LATTICE SEMICONDUCTOR CORP (LSCC) Stock Fundamental Analysis
NASDAQ:LSCC - Nasdaq - US5184151042 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to LSCC. LSCC was compared to 110 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!
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
Looking at the Return On Assets, with a value of 6.24%, LSCC is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
The Return On Equity of LSCC (7.25%) is better than 61.82% of its industry peers.
LSCC's Return On Invested Capital of 5.26% is fine compared to the rest of the industry. LSCC outperforms 64.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LSCC is significantly above the industry average of 10.65%.
The last Return On Invested Capital (5.26%) 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 | 6.24% | ||
| ROE | 7.25% | ||
| ROIC | 5.26% |
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
LSCC has a better Profit Margin (10.51%) than 68.18% of its industry peers.
In the last couple of years the Profit Margin of LSCC has grown nicely.
LSCC has a Operating Margin of 10.15%. This is in the better half of the industry: LSCC outperforms 62.73% of its industry peers.
In the last couple of years the Operating Margin of LSCC has declined.
LSCC has a Gross Margin of 66.69%. This is amongst the best in the industry. LSCC outperforms 90.91% of its industry peers.
In the last couple of years the Gross Margin of LSCC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.15% | ||
| PM (TTM) | 10.51% | ||
| GM | 66.69% |
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%
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
LSCC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
LSCC has an Altman-Z score of 39.34. This indicates that LSCC is financially healthy and has little risk of bankruptcy at the moment.
LSCC has a Altman-Z score of 39.34. This is amongst the best in the industry. LSCC outperforms 93.64% of its industry peers.
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 | 39.34 |
ROIC/WACC0.45
WACC11.62%
2.3 Liquidity
LSCC has a Current Ratio of 4.31. This indicates that LSCC is financially healthy and has no problem in meeting its short term obligations.
LSCC has a Current ratio of 4.31. This is in the better half of the industry: LSCC outperforms 62.73% of its industry peers.
A Quick Ratio of 3.10 indicates that LSCC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.10, LSCC is in the better half of the industry, outperforming 62.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.31 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
The earnings per share for LSCC have decreased strongly by -50.84% in the last year.
The Earnings Per Share has been growing by 9.63% on average over the past years. This is quite good.
The Revenue for LSCC has decreased by -29.55% in the past year. This is quite bad
The Revenue has been growing slightly by 4.74% on average over the past years.
EPS 1Y (TTM)-50.84%
EPS 3Y-3.89%
EPS 5Y9.63%
EPS Q2Q%-24.14%
Revenue 1Y (TTM)-29.55%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.74%
Sales Q2Q%-14.68%
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 24.01% on average per year.
The Revenue is expected to grow by 10.03% on average over the next years. This is quite good.
EPS Next Y12.75%
EPS Next 2Y24.76%
EPS Next 3Y24.01%
EPS Next 5YN/A
Revenue Next Year1.44%
Revenue Next 2Y9.61%
Revenue Next 3Y10.03%
Revenue Next 5YN/A
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
LSCC is valuated quite expensively with a Price/Earnings ratio of 60.26.
Compared to the rest of the industry, the Price/Earnings ratio of LSCC is on the same level as its industry peers.
LSCC is valuated expensively when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 35.86 indicates a quite expensive valuation of LSCC.
The rest of the industry has a similar Price/Forward Earnings ratio as LSCC.
When comparing the Price/Forward Earnings ratio of LSCC to the average of the S&P500 Index (36.44), we can say LSCC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.26 | ||
| Fwd PE | 35.86 |
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 | 62.28 | ||
| EV/EBITDA | 74.88 |
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.
The excellent profitability rating of LSCC may justify a higher PE ratio.
A more expensive valuation may be justified as LSCC's earnings are expected to grow with 24.01% in the coming years.
