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Lsi Industries
(NASDAQ:LYTS)
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Rating:68Neutral
Price Target:
$27.00
▲(16.23% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by solid financial performance (strong growth and positive/growing free cash flow) and a constructive earnings update with improving profitability and manageable leverage commentary post-acquisition. These positives are tempered by a stretched valuation (very high P/E, low yield) and technical overbought signals that raise near-term pullback risk.
Positive Factors
Revenue Growth & Improved Profitability
Sustained top-line expansion and recent margin improvement indicate stronger product adoption and pricing power across segments. Durable revenue growth supports operating leverage, funds reinvestment and strategic initiatives, and reduces reliance on any single vertical over the next several quarters.
Negative Factors
Elevated Leverage Post-Acquisition
Material increase in leverage after the Royston transaction reduces financial flexibility and raises interest and refinancing risk. If end-market activity softens or cash conversion weakens, higher debt amplifies downside and constrains the pace of targeted deleveraging and opportunistic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Improved Profitability
Sustained top-line expansion and recent margin improvement indicate stronger product adoption and pricing power across segments. Durable revenue growth supports operating leverage, funds reinvestment and strategic initiatives, and reduces reliance on any single vertical over the next several quarters.
Read all positive factors
Lsi Industries (LYTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$858.70M
Dividend Yield0.86%
Average Volume (3M)536.47K
Price to Earnings (P/E)30.2
Beta (1Y)1.36
Revenue Growth11.42%
EPS Growth5.37%
CountryUS
Employees2,175
SectorTechnology
Sector Strength88
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)0.90
Shares Outstanding36,712,402
10 Day Avg. Volume541,285
30 Day Avg. Volume536,473
Financial Highlights & Ratios
PEG Ratio-4.46
Price to Book (P/B)2.20
Price to Sales (P/S)0.89
P/FCF Ratio14.68
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$30.00Price Target Upside29.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.38
Revenue Forecast (FY)$896.42M
Lsi Industries Business Overview & Revenue Model
Company Description
LSI Industries Inc. provides non-residential lighting and retail display solutions to customers across the United States, Canada, Mexico, Australia, and Latin America. The company's operations are organized into two key segments: Lighting and Disp...
How the Company Makes Money
LSI Industries primarily makes money by selling commercial lighting products and by delivering graphics/signage and related project solutions to business customers. Revenue is generally generated through (1) product sales and (2) project/solution ...
Lsi Industries Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call presented a number of strong operational and financial positives: double-digit consolidated revenue growth (14% Y/Y), EPS and adjusted EBITDA expansion, robust free cash flow, meaningful outperformance in Display Solutions (notably grocery and C-store order strength), and an accretive strategic acquisition (Royston) that supports a larger pro forma revenue run rate. Offsetting items were limited to near-term softness in the Lighting segment (expected Q4 mid-single-digit decline), some weakness in QSR verticals, timing delays on quote-to-order conversions, and short-term integration/resource risks from the Royston acquisition. Overall, management framed results and outlook with confidence, citing disciplined integration plans, margin focus and continued momentum in key verticals.Positive Updates
Revenue Growth — Q3
Total sales increased 14% year-over-year to $150.5 million in Fiscal Q3; comparable sales excluding the 6-day Royston stub rose 9% versus prior year.
Negative Updates
Lighting Segment Near-Term Softness
Lighting sales grew only 2% in Q3 and management expects Lighting segment sales to decline mid-single digits in Q4 versus the prior year, citing a lengthening quote-to-order conversion cycle and tougher year-ago comps (Q4 fiscal 2025 lighting was +12%).
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth — Q3
Total sales increased 14% year-over-year to $150.5 million in Fiscal Q3; comparable sales excluding the 6-day Royston stub rose 9% versus prior year.
Read all positive updates
Company Guidance
Management guided consolidated Q4 net sales to grow in the low- to mid-single-digit percent range year-over-year, driven by Display Solutions (pro forma mid- to high-single-digit sales growth vs. prior year) while Lighting is expected to decline mid-single-digits (after Lighting grew 12% in Q4 FY25); key Q3 metrics were total sales up 14% to $150.5M (up 9% ex‑Royston), adjusted EPS $0.28 ($0.27 ex‑Royston) vs. $0.20 prior year, adjusted EBITDA $15.0M (10.0% of sales; $14.1M ex‑Royston) with an adjusted EBITDA margin of 9.8% (+130 bps), free cash flow of $11.8M (ex‑acquisition costs) and a pro forma TTM net debt/EBITDA of 2.7x; Display Solutions sales and adjusted operating income rose 14% and 64% respectively, grocery orders were +20% with backlog above prior year, refueling C‑store orders were double‑digit with book‑to‑bill >1 (including >$5M in program work), QSR sales were down, and management reiterated price and cost discipline to sustain healthy margins.Lsi Industries Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 742.32M | 573.38M | 469.64M | 496.98M | 455.12M | 315.61M |
| Gross Profit | 186.35M | 141.78M | 133.17M | 136.94M | 109.21M | 78.97M |
| EBITDA | 58.58M | 48.74M | 45.25M | 46.68M | 31.17M | 16.32M |
| Net Income | 27.76M | 24.38M | 24.98M | 25.76M | 15.03M | 5.87M |
Balance Sheet | ||||||
| Total Assets | 800.55M | 396.36M | 348.80M | 296.15M | 311.08M | 286.82M |
| Cash, Cash Equivalents and Short-Term Investments | 10.33M | 3.46M | 4.11M | 1.83M | 2.46M | 2.28M |
| Total Debt | 314.16M | 66.64M | 72.02M | 45.96M | 90.63M | 82.28M |
| Total Liabilities | 447.74M | 165.64M | 144.44M | 118.57M | 163.31M | 155.65M |
| Stockholders Equity | 352.81M | 230.72M | 204.35M | 177.58M | 147.77M | 131.17M |
Cash Flow | ||||||
| Free Cash Flow | 43.97M | 34.65M | 38.00M | 46.38M | -5.99M | 25.78M |
| Operating Cash Flow | 48.97M | 38.12M | 43.39M | 49.59M | -3.86M | 28.01M |
| Investing Cash Flow | -360.95M | -27.97M | -55.25M | -3.20M | -1.57M | -92.96M |
| Financing Cash Flow | 317.01M | -11.43M | 14.31M | -47.15M | 5.63M | 63.58M |
Lsi Industries Technical Analysis
Positive
23.23
Price Trends
24.53
Positive
22.79
Positive
21.56
Positive
Market Momentum
-0.25
Negative
55.65
Neutral
82.90
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 23.23 is below the 20-day moving average (MA) of 23.82, below the 50-day MA of 24.53, and above the 200-day MA of 21.56, indicating a bullish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 55.65 is Neutral, neither overbought nor oversold. The STOCH value of 82.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LYTS.
Lsi Industries Risk Analysis
Lsi Industries disclosed 25 risk factors in its most recent earnings report. Lsi Industries reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lsi Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $955.01M | 21.21 | 15.49% | ― | 10.87% | ― | |
68 Neutral | $858.70M | 30.25 | 8.90% | 0.86% | 11.42% | 5.37% | |
68 Neutral | $2.87B | 53.90 | 3.85% | 0.84% | 8.87% | 39.10% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $262.51M | 40.44 | 3.98% | 1.30% | 9.41% | ― | |
50 Neutral | $1.22B | 205.15 | 1.77% | ― | 7.51% | 93.82% | |
49 Neutral | $496.25M | -13.87 | -5.25% | 1.31% | -2.76% | 42.91% |
* Technology Sector Average
LYTS
Lsi Industries
25.00
6.68
36.47%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.