LANTRONIX INC (LTRX) Stock Fundamental Analysis
USA - NASDAQ:LTRX - US5165482036 - Common Stock
5.03 USD
+0.12 (+2.44%)
5 USD
-0.03 (-0.6%)
Taking everything into account, LTRX scores 4 out of 10 in our fundamental rating. 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LTRX was profitable.
LTRX had a positive operating cash flow in the past year.
LTRX had negative earnings in each of the past 5 years.
Of the past 5 years LTRX 4 years had a positive operating cash flow.
1.2 Ratios
LTRX has a worse Return On Assets (-9.19%) than 72.92% of its industry peers.
LTRX's Return On Equity of -15.29% is on the low side compared to the rest of the industry. LTRX is outperformed by 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.19% | ||
| ROE | -15.29% | ||
| 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
LTRX has a Gross Margin of 42.06%. This is comparable to the rest of the industry: LTRX outperforms 54.17% of its industry peers.
In the last couple of years the Gross Margin of LTRX has remained more or less at the same level.
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 | 42.06% |
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.
LTRX has more shares outstanding than it did 1 year ago.
LTRX has more shares outstanding than it did 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 0.95, 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 0.95, LTRX is in line with its industry, outperforming 45.83% of the companies in the same industry.
The Debt to FCF ratio of LTRX is 1.73, which is an excellent value as it means it would take LTRX, only 1.73 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LTRX (1.73) is better than 64.58% of its industry peers.
LTRX has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.12, LTRX is in line with its industry, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.73 | ||
| Altman-Z | 0.95 |
ROIC/WACCN/A
WACC9.45%
2.3 Liquidity
A Current Ratio of 2.54 indicates that LTRX has no problem at all paying its short term obligations.
LTRX's Current ratio of 2.54 is fine compared to the rest of the industry. LTRX outperforms 68.75% of its industry peers.
A Quick Ratio of 1.68 indicates that LTRX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.68, LTRX perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The earnings per share for LTRX have decreased strongly by -65.85% 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 -23.33%.
The Revenue has been growing by 15.46% on average over the past years. This is quite good.
EPS 1Y (TTM)-65.85%
EPS 3Y-25.6%
EPS 5Y9.24%
EPS Q2Q%-93.33%
Revenue 1Y (TTM)-23.33%
Revenue growth 3Y-1.77%
Revenue growth 5Y15.46%
Sales Q2Q%-41.23%
3.2 Future
The Earnings Per Share is expected to grow by 45.79% on average over the next years. This is a very strong growth
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 Y43.89%
EPS Next 2Y49.72%
EPS Next 3Y58.83%
EPS Next 5Y45.79%
Revenue Next Year3.04%
Revenue Next 2Y7.38%
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
LTRX is valuated quite expensively with a Price/Earnings ratio of 35.93.
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 (27.35), we can say LTRX is valued slightly more expensively.
LTRX is valuated rather expensively with a Price/Forward Earnings ratio of 24.97.
The rest of the industry has a similar Price/Forward Earnings ratio as LTRX.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, LTRX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.93 | ||
| Fwd PE | 24.97 |
4.2 Price Multiples
LTRX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LTRX is cheaper than 64.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.13 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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)0.82
PEG (5Y)3.89
EPS Next 2Y49.72%
EPS Next 3Y58.83%
5. Dividend
5.1 Amount
LTRX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.03
+0.12 (+2.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners29.56%
Inst Owner Change0.23%
Ins Owners7.14%
Ins Owner Change3.38%
Market Cap197.53M
Analysts82
Price Target5.74 (14.12%)
Short Float %0.93%
Short Ratio0.6
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)-11.76%
Min EPS beat(2)-21.57%
Max EPS beat(2)-1.96%
EPS beat(4)1
Avg EPS beat(4)-8.53%
Min EPS beat(4)-33.16%
Max EPS beat(4)22.55%
EPS beat(8)3
Avg EPS beat(8)16.38%
EPS beat(12)5
Avg EPS beat(12)17.42%
EPS beat(16)8
Avg EPS beat(16)15.34%
Revenue beat(2)0
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-4.03%
Max Revenue beat(2)-0.71%
Revenue beat(4)0
Avg Revenue beat(4)-3.34%
Min Revenue beat(4)-7.07%
Max Revenue beat(4)-0.71%
Revenue beat(8)2
Avg Revenue beat(8)-1.99%
Revenue beat(12)2
Avg Revenue beat(12)-2.58%
Revenue beat(16)6
Avg Revenue beat(16)0.04%
PT rev (1m)0%
PT rev (3m)9.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.09%
EPS NY rev (1m)1.28%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.93 | ||
| Fwd PE | 24.97 | ||
| P/S | 1.61 | ||
| P/FCF | 29.13 | ||
| P/OCF | 27.11 | ||
| P/B | 2.66 | ||
| P/tB | 4.99 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.14
EY2.78%
EPS(NY)0.2
Fwd EY4%
FCF(TTM)0.17
FCFY3.43%
OCF(TTM)0.19
OCFY3.69%
SpS3.13
BVpS1.89
TBVpS1.01
PEG (NY)0.82
PEG (5Y)3.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.19% | ||
| ROE | -15.29% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 42.06% | ||
| FCFM | 5.52% |
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
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-0.63%
GM growth 5Y-1.3%
F-Score4
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.73 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 8.37% | ||
| Cap/Sales | 0.41% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 0.95 |
F-Score4
WACC9.45%
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)-65.85%
EPS 3Y-25.6%
EPS 5Y9.24%
EPS Q2Q%-93.33%
EPS Next Y43.89%
EPS Next 2Y49.72%
EPS Next 3Y58.83%
EPS Next 5Y45.79%
Revenue 1Y (TTM)-23.33%
Revenue growth 3Y-1.77%
Revenue growth 5Y15.46%
Sales Q2Q%-41.23%
Revenue Next Year3.04%
Revenue Next 2Y7.38%
Revenue Next 3Y13.05%
Revenue Next 5Y11.65%
EBIT growth 1Y-396.45%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year65.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-60.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-60.88%
OCF growth 3YN/A
OCF growth 5YN/A