LANTRONIX INC (LTRX) Stock Fundamental Analysis
USA - NASDAQ:LTRX - US5165482036 - Common Stock
5.03 USD
-0.05 (-0.98%)
5.03 USD
0 (0%)
LTRX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.
In the past 5 years LTRX always reported negative net income.
LTRX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
LTRX's Return On Assets of -9.19% is on the low side compared to the rest of the industry. LTRX is outperformed by 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
The Gross Margin of LTRX (42.06%) is comparable to the rest of the industry.
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.
Compared to 1 year ago, LTRX has more shares outstanding
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
Based on the Altman-Z score of 1.03, 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 1.03, LTRX is in line with its industry, outperforming 45.83% of the companies in the same industry.
LTRX has a debt to FCF ratio of 1.73. This is a very positive value and a sign of high solvency as it would only need 1.73 years to pay back of all of its debts.
LTRX has a better Debt to FCF ratio (1.73) than 68.75% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that LTRX is not too dependend on debt financing.
LTRX has a Debt to Equity ratio of 0.12. This is comparable to the rest of the industry: LTRX outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.73 | ||
| Altman-Z | 1.03 |
ROIC/WACCN/A
WACC9.21%
2.3 Liquidity
A Current Ratio of 2.54 indicates that LTRX has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.54, LTRX is doing good in the industry, outperforming 68.75% of the companies in the same industry.
LTRX has a Quick Ratio of 1.68. 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 Quick ratio of 1.68. This is comparable to the rest of the industry: LTRX outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.54 | ||
| Quick Ratio | 1.68 |
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%.
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.
The Revenue for LTRX has decreased by -23.33% in the past year. This is quite bad
The Revenue has been growing by 15.46% on average over the past years. This is quite good.
EPS 1Y (TTM)-70%
EPS 3Y-25.6%
EPS 5Y9.24%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-23.33%
Revenue growth 3Y-1.77%
Revenue growth 5Y15.46%
Sales Q2Q%-13.46%
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 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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 41.92, which means the current valuation is very expensive for LTRX.
The rest of the industry has a similar Price/Earnings ratio as LTRX.
LTRX is valuated expensively when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.03, which indicates a correct valuation of LTRX.
77.08% of the companies in the same industry are more expensive than LTRX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LTRX to the average of the S&P500 Index (32.68), we can say LTRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.92 | ||
| Fwd PE | 16.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LTRX indicates a somewhat cheap valuation: LTRX is cheaper than 62.50% of the companies listed 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)0.95
PEG (5Y)4.54
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
-0.05 (-0.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners29.56%
Inst Owner Change-1.46%
Ins Owners7.14%
Ins Owner Change3.38%
Market Cap197.53M
Revenue(TTM)122.92M
Net Income(TTM)-11.37M
Analysts82
Price Target5.99 (19.09%)
Short Float %1.23%
Short Ratio0.66
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)4.44%
PT rev (3m)14.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.09%
EPS NY rev (1m)0%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.92 | ||
| Fwd PE | 16.03 | ||
| 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)0.12
EY2.39%
EPS(NY)0.31
Fwd EY6.24%
FCF(TTM)0.17
FCFY3.43%
OCF(TTM)0.19
OCFY3.69%
SpS3.13
BVpS1.89
TBVpS1.01
PEG (NY)0.95
PEG (5Y)4.54
Graham Number2.26
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
ROICexgc growth 3YN/A
ROICexgc 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 | 1.03 |
F-Score4
WACC9.21%
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)-70%
EPS 3Y-25.6%
EPS 5Y9.24%
EPS Q2Q%-33.33%
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%-13.46%
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
LANTRONIX INC / LTRX FAQ
What is the fundamental rating for LTRX stock?
ChartMill assigns a fundamental rating of 4 / 10 to LTRX.
Can you provide the valuation status for LANTRONIX INC?
ChartMill assigns a valuation rating of 5 / 10 to LANTRONIX INC (LTRX). This can be considered as Fairly Valued.
What is the profitability of LTRX stock?
LANTRONIX INC (LTRX) has a profitability rating of 2 / 10.
What are the PE and PB ratios of LANTRONIX INC (LTRX) stock?
The Price/Earnings (PE) ratio for LANTRONIX INC (LTRX) is 41.92 and the Price/Book (PB) ratio is 2.66.
Can you provide the expected EPS growth for LTRX stock?
The Earnings per Share (EPS) of LANTRONIX INC (LTRX) is expected to grow by 43.89% in the next year.