LSI INDUSTRIES INC

LYTSdata completeness 100%18 fiscal years on file
The thesis, from the filings

LSI INDUSTRIES INC earns about 7% on invested capital, below its ~9% cost of capital, but has diluted owners by 12% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $8.2 and $43.24 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$315.6M1$455.1M2$497M3$469.6M4$573.4M4
Net income$5.87M5$15M6$25.8M7$25M8$24.4M8
Operating cash flow$28M9−$3.86M10$49.6M11$43.4M12$38.1M12
Capital expenditure$2.23M13$2.12M14$3.21M15$5.39M16$3.47M16
Free cash flow (derived)$25.8M9−$5.99M10$46.4M11$38M12$34.7M12
Total debt$136.4M17$159.2M18$70.4M19$108.5M20$97.1M20
Cash & equivalents$2.28M21$2.46M22$1.83M23$4.11M24$3.46M24
Diluted shares27.4M28.0M29.3M30.1M30.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$74.83
your share of equity
Profit it earned you last year
$7.91
Free cash flow it threw off
$11.24
Debt you’d be carrying
$31.5

10 shares is a claim on $74.83 of net worth that earned you $7.91 and generated $11.24 of cash last year, against $31.5 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
7% avg · 5y
FY21 2%FY22 5%FY23 12%FY24 9%FY25 8%

It earned about 7% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+12% shares · 5y

Share count is up 12% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 29% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $8.2 and $43.24 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$43.24
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth13.8%
  • fcfBase$38M
DCF · Growth Exit 5Y
$28.47
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth13.8%
  • fcfBase$38M
Earnings Power Value
$8.2
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$24.4M
  • growthAssumed0.0%
Graham Number
$11.53
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years13.8%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $28.47
The three cases
Bear0.0%$14.57
Base13.8%$28.47
Bull18.8%$35.35

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 13.8%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-06-30 · accession 0001437749-22-022143 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-06-30 · accession 0001437749-23-025488 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2023-06-30 · accession 0001437749-24-028964 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2024-06-30 · accession 0001437749-25-028862 (RevenueFromContractWithCustomerIncludingAssessedTax)
  5. 10-K · period ending 2021-06-30 · accession 0001437749-22-022143 (NetIncomeLoss)
  6. 10-K · period ending 2022-06-30 · accession 0001437749-23-025488 (NetIncomeLoss)
  7. 10-K · period ending 2023-06-30 · accession 0001437749-24-028964 (NetIncomeLoss)
  8. 10-K · period ending 2024-06-30 · accession 0001437749-25-028862 (NetIncomeLoss)
  9. 10-K · period ending 2021-06-30 · accession 0001437749-22-022143 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-06-30 · accession 0001437749-23-025488 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-06-30 · accession 0001437749-24-028964 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-06-30 · accession 0001437749-25-028862 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-06-30 · accession 0001437749-22-022143 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-06-30 · accession 0001437749-23-025488 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-06-30 · accession 0001437749-24-028964 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-06-30 · accession 0001437749-25-028862 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-06-30 · accession 0001437749-22-022143 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2022-06-30 · accession 0001437749-23-025488 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2023-06-30 · accession 0001437749-24-028964 (LongTermDebtNoncurrent)
  20. 10-K · period ending 2024-06-30 · accession 0001437749-25-028862 (LongTermDebtNoncurrent)
  21. 10-K · period ending 2021-06-30 · accession 0001437749-22-022143 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2022-06-30 · accession 0001437749-23-025488 (CashAndCashEquivalentsAtCarryingValue)
  23. 10-K · period ending 2023-06-30 · accession 0001437749-24-028964 (CashAndCashEquivalentsAtCarryingValue)
  24. 10-K · period ending 2024-06-30 · accession 0001437749-25-028862 (CashAndCashEquivalentsAtCarryingValue)