LTRX Rule Check
Lantronix Inc against the rules: which it passes, where it lags and what to look at next.
- Price
- $6.25
- Market Cap
- $293 M
- Next Earnings
- In 13 Days
Flags First
- Market CapFail
- ProfitabilityFail
- DilutionFail
- LiquidityCaution
- Quarterly Sales GrowthCaution
- +2 More
Fit ScoreScreened Out
Hits at least one elimination rule; under this approach it stays off the research list whatever its score.
59% of Rules Measured
Company Analysis
- No report for this focus yet.
Claude writes a second opinion independent of the site's own analysis; while the market is open it reads the live price.
Categories
Elimination · FailMarket Cap
Rule by Rule
Elimination
3 of 3 Measured- Market CapAt least $300M$293 MFail
- Share PriceAt least $5$6.25Pass
- Liquidity500K shares and $10M traded per day on average1.05 M SharesCaution
Growth
1 of 4 Measured- Quarterly EPS GrowthAt least 10% year over year—No Data
- Quarterly Sales GrowthAt least 10% year over year+ 8.0%Caution
- Three-Year EPS GrowthAt least 10% annualized—No Data
- Source of GrowthSales should grow at least 5% while profit grows+ 8.0%No Data
Profitability
2 of 2 Measured- ProfitabilityPositive trailing twelve-month EPS− $0.11Fail
- MarginsGross, operating and net margins positive−3.4%Caution
Financial Health
3 of 3 Measured- Current RatioAt least 1 — current assets cover current liabilities3.66Pass
- Debt / EquityAt most 1; above 2 fails0.00Pass
- Cash RunwayPositive free cash flow or at least two years of cash—Pass
Price Strength
2 of 4 Measured- Versus the MarketSix-month return not behind the S&P 500—No Data
- Versus Its SectorSix-month return not behind the sector fund—No Data
- Distance from 52-Week LowAt least 30% above the low41.9%Pass
- Distance from 52-Week HighAt most 25% below the high28.6%Caution
Ownership
2 of 3 Measured- DilutionShare count up at most 2% a year+ 19.3%Fail
- Famous Fund InterestAmong tracked funds, adders not outnumbered by trimmers—No Data
- Insider ActivityNo heavy net selling over six months+8Pass
Catalyst Signals
0 of 3 Measured- Analyst TrendShare of buy ratings rising over three months+ 0.8 PtsNo Data
- Upside to TargetAt least 10% to the average target—No Data
- Quality of the Last ReportEarnings analysis score of at least 60—No Data
In each lane the line is the rule's threshold, the dot is the stock's value and the bar between them is the gap. Market cap, price and volume use a log scale: one step is ten times. A value beyond the end sits at the edge as an open dot.
Rule Bench
- 6Passed
- 4Caution
- 3Failed
- 9No Data
Each lamp is a rule: green passed, amber caution, red failed, grey no data. Tap a station to see its rules.
Weaknesses
- Market cap of $293 M, below the $300M floor; hits the elimination rule.
- Trailing EPS of − $0.11; the company is losing money.
- Share count up + 19.3% in a year; existing holders are being diluted.
- Thin trading: about 1.05 M shares a day.
- Sales changed + 8.0% year over year last quarter, below the 10% floor.
- At least one margin is negative; operating margin −3.4%.
- The price is 28.6% below its 52-week high.
Strengths
- Share price of $6.25, outside penny-stock territory.
- Current ratio of 3.66; short-term obligations are well covered.
- Debt to equity of 0.00; a light debt load.
- Free cash flow is positive; the company funds itself.
- The price is 41.9% above its 52-week low.
- Net insider buying over the last six months.
Next Steps
- Trading volume is low. Expect wider spreads and price impact on larger orders.
- The share count is rising. Check how much growth stays per share: buybacks or new issuance?
- Earnings in 13 days. The result can move the price sharply; account for that risk.
- Write down the concrete reason for growth: a new product, a contract, management or an industry shift. If you cannot say it in one sentence, waiting may be the better choice.
What You Should Check
- Is there a concrete reason for growth, and can you say it in one sentence?
- Where does the valuation sit against sector peers?
- Does the chart confirm the trend, or are you fighting a falling price?
- Is the position size within the loss you could bear if you are wrong?
The score averages the measurable rules with category weights: growth 30, price strength 20, profitability 15, health 15, ownership 10, catalysts 10. A pass counts in full, a caution half; rules we cannot measure stay out. A stock that hits an elimination rule is capped at 45. Growth above 300% counts as a base effect and is marked as a caution.
Sources: prices from Alpaca, fundamentals and analyst ratings from Finnhub, share counts from SEC filings, famous funds from 13F reports, targets and report scores from the site's own analyses.
This is not investment advice; it is a research tool that measures fit with the rules.
Alpaca · SIPUpdated 15:11 NY15 Minutes DelayedMay Be Out Of Date
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