LUMENTUM HOLDINGS INC(NASDAQ:LITE) stock Fundamental Analysis

Fundamental Rating

Overall LITE gets a fundamental rating of 3 out of 10. We evaluated LITE against 49 industry peers in the Communications Equipment industry. While LITE seems to be doing ok healthwise, there are quite some concerns on its profitability. LITE is valied quite expensively at the moment, while it does show a decent growth rate.

Quickly go to:

1. Profitability

1.1 Basic Checks

In the past year LITE was profitable.

LITE had a positive operating cash flow in the past year.

The reported net income has been mixed in the past 5 years: LITE reported negative net income in multiple years.

In the past 5 years LITE always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of -13.18%, LITE is doing worse than 71.43% of the companies in the same industry.

LITE's Return On Equity of -59.93% is on the low side compared to the rest of the industry. LITE is outperformed by 69.39% of its industry peers.

		Industry Rank	Sector Rank
ROA	-13.18%
ROE	-59.93%
ROIC	N/A

ROA(3y)-3.99%

ROA(5y)0.67%

ROE(3y)-18.73%

ROE(5y)-5.66%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

LITE's Gross Margin of 20.39% is on the low side compared to the rest of the industry. LITE is outperformed by 87.76% of its industry peers.

In the last couple of years the Gross Margin of LITE has declined.

LITE does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	20.39%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-25.6%

GM growth 5Y-7.42%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

LITE does not have a ROIC to compare to the WACC, probably because it is not profitable.

The number of shares outstanding for LITE has been increased compared to 1 year ago.

Compared to 5 years ago, LITE has less shares outstanding

LITE has a worse debt/assets ratio than last year.

2.2 Solvency

LITE has an Altman-Z score of 0.95. This is a bad value and indicates that LITE is not financially healthy and even has some risk of bankruptcy.

LITE's Altman-Z score of 0.95 is in line compared to the rest of the industry. LITE outperforms 51.02% of its industry peers.

A Debt/Equity ratio of 2.94 is on the high side and indicates that LITE has dependencies on debt financing.

LITE has a Debt to Equity ratio of 2.94. This is amonst the worse of the industry: LITE underperforms 85.71% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.94
Debt/FCF	N/A
Altman-Z	0.95

ROIC/WACCN/A

WACC7.68%

2.3 Liquidity

A Current Ratio of 4.76 indicates that LITE has no problem at all paying its short term obligations.

The Current ratio of LITE (4.76) is better than 89.80% of its industry peers.

A Quick Ratio of 3.60 indicates that LITE has no problem at all paying its short term obligations.

LITE has a Quick ratio of 3.60. This is amongst the best in the industry. LITE outperforms 87.76% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	4.76
Quick Ratio	3.6

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The earnings per share for LITE have decreased strongly by -52.74% in the last year.

LITE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.97% yearly.

LITE shows a decrease in Revenue. In the last year, the revenue decreased by -1.72%.

LITE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.78% yearly.

EPS 1Y (TTM)-52.74%

EPS 3Y-45.55%

EPS 5Y-24.97%

EPS Q2Q%31.25%

Revenue 1Y (TTM)-1.72%

Revenue growth 3Y-7.95%

Revenue growth 5Y-2.78%

Sales Q2Q%9.65%

3.2 Future

The Earnings Per Share is expected to grow by 72.00% on average over the next years. This is a very strong growth

Based on estimates for the next years, LITE will show a very strong growth in Revenue. The Revenue will grow by 20.85% on average per year.

EPS Next Y73.69%

EPS Next 2Y93.87%

EPS Next 3Y72%

EPS Next 5YN/A

Revenue Next Year19.14%

Revenue Next 2Y23.93%

Revenue Next 3Y20.85%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

LITE is valuated quite expensively with a Price/Earnings ratio of 66.17.

LITE's Price/Earnings is on the same level as the industry average.

Compared to an average S&P500 Price/Earnings ratio of 28.22, LITE is valued quite expensively.

Based on the Price/Forward Earnings ratio of 16.40, the valuation of LITE can be described as correct.

Based on the Price/Forward Earnings ratio, LITE is valued a bit cheaper than 63.27% of the companies in the same industry.

