LSI Industries Story

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LYTS -- USA Stock  

USD 6.34  0.71  10.07%

While this unique economic environment continues, LSI Industries may throw investors more surprises before the next press release. What exactly are LSI Industries shareholders getting in September? LSI Industries is now traded for 6.80. The entity has historical hype elasticity of -0.02. The average price elasticity to hype of competition is about 0.03. The firm is expected to decline in value after the next press release, with the price expected to drop to 6.78. The average volatility of headline impact on the company stock price is huge, making predictions on the news or social media along less reliable. The price decrease on the next news is expected to be -0.29%, whereas the daily expected return is now at 0.28 percent. Given the investment horizon of 30 days, the next expected announcement will be in about 7 days.
Published over a month ago
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Should I drop my LSI Industries (NASDAQ:LYTS) holdings?
The company's average rating is Buy from 2 analysts. We provide investment recommendation to complement the last-minute expert consensus on LSI Industries. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available now.
The successful prediction of LSI Industries stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as LSI Industries, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of LSI Industries based on LSI Industries hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to LSI Industries's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to LSI Industries's related companies.

Use Technical Analysis to project LSI Industries expected Price

LSI Industries technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of LSI Industries technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of LSI Industries trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How LSI Industries utilizes its cash?

To perform a cash flow analysis of LSI Industries, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash LSI Industries is receiving and how much cash it distributes out in a given period. The LSI Industries cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. LSI Industries Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. LSI Industries reported last year Net Cash Flow from Operations of 29.71 Million

Breaking down the case for LSI Industries

LSI Industries reported the previous year's revenue of 323.61 M. Net Income was 8.94 M with profit before overhead, payroll, taxes, and interest of 76.5 M.
 2017 2018 2019 2020 (projected)
Receivables50.61 M54.73 M49.26 M45.22 M
Inventories50.99 M43.51 M39.16 M39.6 M

Cost of Revenue Breakdown

LSI Industries Cost of Revenue yearly trend continues to be relatively stable with very little volatility. Cost of Revenue is likely to drop to about 288.3 M. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. LSI Industries Cost of Revenue is relatively stable at the moment as compared to the past year. LSI Industries reported last year Cost of Revenue of 293.41 Million
2013
2014
2015
2016
2017
2018
2019
2020
2013234.16 Million
2014233.41 Million
2015238.53 Million
2016249.51 Million
2017252.79 Million
2018255.14 Million
2019293.41 Million
2020288.27 Million

Over 3 percent spike for LSI Industries. What does it mean for retail investors?

Risk adjusted performance is down to 0.15. It may connote a possible volatility fall. LSI Industries shows above-average downside volatility for the selected time horizon. We advise investors to inspect LSI Industries further and ensure that all market timing and asset allocation strategies are consistent with the estimation of LSI Industries future alpha.

Our Takeaway on LSI Industries Investment

While some firms under the electronic components industry are still a bit expensive, LSI Industries may offer a potential longer-term growth to retail investors. On the whole, as of the 19th of August 2020, our research shows that LSI Industries is a rather slightly risky investment opportunity with a low probability of distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our primary 30 days buy-hold-sell recommendation on the enterprise is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of LSI Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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