LUMENTUM HOLDINGS INC (LITE) Stock Fundamental Analysis
NASDAQ:LITE - US55024U1097 - Common Stock
149.46 USD
+7.55 (+5.32%)
148.5 USD
-0.96 (-0.64%)
Overall LITE gets a fundamental rating of 4 out of 10. We evaluated LITE against 48 industry peers in the Communications Equipment industry. The financial health of LITE is average, but there are quite some concerns on its profitability. LITE is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
LITE had positive earnings in the past year.
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.
Each year in the past 5 years LITE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LITE (0.61%) is comparable to the rest of the industry.
LITE's Return On Equity of 2.28% is fine compared to the rest of the industry. LITE outperforms 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.28% | ||
| ROIC | N/A |
ROA(3y)-5.38%
ROA(5y)-0.03%
ROE(3y)-21.5%
ROE(5y)-6.75%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 1.57%, LITE perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
In the last couple of years the Profit Margin of LITE has declined.
LITE has a Gross Margin of 27.96%. This is in the lower half of the industry: LITE underperforms 79.17% of its industry peers.
In the last couple of years the Gross Margin of LITE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 1.57% | ||
| GM | 27.96% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-48.63%
PM growth 5Y-27.88%
GM growth 3Y-15.32%
GM growth 5Y-6.31%
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.
LITE has less shares outstanding than it did 5 years ago.
LITE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.36 indicates that LITE is not a great score, but indicates only limited risk for bankruptcy at the moment.
LITE has a Altman-Z score of 2.36. This is in the better half of the industry: LITE outperforms 66.67% of its industry peers.
LITE has a Debt/Equity ratio of 2.26. This is a high value indicating a heavy dependency on external financing.
LITE has a worse Debt to Equity ratio (2.26) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.36 |
ROIC/WACCN/A
WACC8.86%
2.3 Liquidity
LITE has a Current Ratio of 4.37. This indicates that LITE is financially healthy and has no problem in meeting its short term obligations.
LITE's Current ratio of 4.37 is amongst the best of the industry. LITE outperforms 87.50% of its industry peers.
A Quick Ratio of 3.18 indicates that LITE has no problem at all paying its short term obligations.
LITE has a better Quick ratio (3.18) than 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.37 | ||
| Quick Ratio | 3.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 100.98% over the past year.
The earnings per share for LITE have been decreasing by -17.64% on average. This is quite bad
LITE shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.03%.
LITE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.40% yearly.
EPS 1Y (TTM)100.98%
EPS 3Y-30.28%
EPS 5Y-17.64%
EPS Q2Q%1366.67%
Revenue 1Y (TTM)21.03%
Revenue growth 3Y-1.33%
Revenue growth 5Y-0.4%
Sales Q2Q%55.92%
3.2 Future
LITE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 53.83% yearly.
LITE is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.87% yearly.
EPS Next Y140.78%
EPS Next 2Y80.44%
EPS Next 3Y53.83%
EPS Next 5YN/A
Revenue Next Year40.76%
Revenue Next 2Y29.46%
Revenue Next 3Y23.87%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 72.91, which means the current valuation is very expensive for LITE.
LITE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.06, LITE is valued quite expensively.
A Price/Forward Earnings ratio of 30.28 indicates a quite expensive valuation of LITE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LITE is on the same level as its industry peers.
LITE's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.91 | ||
| Fwd PE | 30.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LITE indicates a slightly more expensive valuation: LITE is more expensive than 60.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 182.74 |
4.3 Compensation for Growth
LITE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as LITE's earnings are expected to grow with 53.83% in the coming years.
PEG (NY)0.52
PEG (5Y)N/A
EPS Next 2Y80.44%
EPS Next 3Y53.83%
5. Dividend
5.1 Amount
LITE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
149.46
+7.55 (+5.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners119.6%
Inst Owner Change3.73%
Ins Owners0.54%
Ins Owner Change0.15%
Market Cap10.45B
Analysts81.6
Price Target141.3 (-5.46%)
Short Float %16%
Short Ratio4.11
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)9.62%
Min EPS beat(2)7.73%
Max EPS beat(2)11.51%
EPS beat(4)4
Avg EPS beat(4)19.06%
Min EPS beat(4)7.73%
Max EPS beat(4)41.98%
EPS beat(8)8
Avg EPS beat(8)24.76%
EPS beat(12)11
Avg EPS beat(12)17.78%
EPS beat(16)14
Avg EPS beat(16)14.93%
Revenue beat(2)1
Avg Revenue beat(2)0.36%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)1.05%
Revenue beat(4)3
Avg Revenue beat(4)0.88%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)1.64%
Revenue beat(8)4
Avg Revenue beat(8)0.1%
Revenue beat(12)4
Avg Revenue beat(12)-0.43%
Revenue beat(16)4
Avg Revenue beat(16)-0.62%
PT rev (1m)45.72%
PT rev (3m)63.62%
EPS NQ rev (1m)17.3%
EPS NQ rev (3m)30.97%
EPS NY rev (1m)17.76%
EPS NY rev (3m)24.66%
Revenue NQ rev (1m)5.12%
Revenue NQ rev (3m)8.38%
Revenue NY rev (1m)6.81%
Revenue NY rev (3m)10.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.91 | ||
| Fwd PE | 30.28 | ||
| P/S | 6.35 | ||
| P/FCF | N/A | ||
| P/OCF | 82.72 | ||
| P/B | 9.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 182.74 |
EPS(TTM)2.05
EY1.37%
EPS(NY)4.94
Fwd EY3.3%
FCF(TTM)-1.5
FCFYN/A
OCF(TTM)1.81
OCFY1.21%
SpS23.53
BVpS16.23
TBVpS-5.6
PEG (NY)0.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.61% | ||
| ROE | 2.28% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 1.57% | ||
| GM | 27.96% | ||
| FCFM | N/A |
ROA(3y)-5.38%
ROA(5y)-0.03%
ROE(3y)-21.5%
ROE(5y)-6.75%
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 3Y-48.63%
PM growth 5Y-27.88%
GM growth 3Y-15.32%
GM growth 5Y-6.31%
F-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.26 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 39.73 | ||
| Cap/Depr | 89.99% | ||
| Cap/Sales | 14.04% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 195.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.37 | ||
| Quick Ratio | 3.18 | ||
| Altman-Z | 2.36 |
F-Score7
WACC8.86%
ROIC/WACCN/A
Cap/Depr(3y)62.48%
Cap/Depr(5y)59.11%
Cap/Sales(3y)10.46%
Cap/Sales(5y)8.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)100.98%
EPS 3Y-30.28%
EPS 5Y-17.64%
EPS Q2Q%1366.67%
EPS Next Y140.78%
EPS Next 2Y80.44%
EPS Next 3Y53.83%
EPS Next 5YN/A
Revenue 1Y (TTM)21.03%
Revenue growth 3Y-1.33%
Revenue growth 5Y-0.4%
Sales Q2Q%55.92%
Revenue Next Year40.76%
Revenue Next 2Y29.46%
Revenue Next 3Y23.87%
Revenue Next 5YN/A
EBIT growth 1Y46.82%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year227.02%
EBIT Next 3Y81%
EBIT Next 5YN/A
FCF growth 1Y6.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y411.34%
OCF growth 3Y-34.97%
OCF growth 5Y-24.77%