LANTRONIX INC (LTRX) Stock Fundamental Analysis
USA - NASDAQ:LTRX - US5165482036 - Common Stock
4.77 USD
-0.13 (-2.65%)
4.87 USD
+0.1 (+2.1%)
We assign a fundamental rating of 4 out of 10 to LTRX. 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 decent growth rate and is not valued too expensively.
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
LTRX has a Return On Assets of -9.19%. This is in the lower half of the industry: LTRX underperforms 72.92% of its industry peers.
The Return On Equity of LTRX (-15.29%) is worse than 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 (42.06%) which is in line with its industry peers.
LTRX's Gross Margin has been stable 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 | 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
LTRX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LTRX has been reduced compared to a year ago.
2.2 Solvency
LTRX has an Altman-Z score of 0.95. 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 (0.95) which is in line with its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.73, LTRX is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
LTRX has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.12, LTRX perfoms like the industry average, 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
WACC9.34%
2.3 Liquidity
A Current Ratio of 2.54 indicates that LTRX has no problem at all paying its short term obligations.
LTRX has a better Current ratio (2.54) than 70.83% of its industry peers.
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.
With a Quick ratio value of 1.68, LTRX perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| 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%.
LTRX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.24% yearly.
LTRX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.33%.
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)-23.33%
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.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 39.75 indicates a quite expensive valuation of LTRX.
Compared to the rest of the industry, the Price/Earnings ratio of LTRX is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.89, LTRX is valued quite expensively.
Based on the Price/Forward Earnings ratio of 15.20, the valuation of LTRX can be described as correct.
Based on the Price/Forward Earnings ratio, LTRX is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.
LTRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.75 | ||
| Fwd PE | 15.2 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, LTRX is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.63 | ||
| 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.
LTRX's earnings are expected to grow with 58.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)4.3
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 |
4.77
-0.13 (-2.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners29.56%
Inst Owner Change-8.51%
Ins Owners7.14%
Ins Owner Change3.79%
Market Cap187.32M
Revenue(TTM)122.92M
Net Income(TTM)-11.37M
Analysts82
Price Target5.99 (25.58%)
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 | 39.75 | ||
| Fwd PE | 15.2 | ||
| P/S | 1.52 | ||
| P/FCF | 27.63 | ||
| P/OCF | 25.71 | ||
| P/B | 2.52 | ||
| P/tB | 4.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.12
EY2.52%
EPS(NY)0.31
Fwd EY6.58%
FCF(TTM)0.17
FCFY3.62%
OCF(TTM)0.19
OCFY3.89%
SpS3.13
BVpS1.89
TBVpS1.01
PEG (NY)0.91
PEG (5Y)4.3
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 | 0.95 |
F-Score4
WACC9.34%
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%-13.45%
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 39.75 and the Price/Book (PB) ratio is 2.52.
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.