PEG (NY)4.73
PEG (5Y)6.26
EPS Next 2Y24.76%
EPS Next 3Y24.01%
5. Dividend
5.1 Amount
LSCC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
53.03
+1.13 (+2.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners119.69%
Inst Owner Change-0.14%
Ins Owners0.62%
Ins Owner Change6.89%
Market Cap7.29B
Analysts80
Price Target64.33 (21.31%)
Short Float %8.96%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.87%
Min EPS beat(2)-2.2%
Max EPS beat(2)-1.53%
EPS beat(4)0
Avg EPS beat(4)-2.57%
Min EPS beat(4)-6.37%
Max EPS beat(4)-0.19%
EPS beat(8)2
Avg EPS beat(8)-1.24%
EPS beat(12)5
Avg EPS beat(12)0.11%
EPS beat(16)9
Avg EPS beat(16)2.88%
Revenue beat(2)0
Avg Revenue beat(2)-1.81%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-1.68%
Revenue beat(4)0
Avg Revenue beat(4)-3.04%
Min Revenue beat(4)-6.56%
Max Revenue beat(4)-1.68%
Revenue beat(8)0
Avg Revenue beat(8)-2.7%
Revenue beat(12)3
Avg Revenue beat(12)-1.74%
Revenue beat(16)7
Avg Revenue beat(16)-0.8%
PT rev (1m)0.46%
PT rev (3m)-8.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.26 | ||
| Fwd PE | 35.86 | ||
| P/S | 14.92 | ||
| P/FCF | 62.28 | ||
| P/OCF | 50.9 | ||
| P/B | 10.3 | ||
| P/tB | 18.82 | ||
| EV/EBITDA | 74.88 |
EPS(TTM)0.88
EY1.66%
EPS(NY)1.48
Fwd EY2.79%
FCF(TTM)0.85
FCFY1.61%
OCF(TTM)1.04
OCFY1.96%
SpS3.55
BVpS5.15
TBVpS2.82
PEG (NY)4.73
PEG (5Y)6.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 7.25% | ||
| ROCE | 6.66% | ||
| ROIC | 5.26% | ||
| ROICexc | 6.35% | ||
| ROICexgc | 13.19% | ||
| OM | 10.15% | ||
| PM (TTM) | 10.51% | ||
| GM | 66.69% | ||
| FCFM | 23.96% |
ROA(3y)20.15%
ROA(5y)16.12%
ROE(3y)27.58%
ROE(5y)23.68%
ROIC(3y)17.21%
ROIC(5y)14.43%
ROICexc(3y)21.34%
ROICexc(5y)18.26%
ROICexgc(3y)52.88%
ROICexgc(5y)49.22%
ROCE(3y)21.78%
ROCE(5y)18.26%
ROICexcg growth 3Y-33.52%
ROICexcg growth 5Y-16.93%
ROICexc growth 3Y-22.03%
ROICexc growth 5Y-9.19%
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%
F-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 56.83% | ||
| Cap/Sales | 5.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 149.73% | ||
| Profit Quality | 227.98% | ||
| Current Ratio | 4.31 | ||
| Quick Ratio | 3.1 | ||
| Altman-Z | 39.34 |
F-Score6
WACC11.62%
ROIC/WACC0.45
Cap/Depr(3y)57.89%
Cap/Depr(5y)52.41%
Cap/Sales(3y)3.46%
Cap/Sales(5y)3.05%
Profit Quality(3y)137.63%
Profit Quality(5y)149.09%
High Growth Momentum
Growth
EPS 1Y (TTM)-50.84%
EPS 3Y-3.89%
EPS 5Y9.63%
EPS Q2Q%-24.14%
EPS Next Y12.75%
EPS Next 2Y24.76%
EPS Next 3Y24.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-29.55%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.74%
Sales Q2Q%-14.68%
Revenue Next Year1.44%
Revenue Next 2Y9.61%
Revenue Next 3Y10.03%
Revenue Next 5YN/A
EBIT growth 1Y-71.37%
EBIT growth 3Y-16.14%
EBIT growth 5Y-0.97%
EBIT Next Year40.41%
EBIT Next 3Y32.17%
EBIT Next 5YN/A
FCF growth 1Y-45.08%
FCF growth 3Y-8.77%
FCF growth 5Y2.02%
OCF growth 1Y-40.43%
OCF growth 3Y-5.64%
OCF growth 5Y2.57%