Overall LSCC gets a fundamental rating of 6 out of 10. We evaluated LSCC against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making LSCC a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, LSCC is valued expensive at the moment. This makes LSCC very considerable for quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year LSCC was profitable.
In the past year LSCC had a positive cash flow from operations.
LSCC had positive earnings in each of the past 5 years.
LSCC had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

LSCC has a Return On Assets of 3.23%. This is comparable to the rest of the industry: LSCC outperforms 58.41% of its industry peers.
LSCC has a Return On Equity of 3.86%. This is comparable to the rest of the industry: LSCC outperforms 55.75% of its industry peers.
LSCC has a Return On Invested Capital (1.70%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for LSCC is significantly above the industry average of 10.78%.
The 3 year average ROIC (17.21%) for LSCC is well above the current ROIC(1.70%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	3.23%
ROE	3.86%
ROIC	1.7%

ROA(3y)20.15%

ROA(5y)16.12%

ROE(3y)27.58%

ROE(5y)23.68%

ROIC(3y)17.21%

ROIC(5y)14.43%

1.3 Margins

The Profit Margin of LSCC (5.50%) is comparable to the rest of the industry.
LSCC's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 3.22%, LSCC perfoms like the industry average, outperforming 52.21% of the companies in the same industry.
In the last couple of years the Operating Margin of LSCC has declined.
The Gross Margin of LSCC (66.43%) is better than 89.38% of its industry peers.
LSCC's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	3.22%
PM (TTM)	5.5%
GM	66.43%

OM growth 3Y-15.82%

OM growth 5Y-5.45%

PM growth 3Y-13.61%

PM growth 5Y2.2%

GM growth 3Y2.29%

GM growth 5Y2.52%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LSCC is creating some value.
LSCC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LSCC has more shares outstanding
There is no outstanding debt for LSCC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

LSCC has an Altman-Z score of 51.89. This indicates that LSCC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 51.89, LSCC belongs to the best of the industry, outperforming 95.58% of the companies in the same industry.
There is no outstanding debt for LSCC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	51.89

ROIC/WACC0.16

WACC10.93%

2.3 Liquidity

A Current Ratio of 3.24 indicates that LSCC has no problem at all paying its short term obligations.
LSCC has a Current ratio (3.24) which is comparable to the rest of the industry.
A Quick Ratio of 2.38 indicates that LSCC has no problem at all paying its short term obligations.
LSCC's Quick ratio of 2.38 is in line compared to the rest of the industry. LSCC outperforms 57.52% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.24
Quick Ratio	2.38

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

LSCC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.14%.
Measured over the past years, LSCC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.63% on average per year.
Looking at the last year, LSCC shows a very negative growth in Revenue. The Revenue has decreased by -12.03% in the last year.
The Revenue has been growing slightly by 4.74% on average over the past years.

EPS 1Y (TTM)-23.14%

EPS 3Y-3.89%

EPS 5Y9.63%

EPS Q2Q%16.67%

Revenue 1Y (TTM)-12.03%

Revenue growth 3Y-0.38%

Revenue growth 5Y4.74%

Sales Q2Q%4.92%

3.2 Future

Based on estimates for the next years, LSCC will show a very strong growth in Earnings Per Share. The EPS will grow by 28.00% on average per year.
The Revenue is expected to grow by 12.90% on average over the next years. This is quite good.

EPS Next Y12.82%

EPS Next 2Y25.51%

EPS Next 3Y27.01%

EPS Next 5Y28%

Revenue Next Year2.27%

Revenue Next 2Y11.49%

Revenue Next 3Y13.26%

Revenue Next 5Y12.9%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 91.23, LSCC can be considered very expensive at the moment.
LSCC's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.60, LSCC is valued quite expensively.
Based on the Price/Forward Earnings ratio of 56.69, the valuation of LSCC can be described as expensive.
LSCC's Price/Forward Earnings ratio is in line with the industry average.
LSCC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.83.

		Industry Rank	Sector Rank
PE	91.23
Fwd PE	56.69

4.2 Price Multiples

LSCC's Enterprise Value to EBITDA ratio is in line with the industry average.
LSCC's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	90.48
EV/EBITDA	244.13

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LSCC does not grow enough to justify the current Price/Earnings ratio.
LSCC has a very decent profitability rating, which may justify a higher PE ratio.
LSCC's earnings are expected to grow with 27.01% in the coming years. This may justify a more expensive valuation.