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LYTSLSI Industries Inc.
$20.24$682M
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  4. Financial Ratios

LSI Industries Inc. (LYTS) Financial Ratios

Latest Ratios: P/E Ratio 25.6x · EV/EBITDA 15.4x · ROE 11.2%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

LYTS Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$682M$524M$435M$368M$173M$220M$171M$95M$138M$235M$283M
Enterprise Value$745M$588M$503M$412M$261M$300M$179M$134M$180M$282M$249M
P/E Ratio →25.6221.5317.4314.2711.4338.1417.97——75.4229.92
P/S Ratio1.190.910.930.740.380.700.560.290.400.710.88
P/B Ratio2.702.272.132.071.171.681.360.790.991.471.82
P/FCF19.6915.1311.457.94—8.536.3510.7417.0716.3337.40
P/OCF17.9013.7610.037.43—7.855.768.2912.0111.1815.93

P/E links to full P/E history page with 30-year chart

LYTS EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—1.021.070.830.570.950.590.410.530.850.77
EV / EBITDA15.4212.1611.058.838.3318.578.24121.04—23.7412.09
EV / EBIT20.8416.2514.2711.1412.3936.5514.26——76.1817.77
EV / FCF—16.9613.248.89—11.636.6415.0922.2819.5732.94

LYTS Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin24.7%24.7%28.4%27.6%24.0%25.0%24.1%22.4%26.1%24.7%26.0%
Operating Margin6.2%6.2%7.6%7.5%4.7%2.5%4.3%-2.8%-6.3%1.1%4.3%
Net Profit Margin4.3%4.3%5.3%5.2%3.3%1.9%3.1%-5.0%-5.7%0.9%2.9%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE11.2%11.2%13.1%15.8%10.8%4.6%7.8%-12.6%-13.1%1.9%6.4%
ROA6.5%6.5%7.7%8.5%5.0%2.6%5.1%-7.6%-8.0%1.3%5.0%
ROIC9.5%9.5%10.8%12.1%7.1%3.5%6.7%-4.0%-8.4%1.6%8.8%
ROCE12.6%12.6%14.5%16.3%9.4%4.5%8.8%-5.2%-10.9%2.0%9.2%

LYTS Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.290.290.350.260.610.630.090.330.330.31—
Debt / EBITDA1.381.381.580.982.895.100.5235.75—4.19—
Net Debt / Equity—0.270.330.250.600.610.060.320.300.29-0.22
Net Debt / EBITDA1.311.311.490.952.824.960.3634.88—3.93-1.64
Debt / FCF—1.821.790.95—3.100.294.355.213.24-4.47
Interest Coverage11.5611.5616.3510.0410.7028.5814.39-8.78-12.575.97390.00

LYTS Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.991.992.051.962.061.762.482.782.612.363.26
Quick Ratio1.171.171.161.131.100.931.361.691.401.262.13
Cash Ratio0.040.040.050.020.030.030.100.020.080.070.86
Asset Turnover—1.451.351.681.461.101.771.641.491.291.65
Inventory Turnover5.415.414.745.654.654.015.995.864.964.995.40
Days Sales Outstanding—66.4363.5959.3463.1968.1948.5161.7255.9154.6953.22

LYTS Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield1.0%1.1%1.3%1.5%3.1%2.4%3.1%5.4%3.7%2.1%1.5%
Payout Ratio24.5%24.5%23.0%21.1%35.4%90.1%55.0%——168.3%44.4%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield3.9%4.6%5.7%7.0%8.8%2.6%5.6%——1.3%3.3%
FCF Yield5.1%6.6%8.7%12.6%—11.7%15.7%9.3%5.9%6.1%2.7%
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.1%0.1%0.2%0.1%
Total Shareholder Yield1.0%1.1%1.3%1.5%3.1%2.4%3.1%5.6%3.8%2.4%1.6%
Shares Outstanding—$31M$30M$29M$28M$27M$26M$26M$26M$26M$26M

Key Metrics

Growth RegimeAccelerating
ProfitabilityModerate
Balance SheetStrained
Cash FlowMixed
Top Statement Risk

Acquisition-driven leverage and integration risk

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q4)

Valuation Premium Amidst Earnings Volatility

LYTS trades at a significant premium to peers with a forward P/E of 14.95 versus the peer median of 12.48, suggesting the market is pricing in a growth trajectory that is not yet reflected in its volatile profitability metrics.

The company's forward P/E of 14.95 and EV/EBITDA of 8.84 are notably higher than peers like Apogee (15.15 P/E, 7.76 EV/EBITDA) and ACCO (9.86 P/E, 6.94 EV/EBITDA), indicating investors are paying for anticipated earnings recovery. However, this premium appears disconnected from the current ROIC of 1.0% and net margin of 2.9% in 2026Q4, which are well below peer averages. The valuation implies a successful integration of the recent acquisition and a return to historical profitability levels, a scenario that warrants close monitoring given the recent margin compression.

