Lantronix Inc (NASDAQ: LTRX)

Sector: Technology Industry: Communication Equipment CIK: 0001114925
Market Cap 248.01 Mn
P/B 3.33
P/E -26.87
P/S 2.12
ROIC (Qtr) -13.47
Div Yield % 0.00
Rev 1y % (Qtr) -4.45
Total Debt (Qtr) 9.68 Mn
Debt/Equity (Qtr) 0.13

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 10.06M provides robust 1.04x coverage of total debt 9.68M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 10.06M provides exceptional 34.71x coverage of interest expenses 290000, showing strong debt service capability.
  • Strong tangible asset base of 88.10M provides 9.10x coverage of total debt 9.68M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 9.63M exceeds capital expenditure of 430000 by 22.41x, indicating strong organic growth funding capability.
  • Free cash flow of 9.63M provides exceptional 33.22x coverage of interest expense 290000, showing strong debt service ability.

Bear case

  • Operating cash flow of 10.06M barely covers its investment activities of (430000), with a coverage ratio of -23.41, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (430000) provide weak support for R&D spending of 17.88M, which is -0.02x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 10.06M shows concerning coverage of stock compensation expenses of 6.37M, with a 1.58 ratio indicating potential earnings quality issues.
  • Operating cash flow of 10.06M provides minimal -37.84x coverage of tax expenses of (266000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (9.21M) show weak coverage of depreciation charges of 4.47M, with a -2.06 ratio indicating high capital intensity and potential reinvestment needs.

Consolidation Items Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Communication Equipment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CSCO Cisco Systems, Inc. 425.48 Bn 43.28 8.76 28.09 Bn
2 MSI Motorola Solutions, Inc. 71.64 Bn 127.93 11.87 9.81 Bn
3 CIEN Ciena Corp 38.46 Bn 311.86 8.06 1.58 Bn
4 LITE Lumentum Holdings Inc. 38.36 Bn 152.48 18.22 3.32 Bn
5 UI Ubiquiti Inc. 37.65 Bn 42.36 12.67 0.11 Bn
6 HPE Hewlett Packard Enterprise Co 30.92 Bn 12.11 1.03 22.37 Bn
7 ASTS AST SpaceMobile, Inc. 27.86 Bn -91.70 1,503.54 0.72 Bn
8 ZBRA Zebra Technologies Corp 12.90 Bn 25.19 2.45 2.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.94 2.55
EV to Cash from Ops. EV/CFO 23.49 10.31
EV to Debt EV to Debt 24.44 31.95
EV to EBIT EV/EBIT -25.69 87.00
EV to EBITDA EV/EBITDA -48.80 10.88
EV to Free Cash Flow [EV/FCF] EV/FCF 24.54 62.78
EV to Market Cap EV to Market Cap 0.95 1.09
EV to Revenue EV/Rev 2.02 38.48
Price to Book Value [P/B] P/B 3.33 3.65
Price to Earnings [P/E] P/E -26.87 21.22
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.61
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -24.04
Dividend per Basic Share Div per Share (Qtr) 0.00 0.23
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.73
Interest Coverage Int. cover (Qtr) -31.74 -11.69
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 19.02 -57.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 19.54 465.23
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.58
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -110.28 72.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -236.39 -8.57
EBIT Growth (1y) % EBIT 1y % (Qtr) -139.99 69.66
EBT Growth (1y) % EBT 1y % (Qtr) -114.50 -70.46
EPS Growth (1y) % EPS 1y % (Qtr) -76.92 8.86
FCF Growth (1y) % FCF 1y % (Qtr) 15.49 10.52
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -20.21 38.81
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.96 0.75
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.81 1.35
Current Ratio Curr Ratio (Qtr) 2.75 2.84
Debt to Equity Ratio Debt/Equity (Qtr) 0.13 0.47
Interest Cover Ratio Int Coverage (Qtr) -31.74 -11.69
Times Interest Earned Times Interest Earned (Qtr) -31.74 -11.69
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -4.10 -41.21
EBIT Margin % EBIT Margin % (Qtr) -7.87 -52.62
EBT Margin % EBT Margin % (Qtr) -8.12 -59.46
Gross Margin % Gross Margin % (Qtr) 43.00 38.49
Net Profit Margin % Net Margin % (Qtr) -7.90 -60.82