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Lantronix Inc (LTRX) stock analysis

LTRXNasdaqComputer Communications EquipmentFiscal year ends June 30
Financials through Q1 FY2027, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 9, 2026Score 8/307% above fair value
$4.48−0.25 (-5.29%)

Close on Nov 12, 2026Market cap $209.24MP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value1Growth2Performance1Health4Dividend0

Weak8 of 30 checks passed

Lantronix passes 8 of the 30 checks behind our score; 12 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
1/6
Growth
2/6
Past performance
1/6
Financial health
4/6
Dividend
0/6

What stands out

  • Low debt

    Debt is 4.2% of shareholders' equity, under the 40% we consider low.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 74.7% of total debt.

  • Guidance raised

    Lantronix raised its FY26 Drone Revenue Expectation outlook on May 6, 2026.

  • P/B below the industry

    Lantronix's price-to-book of 1.85 is below the Computer and Office Equipment median of 3.71.

What to watch

  • Margin of safety under 20%

    The price is 6.9% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $4.73 is above our fair value estimate of $4.43.

  • Return on equity under 15%

    Return on equity was -3.3% over the last twelve months and averaged -8.9% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -3.7%, below the 10% that usually covers the cost of capital.

Valuation1/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B below the industry

    Lantronix's price-to-book of 1.85 is below the Computer and Office Equipment median of 3.71.

  • Trading above fair value

    The share price of $4.73 is above our fair value estimate of $4.43.

  • Margin of safety under 20%

    The price is 6.9% above fair value, so there is no margin of safety.

Growth2/6

  • Revenue growing under 10% a year

    Revenue grew -2.7% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew 4.4% over the last twelve months; the Computer and Office Equipment median is 11.2%.

  • Guidance raised

    Lantronix raised its FY26 Drone Revenue Expectation outlook on May 6, 2026.

  • Gross margin improving

    Gross margin was 43.8% over the last twelve months, against 42.7% a year earlier.

Past performance1/6

  • Return on equity under 15%

    Return on equity was -3.3% over the last twelve months and averaged -8.9% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -3.7%, below the 10% that usually covers the cost of capital.

  • Return on equity below the industry

    Lantronix's return on equity of -3.3% is below the Computer and Office Equipment median of 7.5%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was -2.6% over the last twelve months, against a 5-year average of -5.3%.

  • Net margin below the industry

    Lantronix's net margin of -2.6% is below the Computer and Office Equipment median of 3.8%.

Financial health4/6

  • Low debt

    Debt is 4.2% of shareholders' equity, under the 40% we consider low.

  • Debt falling against equity

    Debt to equity fell from 11.2% five years ago to 4.2%.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 74.7% of total debt.

  • Interest coverage

    Interest expense is not reported separately.

  • Short-term assets cover short-term debts

    Current assets are 2.99 times current liabilities.

  • Elevated bankruptcy risk

    The Altman Z-score is 1.76; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Lantronix has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$4.43

The share price is 7% above this estimate.

20%+ below
Near fair value
20%+ above
$4.73Price
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/B2.9×2.1×3.7×$7.4329%
P/S1.9×1.3×2.5×$5.0629%
Earnings power11.8% cost of equity––$2.0043%
Fair value$4.43100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Computer and Office Equipment median 26.0

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day
$3.98M
Value traded per 1% price move
$1.43M

Downside

High risk

Typical loss in a bad month
26.5%
Volatility (annualized)
74%
Sharpe ratio, 1 year
-0.13
Beta to the S&P 500 (5Y)
1.39

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2012 to 2026

Gross margin

43.8%−2.4 pts over 5 years

Operating margin

-3.4%+1.3 pts over 5 years

Net margin

-3.5%+2.2 pts over 5 years

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