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Lsi Industries (LYTS)
NASDAQ:LYTS
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Lsi Industries
(NASDAQ:LYTS)
66Neutral
Positive Factors
Acquisition Strategy
Management completed the acquisition of Canada's Best Store, showing continued business growth through acquisitions.
Product Development
Future growth in revenues for the company should partly be supported by 40 new product launches and refreshes expected in fiscal 2025.
Revenue Growth
Sales continue to show healthy YoY growth despite a volatile macro environment.
Negative Factors
Financial Performance
LSI reported adjusted gross margins and adjusted EBITDA margin below estimates.
Margin Pressures
Margins were a little weaker than expected, and the Lighting segment was weaker.
Lsi Industries (LYTS) vs. S&P 500 (SPY)
Market Cap
$477.25M
Dividend Yield1.25%
Average Volume (3M)182.20K
Price to Earnings (P/E)22.3
Beta (1Y)0.81
Revenue Growth17.89%
EPS Growth-23.37%
CountryUS
Employees2,000
SectorTechnology
Sector Strength68
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.71
Shares Outstanding29,921,385
10 Day Avg. Volume217,318
30 Day Avg. Volume182,203
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.22
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.37
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.00Price Target Upside63.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Lsi Industries Business Overview & Revenue Model
Company DescriptionLSI Industries Inc. (LYTS) is a U.S.-based company that specializes in the design, manufacturing, and marketing of a wide range of lighting solutions and graphics elements. With a focus on providing innovative and high-quality products, LSI Industries serves various sectors including commercial, industrial, and institutional markets. The company offers comprehensive lighting solutions tailored to the needs of its clients, ensuring energy efficiency and enhanced visual environments.
How the Company Makes MoneyLSI 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 shows strong revenue growth and profitability metrics. The income statement reflects positive momentum, while cash flow indicates robust cash generation. However, balance sheet concerns about asset and liability management need attention.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.78
Positive
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.65
Positive
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.82
Very Positive
| Breakdown | ||||
| Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 469.64M | 496.98M | 455.12M | 315.61M | 305.56M | Gross Profit |
| 133.17M | 136.94M | 109.21M | 78.97M | 73.53M | EBIT |
| 37.06M | 37.03M | 10.95M | -32.00K | -4.42M | EBITDA |
| 45.25M | 46.68M | 31.17M | 16.35M | 21.25M | Net Income Common Stockholders |
| 24.98M | 25.76M | 15.03M | 5.87M | 9.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.11M | 1.83M | 2.46M | 2.28M | 3.52M | Total Assets |
| 348.80M | 296.15M | 311.08M | 286.82M | 172.26M | Total Debt |
| 72.02M | 35.20M | 79.60M | 68.18M | 11.39M | Net Debt |
| 67.91M | 33.37M | 77.13M | 65.90M | 7.87M | Total Liabilities |
| 144.44M | 118.57M | 163.31M | 155.65M | 46.56M | Stockholders Equity |
| 204.35M | 177.58M | 147.77M | 131.17M | 125.70M |
| Cash Flow | Free Cash Flow | |||
| 38.00M | 46.38M | -5.99M | 25.78M | 26.97M | Operating Cash Flow |
| 43.39M | 49.59M | -3.86M | 28.01M | 29.71M | Investing Cash Flow |
| -55.25M | -3.20M | -1.57M | -92.96M | 17.41M | Financing Cash Flow |
| 14.31M | -47.15M | 5.63M | 63.58M | -44.40M |
Lsi Industries Technical Analysis
Neutral
15.95
Price Trends
16.82
Negative
18.47
Negative
17.54
Negative
Market Momentum
-0.49
Negative
49.67
Neutral
62.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LYTS, the sentiment is Neutral. The current price of 15.95 is above the 20-day moving average (MA) of 15.55, below the 50-day MA of 16.82, and below the 200-day MA of 17.54, indicating a neutral trend. The MACD of -0.49 indicates Negative momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 62.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.29B | 18.56 | 11.03% | ― | -1.50% | 1.84% | |
66 Neutral | $477.25M | 22.32 | 10.42% | 1.25% | 17.89% | -23.37% | |
