302.98 USD
+0.17 (+0.06%)
302.87 USD
-0.11 (-0.04%)
We assign a fundamental rating of 4 out of 10 to LITE. LITE was compared to 48 industry peers in the Communications Equipment industry. LITE has a bad profitability rating. Also its financial health evaluation is rather negative. LITE shows excellent growth, but is valued quite expensive already.
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.
Each year in the past 5 years LITE had a positive operating cash flow.
1.2 Ratios
LITE's Return On Assets of 2.44% is fine compared to the rest of the industry. LITE outperforms 60.42% of its industry peers.
LITE has a better Return On Equity (14.41%) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 14.41% | ||
| 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
The Profit Margin of LITE (6.11%) is better than 70.83% of its industry peers.
LITE's Profit Margin has declined in the last couple of years.
LITE has a Gross Margin of 30.59%. This is in the lower half of the industry: LITE underperforms 75.00% of its industry peers.
LITE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 6.11% | ||
| GM | 30.59% |
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.
Compared to 1 year ago, LITE has more shares outstanding
LITE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LITE has been reduced compared to a year ago.
2.2 Solvency
LITE has an Altman-Z score of 3.57. This indicates that LITE is financially healthy and has little risk of bankruptcy at the moment.
LITE has a Altman-Z score of 3.57. This is in the better half of the industry: LITE outperforms 68.75% of its industry peers.
LITE has a Debt/Equity ratio of 2.77. This is a high value indicating a heavy dependency on external financing.
LITE has a worse Debt to Equity ratio (2.77) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.57 |
ROIC/WACCN/A
WACC8.71%
2.3 Liquidity
A Current Ratio of 1.37 indicates that LITE should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.37, LITE is doing worse than 77.08% of the companies in the same industry.
A Quick Ratio of 1.02 indicates that LITE should not have too much problems paying its short term obligations.
The Quick ratio of LITE (1.02) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 249.41% over the past year.
Measured over the past years, LITE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.64% on average per year.
Looking at the last year, LITE shows a very strong growth in Revenue. The Revenue has grown by 33.62%.
LITE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.40% yearly.
EPS 1Y (TTM)249.41%
EPS 3Y-30.28%
EPS 5Y-17.64%
EPS Q2Q%511.11%
Revenue 1Y (TTM)33.62%
Revenue growth 3Y-1.33%
Revenue growth 5Y-0.4%
Sales Q2Q%58.44%
3.2 Future
Based on estimates for the next years, LITE will show a very strong growth in Earnings Per Share. The EPS will grow by 67.87% on average per year.
The Revenue is expected to grow by 33.89% on average over the next years. This is a very strong growth
EPS Next Y143.55%
EPS Next 2Y82.7%
EPS Next 3Y67.87%
EPS Next 5YN/A
Revenue Next Year41.42%
Revenue Next 2Y31.27%
Revenue Next 3Y33.89%
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
Based on the Price/Earnings ratio of 102.01, the valuation of LITE can be described as expensive.
LITE's Price/Earnings is on the same level as the industry average.
LITE is valuated expensively when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 44.28 indicates a quite expensive valuation of LITE.
The rest of the industry has a similar Price/Forward Earnings ratio as LITE.
LITE is valuated rather expensively when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.01 | ||
| Fwd PE | 44.28 |
4.2 Price Multiples
LITE's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 161.71 |
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.
A more expensive valuation may be justified as LITE's earnings are expected to grow with 67.87% in the coming years.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y82.7%
EPS Next 3Y67.87%
5. Dividend
5.1 Amount
LITE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
302.98
+0.17 (+0.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners120.82%
Inst Owner Change-4.52%
Ins Owners0.63%
Ins Owner Change-0.06%
Market Cap21.48B
Revenue(TTM)1.84B
Net Income(TTM)112.50M
Analysts81.54
Price Target232.97 (-23.11%)
Short Float %16.42%
Short Ratio2.72
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)6.31%
Min EPS beat(2)4.9%
Max EPS beat(2)7.73%
EPS beat(4)4
Avg EPS beat(4)9.79%
Min EPS beat(4)4.9%
Max EPS beat(4)15.02%
EPS beat(8)8
Avg EPS beat(8)22.05%
EPS beat(12)11
Avg EPS beat(12)17.67%
EPS beat(16)14
Avg EPS beat(16)14.43%
Revenue beat(2)1
Avg Revenue beat(2)0.44%
Min Revenue beat(2)-0.17%
Max Revenue beat(2)1.05%
Revenue beat(4)2
Avg Revenue beat(4)0.43%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)1.17%
Revenue beat(8)4
Avg Revenue beat(8)0.14%
Revenue beat(12)4
Avg Revenue beat(12)-0.33%
Revenue beat(16)4
Avg Revenue beat(16)-0.61%
PT rev (1m)57.84%
PT rev (3m)66.87%
EPS NQ rev (1m)15.92%
EPS NQ rev (3m)15.93%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)13.46%
Revenue NQ rev (3m)14.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.01 | ||
| Fwd PE | 44.28 | ||
| P/S | 11.66 | ||
| P/FCF | N/A | ||
| P/OCF | 148.56 | ||
| P/B | 27.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 161.71 |
EPS(TTM)2.97
EY0.98%
EPS(NY)6.84
Fwd EY2.26%
FCF(TTM)-1.25
FCFYN/A
OCF(TTM)2.04
OCFY0.67%
SpS25.98
BVpS11.01
TBVpS-10.03
PEG (NY)0.71
PEG (5Y)N/A
Graham Number27.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 14.41% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 6.11% | ||
| GM | 30.59% | ||
| 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
ROICexgc growth 3YN/A
ROICexgc 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-Score8
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.77 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 15.05 | ||
| Cap/Depr | 93.88% | ||
| Cap/Sales | 12.66% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 100.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 3.57 |
F-Score8
WACC8.71%
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)249.41%
EPS 3Y-30.28%
EPS 5Y-17.64%
EPS Q2Q%511.11%
EPS Next Y143.55%
EPS Next 2Y82.7%
EPS Next 3Y67.87%
EPS Next 5YN/A
Revenue 1Y (TTM)33.62%
Revenue growth 3Y-1.33%
Revenue growth 5Y-0.4%
Sales Q2Q%58.44%
Revenue Next Year41.42%
Revenue Next 2Y31.27%
Revenue Next 3Y33.89%
Revenue Next 5YN/A
EBIT growth 1Y71.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year285.8%
EBIT Next 3Y93.8%
EBIT Next 5YN/A
FCF growth 1Y-812.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-7.72%
OCF growth 3Y-34.97%
OCF growth 5Y-24.77%
LUMENTUM HOLDINGS INC / LITE FAQ
What is the fundamental rating for LITE stock?
ChartMill assigns a fundamental rating of 4 / 10 to LITE.
What is the valuation status for LITE stock?
ChartMill assigns a valuation rating of 3 / 10 to LUMENTUM HOLDINGS INC (LITE). This can be considered as Overvalued.
How profitable is LUMENTUM HOLDINGS INC (LITE) stock?
LUMENTUM HOLDINGS INC (LITE) has a profitability rating of 3 / 10.
What are the PE and PB ratios of LUMENTUM HOLDINGS INC (LITE) stock?
The Price/Earnings (PE) ratio for LUMENTUM HOLDINGS INC (LITE) is 102.01 and the Price/Book (PB) ratio is 27.51.
Is the dividend of LUMENTUM HOLDINGS INC sustainable?
The dividend rating of LUMENTUM HOLDINGS INC (LITE) is 0 / 10 and the dividend payout ratio is 0%.