NasdaqCM:LTRX

Stock Analysis Report

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Executive Summary

Lantronix, Inc. provides software as a service (SaaS), engineering services, and hardware for edge computing, the Internet of Things (IoT), and remote environment management (REM) in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan. More Details


Snowflake Analysis

Excellent 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: LTRX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.7%

LTRX

-1.7%

US Communications

-1.4%

US Market


1 Year Return

40.4%

LTRX

-12.9%

US Communications

17.8%

US Market

Return vs Industry: LTRX exceeded the US Communications industry which returned -13.7% over the past year.

Return vs Market: LTRX exceeded the US Market which returned 18.5% over the past year.


Shareholder returns

LTRXIndustryMarket
7 Day-6.7%-1.7%-1.4%
30 Day6.3%0.5%4.7%
90 Day28.9%-13.7%8.2%
1 Year40.4%40.4%-10.5%-12.9%20.5%17.8%
3 Year123.1%123.1%15.1%7.1%42.2%32.7%
5 Year281.5%281.5%36.7%21.2%83.4%62.7%

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

Valuation

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

2.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LTRX is overvalued based on its PB Ratio (2.9x) compared to the US Communications industry average (1.7x).


Next Steps

Future Growth

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

159.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LTRX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: LTRX's revenue (14.2% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: LTRX's revenue (14.2% 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 LTRX'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?

-24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LTRX is currently unprofitable.

Growing Profit Margin: LTRX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LTRX is unprofitable, and losses have increased over the past 5 years at a rate of 24.3% per year.

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

Earnings vs Industry: LTRX is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-28.9%).


Return on Equity

High ROE: LTRX has a negative Return on Equity (-23.08%), as it is currently unprofitable.


Next Steps

Financial Health

How is Lantronix's financial position?


Financial Position Analysis

Short Term Liabilities: LTRX's short term assets ($34.5M) exceed its short term liabilities ($15.8M).

Long Term Liabilities: LTRX's short term assets ($34.5M) exceed its long term liabilities ($5.6M).


Debt to Equity History and Analysis

Debt Level: LTRX's debt to equity ratio (11.1%) is considered satisfactory.

Reducing Debt: LTRX's debt to equity ratio has increased from 3.7% to 11.1% over the past 5 years.


Balance Sheet


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: LTRX has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: LTRX has sufficient cash runway for 1.9 years if free cash flow continues to reduce at historical rates of 27.7% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate LTRX'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 LTRX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LTRX'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 LTRX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Paul Pickle (50 yo)

1.5yrs

Tenure

US$1,473,277

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 ($USD1.47M) is above average for companies of similar size in the US market ($USD589.00K).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Pickle
President1.5yrsUS$1.47m0.55%
$ 737.8k
Jeremy Whitaker
Chief Financial Officer9.08yrsUS$398.85k0.70%
$ 944.9k
Roger Holliday
Vice President of Worldwide Sales0.75yrUS$627.69k0.017%
$ 22.4k
Michael Fink
Vice President of Operations8.67yrsno datano data
Robert Adams
Head of Corporate Development & Investor Relations0.33yrno datano data
David Goren
Vice President of HR1.33yrsno datano data
Gail Kathryn Miller
Corporate Marketing & Communications Managerno datano datano data
Gene Schaeffer
Head of Americas Sales2.25yrsno datano data
Amber Tinz
Executive Assistantno datano datano data

1.5yrs

Average Tenure

53yo

Average Age

Experienced Management: LTRX's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paul Pickle
President1.5yrsUS$1.47m0.55%
$ 737.8k
Bruce Edwards
Independent Director7.92yrsUS$73.90k0.65%
$ 875.0k
Paul Folino
Independent Director8.33yrsUS$71.40k0.091%
$ 122.8k
Hoshi Printer
Independent Director9.83yrsUS$88.41k0.34%
$ 457.1k
Bernhard Bruscha
Independent Chairman of the Board8.42yrsUS$50.41k0.29%
$ 385.3k
Margaret Evashenk
Independent Director1.17yrsUS$66.22k0.027%
$ 36.1k

8.1yrs

Average Tenure

66.5yo

Average Age

Experienced Board: LTRX's board of directors are considered experienced (8.1 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 been diluted in the past year, with total shares outstanding growing by 24%.


Top Shareholders

Company Information

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


Key Information

  • Name: Lantronix, Inc.
  • Ticker: LTRX
  • Exchange: NasdaqCM
  • Founded: 1989
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$135.080m
  • Shares outstanding: 28.56m
  • 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 software as a service (SaaS), engineering services, and hardware for edge computing, the Internet of Things (IoT), and remote environment management (REM) in the Americas, Europe, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/22 00:28
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.