Entering text into the input field will update the search result below

Here's How Littelfuse Performed In FY 2014

Feb. 05, 2015 3:52 PM ETLittelfuse, Inc. (LFUS)
William Bias profile picture
William Bias


  • Adverse foreign currency translations served as a drag on Littelfuse’s reported growth.
  • An expanding U.S. Economy offset by the mining sector contributed to Littelfuse’s results.
  • Littelfuse sports a rock solid balance sheet with plenty of cash and a small amount of long-term debt.

On Feb. 4, circuit protection company Littelfuse (NASDAQ: NASDAQ:LFUS) came out with its FY 2014 earnings announcement. The company had an excellent year in my opinion. However, adverse foreign currency translations caused the company to lose the Wall Street expectations game on the EPS front sending the shares down roughly 8% the day of the announcement. Let's take a look to see how the company is doing.

Revenue and profitability expanded

In 2014, Littelfuse saw its revenue, net income and free cash flow expand 12%, 12% and 47% respectively year-over-year. An expanding U.S. economy contributed, at least in part, to organic growth of 5%. It's always good to see some growth coming from increased demand for a company's products. However, the company also purchased a huge chunk of its growth through acquisitions which accounted for 60% of Littelfuse's overall growth in revenue. Weaknesses in the mining market within the electrical segment served as a drag on revenue growth. An 8% reduction in capital expenditures contributed to the free cash flow expansion.

Excellent balance sheet

Littelfuse possesses an excellent balance sheet. The company ended the year with approximately $302 million in cash and short-term investments equating to an incredible 42% of stockholder's equity. I like to see companies harbor cash and liquid investments equating to 20% or more of stockholder's equity to get them through rough times.

The company is also light on long-term debt. This represents a good thing because long-term debt creates interest which chokes out profitability and cash flow. I like to see long-term debt amounting to 50% or less of stockholder's equity. At the end of last year Littelfuse's long-term debt equated to a miniscule 14.7% of stockholder's equity. In 2014, operating income exceeded interest expense by a conservative 27 times earnings. The rule of thumb for safety lies at five times or more.

This article was written by

William Bias profile picture
I have been analyzing stocks since 1992 and a freelance writer since 2012.

Analyst’s Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You


Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.