LANTRONIX INC (LTRX) Stock Fundamental Analysis
NASDAQ:LTRX - Nasdaq - US5165482036 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to LTRX. LTRX was compared to 51 industry peers in the Communications Equipment industry. LTRX scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. LTRX is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
In the past year LTRX was profitable.
LTRX had a positive operating cash flow in the past year.
In the past 5 years LTRX always reported negative net income.
In multiple years LTRX reported negative operating cash flow during the last 5 years.
1.2 Ratios
LTRX has a Return On Assets of -3.72%. This is comparable to the rest of the industry: LTRX outperforms 48.00% of its industry peers.
The Return On Equity of LTRX (-6.50%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.72% | ||
| ROE | -6.5% | ||
| ROIC | N/A |
ROA(3y)-4.39%
ROA(5y)-6.89%
ROE(3y)-7.97%
ROE(5y)-11.12%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
LTRX has a Gross Margin (40.03%) which is in line with its industry peers.
In the last couple of years the Gross Margin of LTRX has declined.
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 | 40.03% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.55%
GM growth 5Y-6.47%
2. Health
2.1 Basic Checks
LTRX does not have a ROIC to compare to the WACC, probably because it is not profitable.
LTRX has more shares outstanding than it did 1 year ago.
LTRX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LTRX has been reduced compared to a year ago.
2.2 Solvency
LTRX has an Altman-Z score of 0.56. This is a bad value and indicates that LTRX is not financially healthy and even has some risk of bankruptcy.
LTRX has a Altman-Z score (0.56) which is in line with its industry peers.
LTRX has a debt to FCF ratio of 1.22. This is a very positive value and a sign of high solvency as it would only need 1.22 years to pay back of all of its debts.
The Debt to FCF ratio of LTRX (1.22) is better than 70.00% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that LTRX is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.16, LTRX perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.22 | ||
| Altman-Z | 0.56 |
ROIC/WACCN/A
WACC9.81%
2.3 Liquidity
LTRX has a Current Ratio of 2.61. This indicates that LTRX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.61, LTRX is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
LTRX has a Quick Ratio of 1.78. 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 (1.78) than 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
LTRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
Measured over the past years, LTRX shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.28% on average per year.
LTRX shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.20%.
LTRX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.87% yearly.
EPS 1Y (TTM)33.33%
EPS 3Y29.22%
EPS 5Y22.28%
EPS Q2Q%-50%
Revenue 1Y (TTM)22.2%
Revenue growth 3Y30.89%
Revenue growth 5Y27.87%
Sales Q2Q%-15.87%
3.2 Future
The Earnings Per Share is expected to grow by 10.43% on average over the next years. This is quite good.
LTRX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.87% yearly.
EPS Next Y-55.72%
EPS Next 2Y-4.58%
EPS Next 3Y3.45%
EPS Next 5Y10.43%
Revenue Next Year-15.07%
Revenue Next 2Y-2.6%
Revenue Next 3Y2.18%
Revenue Next 5Y4.87%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
LTRX is valuated reasonably with a Price/Earnings ratio of 8.08.
98.00% of the companies in the same industry are more expensive than LTRX, based on the Price/Earnings ratio.
LTRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 7.79, the valuation of LTRX can be described as very cheap.
Based on the Price/Forward Earnings ratio, LTRX is valued cheaply inside the industry as 98.00% of the companies are valued more expensively.
LTRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 7.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LTRX is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LTRX is valued cheaper than 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.93 | ||
| EV/EBITDA | 17.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-4.58%
EPS Next 3Y3.45%
5. Dividend
5.1 Amount
LTRX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.91
-0.14 (-4.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners35.37%
Inst Owner Change-4.09%
Ins Owners1.31%
Ins Owner Change6.15%
Market Cap112.88M
Analysts81.82
Price Target5.92 (103.44%)
Short Float %1.45%
Short Ratio1.07
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)-18.83%
Min EPS beat(2)-33.16%
Max EPS beat(2)-4.51%
EPS beat(4)1
Avg EPS beat(4)-7.99%
Min EPS beat(4)-33.16%
Max EPS beat(4)10.04%
EPS beat(8)3
Avg EPS beat(8)19.85%
EPS beat(12)6
Avg EPS beat(12)19.18%
EPS beat(16)9
Avg EPS beat(16)19.29%
Revenue beat(2)0
Avg Revenue beat(2)-4.49%
Min Revenue beat(2)-7.07%
Max Revenue beat(2)-1.92%
Revenue beat(4)1
Avg Revenue beat(4)-3%
Min Revenue beat(4)-7.07%
Max Revenue beat(4)0.39%
Revenue beat(8)2
Avg Revenue beat(8)-2.66%
Revenue beat(12)5
Avg Revenue beat(12)0.03%
Revenue beat(16)7
Avg Revenue beat(16)0.27%
PT rev (1m)0%
PT rev (3m)-20.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-69.23%
EPS NY rev (1m)-37.76%
EPS NY rev (3m)-61.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-19.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-14.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 7.79 | ||
| P/S | 0.7 | ||
| P/FCF | 8.93 | ||
| P/OCF | 8.19 | ||
| P/B | 1.43 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 17.19 |
EPS(TTM)0.36
EY12.37%
EPS(NY)0.37
Fwd EY12.83%
FCF(TTM)0.33
FCFY11.2%
OCF(TTM)0.36
OCFY12.21%
SpS4.17
BVpS2.03
TBVpS1.21
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.72% | ||
| ROE | -6.5% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 40.03% | ||
| FCFM | 7.82% |
ROA(3y)-4.39%
ROA(5y)-6.89%
ROE(3y)-7.97%
ROE(5y)-11.12%
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
ROICexcg growth 3YN/A
ROICexcg 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-4.55%
GM growth 5Y-6.47%
F-Score6
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.22 | ||
| Debt/EBITDA | 1.99 | ||
| Cap/Depr | 15.57% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 220.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 0.56 |
F-Score6
WACC9.81%
ROIC/WACCN/A
Cap/Depr(3y)29.07%
Cap/Depr(5y)25.49%
Cap/Sales(3y)1.53%
Cap/Sales(5y)1.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.33%
EPS 3Y29.22%
EPS 5Y22.28%
EPS Q2Q%-50%
EPS Next Y-55.72%
EPS Next 2Y-4.58%
EPS Next 3Y3.45%
EPS Next 5Y10.43%
Revenue 1Y (TTM)22.2%
Revenue growth 3Y30.89%
Revenue growth 5Y27.87%
Sales Q2Q%-15.87%
Revenue Next Year-15.07%
Revenue Next 2Y-2.6%
Revenue Next 3Y2.18%
Revenue Next 5Y4.87%
EBIT growth 1Y81.9%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-26.14%
EBIT Next 3Y12.1%
EBIT Next 5YN/A
FCF growth 1Y176.47%
FCF growth 3Y69.51%
FCF growth 5YN/A
OCF growth 1Y201.59%
OCF growth 3Y63%
OCF growth 5YN/A