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LYTS:NASDAQLSI Industries Inc. Analysis

Data as of 2026-06-09 - not real-time

$23.45

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

LSI Industries has delivered double‑digit revenue growth and a non‑GAAP profit beat in the latest quarter, underscoring strong top‑line momentum. The stock is currently trading above its 20‑day simple moving average, confirming a bullish price trend, but the MACD histogram has turned negative and the RSI sits near the midpoint, hinting at potential short‑term weakness.
Fundamentally, the company carries a high debt load, negative free cash flow, and a DCF‑derived fair value that is roughly half the market price, suggesting the market may be overvaluing the stock. The dividend is modest, with a low payout ratio, which supports sustainability despite the balance‑sheet pressures.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Price above 20‑day SMA supporting bullish bias
  • Negative MACD histogram indicating weakening momentum
  • Increasing volume reinforcing current trend

Medium Term

1–3 years
Neutral
Model confidence: 5/10

Key Factors

  • Revenue growth and recent earnings beat
  • High debt-to-equity and negative free cash flow
  • Market price substantially above DCF fair value

Long Term

> 3 years
Neutral
Model confidence: 4/10

Key Factors

  • Sustained dividend with low payout ratio
  • Elevated beta and volatility increasing systematic risk
  • Potential for valuation correction as fundamentals lag price

Key Metrics & Analysis

Financial Health

Revenue Growth13.60%
Profit Margin3.91%
P/E Ratio31.7
ROE8.31%
ROA3.92%
Debt/Equity89.04
P/B Ratio2.4
Op. Cash Flow$42.1M
Free Cash Flow$-12440375
Industry P/E33.3

Technical Analysis

TrendBullish
RSI51.9
Support$21.97
Resistance$24.99
MA 20$23.61
MA 50$22.03
MA 200$21.26
MACDBearish
VolumeIncreasing
Fear & Greed Index89.23

Valuation

Fair Value$10.19
Target Price$30.50
Upside/Downside30.06%
GradeOvervalued
TypeBlend
Dividend Yield0.85%

Risk Assessment

Beta1.44
Volatility40.22%
Sector RiskMedium
Reg. RiskLow
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.