Lattice Semiconductor (LSCC) AI Stock Analysis

• Market Cap: $9.77B
• Dividend Yield: N/A
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): 311.6
• Beta (1Y): 2.07
• Revenue Growth: -22.15%
• EPS Growth: -83.34%
• Country: US
• Employees: 1,110
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.24
• Shares Outstanding: 136,895,570
• 10 Day Avg. Volume: 3,585,332
• 30 Day Avg. Volume: 2,656,095
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 13.96
• Enterprise Value/Gross Profit: 20.93
• Enterprise Value/Ebitda: 106.62
• 1Y Price Target: $67.10
• Price Target Upside: -5.96% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 75 Outperform
• Price Target: $69.00 ▼(-3.29% Downside)

Lattice Semiconductor's overall score is driven by strong technical momentum and a positive earnings call, highlighting growth in key segments and strategic positioning. However, the high P/E ratio suggests overvaluation, and challenges in revenue growth and ROE present risks.

Positive Factors

Strong Cash Flow

The robust growth in free cash flow indicates strong cash generation capabilities, supporting liquidity and operational flexibility, which is crucial for sustainable long-term growth.

Record Design Wins

Record design wins demonstrate strong product demand and market acceptance, positioning the company for sustained growth in its core markets.

Growth in Communications and Compute

Significant growth in this segment highlights the company's strong market position and ability to capitalize on increasing demand in data center and AI infrastructure.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth poses a risk to the company's ability to maintain its market position and could impact future profitability if not addressed.

Challenges in Industrial and Automotive Segment

Challenges in this segment indicate potential difficulties in maintaining growth across all sectors, which could affect overall performance if persistent.

Declining ROE

A declining ROE suggests reduced efficiency in generating profits from equity, which may impact investor confidence and the company's ability to attract capital.

Lattice Semiconductor Business Overview & Revenue Model

Company Description

Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor products in Asia, Europe, and the Americas. The company offers field programmable gate arrays that consist of four product families, including the Certus-NX and ECP, Mach, iCE40, and CrossLink. It also provides video connectivity application specific standard products. In addition, the company licenses its technology portfolio through standard IP and IP core licensing, patent monetization, and IP services. It sells its products directly to end customers, and indirectly through a network of independent manufacturers' representatives and independent distributors. The company primarily serves original equipment manufacturers in the communications and computing, consumer, and industrial and automotive end markets. Lattice Semiconductor Corporation was incorporated in 1983 and is headquartered in Hillsboro, Oregon.

How the Company Makes Money

Lattice Semiconductor generates revenue primarily through the sale of its semiconductor products, specifically its FPGAs and related development tools. The company makes money by selling hardware components to original equipment manufacturers (OEMs) and design engineers who integrate these devices into their systems. Key revenue streams include product sales, royalties from intellectual property licenses, and software tools that facilitate the design and implementation of their semiconductor solutions. Additionally, Lattice has established significant partnerships with major technology firms and industry players, which help expand its market reach and drive sales. The company's commitment to innovation and development of low-power solutions positions it well in growing markets, contributing positively to its earnings.

Lattice Semiconductor Financial Statement Overview

Summary

Lattice Semiconductor shows a stable financial foundation with strong profitability and cash flow metrics. The income statement reveals a slight decline in revenue growth, which is a concern, but the company maintains a healthy gross profit margin. The balance sheet is solid with low leverage, though the declining ROE suggests reduced efficiency. Cash flow is strong, with healthy growth and conversion metrics, supporting liquidity and operational flexibility.

Income Statement

Lattice Semiconductor's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth at -2.1%, which is a concern. However, the company maintains a healthy gross profit margin of 66.7% and a net profit margin of 6.5%. The EBIT and EBITDA margins have decreased compared to previous years, reflecting operational challenges. Overall, while profitability remains strong, the recent decline in revenue growth is a risk factor.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.023, indicating strong financial stability. The return on equity (ROE) is 4.5% for the TTM, which is lower than previous years, suggesting reduced efficiency in generating profits from equity. The equity ratio is robust, showing a strong capital structure. Overall, the company has a stable financial position with low leverage, but the declining ROE is a point of concern.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 16.3% growth in free cash flow for the TTM. The operating cash flow to net income ratio is 1.84, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.88, reflecting efficient cash conversion. Overall, the cash flow position is strong, with healthy growth and conversion metrics, supporting the company's liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	488.63M	509.40M	737.15M	660.36M	515.33M	408.12M
Gross Profit	325.92M	340.40M	514.67M	452.05M	321.68M	245.31M
EBITDA	63.97M	106.94M	255.37M	222.09M	131.38M	83.26M
Net Income	31.64M	61.13M	259.06M	178.88M	95.92M	47.39M
Balance Sheet
Total Assets	808.55M	843.90M	840.89M	798.71M	726.49M	680.07M
Cash, Cash Equivalents and Short-Term Investments	107.16M	136.29M	128.32M	145.72M	131.57M	182.33M
Total Debt	21.90M	15.25M	16.31M	148.82M	182.88M	193.75M
Total Liabilities	121.50M	132.97M	148.87M	311.55M	314.86M	295.64M
Stockholders Equity	687.05M	710.93M	692.02M	487.16M	411.63M	384.43M
Cash Flow
Free Cash Flow	141.21M	119.89M	236.34M	215.47M	157.89M	79.57M
Operating Cash Flow	159.86M	140.88M	269.59M	238.81M	167.72M	91.69M
Investing Cash Flow	-43.13M	-37.69M	-33.25M	-34.93M	-89.80M	-20.87M
Financing Cash Flow	-119.31M	-94.46M	-253.72M	-188.07M	-128.61M	-8.10M

Lattice Semiconductor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LSCC, the sentiment is Positive. The current price of 71.35 is above the 20-day moving average (MA) of 68.37, above the 50-day MA of 62.38, and above the 200-day MA of 56.24, indicating a bullish trend. The MACD of 2.83 indicates Negative momentum. The RSI at 64.21 is Neutral, neither overbought nor oversold. The STOCH value of 62.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LSCC.

Lattice Semiconductor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVMI	81 Outperform	$9.12B	42.33	19.81%	―	43.69%	51.22%
RMBS	76 Outperform	$11.04B	48.56	18.66%	―	35.17%	0.10%
LSCC	75 Outperform	$9.77B	311.57	4.57%	―	-22.15%	-83.34%
SWKS	74 Outperform	$11.80B	31.68	9.41%	3.53%	-8.24%	-48.31%
QRVO	67 Neutral	$8.62B	108.57	2.35%	―	-8.84%	―
MTSI	54 Neutral	$9.64B	-128.43	-5.53%	―	33.50%	-197.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Lattice Semiconductor Corporate Events

Lattice Semiconductor Announces New Leadership Appointments

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.