Littelfuse (NASDAQ: LFUS)
QVI Research Report | Updated Coverage | November 2023
Summary
QVI Real-Time Portfolios have achieved alpha for 14 years by focusing on a company’s current wealth and stock’s present value.
Littelfuse is a small-cap electronic component manufacturer that generates sustainable profit and cash flow by piling ’em high and selling ’em (relatively) cheap.
The company’s current wealth analysis uncovers a bullish value proposition countered by mixed returns on management but solid coverage of long-term debt and current liabilities.
The stock price’s present value suggests shares have inverted to fair value.
Thus, QVI changes its coverage of Littelfuse in the Expanded Portfolio in this updated research report.
When referencing this report, premium (paying) subscribers can access their Quality Value Investing (QVI) Glossary of Investing Terms and Metric Targets. Unless noted, all data presented is sourced from Seeking Alpha Premium as of the market close on November 21, 2023, and intended for illustration only.
The stock picks in the QVI Real-Time Portfolios have achieved alpha for 14 years by focusing research and analysis solely on a company’s current wealth and its share price’s present value. In other words, just the facts without unreliable predictive analysis typical of the buy-side or the business modeling overkill of Wall Street analysts.
In this updated QVI Research Report, we’ll look at the Expanded Stock Picks Real-Time Portfolio technology sector holding Littelfuse, Inc. to see if it continues to meet Quality Value Investing’s active portfolio inclusion criteria based on our checklist analysis of the business’s current wealth and its stock’s present value.
Littelfuse: Company Current Wealth
To uncover the current wealth of the company, QVI defines the value proposition, measures select returns on management, and assesses enterprise downside risks.
Value Proposition
QVI Research Report’s value proposition section provides a brief synopsis of the company’s business model, major-exchange listing, stock symbol, market capitalization, and dividend-paying status. In addition, it defines the competitive advantages of a company’s products or services to its customers compared to the industry, including the stock’s historical performance vs. the sector and market.
Littelfuse Incorporated LFUS 0.00%↑ is a dividend-paying small-cap stock in the electronic components industry of the information technology sector. LFUS was added to the QVI Portfolios on October 19, 2022, at a split and dividend-adjusted $202.80 a share.
Littelfuse, Inc. manufactures and sells circuit protection, power control, and sensing products in the Asia-Pacific, the Americas, and Europe. The company operates through Electronic, Transportation, and Industrial segments.
The Electronics segment offers fuses and fuse accessories, positive temperature coefficient resettable fuses, polymer electrostatic discharge suppressors, varistors, reed switch based magnetic sensing products, and gas discharge tubes; and discrete transient voltage suppressor (TVS) diodes, TVS diode arrays, protection and switching thyristors, metal-oxide-semiconductor field-effect transistors and diodes, and insulated gate bipolar transistors. This segment serves industrial motor drives and power conversion, automotive electronics, electric vehicle and related infrastructure, aerospace, power supplies, data centers, telecommunications, medical devices, alternative energy, building and home automation, appliances, and mobile electronics markets.
The Transportation segment provides blade, resettable, and high-current and high-voltage fuses, as well as battery cable protectors; fuses, switches, relays, circuit breakers, and power distribution modules for the commercial vehicles; and sensor products. This segment serves heavy-duty truck, construction, agriculture, material handling and marine.
The Industrial segment offers industrial fuses, protection relays, contactors, transformers, and temperature sensors for use in renewable energy and energy storage systems, electric vehicle infrastructure, HVAC systems, industrial safety, non-residential construction, MRO, mining, and industrial automation. It sells its products through distributors, direct sales force, and manufacturers’ representatives.
Littelfuse, Inc. was founded in 1927 and is headquartered in Chicago, Illinois, USA.
QVI’s value proposition elevator pitch for Littelfuse:
Littelfuse is a near-century-old electronic component manufacturer that generates sustainable profit and cash flow by piling ’em high and selling ’em (relatively) cheap. Unlike the consumer, energy, materials, and industrials sectors, Littelfuse operates with a lesser threat of low-cost producer commoditization with the network effect and switching costs of the technology space.
Due Diligence Resources
For a more in-depth analysis of the all-important value proposition, visit Littelfuse’s investor relations webpage and its most recent Form 10-K Annual Report submitted to the US Securities and Exchange Commission or SEC.
Performance vs. Sector and Market
The chart below illustrates Littelfuse’s performance against the information technology Select Sector SPDR® Fund ETF (NYSE: XLK) and the SPDR® S&P 500 ETF Trust (NYSE: SPY) since being added to the QVI Portfolios on October 19, 2022. Despite outperforming or keeping pace ten months from our initiation, LFUS has underperformed the sector and broader market overall.
QVI’s value proposition rating for Littelfuse: Bullish.
Next, we’ll look at the company’s returns on management, enterprise downsize risks, and the share price’s present value.