We assign a fundamental rating of 6 out of 10 to LSCC. LSCC was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. LSCC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LSCC is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, LSCC could be worth investigating further 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.
In the past 5 years LSCC has always been profitable.
Each year in the past 5 years LSCC had a positive operating cash flow.

1.2 Ratios

LSCC has a Return On Assets (3.23%) which is comparable to the rest of the industry.
LSCC has a Return On Equity (3.86%) which is in line with its industry peers.
The Return On Invested Capital of LSCC (1.70%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for LSCC is significantly above the industry average of 10.85%.
The last Return On Invested Capital (1.70%) for LSCC is well below the 3 year average (17.21%), which needs to be investigated, but indicates that LSCC had better years and this may not be a problem.

		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.
In the last couple of years the Profit Margin of LSCC has grown nicely.
The Operating Margin of LSCC (3.22%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of LSCC has declined.
Looking at the Gross Margin, with a value of 66.43%, LSCC belongs to the top of the industry, outperforming 89.38% of the companies in the same industry.
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

LSCC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LSCC has been increased compared to 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 50.91. This indicates that LSCC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 50.91, LSCC belongs to the best of the industry, outperforming 94.69% of the companies in the same industry.
LSCC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	50.91

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's Current ratio of 3.24 is in line compared to the rest of the industry. LSCC outperforms 54.87% of its industry peers.
LSCC has a Quick Ratio of 2.38. This indicates that LSCC is financially healthy and has no problem in meeting its short term obligations.
LSCC has a Quick ratio of 2.38. This is comparable to the rest of the industry: LSCC outperforms 56.64% 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

The earnings per share for LSCC have decreased strongly by -23.14% in the last year.
LSCC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.63% yearly.
The Revenue for LSCC has decreased by -12.03% in the past year. This is quite bad
Measured over the past years, LSCC shows a small growth in Revenue. The Revenue has been growing by 4.74% on average per year.

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.
LSCC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.90% yearly.

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

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

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 86.58, the valuation of LSCC can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as LSCC.
LSCC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.30.
LSCC is valuated quite expensively with a Price/Forward Earnings ratio of 53.81.
LSCC's Price/Forward Earnings is on the same level as the industry average.
LSCC's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	86.58
Fwd PE	53.81

4.2 Price Multiples

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

		Industry Rank	Sector Rank
P/FCF	85.87
EV/EBITDA	239.34

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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.