When comparing the Price/Forward Earnings ratio of LITE to the average of the S&P500 Index (20.86), we can say LITE is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	66.17
Fwd PE	16.4

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

LITE's earnings are expected to grow with 72.00% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.9

PEG (5Y)N/A

EPS Next 2Y93.87%

EPS Next 3Y72%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

No dividends for LITE!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

More info and screens

Find the best dividend stocks

Show peers with best dividend

LUMENTUM HOLDINGS INC

NASDAQ:LITE (5/2/2025, 8:06:59 PM)

After market: 62.9 +0.04 (+0.06%)

62.86

+1.34 (+2.18%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupTechnology Hardware & Equipment

GICS IndustryCommunications Equipment

Earnings (Last)02-06 2025-02-06/amc

Earnings (Next)05-06 2025-05-06/amc

Inst Owners108.34%

Inst Owner Change0.05%

Ins Owners0.58%

Ins Owner Change0.37%

Market Cap4.35B

Analysts79.13

Price Target92.21 (46.69%)

Short Float %15.11%

Short Ratio3.66

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly DividendN/A

Dividend Growth(5Y)N/A

DP0%

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)28.5%

Min EPS beat(2)15.02%

Max EPS beat(2)41.98%

EPS beat(4)4

Avg EPS beat(4)37.04%

Min EPS beat(4)9.1%

Max EPS beat(4)82.06%

EPS beat(8)7

Avg EPS beat(8)21.93%

EPS beat(12)11

Avg EPS beat(12)17.26%

EPS beat(16)13

Avg EPS beat(16)14.04%

Revenue beat(2)2

Avg Revenue beat(2)1.4%

Min Revenue beat(2)1.17%

Max Revenue beat(2)1.64%

Revenue beat(4)3

Avg Revenue beat(4)0.41%

Min Revenue beat(4)-1.58%

Max Revenue beat(4)1.64%

Revenue beat(8)3

Avg Revenue beat(8)-0.29%

Revenue beat(12)3

Avg Revenue beat(12)-0.72%

Revenue beat(16)4

Avg Revenue beat(16)-0.95%

PT rev (1m)-8.69%

PT rev (3m)0.03%

EPS NQ rev (1m)0%

EPS NQ rev (3m)18.6%

EPS NY rev (1m)-0.27%

EPS NY rev (3m)10.23%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)1.5%

Revenue NY rev (1m)0%

Revenue NY rev (3m)1.36%

Valuation

		Industry Rank	Sector Rank
PE	66.17
Fwd PE	16.4
P/S	3.08
P/FCF	N/A
P/OCF	47.08
P/B	4.99
P/tB	N/A
EV/EBITDA	N/A

EPS(TTM)0.95

EY1.51%

EPS(NY)3.83

Fwd EY6.1%

FCF(TTM)-0.97

FCFYN/A

OCF(TTM)1.34

OCFY2.12%

SpS20.43

BVpS12.61

TBVpS-10.46

PEG (NY)0.9

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-13.18%
ROE	-59.93%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	N/A
GM	20.39%
FCFM	N/A

ROA(3y)-3.99%

ROA(5y)0.67%

ROE(3y)-18.73%

ROE(5y)-5.66%

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-25.6%

GM growth 5Y-7.42%

F-Score4

Asset Turnover0.36

Health

		Industry Rank	Sector Rank
Debt/Equity	2.94
Debt/FCF	N/A
Debt/EBITDA	N/A
Cap/Depr	52.5%
Cap/Sales	11.28%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	4.76
Quick Ratio	3.6
Altman-Z	0.95

F-Score4

WACC7.68%

ROIC/WACCN/A

Cap/Depr(3y)50.68%

Cap/Depr(5y)50.49%

Cap/Sales(3y)7.56%

Cap/Sales(5y)6.7%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-52.74%

EPS 3Y-45.55%

EPS 5Y-24.97%

EPS Q2Q%31.25%

EPS Next Y73.69%

EPS Next 2Y93.87%

EPS Next 3Y72%

EPS Next 5YN/A

Revenue 1Y (TTM)-1.72%

Revenue growth 3Y-7.95%

Revenue growth 5Y-2.78%

Sales Q2Q%9.65%

Revenue Next Year19.14%

Revenue Next 2Y23.93%

Revenue Next 3Y20.85%

Revenue Next 5YN/A

EBIT growth 1Y-16.27%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year592.04%

EBIT Next 3Y155.45%

EBIT Next 5YN/A

FCF growth 1Y-134.13%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y-69.86%

OCF growth 3Y-67.78%

OCF growth 5Y-40.46%

LUMENTUM HOLDINGS INC (LITE) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

More info and screens