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Lsi Industries Inc. (LYTS)
:LYTS
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Lsi Industries
(NASDAQ:LYTS)
Select Model
Select Model
Rating:77Outperform
Price Target:
$26.00
▲(11.21% Upside)
Lsi Industries' strong financial performance and positive earnings call sentiment are the primary drivers of its score. Technical indicators support a bullish outlook, though valuation concerns slightly temper the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth of 22% annually indicates strong market demand and effective sales strategies, supporting long-term business expansion.
Product Innovation
Continuous product innovation, such as the V-LOCITY Lighting, enhances competitive positioning and meets evolving customer needs, driving future growth.
Operational Efficiency
Improved operational efficiency and margin enhancement reflect effective cost management and productivity, bolstering long-term profitability.
Negative Factors
Profit Margin Decline
Declining profit margins could pressure earnings, potentially impacting the company's ability to reinvest in growth and maintain competitive pricing.
Tariff Impact
Tariff impacts pose a risk to cost structures and profitability, potentially affecting pricing strategies and market competitiveness in the near term.
Free Cash Flow Decline
A decline in free cash flow may limit the company's ability to invest in growth opportunities and reduce financial flexibility, impacting long-term stability.
Lsi Industries (LYTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$713.38M
Dividend Yield0.86%
Average Volume (3M)242.46K
Price to Earnings (P/E)29.6
Beta (1Y)0.98
Revenue Growth22.09%
EPS Growth-5.26%
CountryUS
Employees2,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.34
Shares Outstanding30,512,222
10 Day Avg. Volume300,268
30 Day Avg. Volume242,464
Financial Highlights & Ratios
PEG Ratio-4.49
Price to Book (P/B)2.20
Price to Sales (P/S)0.89
P/FCF Ratio14.68
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue1.03
Enterprise Value/Gross Profit4.16
Enterprise Value/Ebitda12.10
Forecast
1Y Price Target
$25.75Price Target Upside10.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Lsi Industries Business Overview & Revenue Model
Company DescriptionLSI 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 MoneyLsi 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 Earnings Call Summary
Earnings Call Date:Aug 21, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance in terms of sales growth and operational efficiency, with significant achievements in product innovation and segment expansion. However, there are concerns about tariff impacts and project delays at EMI. Despite these issues, the overall outlook remains positive with continued focus on strategic growth and cross-selling opportunities.Q4-2025 Updates
Positive Updates
Strong Sales Growth
Fourth quarter sales increased by just over 20%, driven by solid performance in both Lighting and Display Solutions segments. For the full year, total sales were over $573 million, representing a 22% increase over the prior year.
Robust Free Cash Flow and Low Debt Leverage
Free cash flow remained robust throughout the fourth quarter and the full year, resulting in a net debt leverage ratio of 0.8x.
Successful Product Launches
Launched over 25 new products in the Lighting segment, notably the V-LOCITY Lighting product, which was a resounding success.
Record Performance in Display Solutions
Display Solutions segment sales increased 28% in Q4, with organic growth of 10%. This segment concluded a record year with strong growth in refueling c-store and grocery verticals.
Operational Efficiency and Margin Improvement
Adjusted EBITDA for the year increased to $55 million, with significant improvements in productivity and margins.
Negative Updates
Tariff Impact on Margins
Lighting segment expected to face increased tariff impacts in fiscal Q1, which could affect margins despite efforts to offset costs through price adjustments.
Project Delays at EMI
EMI experienced some project delays with one of their larger customers, though the company still delivered record sales and profits in 2025.
