Lattice Semiconductor Corporation EBITDA dropped on 14.7% and EBITDA Margin decreased on 3.8 pp from 24.7% to 20.9%
02/16/2021 • About Lattice Semiconductor Corporation (
$LSCC) • By InTwits
Lattice Semiconductor Corporation reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 20.9% in FY2020, 24.7% in FY2019, 9.1% in FY2018, 2.7% in FY2017, 8.2% in FY2016
- Lattice Semiconductor Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's in pair with industry average of 3.7%
- CAPEX is quite volatile: $32m in 2020, $10m in 2019, $7m in 2018, $11m in 2017, $15m in 2016
- The company has business model with average profitability: ROIC is 10.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Lattice Semiconductor Corporation's Revenue increased slightly on 1.00%. Revenue growth showed acceleration in FY20Q4 - it increased 6.9% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.8 pp from -8.4% to -2.6% in 2020.
Gross Margin increased slightly on 1.1 pp from 59.0% to 60.1% in FY2020. During FY2016-FY2020 Gross Margin bottomed in FY2018 at 55.0% and was growing since that time. SG&A as a % of Revenue increased on 2.9 pp from 20.4% to 23.4% in FY2020.
Net Income margin increased slightly on 0.85 pp from 10.8% to 11.6% in FY2020. Net Income margin followed a growing trend at 7.8 pp per annum in FY2016-FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 3.0%. The company showed almost no change in CAPEX/Revenue from FY2017 to FY2020. For the last three years the average CAPEX/Revenue was 3.0%.
Return on investment
The company operates at good ROE (13.3%) while ROIC is low (10.0%). ROIC decreased slightly on 1.9 pp from 12.0% to 10.0% in FY2020. ROE decreased slightly on 1.5 pp from 14.8% to 13.3% in FY2020. ROIC grew at 4.9 pp per annum in the last 5 years. ROE followed a growing trend at 10.8 pp per annum in FY2016-FY2020.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and 2.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 0.5x to 0.1x in FY2020. Debt jumped on 12.2% while cash surged on 54.4%. During the last 5 years Net Debt/EBITDA topped in FY2017 at 19.0x and was declining since that time.
Lattice Semiconductor Corporation has no short term refinancing risk: cash is higher than short term debt (1,078.2%).
Valuation and dividends
Lattice Semiconductor Corporation's trades at EV/EBITDA 73.4x and P/E 131.5x.
Management team
James R Anderson "Jim" is a the company's CEO. James R Anderson "Jim" has spent 2 years with the company. Lattice Semiconductor Corporation's CFO Sherri Luther has spent 2 years with the company.
Financial and operational results
FY ended 01/02/2021
Lattice Semiconductor Corporation ($LSCC) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 427.1 | 386.0 | 398.8 | 404.1 | 408.1 | 1.0% |
| Gross Profit | 246.4 | 216.6 | 219.4 | 238.4 | 245.3 | 2.9% |
| SG&A | 98.6 | 90.7 | 91.1 | 82.5 | 95.3 | 15.5% |
| EBITDA | 35.1 | 10.2 | 36.1 | 99.8 | 85.1 | -14.7% |
| Net Income | -54.1 | -70.6 | -26.3 | 43.5 | 47.4 | 9.0% |
Balance Sheet
|
|---|
| Cash | 106.6 | 106.8 | 119.1 | 118.1 | 182.3 | 54.4% |
| Short Term Debt | 33.8 | 1.5 | 8.3 | 26.2 | 16.9 | -35.4% |
| Long Term Debt | 300.9 | 299.7 | 251.4 | 146.5 | 176.8 | 20.7% |
Cash flow
|
|---|
| Capex | 16.7 | 12.9 | 8.4 | 15.6 | 12.1 | -22.3% |
Ratios
|
|---|
| Revenue growth | 5.2% | -9.6% | 3.3% | 1.3% | 1.0% | |
| EBITDA growth | -175.6% | -70.8% | 252.9% | 176.1% | -14.7% | |
|
|---|
| Gross Margin | 57.7% | 56.1% | 55.0% | 59.0% | 60.1% | 1.1% |
| EBITDA Margin | 8.2% | 2.7% | 9.1% | 24.7% | 20.9% | -3.8% |
| SG&A, % of revenue | 23.1% | 23.5% | 22.8% | 20.4% | 23.4% | 2.9% |
| Net Income Margin | -12.7% | -18.3% | -6.6% | 10.8% | 11.6% | 0.8% |
| CAPEX, % of revenue | 3.9% | 3.3% | 2.1% | 3.9% | 3.0% | -0.9% |
|
|---|
| ROIC | -4.2% | -8.3% | -0.6% | 12.0% | 10.0% | -1.9% |
| ROE | -18.8% | -28.9% | -11.1% | 14.8% | 13.3% | -1.5% |
| Net Debt/EBITDA | 6.5x | 19.0x | 3.9x | 0.5x | 0.1x | -0.4x |
Lattice Semiconductor Corporation ($LSCC) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 97 | 101 | 103 | 107 | | -0.8% | -1.7% | -0.4% | 6.9% |
