Shares of Lattice Semiconductor (LSCC, Financial) rose by 5.14% during the morning session, buoyed by a broader surge in semiconductor stocks. This uptick comes on the heels of Micron reporting strong fourth-quarter earnings, which exceeded expectations across revenue, operating profit, and EPS.
Lattice Semiconductor is currently trading at $54.35. The company's market capitalization stands at $7.49 billion, and it has a Price-to-Earnings (PE) ratio of 39.96. Despite recent volatility, including a 34.91% decline over the past 52 weeks, LSCC has made a notable 14.36% gain over the last four weeks.
From a valuation perspective, Lattice Semiconductor holds a GF Value of $63.95, which makes it modestly undervalued at its current price. The company's financial health is sound, indicated by its high Altman Z-Score of 35.25 and a strong Beneish M-Score of -2.29, suggesting no signs of financial manipulation.
On the profitability front, LSCC is doing well with an expanding operating margin of 23.18%. The company's EBITDA margin is 30.11%, and it has a comfortable interest coverage ratio, showing stability and enough cash to cover its debt.
Lattice Semiconductor has three medium warning signs: declining revenue per share, a tax rate that appears unsustainably low, and recent insider selling activity. However, these are offset by five good signs, including strong financial strength and a robust operating margin.
Despite these mixed signals, LSCC's solid fundamentals and favorable GF Score suggest potential for future growth, especially with a projected target price of $60.79. Investors should weigh these factors carefully before making any decisions.
