LSI Industries has a perfect 4-quarter EPS beat streak, but a negative free-cash-flow-to-earnings ratio, extreme insider selling, a valuation already at its price target, and weakening momentum all argue for caution despite the headline beat record.
Thesis pillars
- Earnings Beat Streak→Stable
- Fcf Earnings Quality Flag→Stable
- Extreme Insider Selling→Stable
- +2 more pillars — see the Why tab for full reasoning
LSI Industries Inc. (LYTS) Stock Analysis
Technology · Electronic Components
Sell if holding. Engine safety override at $24.68: Quality below floor (3.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Below-average business quality; Negative price momentum.
LSI Industries manufactures American-made non-residential lighting fixtures and controls, plus custom retail display and visual-image solutions (printed graphics, digital signage, refrigerated displays, store fixtures) for convenience store, grocery, and quick-service restaurant... Read more
Sell if holding. Engine safety override at $24.68: Quality below floor (3.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.3/10, moderate confidence.
Passes 5/8 gates (no SEC red flags, news events none recent, earnings proximity 44d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and clean insider activity. Suitability: aggressive.
About LSI Industries Inc.
About LSI Industries Inc.
LSI Industries generated $573.4 million in net sales in fiscal 2025, up from $469.6 million a year earlier, with the Display Solutions segment contributing 57% of sales ($325.0 million) and the Lighting segment 43% ($248.4 million). International sales made up only about 3% of the consolidated total, and the company now manufactures across 18 U.S. facilities plus sites in Mexico and two Canadian provinces, following its fiscal 2025 acquisition of Canada's Best Holdings and its fiscal 2024 acquisition of EMI Industries.
Lighting products reach customers through two channels - project business quoted directly to end-users through electrical distributors and agents, and standard products stocked and resold by distributors - while Display Solutions revenue comes mostly from direct-sales, program-driven rollouts such as signage, digital menu boards, and refrigerated displays across multi-site customer programs. Both segments concentrate on refueling and convenience store, grocery, quick-service restaurant, and retail verticals, letting LSI cross-sell lighting and display packages to the same customer base as a single-source vendor. Raw material inputs include steel, aluminum, LEDs, power supplies, and various graphics substrates sourced from multiple qualified suppliers, and the company states it is not dependent on any one supplier for critical components. Competitors include larger, better-resourced firms as well as foreign-based rivals whose costs and prices are set in other currencies, creating exposure to currency-driven price competition.
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LSI's revenue is unusually exposed to two adjacent, cyclical retail verticals: the 10-K states the company has a concentration of sales in the refueling and convenience store market and the grocery market, both single named end-markets rather than a diversified customer base. The convenience store vertical rises and falls with petroleum-industry profitability and retail-outlet expansion budgets, while grocery is described as increasingly fragmented and consolidating, with non-traditional entrants competing for the same store-remodel dollars. Because Display Solutions revenue is often tied to large, multi-site rollout commitments in these same verticals, a pullback in remodeling budgets at a handful of large convenience-store or grocery chains could affect both segments simultaneously rather than being isolated to one product line.
See also: Technology · Electronic Components
From LSI Industries Inc.'s most recent 10-K filing, extracted July 6, 2026.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHProductDisplay Solutions Segment57%10-K Item 1: 'the Display Solutions Segment, which represented 57% of our fiscal 2025 net sales'
- MEDIUMProductLighting Segment43%10-K Item 1: 'the Lighting Segment, which represented 43% of our fiscal 2025 net sales'
- LOWGeographicsales outside the United States3.0%10-K Item 1: 'approximately 3% of consolidated net sales are outside the United States'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $24.68: Quality below floor (3.0 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $23.17. Score 5.3/10, moderate confidence.
Take-profit target: $25.78 (+4.4% upside). Prior stop was $23.17. Stop-loss: $23.17.
Concentration risk — Product: Display Solutions Segment (57.0%); Quality below floor (3.0 < 4.0).
LSI Industries Inc. trades at a P/E of 34.7 (forward 18.4). TrendMatrix value score: 6.1/10. Verdict: Sell.
10 analysts cover LYTS with a consensus score of 4.2/5. Average price target: $30.
What does LSI Industries Inc. do?LSI Industries manufactures American-made non-residential lighting fixtures and controls, plus custom retail display...
LSI Industries manufactures American-made non-residential lighting fixtures and controls, plus custom retail display and visual-image solutions (printed graphics, digital signage, refrigerated displays, store fixtures) for convenience store, grocery, and quick-service restaurant customers. The company generated $573.4 million in net sales in fiscal 2025, with Display Solutions (57%, boosted by the Canada's Best Holdings acquisition) surpassing Lighting (43%) for the first time, and only about 3% of sales from outside the United States. LSI operates 18 U.S. manufacturing facilities plus sites i