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Littelfuse (LFUS)
NASDAQ:LFUS
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Littelfuse
(NASDAQ:LFUS)63Neutral
Positive Factors
Margin Expansion
For the full year, revenue growth is expected to resume, providing strong leverage to drive margin expansion and solid earnings power.
Order Trends
Firming order trends drive optimism for a return to growth as order trends continue to improve.
Negative Factors
Earnings Guidance
Earnings are guided to be significantly below expectations, missing by about 15%.
Littelfuse (LFUS) vs. S&P 500 (SPY)
Market Cap
$5.38B
Dividend Yield1.27%
Average Volume (3M)188.90K
Price to Earnings (P/E)48.1
Beta (1Y)1.22
Revenue Growth-7.28%
EPS Growth-56.46%
CountryUS
Employees17,000
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)4.49
Shares Outstanding24,814,688
10 Day Avg. Volume175,778
30 Day Avg. Volume188,899
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.45
Price to Cash Flow (P/CF)16.70
P/FCF Ratio20.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$300.00Price Target Upside36.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Littelfuse Business Overview & Revenue Model
Company DescriptionLittelfuse, Inc. (LFUS) is a global leader in circuit protection, power control, and sensing technologies. The company operates across multiple sectors including automotive, industrial, electronics, and telecommunications, providing essential components and technologies that ensure the safe, reliable, and efficient functioning of electrical systems. Littelfuse's core products include fuses, semiconductors, sensors, and other electronic components designed to protect and manage power in various applications.
How the Company Makes MoneyLittelfuse makes money primarily through the sale of its electrical components and solutions, which are integral to the functionality and safety of a wide range of electronic systems. The company's revenue streams are diversified across its key business segments: Automotive, Industrial, and Electronics. In the automotive sector, Littelfuse provides products for vehicle electrification and safety systems. In the industrial segment, the company offers solutions for equipment protection, power conversion, and energy efficiency. The electronics sector focuses on consumer electronics, data communications, and broad-based electronic manufacturing. Partnerships with OEMs (Original Equipment Manufacturers) and distributors enhance Littelfuse's market reach, while its global presence allows it to serve a broad customer base. Additionally, investments in research and development drive innovation, enabling Littelfuse to maintain its competitive edge and adapt to evolving market demands.
Littelfuse Financial Statement Overview
Summary
Littelfuse presents a healthy financial position with strong profitability and efficient cash flow management. The company is experiencing a decline in revenue growth, but it maintains solid margins and a stable balance sheet, positioning it well to withstand industry challenges.Income Statement
Littelfuse shows stable profitability with a strong gross profit margin and consistent EBIT and EBITDA margins. However, the company is experiencing a decline in revenue growth, which could affect future profitability. Despite this, the net profit margin remains healthy, indicating effective cost management.65
Positive
Balance Sheet
The balance sheet is solid with a moderate debt-to-equity ratio, suggesting manageable leverage. The return on equity is strong, reflecting efficient use of equity. The equity ratio is comfortable, indicating a stable financial structure with significant equity backing the company's assets.72
Positive
Cash Flow
Cash flow analysis reveals a slight decline in free cash flow growth, yet operating cash flow remains robust compared to net income. The company maintains a solid free cash flow to net income ratio, showing effective cash generation capabilities, which is crucial for sustaining operations and growth.68
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Mar 2022 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.20B | 2.36B | 2.51B | 2.08B | 1.45B | 1.50B | Gross Profit |
| 756.71M | 900.24M | 1.01B | 771.93M | 501.17M | 541.45M | EBIT |
| 284.57M | 378.36M | 500.83M | 385.64M | 162.37M | 192.79M | EBITDA |
| 421.70M | 503.61M | 589.87M | 458.19M | 278.51M | 280.65M | Net Income Common Stockholders |
| 194.86M | 259.49M | 373.31M | 283.81M | 129.99M | 139.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 572.82M | 555.75M | 562.67M | 478.50M | 687.58M | 531.18M | Total Assets |
| 2.79B | 4.00B | 3.90B | 3.15B | 2.75B | 2.56B | Total Debt |
| 670.23M | 933.52M | 1.05B | 659.20M | 699.98M | 696.32M | Net Debt |
| 97.46M | 378.00M | 484.57M | 180.73M | 12.46M | 165.19M | Total Liabilities |
| 1.13B | 1.51B | 1.69B | 1.26B | 1.14B | 1.06B | Stockholders Equity |
| 1.66B | 2.48B | 2.21B | 1.89B | 1.61B | 1.50B |
| Cash Flow | Free Cash Flow | ||||
| 278.16M | 371.20M | 315.38M | 282.78M | 201.84M | 183.43M | Operating Cash Flow |
| 351.25M | 457.39M | 419.72M | 373.34M | 258.03M | 245.33M | Investing Cash Flow |
| -64.07M | -284.32M | -636.40M | -499.16M | -51.43M | -56.46M | Financing Cash Flow |
| -229.88M | -185.73M | 310.20M | -68.98M | -67.81M | -146.28M |
Littelfuse Technical Analysis
Negative
219.93
Price Trends
235.73
Negative
242.29
Negative
248.96
Negative
Market Momentum
-4.57
Positive
31.19
Neutral
9.58
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 219.93 is below the 20-day moving average (MA) of 237.74, below the 50-day MA of 235.73, and below the 200-day MA of 248.96, indicating a bearish trend. The MACD of -4.57 indicates Positive momentum. The RSI at 31.19 is Neutral, neither overbought nor oversold. The STOCH value of 9.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LFUS.
