LSI Industries Inc. (LYTS)
Valuation Overview•Is LSI Industries Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 58/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is broadly bullish, projecting solid upside alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
LYTS demonstrates adequate business quality with stable profitability. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company demonstrates solid revenue growth (8.0% 3Y CAGR) paired with robust earnings compounding (13.5% EPS 3Y CAGR). Operating efficiency remains adequate with margins around 6.5%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $147.0M | +22.1% | +8.0% | +13.4% | +6.4% | |
| EBITDA | $12.4M | — | +15.6% | — | — | |
| Net Income | $6.3M | -2.4% | +17.5% | — | +16.8% | |
| EPS (Diluted) | $0.20 | -4.8% | +13.5% | +17.0% | +14.2% | |
| Free Cash Flow | $23.3M | -8.8% | — | +5.1% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 25.3% | 26.9% | 25.9% | 25.3% |
| Operating Margin | 6.5% | 7.1% | 5.7% | 2.9% |
| Net Margin | 4.3% | 4.9% | 4.0% | 1.6% |
| FCF Margin | 6.4% | 7.8% | 6.1% | 5.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.12 | $0.06 | -50.0% | ||
| Q1'26 | $0.17 | $0.20 | +17.6% | ||
| Q4'25 | $0.22 | $0.23 | +4.5% | ||
| Q3'25 | $0.17 | $0.26 | +52.9% | ||
| Q2'25 | $0.13 | $0.13 | +0.0% | ||
| Q1'25 | $0.20 | $0.18 | -10.0% | ||
| Q4'24 | $0.23 | $0.26 | +13.0% | ||
| Q3'24 | $0.23 | $0.24 | +4.3% |
Total return is +65.3% (1Y), outperforming the benchmark by +40.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +44.6% | +35.3% | — |
| 1Y | +65.3% | +40.3% | +1.2% |
| 3YCAGR | +30.7% | +9.1% | +4.9% |
| 5YCAGR | +29.2% | +15.0% | +13.0% |
| 10YCAGR | +9.5% | -4.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about LSI Industries Inc. (LYTS) valuation, health, and returns.
Based on peer relative multiples, LSI Industries Inc. appears Expensive versus peers compared to industry peers.
LSI Industries Inc. has multiple valuation anchors: Peer Relative Fair Value: $12.28 | Wall Street Analyst Target: $28.50 (implying +7.1% upside). A convergence of these signals offers higher conviction.
LSI Industries Inc. displays fair financial health with a composite quality score of 58/100, supported by a Altman Z-Score of 5.1 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 9.5%.
LSI Industries Inc. pays a 0.7% dividend yield, covered by a 24% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
LSI Industries Inc.'s current growth trajectory is Accelerating. The company achieved +22.1% 1Y revenue growth and -4.8% 1Y EPS growth, compared to its 3Y revenue CAGR of +8.0%.
Wall Street consensus is Buy based on 5 analysts, beating EPS expectations in 75% of recent quarters with a -1-quarter streak. The consensus price target represents a +7.1% change from current levels.
Investment risks for LSI Industries Inc. include: -27.6% 1-year max drawdown, high beta (1.38x market volatility). Volatility risk is characterized by a beta of 1.38x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.