DCF Tool

LYTS

LSI Industries Inc. – Commercial, Industrial, and Institutional Electric Lighting Fixture Manufacturing
leadership. strength. innovation. those are the key values behind the smart vision upon which lsi industries inc. was founded when established in 1976. today lsi demonstrates this in our dedication to advancing technology throughout all aspects of our business. we are a vertically integrated manufacturer who combines integrated technology, design and manufacturing to produce the most efficient, high quality products possible. everything we build is done right here in one of our us plants. we are committed to advancing solid-state technology to make affordable, high performance, energy efficient lighting and custom graphic products that bring value to our customers. we have a vast offering of innovative solutions for virtually any lighting or graphics application. further, we can provide design support, engineering, installation and project management for custom graphics rollout programs for today’s retail environment. official site: http://www.lsi-industries.com facebook: https:/
Analysis Results
Intrinsic Value $27.60
Latest Price $14.54
Relative Value 47% 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 17.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 17.8%, 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)
2024 31.9 29.5
2025 37.6 32.1
2026 44.3 34.9
2027 52.2 38.0
2028 61.4 41.4
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1010 million. This corresponds to a present value of 626 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 176 million. Adding in the terminal value gives a total present value of 802 million.

There are presently 29.1 million outstanding shares, so the intrinsic value per share is 27.6.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 149,876,000
Current Cash 1,828,000
Current Liabilities 76,562,000
Current Debt 3,855,000
Non-Cash Working Capital (NCWC) 75,341,000
Change in NCWC -10,342,000
EBIT 37,094,000
Tax Provision 7,564,000
Depreciation and Amortization 9,664,000
Capital Expenditure -3,208,000
Unlevered Free Cash Flow 24,788,777
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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