LSI Industries Inc.
LSI Industries Inc. Fundamental Analysis
LSI Industries Inc. (LYTS) shows moderate financial fundamentals with a PE ratio of 26.27, profit margin of 4.34%, and ROE of 10.90%. The company generates $0.6B in annual revenue with strong year-over-year growth of 22.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LYTS's fundamental strength across five key dimensions:
Efficiency Score
WeakLYTS struggles to generate sufficient returns from assets.
Valuation Score
WeakLYTS trades at a premium to fair value.
Growth Score
ModerateLYTS shows steady but slowing expansion.
Financial Health Score
ExcellentLYTS maintains a strong and stable balance sheet.
Profitability Score
WeakLYTS struggles to sustain strong margins.
Key Financial Metrics
Is LYTS Expensive or Cheap?
P/E Ratio
LYTS trades at 26.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LYTS's PEG of 21.81 indicates potential overvaluation.
Price to Book
The market values LSI Industries Inc. at 2.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.69 times EBITDA. This signals the market has high growth expectations.
How Well Does LYTS Make Money?
Net Profit Margin
For every $100 in sales, LSI Industries Inc. keeps $4.34 as profit after all expenses.
Operating Margin
Core operations generate 6.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.90 in profit for every $100 of shareholder equity.
ROA
LSI Industries Inc. generates $6.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LSI Industries Inc. generates limited operating cash flow of $42.49M, signaling weaker underlying cash strength.
Free Cash Flow
LSI Industries Inc. produces free cash flow of $38.15M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.23 in free cash annually.
FCF Yield
LYTS converts 5.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
21.81
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How LYTS Stacks Against Its Sector Peers
| Metric | LYTS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.27 | 35.19 | Better (Cheaper) |
| ROE | 10.90% | 1155.00% | Weak |
| Net Margin | 4.34% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.11 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 2.15 | 4.71 | Strong Liquidity |
| ROA | 6.48% | -314918.00% (disorted) | Weak |
LYTS outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LSI Industries Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
64.88%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
123.35%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
12.72%
Industry Style: Growth, Innovation, High Beta
High Growth