Lattice Semiconductor (NasdaqGS:LSCC) - Share price, News & Analysis

Q: What is the Fair Price of LSCC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

LSCC ($61.05) is trading below our estimate of [[fair value]] ($73.65)

LSCC fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	6/6
Financial Health	6/6
Dividends	0/6

LSCC Stock Overview

Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor products in Asia, Europe, and the Americas.

Rewards

Trading at 17.1% below our estimate of its fair value

Earnings are forecast to grow 23.01% per year

Earnings grew by 96.6% over the past year

Risk Analysis

No risks detected for LSCC from our risk checks.

Lattice Semiconductor Competitors

Qorvo

NasdaqGS:QRVO

US$10.7b

Universal Display

NasdaqGS:OLED

US$5.7b

Tower Semiconductor

NasdaqGS:TSEM

US$5.1b

Synaptics

NasdaqGS:SYNA

US$5.4b

Price History & Performance

Summary of all time highs, changes and price drops for Lattice Semiconductor
Historical stock prices
Current Share Price	US$61.05
52 Week High	US$85.45
52 Week Low	US$43.41
Beta	1.21
1 Month Change	5.17%
3 Month Change	22.30%
1 Year Change	7.16%
3 Year Change	223.70%
5 Year Change	972.94%
Change since IPO	5,645.88%

Recent News & Updates

Aug 10

Lattice Semiconductor (NASDAQ:LSCC) Knows How To Allocate Capital Effectively

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want...

Aug 08

Lattice Semiconductor expands stock buyback program by $150M

Lattice Semiconductor (NASDAQ:LSCC) said Monday its board authorized the repurchase of up to an additional $150M of its outstanding stock through the end of Dec. 2023. The authorization is in addition to the previous authorization to repurchase up to $100M of its outstanding stock till Dec. 31. As of Jul. 2, $40M of the previous authorization remained available. The new repurchase program may be suspended or discontinued by LSCC at any time.

Shareholder Returns

	LSCC	US Semiconductor	US Market
7D	-3.9%	2.4%	1.4%
1Y	7.2%	-3.2%	-8.4%

Return vs Industry: LSCC exceeded the US Semiconductor industry which returned -3.2% over the past year.

Return vs Market: LSCC exceeded the US Market which returned -8.4% over the past year.

Price Volatility

Is LSCC's price volatile compared to industry and market?
LSCC volatility
LSCC Average Weekly Movement	7.9%
Semiconductor Industry Average Movement	8.6%
Market Average Movement	7.6%
10% most volatile stocks in US Market	17.1%
10% least volatile stocks in US Market	3.1%

Stable Share Price: LSCC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: LSCC's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1983	856	Jim Anderson	https://www.latticesemi.com

Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor products in Asia, Europe, and the Americas. The company offers field programmable gate arrays that consist of four product families, including the Certus-NX and ECP, Mach, iCE40, and CrossLink. It also provides video connectivity application specific standard products.

Lattice Semiconductor Fundamentals Summary

How do Lattice Semiconductor's earnings and revenue compare to its market cap?
LSCC fundamental statistics
Market Cap	US$8.38b
Earnings (TTM)	US$135.88m
Revenue (TTM)	US$585.59m

61.7x

P/E Ratio

14.3x

P/S Ratio

Is LSCC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LSCC income statement (TTM)
Revenue	US$585.59m
Cost of Revenue	US$200.44m
Gross Profit	US$385.16m
Other Expenses	US$249.28m
Earnings	US$135.88m

Last Reported Earnings

Jul 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.99
Gross Margin	65.77%
Net Profit Margin	23.20%
Debt/Equity Ratio	34.3%

How did LSCC perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is LSCC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LSCC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LSCC. This is calculated by dividing LSCC's market cap by their current preferred multiple.
What is LSCC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$8.38b

LSCC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	14.4x
Enterprise Value/EBITDA	49.4x
PEG Ratio	2.7x

Price to Earnings Ratio vs Peers

How does LSCC's PE Ratio compare to its peers?

