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Lsi Industries
(NASDAQ:LYTS)
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Rating:68Neutral
Price Target:
$27.00
▲(33.20% 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
$744.16M
Dividend Yield0.99%
Average Volume (3M)536.47K
Price to Earnings (P/E)29.1
Beta (1Y)1.44
Revenue Growth20.23%
EPS Growth-15.15%
CountryUS
Employees3,000
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
$29.50Price Target Upside45.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.35
Revenue Forecast (FY)$884.91M
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:Aug 20, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call highlighted a transformational fiscal year with record sales (+20% full-year) and strong adjusted EBITDA growth (+28%), robust Q4 performance (Q4 sales +51%, organic +8%) and meaningful operational wins (on-time delivery >90%, major new 2.5k-site award). The primary negatives are a short-term margin headwind from lower-margin Royston/SignResource backlog driven by raw material pricing mismatches and some near-term softness in select verticals (QSR, certain lighting projects). Management provided timelines and remediation actions (pricing discipline, procurement, integration playbook) and expects the Royston-related headwind to be largely resolved by the end of Q2 fiscal 2027, after which accretion and cross-selling benefits should support margin targets. Overall, the positives (record revenue, EBITDA expansion, cash generation, strategic acquisition and large new contract) outweigh the near-term, addressable challenges.Positive Updates
Record Full-Year Revenue and Strong EBITDA Growth
Full-year net sales reached $689 million, up 20% year-over-year. Adjusted EBITDA was almost $70 million, up 28% versus fiscal 2025, with a full-year adjusted EBITDA margin of 10.1%.
Negative Updates
Lower-Margin Backlog at SignResource (Royston)
SignResource (within Royston) has a lower-margin backlog that reflects pricing decisions that did not keep pace with higher raw material input costs (notably petroleum-based polymers impacted by crude oil prices). Management expects this backlog to take approximately 2 quarters to fully clear and may run through the first half of fiscal 2027.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Full-Year Revenue and Strong EBITDA Growth
Full-year net sales reached $689 million, up 20% year-over-year. Adjusted EBITDA was almost $70 million, up 28% versus fiscal 2025, with a full-year adjusted EBITDA margin of 10.1%.
Read all positive updates
Company Guidance
The company reiterated a confident but non‑linear outlook, maintaining a 12.5% adjusted EBITDA margin target while noting a near‑term margin headwind from lower‑margin SignResource/Royston backlog that management expects to clear in roughly 1–2 quarters (may run through H1 FY27) and that could depress margins by roughly 50–100 bps (with an incremental Q1 impact on the order of ~30 bps). For context, FY26 results included record net sales of $689.0M (+20% YoY), adjusted EBITDA of almost $70M (+28%, 10.1% margin), adjusted EPS of $1.25 (vs. $1.40 FY25), and free cash flow of $39M (>50% conversion of adjusted EBITDA); Q4 sales rose 51% (organic +8%) with adjusted EBITDA >$25M (+50%, 10.9% margin), adjusted EPS $0.38, Q4 free cash flow just under $10M and $9M of net debt paydown. Segment guidance emphasized elevated Display Solutions demand (Q4 Display sales ~$164M, 70% of quarterly sales; organic +18%; segment adjusted EBITDA margin 12.4%, +180 bps YoY; grocery +21% organic; refueling C‑store +16% organic; book‑to‑bill ~1x; backlog slightly above prior year and a newly awarded ~2.5k‑site program) and steady Lighting momentum (FY lighting sales +7%; Q4 lighting +17% sequential but -3% YoY; book‑to‑bill >1x), while integration actions (on‑time delivery improved from the 70s% to >90%, and procurement/cost‑savings initiatives over the next 24 months) are expected to drive recovery and margin accretion into the back half of FY27.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
Negative
20.27
Price Trends
24.16
Negative
23.48
Negative
21.61
Negative
Market Momentum
-1.07
Positive
30.91
Neutral
14.57
Positive
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 20.27 is below the 20-day moving average (MA) of 23.26, below the 50-day MA of 24.16, and below the 200-day MA of 21.61, indicating a bearish trend. The MACD of -1.07 indicates Positive momentum. The RSI at 30.91 is Neutral, neither overbought nor oversold. The STOCH value of 14.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $942.45M | 21.04 | 15.49% | ― | 10.87% | ― | |
68 Neutral | $744.16M | 29.09 | 7.51% | 0.86% | 20.23% | -15.15% | |
68 Neutral | $2.60B | 49.79 | 4.81% | 0.84% | 8.87% | 39.10% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $257.62M | 39.77 | 3.98% | 1.30% | 9.41% | ― | |
55 Neutral | $605.54M | -17.63 | -5.25% | 1.31% | -2.76% | 42.91% | |
52 Neutral | $853.31M | 220.73 | 1.08% | ― | 11.28% | ― |
* Technology Sector Average
LYTS
Lsi Industries
20.17
-2.55
-11.22%
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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.