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Lsi Industries (LYTS)
NASDAQ:LYTS
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Lsi Industries
(NASDAQ:LYTS)
73Outperform
Positive Factors
M&A and Acquisitions
LSI management has continued to build its business inorganically through the recently announced acquisition of EMI.
Revenue and Sales Performance
The company's Display Solutions segment sales grew by 50% in F2Q25 with strong contribution from refueling/C-store customers.
Negative Factors
Gross Margins
Gross margins are currently subdued due to product mix and acquisition integration costs, but are expected to trend towards historical levels.
Lsi Industries (LYTS) vs. S&P 500 (SPY)
Market Cap
$511.36M
Dividend Yield1.14%
Average Volume (3M)149.75K
Price to Earnings (P/E)22.8
Beta (1Y)0.88
Revenue Growth10.45%
EPS Growth-15.98%
CountryUS
Employees1,900
SectorTechnology
Sector Strength45
IndustryHardware & Equipment
Share Statistics
EPS (TTM)0.77
Shares Outstanding29,921,385
10 Day Avg. Volume149,579
30 Day Avg. Volume149,747
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.00
Price to Cash Flow (P/CF)13.30
P/FCF Ratio14.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$28.00Price Target Upside63.08% 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 demonstrates promising financial performance with strong revenue growth and profitability metrics. The robust cash flow management enhances financial flexibility. However, balance sheet concerns regarding asset management and equity reporting require 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 | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 523.02M | 469.64M | 496.98M | 455.12M | 315.61M | 305.56M | Gross Profit |
| 133.68M | 133.17M | 136.94M | 109.21M | 78.97M | 73.53M | EBIT |
| 35.40M | 37.06M | 37.03M | 10.95M | -32.00K | -4.42M | EBITDA |
| 46.09M | 45.25M | 46.68M | 31.17M | 16.35M | 21.25M | Net Income Common Stockholders |
| 23.37M | 24.98M | 25.76M | 15.03M | 5.87M | 9.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.71M | 4.11M | 1.83M | 2.46M | 2.28M | 3.52M | Total Assets |
| 344.55M | 348.80M | 296.15M | 311.08M | 286.82M | 172.26M | Total Debt |
| 55.29M | 72.02M | 35.20M | 79.60M | 68.18M | 11.39M | Net Debt |
| 50.58M | 67.91M | 33.37M | 77.13M | 65.90M | 7.87M | Total Liabilities |
| 127.43M | 144.44M | 118.57M | 163.31M | 155.65M | 46.56M | Stockholders Equity |
| 217.12M | 204.35M | 177.58M | 147.77M | 131.17M | 125.70M |
| Cash Flow | Free Cash Flow | ||||
| 41.40M | 38.00M | 46.38M | -5.99M | 25.78M | 26.97M | Operating Cash Flow |
| 45.26M | 43.39M | 49.59M | -3.86M | 28.01M | 29.71M | Investing Cash Flow |
| -53.77M | -55.25M | -3.20M | -1.57M | -92.96M | 17.41M | Financing Cash Flow |
| 10.90M | 14.31M | -47.15M | 5.63M | 63.58M | -44.40M |
Lsi Industries Technical Analysis
Negative
17.17
Price Trends
19.72
Negative
19.25
Negative
17.25
Negative
Market Momentum
-0.83
Positive
28.66
Positive
12.82
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 17.17 is below the 20-day moving average (MA) of 19.05, below the 50-day MA of 19.72, and below the 200-day MA of 17.25, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 28.66 is Positive, neither overbought nor oversold. The STOCH value of 12.82 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
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $511.36M | 22.84 | 11.40% | 1.14% | 10.45% | -15.98% | |
73 Outperform | $7.40B | 34.36 | 14.46% | 1.00% | 12.36% | 9.70% | |
71 Outperform | $18.12B | 24.66 | 25.26% | 1.43% | 4.76% | 2.27% | |
62 Neutral | $8.30B | 19.70 | 18.94% | 0.23% | -0.80% | 17.61% | |
58 Neutral | $21.35B | 10.05 | -19.26% | 2.35% | 5.02% | -22.63% | |
52 Neutral | $3.13B | ― | -37.33% | ― | 19.52% | 28.09% | |
52 Neutral | $12.04M | ― | -173.82% | ― | -19.21% | 45.04% |
* Technology Sector Average
Performance Comparison
LYTS
Lsi Industries
17.17
3.08
21.86%
AYI
Acuity Brands
268.05
11.15
4.34%
HUBB
Hubbell B
340.42
-54.08
-13.71%
LPL
LG Display
3.21
-0.91
-22.09%
LEDS
SemiLEDs
1.69
0.22
14.97%
OLED
Universal Display
149.65
-11.83
-7.33%
Lsi Industries Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -12.98% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call demonstrated strong overall financial performance with significant growth in key segments like Display Solutions and Grocery. However, challenges in the Lighting segment and order timing inefficiencies were noted. The company's strategic acquisitions and operational improvements are positively impacting growth.Highlights
Strong Financial Performance
Net sales for the quarter were above $147 million with adjusted EBITDA above $13 million and free cash flow of almost $9 million. Top line sales were up 36% year-over-year with 14% organic growth.
Display Solutions Segment Growth
Display Solutions segment sales doubled with organic growth of 50%. Operating income doubled compared to the previous year, driven by organic growth and the addition of EMI.
Grocery Vertical Resurgence
Sales in the Grocery vertical increased over 60% due to projects and programs being released and shipments of refrigerated display cases utilizing R448 technology.
Successful Integration of EMI
EMI, acquired early last year, continues to perform well and has become an asset to the company, with significant contributions to growth.
Lowlights
Lighting Segment Challenges
The Lighting segment experienced pressures with large project activity facing headwinds and slower activity. Sales for the quarter were below prior year levels.
Order Timing and Mix Choppiness
The company faced choppiness in order timing and mix, affecting margins slightly due to inefficiencies in ramping up manufacturing processes.
Company Guidance
During the LSI Industries Q2 2025 earnings call, substantial growth and financial improvements were highlighted, with net sales surpassing $147 million and adjusted EBITDA reaching over $13 million. The company reported a 36% year-over-year increase in total sales, with 14% attributed to organic growth. The Display Solutions segment, in particular, experienced a significant surge, doubling its total sales and achieving 50% organic growth, driven by strong demand in the Grocery and Refueling/C-Store verticals. Adjusted EPS rose to $0.26 from $0.24 the previous year, and free cash flow was nearly $9 million. LSI's net debt was reduced to $33 million, reflecting a leverage ratio of 0.6x. The company anticipates continued robust order activity, despite some inefficiencies due to rapid scaling to meet demand surges, especially in the Grocery segment. LSI is also transitioning its Refrigeration business from R448 to R290 refrigerants, in line with regulatory changes, and is optimistic about the future contributions of its new lighting product, V-LOCITY.Lsi Industries Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
LSI Industries Reports Strong Q2 Growth and Sales
Positive
Jan 23, 2025
On January 23, 2025, LSI Industries reported substantial year-over-year growth in sales and profitability for its fiscal second quarter, ending December 31, 2024. The company’s net sales increased by 36% to $147.7 million, with organic growth at 14%, driven by strong demand and contributions from the EMI acquisition. The Display Solutions segment saw remarkable growth with a 50% increase in organic sales, particularly in refueling and c-store markets. Despite a 10% decline in the Lighting segment sales due to the absence of large projects, the company remains optimistic about future growth, backed by a strong backlog and robust demand across key markets. LSI declared a regular cash dividend, reflecting confidence in sustained cash generation and operational success.
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.