LATTICE SEMICONDUCTOR CORP (LSCC) Stock Fundamental Analysis
NASDAQ:LSCC - Nasdaq - US5184151042 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to LSCC. LSCC was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making LSCC a very profitable company, without any liquidiy or solvency issues. LSCC is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make LSCC a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
LSCC had positive earnings in the past year.
LSCC had a positive operating cash flow in the past year.
LSCC had positive earnings in each of the past 5 years.
Each year in the past 5 years LSCC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.24%, LSCC is doing good in the industry, outperforming 69.09% of the companies in the same industry.
LSCC has a Return On Equity of 7.25%. This is in the better half of the industry: LSCC outperforms 61.82% of its industry peers.
LSCC has a better Return On Invested Capital (5.26%) than 64.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LSCC is significantly above the industry average of 10.79%.
The 3 year average ROIC (17.21%) for LSCC is well above the current ROIC(5.26%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 7.25% | ||
| ROIC | 5.26% |
ROA(3y)20.15%
ROA(5y)16.12%
ROE(3y)27.58%
ROE(5y)23.68%
ROIC(3y)17.21%
ROIC(5y)14.43%
1.3 Margins
Looking at the Profit Margin, with a value of 10.51%, LSCC is in the better half of the industry, outperforming 66.36% of the companies in the same industry.
LSCC's Profit Margin has improved in the last couple of years.
LSCC has a Operating Margin of 10.15%. This is in the better half of the industry: LSCC outperforms 62.73% of its industry peers.
In the last couple of years the Operating Margin of LSCC has declined.
LSCC has a Gross Margin of 66.69%. This is amongst the best in the industry. LSCC outperforms 90.91% of its industry peers.
LSCC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.15% | ||
| PM (TTM) | 10.51% | ||
| GM | 66.69% |
OM growth 3Y-15.82%
OM growth 5Y-5.45%
PM growth 3Y-13.61%
PM growth 5Y2.2%
GM growth 3Y2.29%
GM growth 5Y2.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LSCC is creating some value.
LSCC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LSCC has been increased compared to 5 years ago.
LSCC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 36.46 indicates that LSCC is not in any danger for bankruptcy at the moment.
The Altman-Z score of LSCC (36.46) is better than 93.64% of its industry peers.
There is no outstanding debt for LSCC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 36.46 |
ROIC/WACC0.48
WACC10.86%
2.3 Liquidity
LSCC has a Current Ratio of 4.31. This indicates that LSCC is financially healthy and has no problem in meeting its short term obligations.
LSCC has a Current ratio of 4.31. This is in the better half of the industry: LSCC outperforms 63.64% of its industry peers.
A Quick Ratio of 3.10 indicates that LSCC has no problem at all paying its short term obligations.
The Quick ratio of LSCC (3.10) is better than 62.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.31 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
The earnings per share for LSCC have decreased strongly by -50.84% in the last year.
The Earnings Per Share has been growing by 9.63% on average over the past years. This is quite good.
LSCC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.55%.
The Revenue has been growing slightly by 4.74% on average over the past years.
EPS 1Y (TTM)-50.84%
EPS 3Y-3.89%
EPS 5Y9.63%
EPS Q2Q%-24.14%
Revenue 1Y (TTM)-29.55%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.74%
Sales Q2Q%-14.68%
3.2 Future
LSCC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.01% yearly.
The Revenue is expected to grow by 10.03% on average over the next years. This is quite good.
EPS Next Y12.75%
EPS Next 2Y24.76%
EPS Next 3Y24.01%
EPS Next 5YN/A
Revenue Next Year1.44%
Revenue Next 2Y9.61%
Revenue Next 3Y10.03%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 55.37, which means the current valuation is very expensive for LSCC.
LSCC's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.24. LSCC is valued rather expensively when compared to this.
LSCC is valuated quite expensively with a Price/Forward Earnings ratio of 32.95.
LSCC's Price/Forward Earnings ratio is in line with the industry average.
LSCC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.37 | ||
| Fwd PE | 32.95 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LSCC.
The rest of the industry has a similar Price/Free Cash Flow ratio as LSCC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.23 | ||
| EV/EBITDA | 69.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LSCC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LSCC's earnings are expected to grow with 24.01% in the coming years.
