LSI Industries Inc (LYTS) stock analysis

P/E above its 5-year median

LSI Industries's P/E of 25.3 is above its own 5-year median of 18.5.

P/E below the industry

LSI Industries's P/E of 25.3 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 32.5.

EV/EBITDA above its 5-year median

LSI Industries's EV/EBITDA of 13.4 is above its 5-year median of 11.7.

P/S below the industry

LSI Industries's price-to-sales of 0.78 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 3.12 (book value is negative, so we use sales).

Trading below fair value

The share price of $15.96 is below our fair value estimate of $17.20.

Margin of safety under 20%

The price is 7.2% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 11.5% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew -8.7% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -10.1% over the last twelve months, against a 5-year average of 30.9% a year.

Growing faster than the industry

Revenue grew 27.9% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is 12.4%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 24.4% over the last twelve months, against 25.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 30.9% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 3.0% over the last twelve months, against a 5-year average of 4.3%.

Net margin above the industry

LSI Industries's net margin of 3.0% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -0.2%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 24.4% of total debt.

Interest not well covered

Operating income covers interest expense 4.6 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.00 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.27; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

LSI Industries paid dividends worth 1.3% of the share price over the last twelve months.

Yield below Treasuries

The 1.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; LSI Industries yields 1.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 30.7% of net income.

Covered by free cash flow

Dividends take 13.0% of free cash flow.