LANTRONIX INC (LTRX) Stock Fundamental Analysis
NASDAQ:LTRX - Nasdaq - US5165482036 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to LTRX. LTRX was compared to 49 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 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.
In the past year LTRX had a positive cash flow from operations.
LTRX had negative earnings in each of the past 5 years.
In multiple years LTRX reported negative operating cash flow during the last 5 years.
1.2 Ratios
LTRX has a Return On Assets of -6.73%. This is in the lower half of the industry: LTRX underperforms 63.27% of its industry peers.
With a Return On Equity value of -11.07%, LTRX perfoms like the industry average, outperforming 40.82% of the companies in the same 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
Looking at the Gross Margin, with a value of 41.13%, LTRX is in line with its industry, outperforming 48.98% of the companies in the same industry.
LTRX's Gross Margin has declined in the last couple of years.
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
The number of shares outstanding for LTRX has been increased compared to 5 years ago.
Compared to 1 year ago, LTRX has an improved debt to assets ratio.
2.2 Solvency
LTRX has an Altman-Z score of -0.04. This is a bad value and indicates that LTRX is not financially healthy and even has some risk of bankruptcy.
LTRX's Altman-Z score of -0.04 is on the low side compared to the rest of the industry. LTRX is outperformed by 67.35% of its industry peers.
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's Debt to FCF ratio of 1.57 is fine compared to the rest of the industry. LTRX outperforms 67.35% of its industry peers.
LTRX has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
LTRX has a Debt to Equity ratio (0.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | -0.04 |
ROIC/WACCN/A
WACC10.48%
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.
LTRX has a better Quick ratio (1.69) than 65.31% 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 -12.50% in the last year.
LTRX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.28% yearly.
The Revenue has decreased by -2.06% in the past year.
The Revenue has been growing by 27.87% on average over the past years. This is a very strong growth!
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
LTRX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.05% yearly.
LTRX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.51% yearly.
EPS Next Y-64.67%
EPS Next 2Y-30.17%
EPS Next 3Y-5.43%
EPS Next 5Y9.05%
Revenue Next Year-23.55%
Revenue Next 2Y-11.18%
Revenue Next 3Y-3.89%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.00, the valuation of LTRX can be described as reasonable.
Based on the Price/Earnings ratio, LTRX is valued cheaper than 95.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of LTRX to the average of the S&P500 Index (26.03), we can say LTRX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.20, the valuation of LTRX can be described as reasonable.
Based on the Price/Forward Earnings ratio, LTRX is valued a bit cheaper than the industry average as 79.59% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, LTRX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8 | ||
| Fwd PE | 11.2 |
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 cheaper than 83.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.87 | ||
| EV/EBITDA | 25.59 |
4.3 Compensation for Growth
A cheap valuation may be justified as LTRX's earnings are expected to decrease with -5.43% in the coming years.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-30.17%
EPS Next 3Y-5.43%
5. Dividend
5.1 Amount
LTRX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.24
+0.02 (+0.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners34.26%
Inst Owner Change1.25%
Ins Owners1.75%
Ins Owner Change2.53%
Market Cap86.89M
Analysts81.82
Price Target5.71 (154.91%)
Short Float %1.52%
Short Ratio1.92
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)-3.45%
EPS NQ rev (1m)-73.91%
EPS NQ rev (3m)-73.91%
EPS NY rev (1m)-20.22%
EPS NY rev (3m)-20.22%
Revenue NQ rev (1m)-5.54%
Revenue NQ rev (3m)-5.54%
Revenue NY rev (1m)-1.85%
Revenue NY rev (3m)-9.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8 | ||
| Fwd PE | 11.2 | ||
| P/S | 0.61 | ||
| P/FCF | 10.87 | ||
| P/OCF | 10.21 | ||
| P/B | 1.15 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 25.59 |
EPS(TTM)0.28
EY12.5%
EPS(NY)0.2
Fwd EY8.92%
FCF(TTM)0.21
FCFY9.2%
OCF(TTM)0.22
OCFY9.79%
SpS3.69
BVpS1.95
TBVpS1.03
PEG (NY)N/A
PEG (5Y)0.36
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 | -0.04 |
F-Score6
WACC10.48%
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-64.67%
EPS Next 2Y-30.17%
EPS Next 3Y-5.43%
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-11.18%
Revenue Next 3Y-3.89%
Revenue Next 5Y3.51%
EBIT growth 1Y-16.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-44.67%
EBIT Next 3Y12.1%
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