Littelfuse Risk Analysis
Littelfuse disclosed 24 risk factors in its most recent earnings report. Littelfuse reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Littelfuse Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.36B | 28.93 | 9.27% | ― | -3.53% | -3.90% | |
69 Neutral | $2.36B | 41.92 | 3.66% | ― | 9.41% | ― | |
68 Neutral | $4.25B | 13.93 | 6.45% | 2.60% | -12.21% | -51.31% | |
68 Neutral | $32.08B | 105.17 | 4.71% | 3.12% | -44.31% | -86.74% | |
63 Neutral | $5.38B | 48.07 | 4.61% | 1.27% | -7.28% | -56.46% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
58 Neutral | $1.43B | 54.88 | 2.08% | ― | -8.62% | -53.84% |
* Technology Sector Average
Performance Comparison
LFUS
Littelfuse
219.93
-13.67
-5.85%
AVT
Avnet
50.44
4.71
10.30%
MCHP
Microchip
59.77
-28.60
-32.36%
PLXS
Plexus
124.76
31.26
33.43%
ROG
Rogers
76.88
-40.87
-34.71%
TTMI
TTM Technologies
22.96
8.25
56.08%
Littelfuse Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -1.54% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with strong free cash flow and balance sheet positions, improved book-to-bill ratios, and growth in industrial and transportation segments. However, the company faced challenges with declining semiconductor sales, significant impairment charges, and revenue declines, making the overall sentiment balanced.Highlights
Strong Free Cash Flow and Balance Sheet Position
Generated $292 million in free cash flow for 2024, with a cash on hand of $725 million and a net debt-to-EBITDA leverage of 1.2x.
Improved Book-to-Bill Ratios
Electronics segment book-to-bill at its highest since Q2 2022, with passives above 1, indicating potential recovery in demand.
Growth in Industrial and HVAC Segments
Industrial products segment saw a 12% organic sales increase in Q4, with strong demand in HVAC, data centers, and industrial safety applications.
Transportation Segment Margin Expansion
Achieved double-digit operating margins in the Transportation segment for 2024, reflecting significant margin expansion due to cost actions and pricing strategies.
Lowlights
Decline in Semiconductor Sales
Semiconductor products saw a decline of 13% in Q4 and 20% for the full year, indicating ongoing softness in this area.
Intangible Asset Impairment Charges
Recorded $93 million in noncash goodwill and intangible impairment charges, primarily related to weak EV charging infrastructure trends.
Revenue Decline
Full-year 2024 sales were down 7% in total and organically versus last year, with Q4 revenue at $530 million, down 1% compared to last year.
Ongoing Challenges in Power Semiconductor Segment
Power semiconductor book-to-bill remains below 1 due to heavy industrial focus, particularly in Europe and China.
Company Guidance
During Littelfuse's fourth quarter 2024 earnings call, the company provided guidance indicating a mixed macroeconomic environment but projected solid earnings expansion for fiscal year 2025. The guidance outlined that the first quarter sales are expected to range between $520 million to $550 million, with an EPS between $1.70 to $1.90. For the full year, Littelfuse anticipates a 2% sales growth from the recent acquisition of the Dortmund semiconductor fab, and a neutral EPS impact from this arrangement. The company projects a full-year tax rate between 23% to 25% and plans to invest $90 million to $95 million in capital expenditures. Key metrics highlighted include a book-to-bill ratio above 1 for its Electronics segment, indicating a positive trend, and a net debt-to-EBITDA leverage of 1.2x, reflecting a strong balance sheet. Additionally, Littelfuse aims to achieve 100% free cash flow conversion aligned with its long-term goals, following strong cash generation in 2024.Littelfuse Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Littelfuse Reports 2024 Financial Results and Outlook
Neutral
Jan 28, 2025
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.
Executive/Board Changes
Littelfuse Announces Leadership Transition with New CEO
Neutral
Jan 13, 2025
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.
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.