64 Neutral | $1.19B | 70.45 | 1.34% | ― | -8.06% | -75.10% | |
61 Neutral | $669.57M | 32.01 | 0.72% | ― | -1.51% | -96.07% | |
61 Neutral | $592.36M | ― | -0.34% | ― | -4.76% | 97.93% | |
60 Neutral | $10.94B | 10.58 | -7.08% | 2.98% | 7.52% | -12.04% | |
45 Neutral | $270.37M | ― | -134.07% | ― | -35.31% | -2.18% |
* Technology Sector Average
Performance Comparison
LYTS
Lsi Industries
15.95
0.75
4.93%
DAKT
Daktronics
13.42
2.90
27.57%
FARO
Faro Technologies
30.81
12.57
68.91%
MVIS
Microvision
1.10
-0.57
-34.13%
ROG
Rogers
63.98
-55.00
-46.23%
SANM
Sanmina-Sci
80.23
16.65
26.19%
Lsi Industries Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q3-2025)
| % Change Since: 0.89%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant sales growth and successful acquisition, particularly in the Display Solutions segment. However, challenges were noted in manufacturing inefficiencies and lighting sales slowdown. The company's proactive measures to mitigate tariff impacts and positive cash flow are encouraging.Q3-2025 Updates
Positive Updates
Strong Sales Growth
LSI Industries achieved a 22% sales growth year-over-year, with total net sales for the quarter reaching $132.5 million.
Display Solutions Performance
Display Solutions segment saw a 70% increase in sales compared to the prior year, with 15% organic growth, including 20% growth in Grocery.
Lighting Segment Rebound
Lighting segment saw an improvement in large project order activity, with a book-to-bill ratio of 1.13 times and a backlog 18% above the previous year.
Successful Acquisition
Completed the acquisition of Canada's Best Store Fixtures, expanding business capabilities and integration activities progressing ahead of schedule.
Positive Cash Flow
Generated $4.7 million in cash flow in the third quarter, increasing the trailing twelve-month cash flow to approximately $35 million.
Negative Updates
Manufacturing and Logistics Inefficiencies
Margin impacted by manufacturing and logistics inefficiencies due to fluctuating demand schedules, particularly in the Grocery vertical.
Challenges in Lighting Sales
Lighting sales lagged on a year-over-year basis due to a slowdown in large project activities and project shipment delays.
Tariff Concerns
Potential impact of trade and tariff activities on sourcing and pricing, with ongoing adjustments in procurement strategies.
Company Guidance
During the third quarter of fiscal 2025, LSI Industries reported robust sales growth of 22%, reaching $132.5 million, primarily driven by a 70% increase in the Display Solutions segment. This segment saw 15% organic growth and notable performance in the Grocery and petroleum/c-store markets. However, manufacturing and logistics inefficiencies due to fluctuating customer demand impacted margins. Despite these challenges, the Lighting segment showed improvement with a 110 basis point increase in operating margins and a book-to-bill ratio exceeding 1.13 times, indicating a strong backlog that is 18% above the prior year. The company also completed the acquisition of Canada's Best Store Fixtures for $24 million, which contributed to the quarter's achievements. Looking forward, LSI plans to leverage its increased domestic sourcing—currently at 70%—to mitigate tariff impacts and capitalize on new customer opportunities. The company's adjusted EBITDA for the quarter was $11.3 million, and adjusted earnings per share stood at $0.20, with a net debt to trailing 12 months adjusted EBITDA ratio of 1.0 times.Lsi Industries Corporate Events
M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
LSI Industries Reports 22% Sales Increase in Q3
Positive
Apr 24, 2025
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.
Spark’s Take on LYTS Stock
According to Spark, TipRanks’ AI Analyst, LYTS is a Neutral.
Lsi Industries presents a strong financial outlook with impressive revenue and profitability metrics, although balance sheet management requires attention. Despite a bullish earnings call, the technical analysis indicates bearish momentum, which tempers the overall score. The stock’s valuation appears fair, with a moderate P/E ratio and dividend yield.
To see Spark’s full report on LYTS stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.