Littelfuse Inc /De (NASDAQ: LFUS)

Sector: Technology Industry: Electronic Components CIK: 0000889331
Market Cap 8.44 Bn
P/B 5.75
P/E 76.53
P/S 5.63
ROIC (Qtr) 4.40
Div Yield % 0.64
Rev 1y % (Qtr) 10.09
Total Debt (Qtr) 879.19 Mn
Debt/Equity (Qtr) 0.33
Add ratio to table...

About

Littelfuse Inc. (LFUS), a diversified industrial technology manufacturing company, operates in the electronics industry. Established in 1927, the company has its headquarters in Des Plaines, Illinois. Littelfuse conducts its business through three reportable segments: Electronics, Transportation, and Industrial. Littelfuse's main business activities involve the design, manufacture, and marketing of a wide array of electronic components, modules, and subassemblies. These products cater to a variety of sectors, with the company's reach extending...

Read more

Investment thesis

Bull case

  • Strong operating cash flow of 455.72M provides robust 0.52x coverage of total debt 879.19M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 814.73M provide 48.05x coverage of short-term debt 16.95M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 455.72M provides exceptional 12.88x coverage of interest expenses 35.38M, showing strong debt service capability.
  • Operating cash flow of 455.72M provides strong 17.32x coverage of stock compensation 26.32M, indicating sustainable incentive practices.
  • Strong tangible asset base of 2.36B provides 2.68x coverage of total debt 879.19M, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 455.72M barely covers its investment activities of (124.35M), with a coverage ratio of -3.66, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (124.35M) provide weak support for R&D spending of 106.27M, which is -1.17x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 455.72M provides thin coverage of dividend payments of (70.69M) with a -6.45 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 814.73M provide limited coverage of acquisition spending of (57.42M), which is -14.19x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 225.56M show weak coverage of depreciation charges of 132.61M, with a 1.70 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Electronic Components
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 APH Amphenol Corp /De/ 180.75 Bn 42.33 7.83 15.50 Bn
2 GLW Corning Inc /Ny 111.40 Bn 69.80 7.13 8.43 Bn
3 TEL TE Connectivity plc 69.66 Bn 33.75 3.85 5.71 Bn
4 CLS Celestica Inc 33.17 Bn 47.38 2.94 0.78 Bn
5 JBL Jabil Inc 27.80 Bn 39.54 0.89 3.37 Bn
6 FLEX Flex Ltd. 24.18 Bn 28.38 0.90 5.02 Bn
7 FN Fabrinet 17.82 Bn 47.27 4.58 0.06 Bn
8 TTMI Ttm Technologies Inc 9.30 Bn 70.47 3.34 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.10 3.02
EV to Cash from Ops. EV/CFO 27.76 -590.38
EV to Debt EV to Debt 9.99 107.94
EV to EBIT EV/EBIT 40.98 20.68
EV to EBITDA EV/EBITDA 30.43 -27.60
EV to Free Cash Flow [EV/FCF] EV/FCF 36.70 -537.03
EV to Market Cap EV to Market Cap 1.04 -1.14
EV to Revenue EV/Rev 5.86 96.65
Price to Book Value [P/B] P/B 5.75 6.99
Price to Earnings [P/E] P/E 76.53 -8.83
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.68 1.07
Dividend Payout Ratio % Div Payout % (Qtr) 59.40 20.91
Dividend per Basic Share Div per Share (Qtr) 2.85 0.26
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 18.17 10.42
Interest Coverage Int. cover (Qtr) 6.38 14.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -3.55 -43.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 29.39 125.88
Dividend Growth (1y) % Div 1y % (Qtr) 7.55 -0.04
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -37.50 -176.07
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -15.28 14.38
EBIT Growth (1y) % EBIT 1y % (Qtr) -23.00 15.28
EBT Growth (1y) % EBT 1y % (Qtr) -24.98 7.50
EPS Growth (1y) % EPS 1y % (Qtr) -38.78 2.30
FCF Growth (1y) % FCF 1y % (Qtr) 35.57 9.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.57 15.57
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.56 0.77
Cash Payout Ratio Cash Payout (Qtr) 0.14 0.05
Cash Ratio Cash Ratio (Qtr) 1.94 1.48
Current Ratio Curr Ratio (Qtr) 4.00 3.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.33 0.68
Interest Cover Ratio Int Coverage (Qtr) 6.38 14.05
Times Interest Earned Times Interest Earned (Qtr) 6.38 14.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 15.40 21.48
EBIT Margin % EBIT Margin % (Qtr) 9.71 -42.60
EBT Margin % EBT Margin % (Qtr) 8.19 -10.39
Gross Margin % Gross Margin % (Qtr) 36.90 31.37
Net Profit Margin % Net Margin % (Qtr) 5.10 -11.50