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Lattice Semiconductor (LSCC)
NASDAQ:LSCC
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Lattice Semiconductor
(NASDAQ:LSCC)
70Outperform
Positive Factors
Financial Performance
Free cash flow improved significantly to $23.3M, or 19.4% of revenue, signaling strong financial management and operational efficiency.
Market Demand
Customer activity remained strong with a record pace of design wins spanning diverse sectors such as generative AI, industrial robotics, and automotive ADAS.
Product Growth
New products Nexus/Avant are expected to continue growing, reaching high-teens % of sales in 2025, and mid-20s % in 2026.
Negative Factors
Inventory Management
Despite continued demand recovery, both internal and channel inventories remain high, with channel inventory now expected to take a few more quarters to reach normal levels.
Sector Weakness
Softness in robotics and factory automation persists, and inventory digestion is a drag for the business, with undershipping demand expected to clean up the channel later than anticipated.
Valuation Concerns
Valuation remains high at ~35-40x CY26E EPS, above high-growth compute peers at 17x-35x and high-margin diversified peers at 11x-25x.
Lattice Semiconductor (LSCC) vs. S&P 500 (SPY)
Market Cap
$7.14B
Dividend YieldN/A
Average Volume (3M)3.54M
Price to Earnings (P/E)118.7
Beta (1Y)2.00
Revenue Growth-29.54%
EPS Growth-76.42%
CountryUS
Employees1,110
SectorTechnology
Sector Strength65
IndustrySemiconductors
Share Statistics
EPS (TTM)0.22
Shares Outstanding137,614,360
10 Day Avg. Volume2,456,707
30 Day Avg. Volume3,536,995
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.06
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit22.16
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$63.33Price Target Upside30.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Lattice Semiconductor Business Overview & Revenue Model
Company DescriptionLattice Semiconductor Corporation is a leading provider of low power, field-programmable gate arrays (FPGAs), which are used in a variety of end markets including communications, computing, industrial, automotive, and consumer electronics. The company's core products focus on delivering power-efficient solutions that enable innovation across a range of applications, from edge computing and artificial intelligence to 5G infrastructure and industrial automation.
How the Company Makes MoneyLattice Semiconductor makes money primarily through the sale of its FPGA products and related software solutions. The company's revenue model is centered around designing and manufacturing these programmable semiconductors, which are then sold to original equipment manufacturers (OEMs) and other tech companies. Lattice also generates revenue from licensing its intellectual property and providing software development tools that help customers leverage their FPGAs for various applications. Key factors contributing to its earnings include the growing demand for low-power computing solutions, strategic partnerships with leading technology firms, and its ability to adapt to evolving market needs, particularly in the areas of 5G, AI, and IoT (Internet of Things).
Lattice Semiconductor Financial Statement Overview
Summary
Lattice Semiconductor showcases strong profitability with notable gross and net profit margins, despite a 4.1% revenue decline. The company maintains efficient operational management with solid EBIT and EBITDA margins. The balance sheet is robust, with minimal leverage and substantial shareholder equity, reflecting financial stability. Cash flow management is excellent, indicating strong cash generation and financial flexibility. Overall, the company demonstrates financial resilience and growth potential.Income Statement
Lattice Semiconductor demonstrates strong profitability with a gross profit margin of 64.8% and an impressive net profit margin of 10.5% TTM (Trailing-Twelve-Months). Despite a revenue decline of 4.1% from the previous year, the company maintains solid EBIT and EBITDA margins of 5.6% and 13.7% respectively, indicating efficient operational management. However, the decrease in revenue suggests potential market challenges.85
Very Positive
Balance Sheet
The company's balance sheet is robust, with a low debt-to-equity ratio of 0.02, reflecting minimal leverage and financial risk. A strong equity ratio of 85.9% TTM highlights financial stability and substantial shareholder equity. The return on equity (ROE) stands at an impressive 7.3%, showcasing efficient use of equity to generate profits and a healthy growth potential.88
Very Positive
Cash Flow
Lattice Semiconductor exhibits excellent cash flow management, with a free cash flow growth rate of 11.7% and a high operating cash flow to net income ratio of 2.8 TTM, indicating strong cash generation capabilities. The company effectively converts earnings into cash, enhancing its liquidity and financial flexibility.90
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 509.40M | 737.15M | 660.36M | 515.33M | 408.12M | Gross Profit |
| 340.40M | 514.67M | 452.05M | 321.68M | 245.31M | EBIT |
| 34.46M | 214.18M | 187.37M | 100.82M | 52.37M | EBITDA |
| 106.94M | 255.37M | 222.09M | 131.38M | 83.26M | Net Income Common Stockholders |
| 61.13M | 259.06M | 178.88M | 95.92M | 47.39M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 136.29M | 128.32M | 145.72M | 131.57M | 182.33M | Total Assets |
| 843.90M | 840.89M | 798.71M | 726.49M | 680.07M | Total Debt |
| 15.25M | 16.31M | 148.82M | 177.18M | 189.60M | Net Debt |
| -121.04M | -112.01M | 3.10M | 45.61M | 7.27M | Total Liabilities |
| 132.97M | 148.87M | 311.55M | 314.86M | 295.64M | Stockholders Equity |
| 710.93M | 692.02M | 487.16M | 411.63M | 384.43M |
| Cash Flow | Free Cash Flow | |||
| 119.89M | 236.34M | 215.47M | 157.89M | 79.57M | Operating Cash Flow |
| 140.88M | 269.59M | 238.81M | 167.72M | 91.69M | Investing Cash Flow |
| -37.69M | -33.25M | -34.93M | -89.80M | -20.87M | Financing Cash Flow |
| -94.46M | -253.72M | -188.07M | -128.61M | -8.10M |
Lattice Semiconductor Technical Analysis
Negative
48.58
Price Trends
52.85
Negative
56.00
Negative
53.53
Negative
Market Momentum
-0.36
Negative
49.43
Neutral
53.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSCC, the sentiment is Negative. The current price of 48.58 is above the 20-day moving average (MA) of 46.18, below the 50-day MA of 52.85, and below the 200-day MA of 53.53, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 49.43 is Neutral, neither overbought nor oversold. The STOCH value of 53.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LSCC.
