Lattice Semiconductor Corporation Common Stock (LSCC)

FairStock Score: 25/100 — RISKY

Key Financials

Strengths

• Generates $121 million in annual free cash flow (0.8% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.06, providing financial flexibility
• Altman Z-Score of 57.7 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 24.2% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($2) with negative 7547% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration

AI Analysis

Lattice Semiconductor Corporation Common Stock is a mid-cap technology company valued at $16.0 billion. Revenue stands at $523 million, though the company is currently unprofitable. From a quality standpoint, Lattice shows Altman Z-Score of 57.7 confirms fortress-level solvency and modest 0% ROE. On valuation, the stock is commanding a steep 5900.5x multiple, with trades far above its Graham Number ($2) with no margin of safety. Growth dynamics show revenue growing at 24.2% and profit growth of -146.3%. Our composite FairStock Score of 25/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

Lattice's 24% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $121 million in annual free cash flow (0.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 5901x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer