Latest Ratios: P/E Ratio -18.9x · EV/EBITDA N/A · ROE -14.6%. (1999–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $218M | $111M | $133M | $153M | $176M | $148M | $94M | $72M | $54M | $42M | $15M |
| Enterprise Value | $219M | $112M | $133M | $170M | $183M | $144M | $94M | $54M | $45M | $34M | $9M |
| P/E Ratio → | -18.93 | — | — | — | — | — | — | — | 80.00 | — | — |
| P/S Ratio | 1.77 | 0.90 | 0.83 | 1.16 | 1.36 | 2.07 | 1.57 | 1.53 | 1.19 | 0.95 | 0.36 |
| P/B Ratio | 2.85 | 1.49 | 1.63 | 1.97 | 2.20 | 3.21 | 2.02 | 1.93 | 2.28 | 2.05 | 0.75 |
| P/FCF | 32.14 | 16.35 | 7.74 | — | — | 42.07 | — | — | 194.32 | 23.10 | — |
| P/OCF | 29.91 | 15.21 | 7.13 | 644.06 | — | 34.42 | — | — | 106.89 | 20.47 | 69.49 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.91 | 0.83 | 1.30 | 1.41 | 2.02 | 1.58 | 1.14 | 0.98 | 0.77 | 0.22 |
| EV / EBITDA | — | — | 28.83 | 197.04 | 113.74 | 251.58 | — | 16.88 | 35.99 | 83.68 | — |
| EV / EBIT | — | — | — | — | — | — | — | 39.90 | 34.23 | 545.90 | — |
| EV / FCF | — | 16.50 | 7.76 | — | — | 41.01 | — | — | 160.16 | 18.73 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 42.1% | 42.1% | 40.1% | 42.9% | 42.9% | 46.2% | 44.9% | 56.0% | 55.7% | 52.7% | 47.7% |
| Operating Margin | -8.9% | -8.9% | -1.8% | -5.1% | -3.9% | -4.7% | -17.6% | 5.8% | 1.8% | -0.4% | -4.7% |
| Net Profit Margin | -9.3% | -9.3% | -2.8% | -6.8% | -4.1% | -5.7% | -17.9% | -0.9% | 1.5% | -0.6% | -4.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -14.6% | -14.6% | -5.7% | -11.4% | -8.5% | -8.7% | -25.6% | -1.3% | 3.1% | -1.4% | -10.2% |
| ROA | -8.8% | -8.8% | -3.1% | -6.2% | -5.1% | -5.8% | -18.4% | -1.0% | 2.1% | -1.0% | -6.9% |
| ROIC | -10.5% | -10.5% | -2.4% | -5.5% | -5.8% | -5.6% | -23.9% | 12.2% | 4.5% | -1.0% | -10.2% |
| ROCE | -11.0% | -11.0% | -2.7% | -6.4% | -6.6% | -6.6% | -23.5% | 8.8% | 3.6% | -0.9% | -9.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.28 | 0.28 | 0.33 | 0.40 | 0.30 | 0.13 | 0.18 | 0.00 | 0.00 | 0.00 | 0.01 |
| Debt / EBITDA | — | — | 5.75 | 36.12 | 15.08 | 10.47 | — | 0.00 | 0.00 | 0.14 | — |
| Net Debt / Equity | — | 0.01 | 0.00 | 0.23 | 0.09 | -0.08 | 0.01 | -0.49 | -0.40 | -0.39 | -0.30 |
| Net Debt / EBITDA | — | — | 0.07 | 20.57 | 4.36 | -6.49 | — | -5.76 | -7.68 | -19.50 | — |
| Debt / FCF | — | 0.16 | 0.02 | — | — | -1.06 | — | — | -34.16 | -4.36 | — |
| Interest Coverage | -21.72 | -21.72 | -3.12 | -4.54 | -3.89 | -11.22 | -18.45 | — | 72.78 | 2.74 | -58.34 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.54 | 2.54 | 2.95 | 2.08 | 2.53 | 1.89 | 2.19 | 3.33 | 2.39 | 2.16 | 2.19 |
| Quick Ratio | 1.68 | 1.68 | 2.03 | 1.01 | 1.47 | 1.23 | 1.31 | 2.41 | 1.52 | 1.38 | 1.33 |
| Cash Ratio | 0.66 | 0.66 | 0.87 | 0.29 | 0.48 | 0.43 | 0.49 | 1.59 | 0.98 | 0.90 | 0.78 |
| Asset Turnover | — | 0.99 | 1.18 | 0.87 | 0.94 | 0.98 | 0.88 | 0.96 | 1.35 | 1.48 | 1.46 |
| Inventory Turnover | 2.70 | 2.70 | 3.46 | 1.51 | 1.97 | 2.55 | 2.39 | 1.96 | 2.40 | 3.04 | 3.22 |
| Days Sales Outstanding | — | 83.63 | 74.40 | 85.42 | 83.66 | 79.02 | 71.61 | 67.82 | 39.18 | 31.89 | 31.77 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | 1.3% | — | — |
| FCF Yield | 3.1% | 6.1% | 12.9% | — | — | 2.4% | — | — | 0.5% | 4.3% | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $39M | $37M | $36M | $33M | $29M | $25M | $22M | $19M | $17M | $15M |
Persistent negative operating margins
According to current market data, Lantronix trades at a P/S multiple of 1.79, which appears to discount the company's lack of GAAP profitability compared to more consistently profitable peers like Digi International, suggesting investors are pricing in significant execution risk regarding the transition to a recurring revenue model.
