LANTRONIX INC (LTRX)
US5165482036 - Common Stock
Overall LTRX gets a fundamental rating of 5 out of 10. We evaluated LTRX against 51 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 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.
LTRX had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: LTRX reported negative operating cash flow in multiple years.
1.2 Ratios
LTRX has a Return On Assets of -3.72%. This is comparable to the rest of the industry: LTRX outperforms 50.98% 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
With a Gross Margin value of 40.03%, LTRX perfoms like the industry average, outperforming 50.98% of the companies in the same industry.
LTRX's Gross Margin has declined 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 | 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.
The number of shares outstanding for LTRX has been increased compared to 5 years ago.
LTRX has a better debt/assets ratio than last year.
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.
The Debt to FCF ratio of LTRX is 1.22, which is an excellent value as it means it would take LTRX, only 1.22 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.22, LTRX is in the better half of the industry, outperforming 72.55% of the companies in the same industry.
LTRX has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
LTRX has a better Debt to Equity ratio (0.16) than 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.22 | ||
| Altman-Z | 0.56 |
ROIC/WACCN/A
WACC9.84%
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.
The Current ratio of LTRX (2.61) is better than 64.71% of its industry peers.
A Quick Ratio of 1.78 indicates that LTRX should not have too much problems paying its short term obligations.
LTRX has a better Quick ratio (1.78) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 73.91% over the past year.
The Earnings Per Share has been growing by 22.28% on average over the past years. This is a very strong growth
LTRX shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.13%.
Measured over the past years, LTRX shows a very strong growth in Revenue. The Revenue has been growing by 27.87% on average per year.
EPS 1Y (TTM)73.91%
EPS 3Y29.22%
EPS 5Y22.28%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)22.13%
Revenue growth 3Y30.89%
Revenue growth 5Y27.87%
Sales Q2Q%4.21%
3.2 Future
LTRX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.26% yearly.
Based on estimates for the next years, LTRX will show a small growth in Revenue. The Revenue will grow by 2.18% on average per year.
EPS Next Y-28.85%
EPS Next 2Y4.62%
EPS Next 3Y8.26%
EPS Next 5YN/A
Revenue Next Year-15.07%
Revenue Next 2Y-2.6%
Revenue Next 3Y2.18%
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 decreasing.
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
Based on the Price/Earnings ratio of 7.70, the valuation of LTRX can be described as very cheap.
Based on the Price/Earnings ratio, LTRX is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
LTRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.61.
With a Price/Forward Earnings ratio of 6.86, the valuation of LTRX can be described as very cheap.
98.04% of the companies in the same industry are more expensive than LTRX, based on the Price/Forward Earnings ratio.
LTRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.7 | ||
| Fwd PE | 6.86 |
4.2 Price Multiples
70.59% of the companies in the same industry are more expensive than LTRX, based on the Enterprise Value to EBITDA ratio.
88.24% of the companies in the same industry are more expensive than LTRX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.38 | ||
| EV/EBITDA | 17.22 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y4.62%
EPS Next 3Y8.26%
5. Dividend
5.1 Amount
LTRX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LANTRONIX INC
NASDAQ:LTRX (12/3/2024, 8:00:00 PM)
After market: 3.04 -0.04 (-1.3%)3.08
+0.03 (+0.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap118.52M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.7 | ||
| Fwd PE | 6.86 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.72% | ||
| ROE | -6.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 40.03% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)73.91%
EPS 3Y29.22%
EPS 5Y
EPS Q2Q%
EPS Next Y-28.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.13%
Revenue growth 3Y30.89%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y