| EBITDA | 19 | 20 | 21 | 25 | | -20.2% | -12.3% | -23.5% | -15.4% |
| Net Income | 8 | 11 | 13 | 16 | | 10.2% | 24.2% | -6.9% | 14.3% |
Balance Sheet
|
|---|
| Cash | 177 | 165 | 182 | 182 | | 35.4% | 34.7% | 87.1% | 54.4% |
| Short Term Debt | 26 | 9 | 13 | 17 | | 103.1% | -59.2% | -40.7% | -35.4% |
| Long Term Debt | 191 | 186 | 182 | 177 | | -23.9% | -5.0% | 12.4% | 20.7% |
Ratios
|
|---|
| Gross Margin | 59.1% | 60.2% | 60.5% | 60.5% | | 0.4% | 1.5% | 1.1% | 1.4% |
| EBITDA Margin | 20.0% | 19.9% | 19.9% | 23.4% | | -4.9% | -2.4% | -6.0% | -6.2% |
| Net Income Margin | 8.4% | 10.6% | 12.2% | 14.9% | | 0.8% | 2.2% | -0.9% | 1.0% |
Peers in Semiconductors
Below we provide Lattice Semiconductor Corporation benchmarking against other companies in Semiconductors industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Inphi Corporation ($IPHI) | - | 30.8% | -15.4% | 24.2% | 86.8% |
| Sequans Communications S.A. ($SQNS) | - | 5.9% | -16.6% | -23.3% | 65.0% |
| MaxLinear, Inc ($MXL) | - | 8.4% | -8.4% | -17.6% | 50.9% |
| Advanced Micro Devices, Inc. ($AMD) | - | 21.6% | 23.3% | 4.0% | 45.0% |
| Kopin Corporation ($KOPN) | - | 23.0% | -12.1% | 20.7% | 35.9% |
| |
|---|
| Median (43 companies) | 1.2% | 11.0% | 4.9% | -3.2% | 2.8% |
|---|
| Lattice Semiconductor Corporation ($LSCC) | - | -9.6% | 3.3% | 1.3% | 1.0% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| CEVA, Inc. ($CEVA) | 91.6% | 92.1% | 89.8% | 88.4% | 89.3% |
| Universal Display Corporation ($OLED) | 83.9% | 80.8% | 75.5% | 78.5% | 80.1% |
| Rambus, Inc. ($RMBS) | 80.1% | 79.9% | 76.8% | 77.1% | 75.0% |
| Analog Devices, Inc. ($ADI) | 65.1% | 59.9% | 68.3% | 67.0% | 65.9% |
| MoSys, Inc. ($MOSY) | 49.0% | 46.9% | 61.8% | 61.0% | 65.7% |
| |
|---|
| Median (43 companies) | 47.2% | 48.6% | 50.2% | 50.4% | 49.2% |
|---|
| Lattice Semiconductor Corporation ($LSCC) | 57.7% | 56.1% | 55.0% | 59.0% | 60.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 43.5% | 46.7% | 48.6% | 47.5% | 47.6% |
| Intel Corp ($INTC) | 35.2% | 41.7% | 45.7% | 45.9% | 46.7% |
| Broadcom Inc. ($AVGO) | 19.9% | 40.4% | 44.2% | 40.9% | 46.2% |
| Universal Display Corporation ($OLED) | 44.8% | 51.6% | 35.3% | 48.0% | 45.9% |
| Analog Devices, Inc. ($ADI) | 36.2% | 32.1% | 43.2% | 42.1% | 42.0% |
| |
|---|
| Median (41 companies) | 9.2% | 10.7% | 9.8% | 12.9% | 17.3% |
|---|
| Lattice Semiconductor Corporation ($LSCC) | 8.2% | 2.7% | 9.1% | 24.7% | 20.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Micron Technology, Inc. ($MU) | 46.9% | 23.3% | 29.2% | 41.8% | 38.4% |
| Sequans Communications S.A. ($SQNS) | 11.8% | 13.3% | 22.9% | 29.6% | 27.1% |
| Intel Corp ($INTC) | 16.2% | 18.8% | 21.4% | 22.5% | 18.6% |
| First Solar, Inc. ($FSLR) | 7.9% | 17.5% | 33.0% | 21.8% | 15.4% |
| Power Integrations, Inc. ($POWI) | 3.1% | 7.5% | 5.9% | 5.7% | 14.5% |
| |
|---|
| Median (40 companies) | 3.6% | 4.7% | 4.4% | 3.7% | 4.0% |
|---|
| Lattice Semiconductor Corporation ($LSCC) | 3.9% | 3.3% | 2.1% | 3.9% | 3.0% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Texas Instruments Incorporated ($TXN) | 34.9% | 43.1% | 47.5% | 39.7% | 38.2% |
| Applied Materials Inc ($AMAT) | 19.0% | 31.2% | 36.4% | 27.7% | 32.1% |
| Advanced Micro Devices, Inc. ($AMD) | -21.7% | 7.3% | 21.6% | 21.5% | 31.8% |
| QUALCOMM Incorporated ($QCOM) | 15.8% | 5.7% | 2.2% | 38.0% | 28.1% |
| NVIDIA Corporation ($NVDA) | 13.1% | 27.3% | 35.3% | 36.9% | 22.7% |
| |
|---|
| Median (45 companies) | 1.7% | 3.2% | 3.0% | 2.2% | 5.3% |
|---|
| Lattice Semiconductor Corporation ($LSCC) | -4.2% | -8.3% | -0.6% | 12.0% | 10.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| SunPower Corporation ($SPWR) | - | - | - | - | 8.2x |
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 3.0x | 7.2x | 98.6x | - | 6.6x |
| Rambus, Inc. ($RMBS) | -0.1x | -0.1x | - | - | 5.9x |
| Inphi Corporation ($IPHI) | 4.5x | 33.7x | 32.2x | 4.5x | 3.4x |
| Canadian Solar Inc. ($CSIQ) | 11.3x | 6.8x | 2.7x | 3.4x | 3.3x |
| |
|---|
| Median (31 companies) | -0.0x | 0.4x | 0.3x | 0.5x | 0.5x |
|---|
| Lattice Semiconductor Corporation ($LSCC) | 6.5x | 19.0x | 3.9x | 0.5x | 0.1x |