The forward P/E of 36.38 implies that the market expects a substantial recovery in earnings, yet this valuation remains speculative given the recent 23% revenue contraction. Investors should monitor whether the current P/S multiple represents a value opportunity or a value trap, as the lack of positive EBITDA makes traditional EV/EBITDA valuation metrics largely inapplicable.
Based on reported financial statements, Lantronix's ROIC has remained consistently negative, reaching -0.9% in 2026Q3, which indicates that the company is currently failing to generate returns on invested capital that exceed its cost of capital, a trend that warrants further investigation into the efficacy of recent acquisitions.
The persistent negative ROIC suggests that the capital deployed into high-compute IoT and edge AI initiatives has not yet reached the necessary scale to drive value creation. This trend highlights a fundamental struggle to convert R&D and acquisition-related investments into profitable growth, potentially signaling that the company's 'design-in' moat is not yet translating into superior economic returns.
As reported in recent filings, Lantronix's cash conversion cycle reached 142 days in 2026Q3, a figure that reflects significant inefficiencies in inventory management and suggests that the company's reliance on specialized hardware components is creating a drag on its overall liquidity and operational agility.
The elevated days inventory outstanding (DIO) of 136 days indicates a potential risk of obsolescence for specialized IoT modules in a contracting revenue environment. This inefficiency in working capital management forces the company to tie up cash in inventory, which exacerbates the pressure on its already strained operating cash flow.
Based on the latest quarterly data, Lantronix maintains a current ratio of 2.74, providing a sufficient liquidity buffer to navigate the current period of revenue contraction, although the company's reliance on cash reserves to fund ongoing operations suggests that this position may deteriorate if profitability remains elusive.
The quick ratio of 1.80 confirms that the company holds a meaningful portion of its assets in liquid form, which is critical given the volatility of its project-based revenue streams. While the balance sheet appears healthy, the lack of consistent cash generation means that the company's liquidity is effectively a finite resource that is being consumed by persistent operating losses.
Investors frequently misapply top-line revenue growth as a primary indicator of health for Lantronix, which obscures the underlying reality that project-based hardware revenue is often low-margin and volatile, failing to capture the true progress of the company's strategic pivot toward higher-margin, recurring SaaS-based software offerings.
Focusing on headline revenue growth ignores the quality of the earnings mix, as hardware shipments do not necessarily correlate with long-term customer stickiness. A more appropriate metric for this business model would be the 'SaaS Attach Rate' or 'Annual Recurring Revenue' (ARR) growth, which would better reflect the success of the company's transition away from transactional hardware sales.
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Quick answers to the most common questions about buying LTRX stock.
Lantronix, Inc.'s current P/E ratio is -18.9x. The historical average is 80.0x.
Lantronix, Inc.'s return on equity (ROE) is -14.6%. The historical average is -16.8%.
Based on historical data, Lantronix, Inc. is trading at a P/E of -18.9x. Compare with industry peers and growth rates for a complete picture.
Lantronix, Inc. has 42.1% gross margin and -8.9% operating margin.