LATTICE SEMICONDUCTOR CORP (LSCC) - Comprehensive Stock Analysis & Investment Research
Deep dive into LATTICE SEMICONDUCTOR CORP's business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
LATTICE SEMICONDUCTOR CORP Investment Summary
When evaluating whether LATTICE SEMICONDUCTOR CORP (LSCC) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
LATTICE SEMICONDUCTOR CORP (LSCC) operates within the Manufacturing sector, specifically in the Semiconductors & Related Devices industry. The company employs approximately 1,566 people. With a market capitalization of $10 billion, the company is a large-cap stock offering relative stability combined with growth potential.
Financial Performance Analysis
LATTICE SEMICONDUCTOR CORP generates annual revenues of approximately $494 million. The company demonstrates exceptional profitability with a net margin of 150.5%, placing it among the most efficient operators in its industry.
From a profitability standpoint, the company delivers an outstanding Return on Equity (ROE) of 27.8%, demonstrating excellent shareholder value creation and management effectiveness. The Return on Assets (ROA) stands at 16.1%, indicating efficient asset utilization. The gross margin of 406.9% reflects strong pricing power and cost control.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 3.02x indicates excellent short-term liquidity, meaning the company can comfortably cover its near-term obligations. The debt-to-equity ratio of 0.37x reflects a conservative capital structure with low leverage.
Cash Flow Generation
LATTICE SEMICONDUCTOR CORP generates $157 million in annual free cash flow, providing financial flexibility for dividends, share buybacks, debt reduction, or strategic investments. Operating cash flow stands at $182 million, demonstrating the company's ability to generate cash from its core business operations. Year-over-year operating cash flow has changed by -26.1%, which merits investor attention.
Valuation Analysis
The current P/E ratio of 374.3x suggests the market has high expectations for future earnings growth. This premium valuation means the stock is priced for perfection, and any earnings disappointments could lead to significant price corrections. The price-to-book ratio stands at 14.43x, reflecting significant intangible value and market expectations of future growth.
AI-Powered Price Predictions
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Investment Considerations
When determining whether LATTICE SEMICONDUCTOR CORP is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a large-cap stock, LATTICE SEMICONDUCTOR CORP typically offers more stability but potentially lower growth compared to smaller companies.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
LATTICE SEMICONDUCTOR CORP (Stock Symbol: LSCC) is a prominent company operating within the Manufacturing sector, with a specific focus on the Semiconductors & Related Devices industry. The company's shares are publicly traded on the Nasdaq exchange.
Leadership & Workforce
The organization employs approximately 1,566 professionals, indicating a well-established company with meaningful operational scale and the human resources necessary to compete effectively in its markets.
Market Classification
With a market capitalization of $10 billion, LATTICE SEMICONDUCTOR CORP is classified as a large-cap stock. Large-cap companies are well-established industry leaders that typically offer investors relative stability combined with consistent returns. These companies often have diversified revenue streams, established competitive advantages, and the financial resources to weather economic downturns.
Sector & Industry Context
Operating within the Manufacturing sector, LATTICE SEMICONDUCTOR CORP is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy.
Revenue & Growth Analysis
LATTICE SEMICONDUCTOR CORP generates annual revenues of $494 million , representing an emerging company in its growth phase. While smaller in scale, such companies often offer higher growth potential as they capture market share and expand their operations.
Profitability Analysis
The company achieves a 150.5% net profit margin, which represents exceptional profitability significantly above most industry averages. Such high margins typically indicate strong pricing power, operational efficiency, asset-light business models, or valuable intellectual property. Companies with margins this high often enjoy sustainable competitive advantages.
Gross profit margin stands at 406.9%, a premium margin typical of software, pharmaceuticals, or luxury goods companies with exceptional pricing power and low marginal costs of production.
Operating margin is 94.3%, demonstrating excellent core business efficiency with well-controlled operating expenses relative to revenue generation.
Market Valuation
Current market capitalization stands at $10 billion . This large-cap valuation typically attracts institutional investors seeking stability and liquidity. Large-cap stocks generally exhibit lower volatility and often pay dividends, making them core portfolio holdings.
Return on Investment Metrics
Return on Equity (ROE) measures 27.8%, demonstrating exceptional efficiency in generating profits from shareholder equity. ROE at this level indicates excellent capital allocation and strong competitive positioning, making the company highly attractive to growth-focused investors.
Return on Assets (ROA) stands at 16.1%, representing exceptional asset efficiency typically seen in asset-light business models like software or consulting companies.
Return on Invested Capital (ROIC) measures 19.5%, demonstrating the company creates meaningful value by earning returns well above its cost of capital.
Cash Flow Generation
Free cash flow generation of $157 million annually represents healthy cash conversion that supports ongoing operations and provides capital for growth initiatives or shareholder returns.
Operating cash flow reaches $182 million , with year-over-year growth of -26.1%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
Strategic Market Position
LATTICE SEMICONDUCTOR CORP strategically competes in the highly dynamic Semiconductors & Related Devices marketplace. As a large-cap market participant, the company has established significant competitive advantages and market presence. Large-cap companies typically benefit from brand recognition, operational scale, diverse revenue streams, and the financial resources to invest in research and development, marketing, and strategic acquisitions. This size category attracts substantial institutional ownership and analyst coverage.
Industry Competitive Landscape
LATTICE SEMICONDUCTOR CORP competes within the Manufacturing sector, navigating the competitive dynamics and market forces specific to this industry. The company's competitive position depends on its ability to differentiate through product quality, cost efficiency, customer relationships, or other strategic advantages relevant to its specific market segment.
Operational Efficiency
The company shows positive operational efficiency through free cash flow generation of $157 million annually , with year-over-year cash flow growth of -26.1%. Positive free cash flow indicates the business generates more cash than required for operations and capital investments, providing resources for growth initiatives or shareholder returns.
Margin & Pricing Power Analysis
The company maintains a 406.9% gross margin which reflects exceptional pricing power and/or an asset-light business model. Gross margins at this level are typically seen in software, pharmaceuticals, or luxury goods companies where the cost of incremental production is minimal relative to selling prices. Such margins indicate significant competitive advantages protecting the company from price-based competition.
Operating margin of 94.3% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. This strong operating margin indicates excellent cost control and efficient organizational structure relative to the revenue base.
Asset Utilization Efficiency
Asset turnover ratio of 0.78x indicates moderate asset turnover common in capital-intensive industries such as utilities, real estate, or heavy manufacturing. Lower turnover in these sectors is expected due to the significant infrastructure required for operations.
Financial Strength & Leverage
Current ratio of 3.02 demonstrates strong short-term liquidity with current assets significantly exceeding current liabilities. This provides a substantial buffer for meeting near-term obligations and handling unexpected financial needs.