PEG (NY)4.34
PEG (5Y)5.75
EPS Next 2Y24.76%
EPS Next 3Y24.01%
5. Dividend
5.1 Amount
No dividends for LSCC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
48.73
-0.26 (-0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners119.69%
Inst Owner Change-0.85%
Ins Owners0.62%
Ins Owner Change6.26%
Market Cap6.70B
Analysts80
Price Target64.33 (32.01%)
Short Float %8.79%
Short Ratio5.54
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)-1.87%
Min EPS beat(2)-2.2%
Max EPS beat(2)-1.53%
EPS beat(4)0
Avg EPS beat(4)-2.57%
Min EPS beat(4)-6.37%
Max EPS beat(4)-0.19%
EPS beat(8)2
Avg EPS beat(8)-1.24%
EPS beat(12)5
Avg EPS beat(12)0.11%
EPS beat(16)9
Avg EPS beat(16)2.88%
Revenue beat(2)0
Avg Revenue beat(2)-1.81%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)-1.68%
Revenue beat(4)0
Avg Revenue beat(4)-3.04%
Min Revenue beat(4)-6.56%
Max Revenue beat(4)-1.68%
Revenue beat(8)0
Avg Revenue beat(8)-2.7%
Revenue beat(12)3
Avg Revenue beat(12)-1.74%
Revenue beat(16)7
Avg Revenue beat(16)-0.8%
PT rev (1m)0.46%
PT rev (3m)-3.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.37 | ||
| Fwd PE | 32.95 | ||
| P/S | 13.71 | ||
| P/FCF | 57.23 | ||
| P/OCF | 46.78 | ||
| P/B | 9.47 | ||
| P/tB | 17.29 | ||
| EV/EBITDA | 69.08 |
EPS(TTM)0.88
EY1.81%
EPS(NY)1.48
Fwd EY3.03%
FCF(TTM)0.85
FCFY1.75%
OCF(TTM)1.04
OCFY2.14%
SpS3.55
BVpS5.15
TBVpS2.82
PEG (NY)4.34
PEG (5Y)5.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.24% | ||
| ROE | 7.25% | ||
| ROCE | 6.66% | ||
| ROIC | 5.26% | ||
| ROICexc | 6.35% | ||
| ROICexgc | 13.19% | ||
| OM | 10.15% | ||
| PM (TTM) | 10.51% | ||
| GM | 66.69% | ||
| FCFM | 23.96% |
ROA(3y)20.15%
ROA(5y)16.12%
ROE(3y)27.58%
ROE(5y)23.68%
ROIC(3y)17.21%
ROIC(5y)14.43%
ROICexc(3y)21.34%
ROICexc(5y)18.26%
ROICexgc(3y)52.88%
ROICexgc(5y)49.22%
ROCE(3y)21.78%
ROCE(5y)18.26%
ROICexcg growth 3Y-33.52%
ROICexcg growth 5Y-16.93%
ROICexc growth 3Y-22.03%
ROICexc growth 5Y-9.19%
OM growth 3Y-15.82%
OM growth 5Y-5.45%
PM growth 3Y-13.61%
PM growth 5Y2.2%
GM growth 3Y2.29%
GM growth 5Y2.52%
F-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 56.83% | ||
| Cap/Sales | 5.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 149.73% | ||
| Profit Quality | 227.98% | ||
| Current Ratio | 4.31 | ||
| Quick Ratio | 3.1 | ||
| Altman-Z | 36.46 |
F-Score6
WACC10.86%
ROIC/WACC0.48
Cap/Depr(3y)57.89%
Cap/Depr(5y)52.41%
Cap/Sales(3y)3.46%
Cap/Sales(5y)3.05%
Profit Quality(3y)137.63%
Profit Quality(5y)149.09%
High Growth Momentum
Growth
EPS 1Y (TTM)-50.84%
EPS 3Y-3.89%
EPS 5Y9.63%
EPS Q2Q%-24.14%
EPS Next Y12.75%
EPS Next 2Y24.76%
EPS Next 3Y24.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-29.55%
Revenue growth 3Y-0.38%
Revenue growth 5Y4.74%
Sales Q2Q%-14.68%
Revenue Next Year1.44%
Revenue Next 2Y9.61%
Revenue Next 3Y10.03%
Revenue Next 5YN/A
EBIT growth 1Y-71.37%
EBIT growth 3Y-16.14%
EBIT growth 5Y-0.97%
EBIT Next Year40.41%
EBIT Next 3Y32.17%
EBIT Next 5YN/A
FCF growth 1Y-45.08%
FCF growth 3Y-8.77%
FCF growth 5Y2.02%
OCF growth 1Y-40.43%
OCF growth 3Y-5.64%
OCF growth 5Y2.57%