Littelfuse (LFUS) AI Stock Analysis

• Market Cap: $3.77B
• Dividend Yield: 1.8%
• Average Volume (3M): 209.53K
• Price to Earnings (P/E): 38.1
• Beta (1Y): 1.56
• Revenue Growth: -7.28%
• EPS Growth: -56.46%
• Country: US
• Employees: 16,000
• Sector: Technology
• Sector Strength: 40
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 4.49
• Shares Outstanding: 24,713,072
• 10 Day Avg. Volume: 257,958
• 30 Day Avg. Volume: 209,534
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.37
• Price to Cash Flow (P/CF): 8.10
• P/FCF Ratio: 7.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $300.00
• Price Target Upside: 100.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Littelfuse's overall stock score reflects a mixed financial performance with strengths in its balance sheet but challenges in income and cash flow metrics. Declining semiconductor sales and impairment charges weigh on prospects. Valuation appears stretched, while technical indicators suggest bearish momentum. Earnings call highlights provide some optimism in specific segments, but overall sentiment remains balanced.

Positive Factors

Order Trends

Firming order trends drive optimism for a return to growth as order trends continue to improve.

Revenue Growth

For the full year, revenue growth is expected to resume, providing strong leverage to drive margin expansion and solid earnings power.

Negative Factors

Earnings Expectations

Earnings are guided to be significantly below expectations, missing by about 15%.

Semiconductors

Semiconductors remain a drag overall, at least for the near term.

Littelfuse Business Overview & Revenue Model

Company Description

Littelfuse, Inc. (LFUS) is a global manufacturer of leading technologies in circuit protection, power control, and sensing. The company serves a diverse range of industries including automotive, industrial, and electronics. Littelfuse offers a comprehensive portfolio of products, including fuses, semiconductors, polymers, relays, and sensors, designed to enhance safety, reliability, and efficiency in various applications.

How the Company Makes Money

Littelfuse generates revenue primarily through the sale of its products across its three main business segments: Electronics, Automotive, and Industrial. The Electronics segment offers circuit protection devices and power control products, which are integral in consumer electronics and telecommunication equipment. The Automotive segment provides a range of products including fuses, sensors, and power control solutions for vehicles, supporting the growing adoption of electric vehicles and advanced safety systems. The Industrial segment supplies products that enhance the safety, reliability, and performance of industrial equipment and systems. Additionally, Littelfuse's revenue is bolstered by strategic partnerships and acquisitions that expand its technological capabilities and market reach, enabling the company to cater to evolving customer needs in the global market.

Littelfuse Financial Statement Overview

Summary

Littelfuse presents a mixed financial outlook. While the balance sheet remains robust, income statement metrics indicate declining profitability and revenue. Cash flows are generally strong, but a recent decrease in free cash flow could be a concern. The company needs to address declining revenue and improve net profitability to maintain financial health.

Income Statement

The income statement shows a decline in revenue and profitability. Gross Profit Margin stands at 36.6%, indicating efficient cost control, but the Net Profit Margin has dropped to 5.2%, largely due to reduced EBIT Margin at 7.8%. Despite past revenue growth, recent trends show a concerning decline in revenue and net income.

Balance Sheet

The balance sheet is strong with a healthy equity ratio of 62.0%, indicating a stable capital structure. The Debt-to-Equity Ratio is low at 0.05, reflecting conservative leverage. Return on Equity is modest at 4.7%, suggesting room for improvement in profitability.

Cash Flow

Cash flow analysis reveals a decline in Free Cash Flow, yet the company maintains a solid Operating Cash Flow to Net Income Ratio of 3.3. The Free Cash Flow covers net income, but Free Cash Flow has decreased by 21.3%, posing a potential risk if this trend continues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Mar 2022	Dec 2020
Income Statement		Total Revenue
2.19B	2.36B	2.51B	2.08B	1.45B
	Gross Profit
787.54M	900.24M	1.01B	771.93M	501.17M
	EBIT
158.78M	378.36M	500.83M	385.64M	162.37M
	EBITDA
321.03M	503.61M	589.87M	458.19M	278.51M
	Net Income Common Stockholders
100.19M	259.49M	373.31M	283.81M	129.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
725.90M	555.75M	562.67M	478.50M	687.58M
	Total Assets
3.89B	4.00B	3.90B	3.15B	2.75B
	Total Debt
128.17M	933.52M	1.05B	659.20M	699.98M
	Net Debt
-596.75M	378.00M	484.57M	180.73M	12.46M
	Total Liabilities
1.48B	1.51B	1.69B	1.26B	1.14B
	Stockholders Equity
2.41B	2.48B	2.21B	1.89B	1.61B
Cash Flow		Free Cash Flow
291.74M	371.20M	315.38M	282.78M	201.84M
	Operating Cash Flow
367.62M	457.39M	419.72M	373.34M	258.03M
	Investing Cash Flow
-65.78M	-284.32M	-636.40M	-499.16M	-51.43M
	Financing Cash Flow
-112.44M	-185.73M	310.20M	-68.98M	-67.81M

Littelfuse Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 149.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFUS, the sentiment is Negative. The current price of 149.72 is below the 20-day moving average (MA) of 197.39, below the 50-day MA of 219.59, and below the 200-day MA of 242.65, indicating a bearish trend. The MACD of -7.63 indicates Positive momentum. The RSI at 29.26 is Positive, neither overbought nor oversold. The STOCH value of 6.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LFUS.

Littelfuse Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESE	80 Outperform	$3.66B	33.30	9.22%	0.23%	8.94%	18.56%
PLXS	73 Outperform	$3.05B	25.73	9.27%	―	-3.53%	-3.90%
MKSI	65 Neutral	$4.25B	22.41	7.93%	1.40%	-0.99%	―
VNT	63 Neutral	$4.23B	10.35	43.49%	0.35%	-3.75%	13.76%
CGNX	62 Neutral	$4.15B	39.85	7.03%	1.26%	9.19%	-5.77%
LFUS	61 Neutral	$3.77B	38.13	4.62%	1.80%	-7.28%	-56.46%
Sector *	57 Neutral	$18.43B	9.69	-13.94%	2.74%	5.03%	-23.61%

Littelfuse Corporate Events

Littelfuse Reports 2024 Financial Results and Outlook

Littelfuse reported its financial results for the fourth quarter and full year of 2024, showing a 1% decline in net sales for the quarter and a 7% decrease for the year compared to the previous period. Despite challenging market conditions, the company maintained strong cash conversion and profitability enhancements, positioning itself for expected earnings growth in 2025. The company announced a cash dividend and provided guidance for the first quarter of 2025, indicating steady market performance. Littelfuse continues to focus on operational improvements and market expansion opportunities to drive future growth.

Littelfuse Announces Leadership Transition with New CEO

Littelfuse announced the retirement of its CEO David Heinzmann, effective February 10, 2025, after a distinguished 40-year career. Dr. Greg Henderson, a seasoned industry executive and board member, will succeed Heinzmann as President and CEO. This leadership transition signifies Littelfuse’s commitment to fostering growth and innovation, with Henderson bringing extensive experience from his previous roles at Analog Devices. The company has postponed its planned Investor Day to ensure a seamless leadership transition.