DCF Tool

LYTS

LSI Industries Inc. – Commercial, Industrial, and Institutional Electric Lighting Fixture Manufacturing
Headquartered in Blue Ash, Ohio (Greater Cincinnati), LSI Industries is a leading producer of high-performance, American-made lighting solutions. The Company's strength in outdoor lighting applications creates opportunities for it to introduce additional solutions to its valued customers. LSI's indoor and outdoor products and services, including its digital and print graphics capabilities, are valued by architects, engineers, distributors and contractors for their quality, reliability and innovation. The Company's products are used extensively in automotive dealerships, petroleum stations, quick service restaurants, grocery stores and pharmacies, retail establishments, sports complexes, parking lots and garages, and commercial and industrial buildings. LSI has approximately 1,100 employees at seven manufacturing plants in the United States, including its corporate headquarters.
Analysis Results
Intrinsic Value $384.14
Latest Price $7.69
Relative Value 98% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 46.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 46.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 81.7 79.2
2024 120 113
2025 176 160
2026 259 228
2027 380 324
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 11400 million. This corresponds to a present value of 9420 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 904 million. Adding in the terminal value gives a total present value of 10300 million.

There are presently 26.9 million outstanding shares, so the intrinsic value per share is 384.14.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 158,917,000
Current Cash 2,462,000
Current Liabilities 74,618,000
Current Debt 3,846,000
Non-Cash Working Capital (NCWC) 85,683,000
Change in NCWC 33,589,000
EBIT 21,213,000
Tax Provision 4,053,000
Depreciation and Amortization 10,118,000
Capital Expenditure -2,122,000
Unlevered Free Cash Flow 58,293,085
Current Assets 125,008,000
Current Cash 2,282,000
Current Liabilities 70,895,000
Current Debt 263,000
Non-Cash Working Capital (NCWC) 52,094,000
Change in NCWC 4,163,000
EBIT 8,057,000
Tax Provision 2,048,000
Depreciation and Amortization 8,114,000
Capital Expenditure -2,233,000
Unlevered Free Cash Flow 16,016,520
Current Assets 85,858,000
Current Cash 3,517,000
Current Liabilities 34,649,000
Current Debt 239,000
Non-Cash Working Capital (NCWC) 47,931,000
Change in NCWC -22,208,000
EBIT 5,831,000
Tax Provision 2,101,000
Depreciation and Amortization 8,654,000
Capital Expenditure -2,739,000
Unlevered Free Cash Flow -11,509,714
Current Assets 110,980,000
Current Cash 966,000
Current Liabilities 39,875,000
Current Debt 0
Non-Cash Working Capital (NCWC) 70,139,000
Change in NCWC 5,435,000
EBIT 2,761,000
Tax Provision -5,929,000
Depreciation and Amortization 10,221,000
Capital Expenditure -2,618,000
Unlevered Free Cash Flow 15,799,000
Current Assets 110,081,000
Current Cash 3,178,000
Current Liabilities 42,199,000
Current Debt 0
Non-Cash Working Capital (NCWC) 64,704,000
Change in NCWC 6,039,000
EBIT 9,484,000
Tax Provision -3,791,000
Depreciation and Amortization 10,222,000
Capital Expenditure -3,406,000
Unlevered Free Cash Flow 22,339,000
Current Assets 107,129,000
Current Cash 3,039,000
Current Liabilities 45,425,000
Current Debt 0
Non-Cash Working Capital (NCWC) 58,665,000
Change in NCWC 3,990,000
EBIT 6,108,000
Tax Provision 80,000
Depreciation and Amortization 8,262,000
Capital Expenditure -6,633,000
Unlevered Free Cash Flow 11,568,350
Current Assets 127,743,000
Current Cash 33,835,000
Current Liabilities 39,233,000
Current Debt 0
Non-Cash Working Capital (NCWC) 54,675,000
Change in NCWC -2,883,000
EBIT 13,956,000
Tax Provision 4,522,000
Depreciation and Amortization 6,677,000
Capital Expenditure -10,211,000
Unlevered Free Cash Flow 3,032,499
Current Assets 120,814,000
Current Cash 26,409,000
Current Liabilities 36,847,000
Current Debt 0
Non-Cash Working Capital (NCWC) 57,558,000
Change in NCWC -10,217,000
EBIT 7,755,000
Tax Provision 2,363,000
Depreciation and Amortization 6,331,000
Capital Expenditure -4,754,000
Unlevered Free Cash Flow -3,323,789
Current Assets 106,077,000
Current Cash 9,013,000
Current Liabilities 29,289,000
Current Debt 0
Non-Cash Working Capital (NCWC) 67,775,000
Change in NCWC -979,000
EBIT 3,123,000
Tax Provision 1,337,000
Depreciation and Amortization 6,226,000
Capital Expenditure -5,245,000
Unlevered Free Cash Flow 1,283,160
Current Assets 102,913,000
Current Cash 7,949,000
Current Liabilities 26,210,000
Current Debt 0
Non-Cash Working Capital (NCWC) 68,754,000
Change in NCWC 307,000
EBIT 3,043,000
Tax Provision 738,000
Depreciation and Amortization 7,197,000
Capital Expenditure -7,571,000
Unlevered Free Cash Flow 2,238,000
Current Assets 106,623,000
Current Cash 15,255,000
Current Liabilities 22,921,000
Current Debt 0
Non-Cash Working Capital (NCWC) 68,447,000
Change in NCWC -12,056,000
EBIT 6,589,000
Tax Provision 2,967,000
Depreciation and Amortization 7,805,000
Capital Expenditure -3,436,000
Unlevered Free Cash Flow -4,255,739

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