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1. Company Snapshot

1.a. Company Description

Littelfuse, Inc.manufactures and sells circuit protection, power control, and sensing products in the Asia-Pacific, the Americas, and Europe.The company's 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, power supplies, data centers, telecommunications, medical devices, alternative energy, building and home automation, appliances, and mobile electronics markets.Its Transportation segment provides blade, resettable, and high-current and high-voltage fuses, as well as battery cable protectors for hybrid and electric vehicles; fuses, switches, relays, circuit breakers, and power distribution modules for the commercial vehicles; and sensor products.This segment serves original equipment manufacturers, Tier-I suppliers, and parts distributors in the passenger car, heavy duty truck, off-road vehicles, material handling, agricultural, construction, and other commercial vehicle end markets.


The company's 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.

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1.b. Last Insights on LFUS

Littelfuse's recent performance was driven by strong Q2 earnings, with Non-GAAP EPS of $2.85, beating estimates. Revenue reached $613.4 million, fueled by solid growth and operational execution. The company appointed Dr. Karim Hamed as Senior Vice President and General Manager, Semiconductor Business. However, concerns about capital efficiency arose due to a decline in return on invested capital to 3.4%. The company increased its dividend by 7.1%, but the forward yield remains modest at 1.2% (Source: Bloomberg).

1.c. Company Highlights

2. Littelfuse's Strong Q3 Earnings Driven by Electronics Segment

Littelfuse reported a robust third quarter with revenue growth of 10% year-over-year, reaching $625 million, and adjusted diluted earnings per share of $2.95, exceeding the high end of their guidance range. The Electronics segment was the primary driver of this growth, with sales up 18% year-over-year. The company's adjusted EBITDA margin finished at 21.5%, and operating cash flow was $147 million, with free cash flow at $131 million. The actual EPS of $2.95 was higher than the estimated $2.75, indicating a strong operational performance.

Publication Date: Nov -03

📋 Highlights
  • Revenue Growth:: Q3 revenue reached $625M, up 10% YoY (7% organic), driven by 18% YoY growth in the Electronics segment.
  • Basler Acquisition:: $350M deal valued at 13.5x 2025 EBITDA, expected to close by Q4 and add EPS accretion by 2026.
  • Margin and Profitability:: Adjusted EBITDA margin hit 21.5%, with $2.95 adjusted diluted EPS (9% growth) surpassing guidance.
  • Data Center Momentum:: Design wins doubled YoY, contributing to 12% organic growth in Electronics and becoming a key growth driver.
  • Free Cash Flow:: Generated $131M in free cash flow, reflecting strong operational performance despite mixed Transportation segment results.

Segment Performance

The Electronics Products segment was the standout performer, with 18% year-over-year growth, driven by significant demand from the data center sector. The company has made progress in this area, with design wins more than doubling year-to-date. The Industrial Products segment also showed solid growth, driven by energy storage, renewables, and data center infrastructure, although residential HVAC demand was softer. The Transportation Products segment was flat year-over-year, with passenger vehicle fuses up 4% but sensors down 18% organically.

Acquisition and Strategic Initiatives

Littelfuse announced the acquisition of Basler Electric for approximately $350 million, expected to close by the end of the fourth quarter. The acquisition is valued at a 13.5x multiple of forecasted full-year 2025 EBITDA and is expected to be accretive to adjusted earnings per share in 2026. The company is also realigning its sales force to better represent customers, not products, which is expected to bring significant benefits, including better alignment with market leaders.

Outlook and Valuation

For the fourth quarter, Littelfuse expects revenue in the range of $570 million to $590 million, assuming 5% organic growth at the midpoint, and EPS to be in the range of $2.40 to $2.60. Analysts estimate next year's revenue growth at 7.9%. With a current P/E Ratio of 50.83 and EV/EBITDA of 20.61, the market is pricing in significant growth expectations. The company's ROIC of 3.49% and ROE of 4.67% indicate room for improvement in capital allocation. The Free Cash Flow Yield of 6.32% is attractive, suggesting that the stock may be undervalued relative to its cash generation capabilities.

Tariffs and Manufacturing

Littelfuse sees a neutral price impact from tariffs in Q4, and market dynamics have stabilized. The company has a diversified manufacturing footprint, with efforts to manufacture close to customers, which should help mitigate any potential risks associated with tariffs and supply chain disruptions.

3. NewsRoom

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SVP at Littelfuse Sells 2,333 Shares for a Modest Profit. Should You Stay Away From the Stock?

Dec -02

Source: fool.com

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Littelfuse, Inc. (NASDAQ:LFUS) Given Consensus Rating of “Moderate Buy” by Analysts

Nov -19

Source: defenseworld.net

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Teacher Retirement System of Texas Has $1.29 Million Stock Position in Littelfuse, Inc. $LFUS

Nov -06

Source: defenseworld.net

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Arkadios Wealth Advisors Buys New Holdings in Littelfuse, Inc. $LFUS

Nov -06

Source: defenseworld.net

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Bessemer Group Inc. Boosts Stock Holdings in Littelfuse, Inc. $LFUS

Nov -03

Source: defenseworld.net

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Littelfuse, Inc. (LFUS) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

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Littelfuse (LFUS) Q3 Earnings and Revenues Surpass Estimates

Oct -29

Source: zacks.com

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Littelfuse Reports Third Quarter Results for 2025

Oct -29

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.69%)

6. Segments

Electronics

Expected Growth: 4.5%

Littelfuse's Electronics segment growth of 4.5% is driven by increasing demand for electric vehicles, rising adoption of IoT devices, and growing need for circuit protection in industrial automation. Additionally, the company's strategic acquisitions and expansion into emerging markets have contributed to its growth momentum.

Transportation

Expected Growth: 4.8%

Littelfuse's Transportation segment growth of 4.8% is driven by increasing demand for electric vehicles, growth in global automotive production, and rising adoption of advanced safety features. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth momentum.

Industrial

Expected Growth: 5.2%

Littelfuse's Industrial segment growth of 5.2% is driven by increasing demand for electrical and electronic components in industrial automation, renewable energy, and electric vehicle charging infrastructure. Additionally, the company's strategic acquisitions and expansion into emerging markets have contributed to its growth.

7. Detailed Products

Fuses

Electrical fuses designed to protect electrical circuits from overcurrent conditions

Fuse Holders and Accessories

Components designed to hold and connect fuses in electrical circuits

Circuit Protection Devices

Devices designed to protect electrical circuits from overvoltage, overcurrent, and other fault conditions

Power Semiconductor Devices

Devices designed to control and convert electrical power in a wide range of applications

Sensor Products

Sensors designed to detect and measure physical parameters such as pressure, temperature, and position

Electromagnetic Compatibility (EMC) Components

Components designed to filter and suppress electromagnetic interference in electrical circuits

Thermal Management Products

Components designed to manage heat generation and dissipation in electrical circuits

8. Littelfuse, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Littelfuse, Inc. is medium due to the availability of alternative products from competitors, but the company's strong brand reputation and quality products mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's diverse customer base and lack of concentration, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on a few key suppliers, but the company's large scale of operations and long-term contracts mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.29%
Debt Cost 4.79%
Equity Weight 73.71%
Equity Cost 10.56%
WACC 9.04%
Leverage 35.66%

11. Quality Control: Littelfuse, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 4.2/10

Value: 2.7

Growth: 4.3

Quality: 6.1

Yield: 1.0

Momentum: 5.0

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

259.55$

Current Price

259.55$

Potential

-0.00%

Expected Cash-Flows