Company Guidance
During LSI Industries' fourth quarter and full fiscal year 2025 earnings call, several key metrics highlighted their robust financial performance and strategic advancements. The company reported a 20% increase in fourth-quarter sales, contributing to a total annual sales figure of over $573 million, marking a 22% growth compared to the prior year. Adjusted EBITDA reached $55 million, approximately 10% of sales, demonstrating strong operational efficiency. The net debt leverage ratio stood at 0.8x, reflecting a healthy financial position. LSI's Lighting and Display Solutions segments both achieved double-digit growth, with the Lighting segment increasing 12% and Display Solutions up 10% organically. The company also reported a 250 basis point quarter-over-quarter improvement in adjusted EBITDA, attributed to enhanced productivity and increased demand. Free cash flow was robust, totaling $34.6 million for the year, supporting continued investment in growth and innovation. Looking ahead, LSI is focused on advancing its Fast Forward strategic plan, with a strong emphasis on cross-selling initiatives to drive sustainable growth.Lsi Industries Financial Statement Overview
Summary
Lsi Industries shows consistent revenue growth and improved leverage ratios. Despite slight declines in profitability margins, operational efficiency remains strong. The cash flow position is stable, though free cash flow growth could improve.Income Statement
Lsi Industries has shown consistent revenue growth with a 4.76% increase in the latest year, indicating a positive trajectory. However, the gross profit margin has slightly decreased from 28.46% to 24.73%, and the net profit margin has also declined from 5.32% to 4.25%. Despite these declines, the company maintains a stable EBIT margin of 6.31% and an EBITDA margin of 8.50%, reflecting operational efficiency.75
Positive
Balance Sheet
The company's debt-to-equity ratio has improved significantly from 0.35 to 0.21, indicating reduced leverage and a stronger equity position. Return on equity remains healthy at 10.57%, showcasing effective use of equity to generate profits. The equity ratio stands at 58.19%, reflecting a solid capital structure with a strong equity base.80
Positive
Cash Flow
Free cash flow has decreased by 4.90%, indicating a potential area of concern. However, the operating cash flow to net income ratio is 0.39, suggesting that the company generates sufficient cash from operations relative to its net income. The free cash flow to net income ratio is strong at 0.91, demonstrating effective cash conversion.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 573.38M | 573.38M | 469.64M | 496.98M | 455.12M | 315.61M |
| Gross Profit | 141.78M | 141.78M | 133.68M | 136.98M | 109.21M | 78.97M |
| EBITDA | 48.74M | 48.74M | 45.25M | 46.68M | 31.17M | 16.35M |
| Net Income | 24.38M | 24.38M | 24.98M | 25.76M | 15.03M | 5.87M |
Balance Sheet | ||||||
| Total Assets | 396.36M | 396.36M | 348.80M | 296.15M | 311.08M | 286.82M |
| Cash, Cash Equivalents and Short-Term Investments | 3.46M | 3.46M | 4.11M | 1.83M | 2.46M | 2.28M |
| Total Debt | 48.56M | 48.56M | 72.02M | 45.96M | 90.63M | 82.28M |
| Total Liabilities | 165.64M | 165.64M | 144.44M | 118.57M | 163.31M | 155.65M |
| Stockholders Equity | 230.72M | 230.72M | 204.35M | 177.58M | 147.77M | 131.17M |
Cash Flow | ||||||
| Free Cash Flow | 26.10M | 34.65M | 38.00M | 46.38M | -5.99M | 25.78M |
| Operating Cash Flow | 28.62M | 38.12M | 43.39M | 49.59M | -3.86M | 28.01M |
| Investing Cash Flow | -25.32M | -27.97M | -55.25M | -3.20M | -1.57M | -92.96M |
| Financing Cash Flow | -3.21M | -11.43M | 14.31M | -47.15M | 5.63M | 63.58M |
Lsi Industries Technical Analysis
Positive
23.38
Price Trends
20.22
Positive
18.28
Positive
18.42
Positive
Market Momentum
0.86
Positive
62.79
Neutral
66.29
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 23.38 is above the 20-day moving average (MA) of 23.00, above the 50-day MA of 20.22, and above the 200-day MA of 18.42, indicating a bullish trend. The MACD of 0.86 indicates Positive momentum. The RSI at 62.79 is Neutral, neither overbought nor oversold. The STOCH value of 66.29 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 6.30B | 25.33 | 10.13% | ― | 5.87% | 20.66% | |
77 Outperform | $713.38M | 29.56 | 11.21% | 0.86% | 22.09% | -5.26% | |
68 Neutral | 1.07B | 5,031.82 | -3.72% | ― | -7.67% | 7.66% | |
62 Neutral | 1.48B | -23.18 | -5.37% | ― | -7.61% | -212.91% | |
45 Neutral | 388.24M | -3.29 | -116.31% | ― | -71.30% | 17.62% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
LYTS
Lsi Industries
23.38
7.53
47.51%
DAKT
Daktronics
22.14
10.23
85.89%
MVIS
Microvision
1.29
0.22
20.56%
ROG
Rogers
81.75
-21.45
-20.78%
SANM
Sanmina-Sci
118.30
49.47
71.87%
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.