LANTRONIX INC (LTRX) Stock Fundamental Analysis
USA - NASDAQ:LTRX - US5165482036 - Common Stock
4.45 USD
-0.12 (-2.63%)
4.54 USD
+0.09 (+2.02%)
We assign a fundamental rating of 4 out of 10 to LTRX. LTRX was compared to 48 industry peers in the Communications Equipment industry. The financial health of LTRX is average, but there are quite some concerns on its profitability. LTRX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
LTRX had positive earnings in the past year.
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
The Return On Assets of LTRX (-6.73%) is worse than 68.75% of its industry peers.
LTRX has a Return On Equity (-11.07%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.73% | ||
| ROE | -11.07% | ||
| 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 41.13%. 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.
The Profit Margin and Operating Margin are not available for LTRX so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 41.13% |
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.
The number of shares outstanding for LTRX has been increased compared to 5 years ago.
The debt/assets ratio for LTRX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that LTRX is in the distress zone and has some risk of bankruptcy.
LTRX's Altman-Z score of 1.09 is in line compared to the rest of the industry. LTRX outperforms 54.17% of its industry peers.
LTRX has a debt to FCF ratio of 1.57. This is a very positive value and a sign of high solvency as it would only need 1.57 years to pay back of all of its debts.
LTRX has a better Debt to FCF ratio (1.57) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that LTRX is not too dependend on debt financing.
The Debt to Equity ratio of LTRX (0.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 1.09 |
ROIC/WACCN/A
WACC10.06%
2.3 Liquidity
LTRX has a Current Ratio of 2.68. This indicates that LTRX is financially healthy and has no problem in meeting its short term obligations.
LTRX has a Current ratio of 2.68. This is in the better half of the industry: LTRX outperforms 70.83% of its industry peers.
A Quick Ratio of 1.69 indicates that LTRX should not have too much problems paying its short term obligations.
LTRX has a better Quick ratio (1.69) than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The earnings per share for LTRX have decreased strongly by -65.85% in the last year.
The Earnings Per Share has been growing by 9.24% on average over the past years. This is quite good.
The Revenue for LTRX has decreased by -23.33% in the past year. This is quite bad
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)-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
Based on estimates for the next years, LTRX will show a quite strong growth in Revenue. The Revenue will grow by 11.65% on average per year.
EPS Next Y42.07%
EPS Next 2Y42.83%
EPS Next 3Y58.83%
EPS Next 5Y45.79%
Revenue Next Year3.66%
Revenue Next 2Y6%
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
The Price/Earnings ratio is 31.79, which means the current valuation is very expensive for LTRX.
Based on the Price/Earnings ratio, LTRX is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
LTRX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
LTRX is valuated rather expensively with a Price/Forward Earnings ratio of 22.37.
LTRX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.73. LTRX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.79 | ||
| Fwd PE | 22.37 |
4.2 Price Multiples
LTRX's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, LTRX is valued a bit cheaper than 64.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.65 | ||
| EV/EBITDA | 55.4 |
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)0.76
PEG (5Y)3.44
EPS Next 2Y42.83%
EPS Next 3Y58.83%
5. Dividend
5.1 Amount
LTRX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.45
-0.12 (-2.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners32.97%
Inst Owner Change-11.14%
Ins Owners7.12%
Ins Owner Change2.93%
Market Cap174.22M
Analysts82
Price Target5.74 (28.99%)
Short Float %1.14%
Short Ratio0.85
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)1
Avg EPS beat(2)10.29%
Min EPS beat(2)-1.96%
Max EPS beat(2)22.55%
EPS beat(4)1
Avg EPS beat(4)-4.27%
Min EPS beat(4)-33.16%
Max EPS beat(4)22.55%
EPS beat(8)3
Avg EPS beat(8)18.43%
EPS beat(12)5
Avg EPS beat(12)18.31%
EPS beat(16)9
Avg EPS beat(16)17.79%
Revenue beat(2)0
Avg Revenue beat(2)-2.8%
Min Revenue beat(2)-4.03%
Max Revenue beat(2)-1.57%
Revenue beat(4)0
Avg Revenue beat(4)-3.65%
Min Revenue beat(4)-7.07%
Max Revenue beat(4)-1.57%
Revenue beat(8)2
Avg Revenue beat(8)-1.97%
Revenue beat(12)3
Avg Revenue beat(12)-2.23%
Revenue beat(16)7
Avg Revenue beat(16)0.4%
PT rev (1m)9.76%
PT rev (3m)9.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.79 | ||
| Fwd PE | 22.37 | ||
| P/S | 1.21 | ||
| P/FCF | 21.65 | ||
| P/OCF | 20.34 | ||
| P/B | 2.29 | ||
| P/tB | 4.32 | ||
| EV/EBITDA | 55.4 |
EPS(TTM)0.14
EY3.15%
EPS(NY)0.2
Fwd EY4.47%
FCF(TTM)0.21
FCFY4.62%
OCF(TTM)0.22
OCFY4.92%
SpS3.68
BVpS1.94
TBVpS1.03
PEG (NY)0.76
PEG (5Y)3.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.73% | ||
| ROE | -11.07% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 41.13% | ||
| FCFM | 5.58% |
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-Score5
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.57 | ||
| Debt/EBITDA | 3.08 | ||
| Cap/Depr | 7.51% | ||
| Cap/Sales | 0.36% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 276.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 1.09 |
F-Score5
WACC10.06%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
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 Y42.07%
EPS Next 2Y42.83%
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 Year3.66%
Revenue Next 2Y6%
Revenue Next 3Y13.05%
Revenue Next 5Y11.65%
EBIT growth 1Y-16.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year75.86%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-49.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-51.52%
OCF growth 3YN/A
OCF growth 5YN/A