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. LSCC is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make LSCC a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year LSCC was profitable.
LSCC had a positive operating cash flow in the past year.
LSCC had positive earnings in each of the past 5 years.
In the past 5 years LSCC always reported a positive cash flow from operatings.
1.2 Ratios
LSCC has a better Return On Assets (6.24%) than 70.00% of its industry peers.
LSCC has a better Return On Equity (7.25%) 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.
Measured over the past 3 years, the Average Return On Invested Capital for LSCC is significantly above the industry average of 10.58%.
The 3 year average ROIC (17.21%) for LSCC is well above the current ROIC(5.26%). The reason for the recent decline needs to be investigated.
| 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
With a decent Profit Margin value of 10.51%, LSCC is doing good in the industry, outperforming 68.18% of the companies in the same industry.
In the last couple of years the Profit Margin of LSCC has grown nicely.
Looking at the Operating Margin, with a value of 10.15%, LSCC is in the better half of the industry, outperforming 62.73% of the companies in the same industry.
In the last couple of years the Operating Margin of LSCC has declined.
With an excellent Gross Margin value of 66.69%, LSCC belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LSCC is still creating some value.
Compared to 1 year ago, LSCC has more shares outstanding
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 38.61. This indicates that LSCC is financially healthy and has little risk of bankruptcy at the moment.
LSCC has a better Altman-Z score (38.61) than 94.55% 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 | 38.61 |
ROIC/WACC0.46
WACC11.51%
2.3 Liquidity
A Current Ratio of 4.31 indicates that LSCC has no problem at all paying its short term obligations.
LSCC has a better Current ratio (4.31) than 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.
LSCC has a better Quick ratio (3.10) than 62.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.31 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
LSCC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.84%.
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 -29.55% in the last year.
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
The Earnings Per Share is expected to grow by 24.01% on average over the next years. This is a very strong growth
Based on estimates for the next years, LSCC will show a quite strong growth in Revenue. The Revenue will grow by 10.03% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LSCC is valuated quite expensively with a Price/Earnings ratio of 57.82.
The rest of the industry has a similar Price/Earnings ratio as LSCC.
When comparing the Price/Earnings ratio of LSCC to the average of the S&P500 Index (27.29), we can say LSCC is valued expensively.
Based on the Price/Forward Earnings ratio of 34.41, the valuation of LSCC can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as LSCC.
LSCC is valuated expensively when we compare the Price/Forward Earnings ratio to 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.82 | ||
| Fwd PE | 34.41 |
4.2 Price Multiples
LSCC's Enterprise Value to EBITDA ratio is in line with the industry average.
LSCC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.76 | ||
| EV/EBITDA | 73.42 |
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.
LSCC's earnings are expected to grow with 24.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.54
PEG (5Y)6.01
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 |
50.88
-1.13 (-2.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners119.69%
Inst Owner Change0%
Ins Owners0.62%
Ins Owner Change6.99%
Market Cap7.00B
Analysts80
Price Target64.04 (25.86%)
Short Float %8.16%
Short Ratio4.3
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)-2.15%
PT rev (3m)-8.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.82 | ||
| Fwd PE | 34.41 | ||
| P/S | 14.32 | ||
| P/FCF | 59.76 | ||
| P/OCF | 48.84 | ||
| P/B | 9.88 | ||
| P/tB | 18.06 | ||
| EV/EBITDA | 73.42 |
EPS(TTM)0.88
EY1.73%
EPS(NY)1.48
Fwd EY2.91%
FCF(TTM)0.85
FCFY1.67%
OCF(TTM)1.04
OCFY2.05%
SpS3.55
BVpS5.15
TBVpS2.82
PEG (NY)4.54
PEG (5Y)6.01
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 | 38.61 |
F-Score6
WACC11.51%
ROIC/WACC0.46
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%