value of 49.40 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
LYTS	70 Neutral	$588.59M	23.56	11.03%	1.08%	22.35%	2.59%
BHE	70 Neutral	$1.63B	44.57	3.37%	1.44%	-2.93%	-40.33%
DAKT	67 Neutral	$935.96M	140.27	2.64%	―	-6.13%	-76.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RELL	61 Neutral	$157.17M	509.26	0.11%	2.23%	6.17%	―
VPG	60 Neutral	$512.17M	64.01	2.37%	―	-7.46%	-39.98%
MEI	50 Neutral	$237.94M	-3.76	-8.87%	6.01%	-9.51%	29.57%

Lsi Industries Corporate Events

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.

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.

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.