Lattice Semiconductor Corp (NASDAQ: LSCC)

Sector: Technology Industry: Semiconductors CIK: 0000855658
Market Cap 11.77 Bn
P/B 16.66
P/E 432.05
P/S 23.78
ROIC (Qtr) 0.85
Div Yield % 0.00
Rev 1y % (Qtr) 4.92
Total Debt (Qtr) 14.58 Mn
Debt/Equity (Qtr) 0.02

About

Lattice Semiconductor Corporation (LSCC) is a significant player in the fabless semiconductor industry, specializing in the development and production of programmable logic semiconductor products, system solutions, design services, and licenses. The company is recognized as a low power programmable leader, offering solutions that empower customers to build a smart, secure, and interconnected world. LSCC's operations span various industries, including communications, computing, industrial, automotive, and consumer markets, with a global presence...

Read more

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 162.94M provides robust 11.18x coverage of total debt 14.58M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 524.27M provides 35.97x coverage of total debt 14.58M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 111.84M exceeds capital expenditure of 51.10M by 2.19x, indicating strong organic growth funding capability.
  • Retained earnings of 219.83M provide full 15.08x coverage of long-term debt 14.58M, indicating strong internal capital position.
  • Operating cash flow of 162.94M provides solid 1.54x coverage of current liabilities 105.78M, showing strong operational health.

Bear case

  • Operating cash flow of 162.94M barely covers its investment activities of (51.10M), with a coverage ratio of -3.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (51.10M) provide weak support for R&D spending of 173.13M, which is -0.30x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 162.94M shows concerning coverage of stock compensation expenses of 94.91M, with a 1.72 ratio indicating potential earnings quality issues.
  • Operating cash flow of 162.94M provides minimal -5.68x coverage of tax expenses of (28.71M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (4.50M) show weak coverage of depreciation charges of 43.98M, with a -0.10 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,120.22 Bn 6,867.04 847.78 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,782.57 Bn 362.79 138.75 31.18 Bn
3 AVGO Broadcom Inc. 1,393.11 Bn 119.76 35.84 65.14 Bn
4 MU Micron Technology Inc 453.24 Bn 657.82 30.76 12.43 Bn
5 AMD Advanced Micro Devices Inc 338.42 Bn 78.07 9.77 3.85 Bn
6 TXN Texas Instruments Inc 225.71 Bn 66.70 17.17 14.05 Bn
7 INTC Intel Corp 225.13 Bn -843.17 4.26 46.59 Bn
8 QCOM Qualcomm Inc/De 147.37 Bn 27.47 3.28 14.82 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 13.83 4.15
EV to Cash from Ops. EV/CFO 71.68 -405.91
EV to Debt EV to Debt 801.20 81.67
EV to EBIT EV/EBIT -2,593.64 -94.01
EV to EBITDA EV/EBITDA 278.63 112.02
EV to Free Cash Flow [EV/FCF] EV/FCF 104.43 103.01
EV to Market Cap EV to Market Cap 0.99 0.77
EV to Revenue EV/Rev 23.60 36.18
Price to Book Value [P/B] P/B 16.66 24.05
Price to Earnings [P/E] P/E 432.05 97.65
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.38
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.97
Dividend per Basic Share Div per Share (Qtr) 0.00 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 21.06
Interest Coverage Int. cover (Qtr) 1.48 8.98
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -43.20 -149.31
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -5.13 70.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.42
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -38.50 51.85
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -68.91 91.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -104.97 36.72
EBT Growth (1y) % EBT 1y % (Qtr) -101.54 30.25
EPS Growth (1y) % EPS 1y % (Qtr) -80.77 49.61
FCF Growth (1y) % FCF 1y % (Qtr) -15.10 281.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -15.18 37.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.59 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 1.11 2.35
Current Ratio Curr Ratio (Qtr) 3.24 5.61
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 -0.02
Interest Cover Ratio Int Coverage (Qtr) 1.48 8.98
Times Interest Earned Times Interest Earned (Qtr) 1.48 8.98
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.00 -113.04
EBIT Margin % EBIT Margin % (Qtr) -0.91 -92.05
EBT Margin % EBT Margin % (Qtr) -0.30 -132.99
Gross Margin % Gross Margin % (Qtr) 66.40 47.72
Net Profit Margin % Net Margin % (Qtr) 5.50 -133.93