6.18 USD
-0.05 (-0.8%)
6.3 USD
+0.12 (+1.94%)
We assign a fundamental rating of 4 out of 10 to LTRX. LTRX was compared to 48 industry peers in the Communications Equipment industry. While LTRX seems to be doing ok healthwise, there are quite some concerns on its profitability. LTRX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LTRX was profitable.
In the past year LTRX had a positive cash flow from operations.
LTRX had negative earnings in each of the past 5 years.
LTRX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -8.59%, LTRX is doing worse than 72.92% of the companies in the same industry.
LTRX has a worse Return On Equity (-13.80%) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.59% | ||
| ROE | -13.8% | ||
| ROIC | N/A |
ROA(3y)-6.15%
ROA(5y)-5.58%
ROE(3y)-10.81%
ROE(5y)-9.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of LTRX (42.75%) is comparable to the rest of the industry.
LTRX's Gross Margin has been stable in the last couple of years.
LTRX does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 42.75% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.63%
GM growth 5Y-1.3%
2. Health
2.1 Basic Checks
LTRX does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, LTRX has more shares outstanding
The number of shares outstanding for LTRX has been increased compared to 5 years ago.
Compared to 1 year ago, LTRX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.76, we must say that LTRX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.76, LTRX is in line with its industry, outperforming 56.25% of the companies in the same industry.
The Debt to FCF ratio of LTRX is 1.37, which is an excellent value as it means it would take LTRX, only 1.37 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.37, LTRX is doing good in the industry, outperforming 75.00% of the companies in the same industry.
LTRX has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
LTRX's Debt to Equity ratio of 0.14 is in line compared to the rest of the industry. LTRX outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 1.76 |
ROIC/WACCN/A
WACC9.85%
2.3 Liquidity
LTRX has a Current Ratio of 3.01. This indicates that LTRX is financially healthy and has no problem in meeting its short term obligations.
LTRX has a better Current ratio (3.01) than 81.25% of its industry peers.
LTRX has a Quick Ratio of 1.93. This is a normal value and indicates that LTRX is financially healthy and should not expect problems in meeting its short term obligations.
LTRX has a better Quick ratio (1.93) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.01 | ||
| Quick Ratio | 1.93 |
3. Growth
3.1 Past
The earnings per share for LTRX have decreased strongly by -70.00% in the last year.
Measured over the past years, LTRX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.24% on average per year.
LTRX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -26.85%.
Measured over the past years, LTRX shows a quite strong growth in Revenue. The Revenue has been growing by 15.46% on average per year.
EPS 1Y (TTM)-70%
EPS 3Y-25.6%
EPS 5Y9.24%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-26.85%
Revenue growth 3Y-1.77%
Revenue growth 5Y15.46%
Sales Q2Q%-13.45%
3.2 Future
Based on estimates for the next years, LTRX will show a very strong growth in Earnings Per Share. The EPS will grow by 45.79% on average per year.
LTRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.65% yearly.
EPS Next Y38.43%
EPS Next 2Y53.48%
EPS Next 3Y58.83%
EPS Next 5Y45.79%
Revenue Next Year2.86%
Revenue Next 2Y7.73%
Revenue Next 3Y13.05%
Revenue Next 5Y11.65%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 51.50, LTRX can be considered very expensive at the moment.
LTRX's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of LTRX to the average of the S&P500 Index (27.19), we can say LTRX is valued expensively.
LTRX is valuated rather expensively with a Price/Forward Earnings ratio of 18.74.
LTRX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LTRX is cheaper than 66.67% of the companies in the same industry.
LTRX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.5 | ||
| Fwd PE | 18.74 |
4.2 Price Multiples
LTRX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.17 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LTRX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as LTRX's earnings are expected to grow with 58.83% in the coming years.
