LSI Industries Inc. Common Stock (LYTS)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and sell at a sensible price. LSI Industries sells non-residential lighting and retail display solutions. Revenue has grown: in fiscal 2026, the year ended 2026-06-30, it reported $689.4M, up from $573.4M in fiscal 2025. But net income fell to $22.6M from $24.4M, and diluted EPS dropped to $0.67 from $0.79. In the fiscal Q4 2026 quarter ended 2026-06-30, revenue was $234.6M and net income was $6.9M, with a 2.93% margin. That tells me sales growth is not converting into profit. FairStock calculations at the 2026-10-13 close of $21.16 show a P/E of 31.58, P/B of 2.11, EV/EBITDA of 20.03, ROE of 7.64%, ROCE of 4.92%, and a Graham Number of $12.13. The price is far above that conservative value estimate. The Piotroski F-Score is 7/9, and trailing free cash flow is $39.0M, a 4.9% FCF yield. But debt-to-equity is 0.85 and the Altman Z-Score is 1.70, so the balance sheet deserves attention. FairStock calls it a FAST GROWER because of five-year profit growth of 30.9% a year and revenue growth of 16.9%, yet recent profit growth is negative. The FairStock Score is 49/100. I see real sales but weak profitability and no margin of safety at this price. Without a durable competitive advantage or clearer margin recovery, the premium looks hard to justify.

In plain English: LSI Industries makes lighting and display systems for businesses, such as outdoor and indoor lights, signs, and retail displays. Sales have grown, but profits have slipped and the company keeps only a thin slice of each sales dollar as profit. At the recent price, the stock looks expensive compared with the company's earnings and conservative value estimates, so it does not appear to be a bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q4 2026 10-K (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer