LANTRONIX INC (LTRX) Stock Fundamental Analysis
NASDAQ:LTRX - Nasdaq - US5165482036 - Common Stock - Currency: USD
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 is not valued too expensively and it also shows a decent 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.
In multiple years LTRX reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of LTRX (-6.73%) is worse than 63.27% of its industry peers.
LTRX has a Return On Equity (-11.07%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.73% | ||
| ROE | -11.07% | ||
| ROIC | N/A |
ROA(3y)-4.39%
ROA(5y)-6.89%
ROE(3y)-7.97%
ROE(5y)-11.12%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
LTRX has a Gross Margin (41.13%) which is in line with its industry peers.
In the last couple of years the Gross Margin of LTRX has declined.
The Profit Margin and Operating Margin are not available for LTRX so they could not be analyzed.
| 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-4.55%
GM growth 5Y-6.47%
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 0.46. 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 (0.46) which is comparable to the rest of the industry.
LTRX has a debt to FCF ratio of 1.57. This is a very positive value and a sign of high solvency as it would only need 1.57 years to pay back of all of its debts.
The Debt to FCF ratio of LTRX (1.57) is better than 71.43% 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 59.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 0.46 |
ROIC/WACCN/A
WACC10.41%
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.
LTRX's Current ratio of 2.68 is fine compared to the rest of the industry. LTRX outperforms 73.47% of its industry peers.
LTRX has a Quick Ratio of 1.69. 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 decent Quick ratio value of 1.69, LTRX is doing good in the industry, outperforming 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
LTRX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.50%.
Measured over the past years, LTRX shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.28% on average per year.
LTRX shows a decrease in Revenue. In the last year, the revenue decreased by -2.06%.
LTRX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.87% yearly.
EPS 1Y (TTM)-12.5%
EPS 3Y29.22%
EPS 5Y22.28%
EPS Q2Q%-72.73%
Revenue 1Y (TTM)-2.06%
Revenue growth 3Y30.89%
Revenue growth 5Y27.87%
Sales Q2Q%-30.8%
3.2 Future
The Earnings Per Share is expected to grow by 9.05% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.51% on average over the next years.
EPS Next Y-64.55%
EPS Next 2Y-30.35%
EPS Next 3Y-11.35%
EPS Next 5Y9.05%
Revenue Next Year-23.55%
Revenue Next 2Y-10.98%
Revenue Next 3Y-4.94%
Revenue Next 5Y3.51%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.61, which indicates a very decent valuation of LTRX.
LTRX's Price/Earnings ratio is rather cheap when compared to the industry. LTRX is cheaper than 87.76% of the companies in the same industry.
LTRX is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
LTRX is valuated correctly with a Price/Forward Earnings ratio of 16.34.
Based on the Price/Forward Earnings ratio, LTRX is valued a bit cheaper than 69.39% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, LTRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 16.34 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LTRX.
Based on the Price/Free Cash Flow ratio, LTRX is valued a bit cheaper than the industry average as 75.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.81 | ||
| EV/EBITDA | 38.7 |
4.3 Compensation for Growth
LTRX's earnings are expected to decrease with -11.35% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-30.35%
EPS Next 3Y-11.35%
5. Dividend
5.1 Amount
LTRX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.25
+0.06 (+1.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners34.27%
Inst Owner Change0%
Ins Owners6.86%
Ins Owner Change3.84%
Market Cap126.39M
Analysts82
Price Target5.23 (60.92%)
Short Float %1.91%
Short Ratio1.98
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)0%
PT rev (3m)-8.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-72.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.94%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-5.48%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 16.34 | ||
| P/S | 0.88 | ||
| P/FCF | 15.81 | ||
| P/OCF | 14.86 | ||
| P/B | 1.67 | ||
| P/tB | 3.15 | ||
| EV/EBITDA | 38.7 |
EPS(TTM)0.28
EY8.62%
EPS(NY)0.2
Fwd EY6.12%
FCF(TTM)0.21
FCFY6.32%
OCF(TTM)0.22
OCFY6.73%
SpS3.68
BVpS1.94
TBVpS1.03
PEG (NY)N/A
PEG (5Y)0.52
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)-4.39%
ROA(5y)-6.89%
ROE(3y)-7.97%
ROE(5y)-11.12%
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-4.55%
GM growth 5Y-6.47%
F-Score6
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 | 0.46 |
F-Score6
WACC10.41%
ROIC/WACCN/A
Cap/Depr(3y)29.07%
Cap/Depr(5y)25.49%
Cap/Sales(3y)1.53%
Cap/Sales(5y)1.33%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.5%
EPS 3Y29.22%
EPS 5Y22.28%
EPS Q2Q%-72.73%
EPS Next Y-64.55%
EPS Next 2Y-30.35%
EPS Next 3Y-11.35%
EPS Next 5Y9.05%
Revenue 1Y (TTM)-2.06%
Revenue growth 3Y30.89%
Revenue growth 5Y27.87%
Sales Q2Q%-30.8%
Revenue Next Year-23.55%
Revenue Next 2Y-10.98%
Revenue Next 3Y-4.94%
Revenue Next 5Y3.51%
EBIT growth 1Y-16.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-62.95%
EBIT Next 3Y3.3%
EBIT Next 5YN/A
FCF growth 1Y204.88%
FCF growth 3Y69.51%
FCF growth 5YN/A
OCF growth 1Y297.4%
OCF growth 3Y63%
OCF growth 5YN/A