Lantronix Revenue vs. Current Valuation
| LTRX Stock | USD 3.44 0.17 4.71% |
For Lantronix profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lantronix to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lantronix utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lantronix's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lantronix over time as well as its relative position and ranking within its peers.
Lantronix |
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lantronix. If investors know Lantronix will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lantronix listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Lantronix is measured differently than its book value, which is the value of Lantronix that is recorded on the company's balance sheet. Investors also form their own opinion of Lantronix's value that differs from its market value or its book value, called intrinsic value, which is Lantronix's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lantronix's market value can be influenced by many factors that don't directly affect Lantronix's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lantronix's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lantronix is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lantronix's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Lantronix Current Valuation vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lantronix's current stock value. Our valuation model uses many indicators to compare Lantronix value to that of its competitors to determine the firm's financial worth. Lantronix is considered the number one company in revenue category among its peers. It also is considered the number one company in current valuation category among its peers reporting about 0.82 of Current Valuation per Revenue. The ratio of Revenue to Current Valuation for Lantronix is roughly 1.22 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lantronix's earnings, one of the primary drivers of an investment's value.Lantronix Revenue vs. Competition
Lantronix is considered the number one company in revenue category among its peers. Market size based on revenue of Information Technology industry is now estimated at about 938.14 Million. Lantronix retains roughly 160.33 Million in revenue claiming about 17% of equities under Information Technology industry.
Lantronix Current Valuation vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Lantronix |
| = | 160.33 M |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Lantronix |
| = | 131.32 M |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Lantronix Current Valuation vs Competition
Lantronix is considered the number one company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is now estimated at about 531.71 Million. Lantronix totals roughly 131.32 Million in current valuation claiming about 25% of equities under Information Technology industry.
Lantronix Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lantronix, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lantronix will eventually generate negative long term returns. The profitability progress is the general direction of Lantronix's change in net profit over the period of time. It can combine multiple indicators of Lantronix, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Lantronix, Inc. provides solutions for video surveillance, traffic management, infotainment systems, robotics, edge computing, and remote environment management in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan. Lantronix, Inc. was incorporated in 1989 and is headquartered in Irvine, California. Lantronix operates under Communication Equipment classification in the United States and is traded on NASDAQ Exchange. It employs 335 people.
Lantronix Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lantronix. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Lantronix position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Lantronix's important profitability drivers and their relationship over time.
Use Lantronix in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lantronix position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lantronix will appreciate offsetting losses from the drop in the long position's value.Lantronix Pair Trading
Lantronix Pair Trading Analysis
The ability to find closely correlated positions to Lantronix could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lantronix when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Lantronix - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Lantronix to buy it.
The correlation of Lantronix is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lantronix moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lantronix moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Lantronix can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Lantronix position
In addition to having Lantronix in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Lantronix Stock Analysis
When running Lantronix's price analysis, check to measure Lantronix's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lantronix is operating at the current time. Most of Lantronix's value examination focuses on studying past and present price action to predict the probability of Lantronix's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lantronix's price. Additionally, you may evaluate how the addition of Lantronix to your portfolios can decrease your overall portfolio volatility.