LSI Industries (NasdaqGS:LYTS) - Share price, News & Analysis

LYTS fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	3/6
Financial Health	3/6
Dividends	2/6

LYTS Stock Overview

LSI Industries Inc. manufactures and sells non-residential lighting and retail display solutions in the United States, Canada, Mexico, Australia, and Latin America.

Rewards

Price-To-Earnings ratio (15.5x) is below the Electrical industry average (17.6x)

Earnings are forecast to grow 23.79% per year

Earnings grew by 40% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 3.41% is not well covered by earnings

LSI Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for LSI Industries
Historical stock prices
Current Share Price	US$5.86
52 Week High	US$8.57
52 Week Low	US$5.41
Beta	1.35
1 Month Change	-9.71%
3 Month Change	-6.54%
1 Year Change	-28.88%
3 Year Change	60.55%
5 Year Change	-35.25%
Change since IPO	29.39%

Recent News & Updates

Jun 14

Here's Why I Think LSI Industries (NASDAQ:LYTS) Is An Interesting Stock

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

May 01

LSI Industries (NASDAQ:LYTS) Is Due To Pay A Dividend Of US$0.05

LSI Industries Inc.'s ( NASDAQ:LYTS ) investors are due to receive a payment of US$0.05 per share on 17th of May. This...

Shareholder Returns

	LYTS	US Electrical	US Market
7D	2.4%	4.9%	6.6%
1Y	-28.9%	-27.2%	-18.5%

Return vs Industry: LYTS matched the US Electrical industry which returned -29% over the past year.

Return vs Market: LYTS underperformed the US Market which returned -20.5% over the past year.

Price Volatility

Is LYTS's price volatile compared to industry and market?
LYTS volatility
LYTS Average Weekly Movement	8.0%
Electrical Industry Average Movement	11.5%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: LYTS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: LYTS's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1976	1,335	James Clark	https://www.lsicorp.com

LSI 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.

LSI Industries Fundamentals Summary

How do LSI Industries's earnings and revenue compare to its market cap?
LYTS fundamental statistics
Market Cap	US$152.20m
Earnings (TTM)	US$10.05m
Revenue (TTM)	US$424.67m

15.5x

P/E Ratio

0.4x

P/S Ratio

Is LYTS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LYTS income statement (TTM)
Revenue	US$424.67m
Cost of Revenue	US$325.02m
Gross Profit	US$99.65m
Other Expenses	US$89.59m
Earnings	US$10.05m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.38
Gross Margin	23.47%
Net Profit Margin	2.37%
Debt/Equity Ratio	59.6%

How did LYTS perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

54%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is LYTS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LYTS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LYTS. This is calculated by dividing LYTS's market cap by their current preferred multiple.
What is LYTS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$152.20m

LYTS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	8.9x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does LYTS's PE Ratio compare to its peers?

LYTS PE Ratio vs Peers

The above table shows the PE ratio for LYTS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.6x

Forward PE

Price-To-Earnings vs Peers: LYTS is expensive based on its Price-To-Earnings Ratio (15.5x) compared to the peer average (11.6x).

Price to Earnings Ratio vs Industry

How does LYTS's PE Ratio compare vs other companies in the U.S. Electrical Industry?

Price-To-Earnings vs Industry: LYTS is good value based on its Price-To-Earnings Ratio (15.5x) compared to the US Electrical industry average (17.6x)

Price to Earnings Ratio vs Fair Ratio

What is LYTS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LYTS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.5x
Fair PE Ratio	17.5x

Price-To-Earnings vs Fair Ratio: LYTS is good value based on its Price-To-Earnings Ratio (15.5x) compared to the estimated Fair Price-To-Earnings Ratio (17.5x).

Share Price vs Fair Value

What is the Fair Price of LYTS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LYTS ($5.86) is trading above our estimate of fair value ($3.32)

Significantly Below Fair Value: LYTS is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: LYTS is good value based on its PEG Ratio (0.7x)

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Future Growth

How is LSI Industries forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

23.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LYTS's forecast earnings growth (23.8% per year) is above the savings rate (1.9%).

Earnings vs Market: LYTS's earnings (23.8% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: LYTS's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LYTS's revenue (7% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: LYTS's revenue (7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if LYTS's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has LSI Industries performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

45.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LYTS has high quality earnings.

Growing Profit Margin: LYTS's current net profit margins (2.4%) are lower than last year (2.5%).

Past Earnings Growth Analysis

Earnings Trend: LYTS has become profitable over the past 5 years, growing earnings by 45.3% per year.

Accelerating Growth: LYTS's earnings growth over the past year (40%) is below its 5-year average (45.3% per year).

Earnings vs Industry: LYTS earnings growth over the past year (40%) exceeded the Electrical industry 31.2%.

Return on Equity

High ROE: LYTS's Return on Equity (7.1%) is considered low.

Discover strong past performing companies

Financial Health

How is LSI Industries's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: LYTS's short term assets ($158.6M) exceed its short term liabilities ($75.2M).

Long Term Liabilities: LYTS's short term assets ($158.6M) exceed its long term liabilities ($94.8M).

Debt to Equity History and Analysis

Debt Level: LYTS's net debt to equity ratio (58.7%) is considered high.

Reducing Debt: LYTS's debt to equity ratio has increased from 34.4% to 59.6% over the past 5 years.

Debt Coverage: LYTS's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: LYTS's interest payments on its debt are well covered by EBIT (13x coverage).

Balance Sheet

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Dividend

What is LSI Industries's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.41%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LYTS's dividend (3.41%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: LYTS's dividend (3.41%) is low compared to the top 25% of dividend payers in the US market (4.34%).

Stability and Growth of Payments

Stable Dividend: LYTS's dividend payments have been volatile in the past 10 years.

Growing Dividend: LYTS's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54%), LYTS's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: LYTS is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure

CEO

James Clark

3.58yrs

Tenure

US$2,150,425

Compensation

Mr. James Anthony Clark, also known as Jim, has been the President and Chief Executive Officer of LSI Industries Inc. since November 1, 2018 and also has been its Director since January 23, 2019. Mr. Clark...

CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD2.15M) is about average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: James's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: LYTS's management team is considered experienced (3.7 years average tenure).

Board Members

Experienced Board: LYTS's board of directors are considered experienced (3.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30