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%)
Taking everything into account, LTRX scores 4 out of 10 in our fundamental rating. 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 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.
The reported operating cash flow has been mixed in the past 5 years: LTRX reported negative operating cash flow in multiple years.
1.2 Ratios
LTRX has a Return On Assets of -6.73%. This is in the lower half of the industry: LTRX underperforms 68.75% of its industry peers.
LTRX's Return On Equity of -11.07% is in line compared to the rest of the industry. LTRX outperforms 41.67% of its industry peers.
| 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's Gross Margin of 41.13% is in line compared 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.
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 | 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.
Compared to 1 year ago, LTRX has more shares outstanding
Compared to 5 years ago, LTRX has more shares outstanding
LTRX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that LTRX is in the distress zone and has some risk of bankruptcy.
LTRX has a Altman-Z score (1.05) which is comparable to the rest of the industry.
The Debt to FCF ratio of LTRX is 1.57, which is an excellent value as it means it would take LTRX, only 1.57 years of fcf income to pay off 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.
Looking at the Debt to Equity ratio, with a value of 0.13, LTRX is in line with its industry, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 1.05 |
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.
The Current ratio of LTRX (2.68) is better than 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 Quick ratio of 1.69. This is in the better half of the industry: LTRX outperforms 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.
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)-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
Based on estimates for the next years, LTRX will show a very strong growth in Earnings Per Share. The EPS will grow by 45.79% on average per year.
The Revenue is expected to grow by 11.65% on average over the next years. This is quite good.
EPS Next Y42.07%
EPS Next 2Y42.83%
EPS Next 3Y58.83%
EPS Next 5Y45.79%
Revenue Next Year3.08%
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.
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.
62.50% of the companies in the same industry are more expensive than LTRX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. LTRX is around the same levels.
A Price/Forward Earnings ratio of 22.37 indicates a rather expensive valuation of LTRX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LTRX is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of LTRX to the average of the S&P500 Index (22.73), we can say LTRX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.79 | ||
| Fwd PE | 22.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LTRX is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, LTRX is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.8 | ||
| EV/EBITDA | 54.26 |
4.3 Compensation for Growth
LTRX's 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
No dividends for LTRX!.
| 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)-0.56%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.79 | ||
| Fwd PE | 22.37 | ||
| P/S | 1.22 | ||
| P/FCF | 21.8 | ||
| P/OCF | 20.48 | ||
| P/B | 2.31 | ||
| P/tB | 4.35 | ||
| EV/EBITDA | 54.26 |
EPS(TTM)0.14
EY3.15%
EPS(NY)0.2
Fwd EY4.47%
FCF(TTM)0.2
FCFY4.59%
OCF(TTM)0.22
OCFY4.88%
SpS3.66
BVpS1.93
TBVpS1.02
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 | 1.05 |
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 Year3.08%
Revenue Next 2Y7.38%
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