LSI IndustriesSTU:LS2 -1.72%85 Gross Margin % is 25.40% as of Mar. 2026, which is 2% above its 10-year median of 24.88. GuruFocus rates STU:LS2 with a GF Score™ of 85/100 and a GF Value™ of €16.86 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,450 Hardware companies, LSI Industries ranks better than 52.29% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
LSI Industries had a gross margin of 25.40% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
LSI Industries Gross Margin % Related Terms
LSI Industries Gross Margin % Historical Data
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The historical data trend for LSI Industries's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:LS2 vs DAKT, KOPN, LPTH: Gross Margin % Comparison
For the Electronic Components subindustry, LSI Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
LSI Industries Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, LSI Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LSI Industries's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
LSI Industries (STU:LS2) has a Gross Margin % of 25.40% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on LSI Industries and its competitors. This is near median its historical median of 24.88. Over the past decade, LSI Industries' Gross Margin % has ranged from 22.42 to 28.36. According to the industry distribution chart, LSI Industries ranks #1169 out of 2450 companies in the Hardware industry, placing it in the top 47.7%.
Is LSI Industries' Gross Margin % too high?
LSI Industries' current Gross Margin % of 25.40% is near median its 10-year median of 24.88. Over the past 10 years, this metric has ranged from a low of 22.42 to a high of 28.36. The Hardware industry median Gross Margin % is 24.53. LSI Industries' value of 25.40% is 3.5% above this industry median. Based on the distribution chart, LSI Industries ranks #1169 out of 2450 companies in the Hardware industry, which is above the industry midpoint. Overall, LSI Industries has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does LSI Industries' Gross Margin % compare to DAKT and KOPN?
According to the Hardware industry distribution chart, LSI Industries ranks #1169 out of 2450 companies for Gross Margin %. This puts LSI Industries in the upper half of its industry. The industry median Gross Margin % is 24.53. LSI Industries' value of 25.40% is 3.5% above this benchmark. Historically, LSI Industries' own Gross Margin % has ranged from 22.42 to 28.36 over the past decade. While the company's 10-year median is 24.88 vs. the industry median of 24.53, LSI Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LSI Industries's current Gross Margin % of 25.40% is 3.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on LSI Industries and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LSI Industries's current Gross Margin % is 25.40%, which is near median its own 10-year median of 24.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LSI Industries stock overvalued right now?
Based on GuruFocus' analysis, LSI Industries (STU:LS2) is currently considered Significantly Overvalued. The stock's GF Value™ is €16.86, compared to a current price of €22.80 — trading 35.2% above its estimated fair value. The current Gross Margin % is 25.40%, which is near median its 10-year median of 24.88 and 3.5% above the Hardware industry median of 24.53. LSI Industries' overall GF Score™ is 85/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For LSI Industries (STU:LS2), the current Gross Margin % is 25.40% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is LSI Industries (STU:LS2) Overvalued in 2026?
Based on GuruFocus' analysis, LSI Industries stock appears to be overvalued.
The current stock price of €22.80 is trading 35.2% above its estimated GF Value™ of €16.86.
GuruFocus considers LSI Industries to be Significantly Overvalued.
Key valuation signals for STU:LS2:
Gross Margin %: 25.40% (near median its 10-year median of 24.88)
GF Value™: €16.86 vs. price of €22.80 (35.2% above fair value)
Industry Position: 3.5% above the Hardware median (#1169 of 2450)
No single metric tells the full story. See the STU:LS2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LSI Industries Inc provides corporate visual image solutions to the petroleum and convenience store industry. The company's operating segments include Lighting and Display Solutions. It generates maximum revenue from the Display solutions segment. Lighting Segment manufactures and markets outdoor and indoor lighting and lighting controls for the commercial, industrial, and multi-site retail markets, including the petroleum/convenience store, quick-service, and automotive markets. The Display Solutions Segment manufactures, sells, and installs exterior and interior visual image and display elements, including printed graphics, structural graphics, digital signage, menu board systems, display fixtures, refrigerated displays, and custom display elements.
85GF Score
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