Lattice Semiconductor Risk Analysis
Lattice Semiconductor disclosed 28 risk factors in its most recent earnings report. Lattice Semiconductor reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lattice Semiconductor Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.68B | 33.95 | 21.90% | ― | 29.83% | 33.42% | |
78 Outperform | $5.39B | 26.27 | 19.26% | ― | 30.13% | -42.27% | |
73 Outperform | $6.68B | 29.78 | 14.58% | 1.17% | 6.13% | 4.70% | |
70 Outperform | $7.14B | 118.74 | 7.39% | ― | -29.54% | -76.42% | |
60 Neutral | $10.77B | 10.41 | -6.71% | 2.99% | 7.69% | -13.12% | |
57 Neutral | $6.57B | 120.23 | 1.60% | ― | -1.34% | ― | |
52 Neutral | $3.47B | ― | -16.69% | ― | -25.29% | -449.44% |
* Technology Sector Average
Performance Comparison
LSCC
Lattice Semiconductor
48.58
-20.78
-29.96%
NVMI
Nova
200.72
19.60
10.82%
RMBS
Rambus
50.87
-5.10
-9.11%
SLAB
Silicon Laboratories
108.68
-18.22
-14.36%
OLED
Universal Display
143.31
-30.20
-17.41%
QRVO
Qorvo
71.30
-24.72
-25.74%
Lattice Semiconductor Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: -7.40%|
Next Earnings Date:Aug 04, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong gross margin and positive design win momentum, with notable growth in key segments like communications, computing, and industrial. However, significant challenges included a year-over-year decline in revenue, ongoing inventory issues, and macroeconomic uncertainties related to tariffs. These factors create a balanced sentiment, with both positive achievements and notable challenges.Q1-2025 Updates
Positive Updates
Record Gross Margin
The company achieved a non-GAAP gross margin of 69%, reflecting a 690 basis point increase compared to Q4, demonstrating resilience and financial discipline.
Strong Design Win Momentum
Record levels of new design wins on small and mid-range FPGAs, with revenue from new products growing at a strong double-digit pace both sequentially and year-on-year.
Positive Performance in Key Segments
Communications and computing experienced its first year-on-year growth in two years, and industrial and automotive grew 6% sequentially.
Successful Stock Buyback Program
Approximately $25 million of common stock was repurchased, reducing dilution by 4.6%, with $75 million remaining under the current Board authorization.
Strong Free Cash Flow
Free cash flow in Q1 was $23.3 million with a 19.4% free cash flow margin.
Negative Updates
Revenue Decline
Revenue for Q1 2025 was $120.1 million, reflecting a 15% decline compared to the year-ago period.
Ongoing Inventory Challenges
Channel inventory is continuing to decrease, but it may take a couple more quarters to reach target levels.
Macro and Tariff Uncertainties
Caution is expressed due to potential indirect impacts from tariffs, with a focus on the potential impact on the second half outlook.
Decline in Client Revenue
The comms and compute segment decline has been driven by a client revenue decline related to older platforms.
Company Guidance
During the Lattice Semiconductor First Quarter 2025 Earnings Call, the company provided guidance for the second quarter of 2025, highlighting several key metrics. The revenue for Q1 2025 was $120.1 million, representing a 2% increase from the previous quarter but a 15% decline year-over-year. The non-GAAP gross margin stood at 69%, showing resilience despite challenges, while the adjusted EBITDA margin was 33.4%. For Q2 2025, Lattice expects revenue to range between $118.5 million and $128.5 million, with a gross margin of 69% plus or minus 1% on a non-GAAP basis. Operating expenses are projected to be between $50.5 million and $52.5 million, and the income tax rate is expected to be between 5% and 6% on a non-GAAP basis. Additionally, net income per share is anticipated to be between $0.22 and $0.26. The company emphasized its focus on maintaining cost controls, enhancing operational efficiency, and sustaining shareholder value amidst potential macroeconomic and tariff-related uncertainties.Lattice Semiconductor Corporate Events
Executive/Board ChangesStock BuybackBusiness Operations and StrategyFinancial Disclosures
Lattice Semiconductor Announces New Leadership Appointments
Positive
Feb 10, 2025
On February 10, 2025, Lattice Semiconductor announced key leadership changes with the appointment of Lorenzo A. Flores as Senior Vice President and Chief Financial Officer, and Tonya Stevens as Corporate Vice President and Chief Accounting Officer. The company also reported its fourth quarter and full year 2024 financial results, showing a GAAP revenue of $117.4 million for Q4 and $509.4 million for the year, with significant achievements in operational efficiency and strategic product development. Key highlights included record design wins, the expansion of the Avant and Nexus product lines, and the extension of a stock repurchase program. The company’s strategic realignment and product roadmap enhancements signal confidence in future growth and market opportunities.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.