5. Lantronix, Inc. (NASDAQ:LTRX)
Share Price: $3.75
Forward P/E: 8.16
Earnings Growth: 17.50%
Number of Hedge Fund Holders: 13
Analyst Upside: 86.67%
Lantronix, Inc. (NASDAQ:LTRX) is an international IoT connectivity company that enables connectivity and computing across various industries, such as smart cities, automotive, and enterprise sectors.
They create small, integrated devices (like Compute System-on-Modules) that can be embedded into other products to add connectivity and processing power. It also provides systems that function as routers, switches, or gateways. These systems help manage data traffic and connect various devices efficiently.
The technologies of Lantronix, Inc. (NASDAQ:LTRX) are utilized in high-growth industries including smart cities, Automotive, and Enterprise. The company recently joined Qualcomm Automotive Solutions Ecosystem Program, an initiative aimed at accelerating innovation in the automotive sector. The partnership will allow the company to leverage Qualcomm’s resources and expertise to develop customized automotive solutions. Management has announced plans to showcase its Percepxion Edge AI Solution at an upcoming Qualcomm event, highlighting its integration with the Qualcomm AI Hub. The partnership highlights the prospects of Lantronix, Inc. (NASDAQ:LTRX) being used in high-growth industries such as autonomous driving vehicles.
Moreover, its FQ4 of 2024 was a record quarter in terms of revenue. The company generated $49.1 million, up 41% year-over-year. The full year 2024 was also a success as the company achieved a revenue of $160.3 million, a 22% growth year-over-year.
Revenue was not the only indicator that went up, annual net income of the company also improved by 22% from the previous year to reach $160.3 Million. This indicates a profitable business model for Lantronix, Inc. (NASDAQ:LTRX) investors.
180 Degree Capital Corp stated the following regarding Lantronix, Inc. (NASDAQ:LTRX) in its Q2 2024 investor letter:
“More recently, we have been working behind the scenes with the management and board of Lantronix, Inc. (NASDAQ:LTRX) on ways to solidify the strong foundation of the company and set it up for success and significant value creation for stockholders in the future. We believe LTRX’s new CEO, Saleel Awsare brings an interesting and successful background to LTRX. What we believe he needed to be in the best position for success were board members who have experience navigating the challenges unique to microcapitalization companies. Following multiple discussions, we introduced Saleel and his board to Narbeh Derhacobian, the former Chief Executive Officer and founder of our former portfolio company, Adesto Technologies, Inc., and one of Adesto’s board members, Kevin Palatnik, who has significant experience as a CFO at multiple related businesses. We were pleased to see that LTRX’s board saw the same value that we do in these individuals, in terms of helping Saleel and his team to have the best opportunities to achieve multiple catalysts that could lead to material increases in value for LTRX and its stockholders.”
