LANTRONIX INC (LTRX)
US5165482036 - Common Stock
Taking everything into account, LTRX scores 5 out of 10 in our fundamental rating. LTRX was compared to 54 industry peers in the Communications Equipment industry. While LTRX seems to be doing ok healthwise, there are quite some concerns on its profitability. LTRX is evaluated to be cheap and growing strongly. This does not happen too often!
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.
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
Looking at the Return On Assets, with a value of -4.45%, LTRX is in line with its industry, outperforming 53.70% of the companies in the same industry.
The Return On Equity of LTRX (-8.40%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.45% | ||
| ROE | -8.4% | ||
| ROIC | N/A |
ROA(3y)-5.13%
ROA(5y)-6.39%
ROE(3y)-9.01%
ROE(5y)-10.22%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
LTRX's Gross Margin of 40.66% is in line compared to the rest of the industry. LTRX outperforms 57.41% of its industry peers.
LTRX's Gross Margin has declined 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 | 40.66% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.5%
GM growth 5Y-5.08%
2. Health
2.1 Basic Checks
LTRX does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for LTRX has been increased compared to 1 year ago.
Compared to 5 years ago, LTRX has more shares outstanding
The debt/assets ratio for LTRX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.38, we must say that LTRX is in the distress zone and has some risk of bankruptcy.
LTRX has a Altman-Z score of 0.38. This is comparable to the rest of the industry: LTRX outperforms 42.59% of its industry peers.
The Debt to FCF ratio of LTRX is 1.07, which is an excellent value as it means it would take LTRX, only 1.07 years of fcf income to pay off all of its debts.
LTRX has a Debt to FCF ratio of 1.07. This is in the better half of the industry: LTRX outperforms 79.63% of its industry peers.
LTRX has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
LTRX has a Debt to Equity ratio (0.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 0.38 |
ROIC/WACCN/A
WACC9.56%
2.3 Liquidity
LTRX has a Current Ratio of 2.25. This indicates that LTRX is financially healthy and has no problem in meeting its short term obligations.
LTRX's Current ratio of 2.25 is in line compared to the rest of the industry. LTRX outperforms 59.26% of its industry peers.
LTRX has a Quick Ratio of 1.32. 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 (1.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
LTRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.00%, which is quite impressive.
The Earnings Per Share has been growing by 18.13% on average over the past years. This is quite good.
LTRX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.55%.
Measured over the past years, LTRX shows a very strong growth in Revenue. The Revenue has been growing by 23.54% on average per year.
EPS 1Y (TTM)28%
EPS 3Y36.72%
EPS 5Y18.13%
EPS growth Q2Q83.33%
Revenue 1Y (TTM)10.55%
Revenue growth 3Y29.87%
Revenue growth 5Y23.54%
Revenue growth Q2Q24.95%
3.2 Future
The Earnings Per Share is expected to grow by 45.90% 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 15.49% on average per year.
EPS Next Y79.61%
EPS Next 2Y45.9%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year22.63%
Revenue Next 2Y15.49%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 11.75 indicates a reasonable valuation of LTRX.
Based on the Price/Earnings ratio, LTRX is valued cheaper than 88.89% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.32. LTRX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.68, the valuation of LTRX can be described as very cheap.
LTRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. LTRX is cheaper than 88.89% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.24. LTRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 7.68 |
4.2 Price Multiples
LTRX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, LTRX is valued cheaper than 90.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.87 | ||
| EV/EBITDA | 28.78 |
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 45.90% in the coming years.
PEG (NY)0.15
PEG (5Y)0.65
EPS Next 2Y45.9%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LTRX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LANTRONIX INC
NASDAQ:LTRX (5/13/2024, 7:00:00 PM)
After market: 3.84 +0.08 (+2.13%)3.76
+0.23 (+6.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap140.92M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 7.68 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.15
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.45% | ||
| ROE | -8.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 40.66% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)28%
EPS 3Y36.72%
EPS 5Y
EPS growth Q2Q
EPS Next Y79.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.55%
Revenue growth 3Y29.87%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y