DB:LA8N

Stock Analysis Report

Executive Summary

Lantronix, Inc. provides secure data access and management solutions for Internet of Things (IoT) assets in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has Lantronix's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LA8N has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.0%

LA8N

4.2%

DE Communications

0.03%

DE Market


1 Year Return

-3.6%

LA8N

1.7%

DE Communications

9.9%

DE Market

Return vs Industry: LA8N underperformed the German Communications industry which returned 1.7% over the past year.

Return vs Market: LA8N underperformed the German Market which returned 9.9% over the past year.


Shareholder returns

LA8NIndustryMarket
7 Day5.0%4.2%0.03%
30 Day-11.0%4.0%4.4%
90 Day-4.2%17.8%13.6%
1 Year-3.6%-3.6%2.3%1.7%13.4%9.9%
3 Year127.4%127.4%7.8%6.9%25.6%14.6%
5 Year88.6%88.6%62.6%59.8%36.9%18.2%

Price Volatility Vs. Market

How volatile is Lantronix's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Lantronix undervalued compared to its fair value and its price relative to the market?

2.1x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate LA8N's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate LA8N's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: LA8N is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: LA8N is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LA8N's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LA8N is good value based on its PB Ratio (2.1x) compared to the DE Communications industry average (2.4x).


Next Steps

Future Growth

How is Lantronix forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

125.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LA8N is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: LA8N is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LA8N's is expected to become profitable in the next 3 years.

Revenue vs Market: LA8N's revenue (12.7% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: LA8N's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LA8N's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Lantronix performed over the past 5 years?

38.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LA8N has large one-off items impacting its financial results.

Growing Profit Margin: LA8N's current net profit margins (-5.9%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: LA8N is unprofitable, but has reduced losses over the past 5 years at a rate of 38.4% per year.

Accelerating Growth: Unable to compare LA8N's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LA8N is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (21.6%).


Return on Equity

High ROE: LA8N has a negative Return on Equity (-7.9%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lantronix's financial position?


Financial Position Analysis

Short Term Liabilities: LA8N's short term assets ($34.0M) exceeds its short term liabilities ($15.0M)

Long Term Liabilities: LA8N's short term assets (34.0M) exceeds its long term liabilities (384.0K)


Debt to Equity History and Analysis

Debt Level: LA8N is debt free.

Reducing Debt: LA8N currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

Inventory Level: LA8N has a high level of physical assets or inventory.

Debt Coverage by Assets: LA8N's debt is not covered by short term assets (assets are -5664.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LA8N has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: LA8N has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -103% each year


Next Steps

Dividend

What is Lantronix's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.7%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate LA8N's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LA8N's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LA8N's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LA8N's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LA8N's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Lantronix's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Paul Pickle (49yo)

0.6yrs

Tenure

US$2,499,513

Compensation

Mr. Paul H. Pickle is President, Chief Executive Officer and Director at Lantronix Inc. since April 22, 2019. He served as President of Microsemi Storage Solutions, Inc. since January 15, 2016 until May 29 ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD2.50M) is above average for companies of similar size in the German market ($USD215.84K).

Compensation vs Earnings: Insufficient data to compare Paul's compensation with company performance.


Management Age and Tenure

3.7yrs

Average Tenure

55yo

Average Age

Experienced Management: LA8N's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

65yo

Average Age

Experienced Board: LA8N's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$17,69619 Feb 19
Kevin Yoder
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales & Marketing
Shares7,000
Max PriceUS$2.53
SellUS$121,77412 Feb 19
Paul Folino
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares52,289
Max PriceUS$2.39
SellUS$29,99907 Feb 19
Paul Folino
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares13,200
Max PriceUS$2.29
SellUS$22,29004 Feb 19
Paul Folino
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,511
Max PriceUS$2.40

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.3%.


Management Team

  • Gene Schaeffer (55yo)

    Head of Americas Sales

    • Tenure: 1.3yrs
  • David Goren (60yo)

    VP of Legal & Business Affairs and Corporate Secretary

    • Tenure: 0.4yrs
  • Jeremy Whitaker (49yo)

    Chief Financial Officer

    • Tenure: 8.2yrs
    • Compensation: US$563.96k
  • Tom Morton (64yo)

    Vice President of Human Resources

    • Tenure: 8.2yrs
  • Paul Pickle (49yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$2.50m
  • Kevin Yoder (55yo)

    Vice President of Worldwide Sales & Marketing

    • Tenure: 3.7yrs
    • Compensation: US$645.13k
  • Michael Fink (48yo)

    Vice President of Operations

    • Tenure: 7.8yrs
  • Gail Kathryn Miller

    Corporate Marketing & Communications Manager

    • Tenure: 0yrs

Board Members

  • Bruce Edwards (65yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$83.20k
  • Paul Folino (74yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$79.70k
  • Hoshi Printer (77yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$102.20k
  • Bernhard Bruscha (66yo)

    Independent Chairman of the Board

    • Tenure: 7.5yrs
    • Compensation: US$60.20k
  • Marty Hale (47yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$77.67k
  • Margie Evashenk (54yo)

    Independent Director

    • Tenure: 0.3yrs
  • Paul Pickle (49yo)

    President

    • Tenure: 0.6yrs
    • Compensation: US$2.50m

Company Information

Lantronix, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lantronix, Inc.
  • Ticker: LA8N
  • Exchange: DB
  • Founded: 1989
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$74.724m
  • Listing Market Cap: US$67.640m
  • Shares outstanding: 23.06m
  • Website: https://www.lantronix.com

Number of Employees


Location

  • Lantronix, Inc.
  • 7535 Irvine Center Drive
  • Suite 100
  • Irvine
  • California
  • 92618
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LTRXNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDAug 2000
LA8NDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2000

Biography

Lantronix, Inc. provides secure data access and management solutions for Internet of Things (IoT) assets in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan. The company’s IoT prod ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 21:04
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.