LTRX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 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 quite expensive at the moment. It does show a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years LTRX always reported negative net income.
Of the past 5 years LTRX 4 years had a positive operating cash flow.

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.
The Return On Equity of LTRX (-13.80%) is worse 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

LTRX has a Gross Margin (42.75%) which is in line with 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	42.75%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
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

LTRX has an Altman-Z score of 2.09. This is not the best score and indicates that LTRX is in the grey zone with still only limited risk for bankruptcy at the moment.
LTRX has a Altman-Z score of 2.09. This is comparable to the rest of the industry: LTRX outperforms 56.25% of its industry peers.
LTRX has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
LTRX has a Debt to FCF ratio of 1.37. This is in the better half of the industry: LTRX outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that LTRX is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.14, LTRX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.14
Debt/FCF	1.37
Altman-Z	2.09

ROIC/WACCN/A

WACC10.02%

2.3 Liquidity

A Current Ratio of 3.01 indicates that LTRX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.01, LTRX belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
A Quick Ratio of 1.93 indicates that LTRX should not have too much problems paying its short term obligations.
The Quick ratio of LTRX (1.93) is better than 70.83% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.01
Quick Ratio	1.93

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

LTRX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -70.00%.
The Earnings Per Share has been growing by 9.24% on average over the past years. This is quite good.
Looking at the last year, LTRX shows a very negative growth in Revenue. The Revenue has decreased by -26.85% in the last year.
LTRX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.46% yearly.

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

LTRX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.79% yearly.
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 Year2.46%

Revenue Next 2Y7.93%

Revenue Next 3Y13.05%

Revenue Next 5Y11.65%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 55.33 indicates a quite expensive valuation of LTRX.
LTRX's Price/Earnings ratio is in line with the industry average.
LTRX is valuated expensively when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
LTRX is valuated rather expensively with a Price/Forward Earnings ratio of 20.13.
Based on the Price/Forward Earnings ratio, LTRX is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
LTRX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	55.33
Fwd PE	20.13

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of LTRX is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	33.48
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.