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LUMENTUM HOLDINGS INC (LITE) Stock Fundamental Analysis

NASDAQ:LITE - Nasdaq - US55024U1097 - Common Stock - Currency: USD

115.86  +1.24 (+1.08%)

After market: 116.2 +0.34 (+0.29%)

Fundamental Rating

3

Overall LITE gets a fundamental rating of 3 out of 10. We evaluated LITE against 48 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.


Dividend Valuation Growth Profitability Health

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1

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.
LITE had a positive operating cash flow in 4 of the past 5 years.
LITE Yearly Net Income VS EBIT VS OCF VS FCFLITE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M

1.2 Ratios

LITE has a Return On Assets of -11.07%. This is in the lower half of the industry: LITE underperforms 72.92% of its industry peers.
LITE has a worse Return On Equity (-50.02%) than 68.75% of its industry peers.
Industry RankSector Rank
ROA -11.07%
ROE -50.02%
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
LITE Yearly ROA, ROE, ROICLITE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

Looking at the Gross Margin, with a value of 23.86%, LITE is doing worse than 85.42% of the companies in the same industry.
LITE's Gross Margin has declined in the last couple of years.
LITE does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 23.86%
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%
LITE Yearly Profit, Operating, Gross MarginsLITE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40

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4

2. Health

2.1 Basic Checks

LITE does not have a ROIC to compare to the WACC, probably because it is not profitable.
There is no outstanding debt for LITE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
LITE Yearly Shares OutstandingLITE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
LITE Yearly Total Debt VS Total AssetsLITE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.2 Solvency

LITE has an Altman-Z score of 1.69. This is a bad value and indicates that LITE is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.69, LITE is doing good in the industry, outperforming 62.50% of the companies in the same industry.
LITE has a Debt/Equity ratio of 2.91. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of LITE (2.91) is worse than 89.58% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.91
Debt/FCF N/A
Altman-Z 1.69
ROIC/WACCN/A
WACC8.81%
LITE Yearly LT Debt VS Equity VS FCFLITE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 4.72 indicates that LITE has no problem at all paying its short term obligations.
LITE has a Current ratio of 4.72. This is amongst the best in the industry. LITE outperforms 87.50% of its industry peers.
A Quick Ratio of 3.53 indicates that LITE has no problem at all paying its short term obligations.
The Quick ratio of LITE (3.53) is better than 85.42% of its industry peers.
Industry RankSector Rank
Current Ratio 4.72
Quick Ratio 3.53
LITE Yearly Current Assets VS Current LiabilitesLITE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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5

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
EPS 1Y (TTM)100.98%
EPS 3Y-30.28%
EPS 5Y-17.64%
EPS Q2Q%1366.67%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%55.92%

3.2 Future

The Earnings Per Share is expected to grow by 63.80% on average over the next years. This is a very strong growth
LITE is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.98% yearly.
EPS Next Y104.46%
EPS Next 2Y63.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year31.95%
Revenue Next 2Y22.98%
Revenue Next 3YN/A
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.
LITE Yearly Revenue VS EstimatesLITE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B 2.5B
LITE Yearly EPS VS EstimatesLITE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 56.52, LITE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of LITE is on the same level as its industry peers.
LITE's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.87.
Based on the Price/Forward Earnings ratio of 27.64, the valuation of LITE can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LITE is on the same level as its industry peers.
LITE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 56.52
Fwd PE 27.64
LITE Price Earnings VS Forward Price EarningsLITE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

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 RankSector Rank
P/FCF N/A
EV/EBITDA 1034.48
LITE Per share dataLITE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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 63.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y63.8%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

LITE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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LUMENTUM HOLDINGS INC

NASDAQ:LITE (8/15/2025, 8:00:02 PM)

After market: 116.2 +0.34 (+0.29%)

115.86

+1.24 (+1.08%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)08-12 2025-08-12/amc
Earnings (Next)11-05 2025-11-05/bmo
Inst Owners119.6%
Inst Owner Change2.09%
Ins Owners0.54%
Ins Owner Change-1.92%
Market Cap8.04B
Analysts80
Price Target102.7 (-11.36%)
Short Float %16.1%
Short Ratio5.33
Dividend
Industry RankSector 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)13.27%
Min EPS beat(2)11.51%
Max EPS beat(2)15.02%
EPS beat(4)4
Avg EPS beat(4)37.64%
Min EPS beat(4)11.51%
Max EPS beat(4)82.06%
EPS beat(8)8
Avg EPS beat(8)24.32%
EPS beat(12)11
Avg EPS beat(12)17.85%
EPS beat(16)14
Avg EPS beat(16)14.88%
Revenue beat(2)1
Avg Revenue beat(2)0.41%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)1.17%
Revenue beat(4)3
Avg Revenue beat(4)0.72%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)1.64%
Revenue beat(8)3
Avg Revenue beat(8)-0.13%
Revenue beat(12)3
Avg Revenue beat(12)-0.58%
Revenue beat(16)4
Avg Revenue beat(16)-0.65%
PT rev (1m)10.08%
PT rev (3m)13.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)24.98%
EPS NY rev (1m)0%
EPS NY rev (3m)13.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
Industry RankSector Rank
PE 56.52
Fwd PE 27.64
P/S 5.46
P/FCF N/A
P/OCF 82.22
P/B 9.14
P/tB N/A
EV/EBITDA 1034.48
EPS(TTM)2.05
EY1.77%
EPS(NY)4.19
Fwd EY3.62%
FCF(TTM)-1.5
FCFYN/A
OCF(TTM)1.41
OCFY1.22%
SpS21.22
BVpS12.67
TBVpS-9.82
PEG (NY)0.54
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -11.07%
ROE -50.02%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 23.86%
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 Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 2.91
Debt/FCF N/A
Debt/EBITDA 284.71
Cap/Depr 68.42%
Cap/Sales 13.7%
Interest Coverage N/A
Cash Conversion 1086.67%
Profit Quality N/A
Current Ratio 4.72
Quick Ratio 3.53
Altman-Z 1.69
F-Score4
WACC8.81%
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)100.98%
EPS 3Y-30.28%
EPS 5Y-17.64%
EPS Q2Q%1366.67%
EPS Next Y104.46%
EPS Next 2Y63.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%55.92%
Revenue Next Year31.95%
Revenue Next 2Y22.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y9.9%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year661.56%
EBIT Next 3Y164.26%
EBIT Next 5YN/A
FCF growth 1Y-183.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-60.07%
OCF growth 3Y-67.78%
OCF growth 5Y-40.46%