LANTRONIX INC (LTRX) Stock Fundamental Analysis
NASDAQ:LTRX - US5165482036 - Common Stock
3.47 USD
+0.03 (+0.87%)
3.3608 USD
-0.11 (-3.15%)
LTRX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. While LTRX seems to be doing ok healthwise, there are quite some concerns on its profitability. LTRX has a correct valuation and a medium 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.
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
Looking at the Return On Assets, with a value of -6.73%, LTRX is doing worse than 66.67% of the companies in the same industry.
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 comparable to the rest of the industry.
In the last couple of years the Gross Margin of LTRX has declined.
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-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.
LTRX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LTRX has more shares outstanding
LTRX has a better debt/assets ratio than last year.
2.2 Solvency
LTRX has an Altman-Z score of 0.56. This is a bad value and indicates that LTRX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.56, LTRX is in line with its industry, outperforming 45.83% of the companies in the same 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 66.67% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that LTRX is not too dependend on debt financing.
The Debt to Equity ratio of LTRX (0.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.57 | ||
| Altman-Z | 0.56 |
ROIC/WACCN/A
WACC10.29%
2.3 Liquidity
A Current Ratio of 2.68 indicates that LTRX has no problem at all paying its short term obligations.
LTRX has a Current ratio of 2.68. This is in the better half of the industry: LTRX outperforms 72.92% of its industry peers.
A Quick Ratio of 1.69 indicates that LTRX should not have too much problems paying its short term obligations.
The Quick ratio of LTRX (1.69) is better than 64.58% 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
Based on estimates for the next years, LTRX will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.05% on average per year.
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-64.55%
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.
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 12.39, the valuation of LTRX can be described as correct.
85.42% of the companies in the same industry are more expensive than LTRX, based on the Price/Earnings ratio.
LTRX is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.45, which indicates a rather expensive current valuation of LTRX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LTRX indicates a somewhat cheap valuation: LTRX is cheaper than 68.75% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LTRX to the average of the S&P500 Index (35.82), we can say LTRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 17.45 |
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 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.89 | ||
| EV/EBITDA | 41.48 |
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)0.56
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 |
3.47
+0.03 (+0.87%)
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 Change3.84%
Market Cap134.95M
Analysts82
Price Target5.23 (50.72%)
Short Float %1.2%
Short Ratio1.3
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)4.17%
EPS NY rev (1m)0%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 17.45 | ||
| P/S | 0.94 | ||
| P/FCF | 16.89 | ||
| P/OCF | 15.86 | ||
| P/B | 1.79 | ||
| P/tB | 3.37 | ||
| EV/EBITDA | 41.48 |
EPS(TTM)0.28
EY8.07%
EPS(NY)0.2
Fwd EY5.73%
FCF(TTM)0.21
FCFY5.92%
OCF(TTM)0.22
OCFY6.3%
SpS3.68
BVpS1.94
TBVpS1.03
PEG (NY)N/A
PEG (5Y)0.56
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 | 0.56 |
F-Score6
WACC10.29%
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-63.26%
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