LSCCLattice Semiconductor Corporation
Is the business good?
The checks split: earnings fully cash-backed (6.3×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 3% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is LSCC?
Lattice Semiconductor Corporation earns 6.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.8 points below what the capital costs: growth destroys value
- Operating margin
- 7.4%
Operating margin · Semiconductors median 7.5% · 12 months to Q2 2026
- Cash conversion
- 6.25×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.9%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 13% |
| FY2021 | 20% |
| FY2022 | 28% |
| FY2023 | 29% |
| FY2024 | 6.8% |
| FY2025 | 2.1% |
Details›
- Gross margin12 months to Q2 2026
- 69%
- Operating margin12 months to Q2 2026
- 7.4%
- Net margin12 months to Q2 2026
- 5.6%
- Free cash flow margin
- 31%
- R&D as % of revenue
- 34%
- Revenue, trailing twelve months
- $651M
- Free cash flow, trailing twelve months
- $199M
- Net income, trailing twelve months
- $36M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.