LYTSLSI Industries Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.6×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 8% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is LYTS?
LSI Industries Inc. earns 5.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.0 points below what the capital costs: growth destroys value
- Operating margin
- 5.6%
Operating margin · Electronic Components median 8.4% · 12 months to Q4 2026
- Cash conversion
- 1.60×
Cash conversion · 1.44× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 25%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 2.5% |
| FY2022 | 4.7% |
| FY2023 | 7.4% |
| FY2024 | 7.6% |
| FY2025 | 6.2% |
| FY2026 | 5.6% |
Details›
- Gross margin12 months to Q4 2026
- 25%
- Operating margin12 months to Q4 2026
- 5.6%
- Net margin12 months to Q4 2026
- 3.3%
- Free cash flow margin
- 5.7%
- Revenue, trailing twelve months
- $689M
- Free cash flow, trailing twelve months
- $39M
- Net income, trailing twelve months
- $23M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Electronic Components
Ranks #8 of 25 by RyuScore