LSCC PE Ratio vs Peers

The above table shows the PE ratio for LSCC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	22.6x
QRVO Qorvo	13.1x	30.2%	US$10.7b
OLED Universal Display	31.3x	15.4%	US$5.7b
TSEM Tower Semiconductor	25.1x	13.3%	US$5.1b
SYNA Synaptics	20.8x	0.9%	US$5.4b
LSCC Lattice Semiconductor	61.7x	23.0%	US$8.4b

Price-To-Earnings vs Peers: LSCC is expensive based on its Price-To-Earnings Ratio (61.7x) compared to the peer average (22.6x).

Price to Earnings Ratio vs Industry

How does LSCC's PE Ratio compare vs other companies in the US Semiconductor Industry?

Price-To-Earnings vs Industry: LSCC is expensive based on its Price-To-Earnings Ratio (61.7x) compared to the US Semiconductor industry average (19.7x)

Price to Earnings Ratio vs Fair Ratio

What is LSCC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LSCC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	61.7x
Fair PE Ratio	29.3x

Price-To-Earnings vs Fair Ratio: LSCC is expensive based on its Price-To-Earnings Ratio (61.7x) compared to the estimated Fair Price-To-Earnings Ratio (29.3x).

Share Price vs Fair Value

What is the Fair Price of LSCC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LSCC ($61.05) is trading below our estimate of fair value ($73.65)

Significantly Below Fair Value: LSCC is trading below fair value, but not by a significant amount.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

Future Growth

How is Lattice Semiconductor forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

23.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LSCC's forecast earnings growth (23% per year) is above the savings rate (1.9%).

Earnings vs Market: LSCC's earnings (23% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: LSCC's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LSCC's revenue (13.6% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: LSCC's revenue (13.6% 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 LSCC's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Lattice Semiconductor performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

68.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LSCC has high quality earnings.

Growing Profit Margin: LSCC's current net profit margins (23.2%) are higher than last year (15.3%).

Past Earnings Growth Analysis

Earnings Trend: LSCC has become profitable over the past 5 years, growing earnings by 68.8% per year.

Accelerating Growth: LSCC's earnings growth over the past year (96.6%) exceeds its 5-year average (68.8% per year).

Earnings vs Industry: LSCC earnings growth over the past year (96.6%) exceeded the Semiconductor industry 59.7%.

Return on Equity

High ROE: LSCC's Return on Equity (31.2%) is considered high.

Discover strong past performing companies

Financial Health

How is Lattice Semiconductor's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: LSCC's short term assets ($314.5M) exceed its short term liabilities ($106.4M).

Long Term Liabilities: LSCC's short term assets ($314.5M) exceed its long term liabilities ($194.8M).

Debt to Equity History and Analysis

Debt Level: LSCC's net debt to equity ratio (7.2%) is considered satisfactory.

Reducing Debt: LSCC's debt to equity ratio has reduced from 117.2% to 34.3% over the past 5 years.

Debt Coverage: LSCC's debt is well covered by operating cash flow (127.2%).

Interest Coverage: LSCC's interest payments on its debt are well covered by EBIT (49.3x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Lattice Semiconductor current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LSCC has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure

CEO

Jim Anderson (50 yo)

3.92yrs

Tenure

US$18,387,422

Compensation

Mr. James Robert Anderson, also known as Jim, has been President, Chief Executive Officer and Director at Lattice Semiconductor Corporation since September 4, 2018. He serves as Independent Director at Sie...

CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD18.39M) is above average for companies of similar size in the US market ($USD8.19M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: LSCC's management team is considered experienced (3.1 years average tenure).

Board Members

Experienced Board: LSCC's board of directors are considered experienced (6 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/19 00:00
End of Day Share Price	2022/08/19 00:00
Earnings	2022/07/02
Annual Earnings	2022/01/01