PEG (NY)1.34
PEG (5Y)5.57
EPS Next 2Y53.48%
EPS Next 3Y58.83%
5. Dividend
5.1 Amount
No dividends for LTRX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
6.18
-0.05 (-0.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners32.13%
Inst Owner Change0%
Ins Owners7.33%
Ins Owner Change-37.68%
Market Cap243.24M
Revenue(TTM)118.29M
Net Income(TTM)-10.27M
Analysts82
Price Target8.03 (29.94%)
Short Float %1.44%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1
Avg EPS beat(2)4.58%
Min EPS beat(2)-21.57%
Max EPS beat(2)30.72%
EPS beat(4)2
Avg EPS beat(4)7.43%
Min EPS beat(4)-21.57%
Max EPS beat(4)30.72%
EPS beat(8)3
Avg EPS beat(8)-0.28%
EPS beat(12)5
Avg EPS beat(12)15.71%
EPS beat(16)8
Avg EPS beat(16)16.24%
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-4.03%
Max Revenue beat(4)-0.71%
Revenue beat(8)1
Avg Revenue beat(8)-2.44%
Revenue beat(12)2
Avg Revenue beat(12)-2.39%
Revenue beat(16)5
Avg Revenue beat(16)-0.44%
PT rev (1m)6.78%
PT rev (3m)40%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.5 | ||
| Fwd PE | 18.74 | ||
| P/S | 2.06 | ||
| P/FCF | 31.17 | ||
| P/OCF | 29.57 | ||
| P/B | 3.27 | ||
| P/tB | 6.05 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.12
EY1.94%
EPS(NY)0.33
Fwd EY5.34%
FCF(TTM)0.2
FCFY3.21%
OCF(TTM)0.21
OCFY3.38%
SpS3.01
BVpS1.89
TBVpS1.02
PEG (NY)1.34
PEG (5Y)5.57
Graham Number2.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.59% | ||
| ROE | -13.8% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 42.75% | ||
| FCFM | 6.6% |
ROA(3y)-6.15%
ROA(5y)-5.58%
ROE(3y)-10.81%
ROE(5y)-9.57%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.63%
GM growth 5Y-1.3%
F-Score5
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 7.99% | ||
| Cap/Sales | 0.36% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.01 | ||
| Quick Ratio | 1.93 | ||
| Altman-Z | 1.76 |
F-Score5
WACC9.85%
ROIC/WACCN/A
Cap/Depr(3y)21.19%
Cap/Depr(5y)23.11%
Cap/Sales(3y)1.12%
Cap/Sales(5y)1.22%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-70%
EPS 3Y-25.6%
EPS 5Y9.24%
EPS Q2Q%-33.33%
EPS Next Y38.43%
EPS Next 2Y53.48%
EPS Next 3Y58.83%
EPS Next 5Y45.79%
Revenue 1Y (TTM)-26.85%
Revenue growth 3Y-1.77%
Revenue growth 5Y15.46%
Sales Q2Q%-13.45%
Revenue Next Year2.86%
Revenue Next 2Y7.73%
Revenue Next 3Y13.05%
Revenue Next 5Y11.65%
EBIT growth 1Y-554.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year49.28%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-23.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-33.71%
OCF growth 3YN/A
OCF growth 5YN/A
LANTRONIX INC / LTRX FAQ
What is the fundamental rating for LTRX stock?
ChartMill assigns a fundamental rating of 4 / 10 to LTRX.
What is the valuation status of LANTRONIX INC (LTRX) stock?
ChartMill assigns a valuation rating of 3 / 10 to LANTRONIX INC (LTRX). This can be considered as Overvalued.
What is the profitability of LTRX stock?
LANTRONIX INC (LTRX) has a profitability rating of 2 / 10.
What is the financial health of LANTRONIX INC (LTRX) stock?
The financial health rating of LANTRONIX INC (LTRX) is 5 / 10.
What is the earnings growth outlook for LANTRONIX INC?
The Earnings per Share (EPS) of LANTRONIX INC (LTRX) is expected to grow by 38.43% in the next year.