Margin Compression Undermines Revenue Surge

Despite a 51.3% year-over-year revenue increase in 2026Q4, net margin compressed to 2.9% from 5.3% a year prior, indicating the growth has not translated into proportional bottom-line improvement and may reflect a lower-margin business mix.

The gross margin decline from 26.1% to 25.7% year-over-year, coupled with a sharp drop in operating margin to 3.1%, suggests the revenue surge is coming from less profitable segments or is being offset by significant cost pressures. The volatility in operating margin, which swung from 7.3% in 2026Q3 to 3.1% in 2026Q4, points to unstable cost structures or non-recurring items distorting the core earning power. This pattern indicates that the top-line acceleration is not yet creating sustainable value for shareholders.

ROIC Collapse Signals Capital Inefficiency

Return on Invested Capital (ROIC) plummeted to 1.0% in 2026Q4 from 3.1% a year ago, a severe deterioration that suggests the recent acquisition has not yet generated returns and is diluting the company's overall capital efficiency.

The ROIC trend has been consistently weak, never exceeding 3.1% over the past ten quarters, and the latest figure of 1.0% is particularly alarming given the massive expansion of the asset base. This collapse in returns, while ROE also fell to 1.9%, indicates that the capital deployed for the acquisition is currently earning well below the company's cost of capital. The primary driver appears to be a combination of compressed net margins and a significantly larger asset base, creating a challenging path to restoring acceptable returns.

Acquisition Leverage Strains Debt Serviceability

The debt-to-equity ratio surged to 0.71 in 2026Q4 from 0.29 a year prior, while interest coverage fell to 3.43x, indicating a fundamental shift in capital structure that has materially increased financial risk and refinancing exposure.

The doubling of leverage is a direct consequence of the $331.8M acquisition, which has pushed total debt to $255.9M against a cash position of only $14.2M. The interest coverage ratio of 3.43x, while still adequate, is a sharp decline from the 14.62x level seen in 2025Q4 and leaves less cushion for operational volatility. This new leverage profile, combined with the thin liquidity buffer, suggests the company's financial flexibility is now constrained, and any underperformance in integrating the acquisition could quickly pressure covenant compliance.

Thin Liquidity Buffer Amidst Asset Expansion

Despite a 109% surge in total assets, the cash position remains minimal at $14.2M, representing only 1.7% of total assets, which suggests the acquisition has consumed nearly all available liquidity and left a precarious buffer against operational shocks.

The current ratio of 1.97 appears healthy on the surface, but the quick ratio of 1.97 (identical, indicating no inventory dependence) masks the underlying cash scarcity. The company's liquidity is now almost entirely dependent on its ability to generate operating cash flow, which turned negative in 2026Q4. This thin cash position, in the context of a newly leveraged balance sheet, means the company has limited capacity to absorb working capital swings or unexpected costs without potentially needing to access external financing.

The Misleading Current Ratio in a Post-Acquisition Context

The current ratio of 1.97 is the most commonly misapplied metric here, as it obscures the severe cash scarcity and the structural shift in the balance sheet, making the company appear more liquid than its actual cash position supports.

Investors often rely on the current ratio as a primary liquidity gauge, but for LYTS post-acquisition, it is misleading. The ratio is inflated by the acquired assets and does not reflect that cash is only 1.7% of total assets. A more appropriate metric is the cash-to-debt ratio, which stands at a precarious 0.06x ($14.2M cash / $255.9M debt). This alternative measure reveals the true refinancing risk and the company's heavy reliance on future cash flows to service its new debt load, a critical nuance the standard current ratio completely misses.

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LYTS — Frequently Asked Questions

Quick answers to the most common questions about buying LYTS stock.

What is LSI Industries Inc.'s P/E ratio?

LSI Industries Inc.'s current P/E ratio is 25.6x. The historical average is 34.7x. This places it at the 67th percentile of its historical range.

What is LSI Industries Inc.'s EV/EBITDA?

LSI Industries Inc.'s current EV/EBITDA is 15.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.7x.

What is LSI Industries Inc.'s ROE?

LSI Industries Inc.'s return on equity (ROE) is 11.2%. The historical average is 5.8%.

Is LYTS stock overvalued?

Based on historical data, LSI Industries Inc. is trading at a P/E of 25.6x. This is at the 67th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is LSI Industries Inc.'s dividend yield?

LSI Industries Inc.'s current dividend yield is 0.96% with a payout ratio of 24.5%.

What are LSI Industries Inc.'s profit margins?

LSI Industries Inc. has 24.7% gross margin and 6.2% operating margin.

How much debt does LSI Industries Inc. have?

LSI Industries Inc.'s Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.