LUMENTUM HOLDINGS INC (LITE) Stock Fundamental Analysis

NASDAQ:LITE • US55024U1097

700.91 USD
+23.91 (+3.53%)
At close: Feb 27, 2026
700.2 USD
-0.71 (-0.1%)
After Hours: 2/27/2026, 8:15:42 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to LITE. LITE was compared to 48 industry peers in the Communications Equipment industry. There are concerns on the financial health of LITE while its profitability can be described as average. LITE shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • LITE had positive earnings in the past year.
  • In the past year LITE had a positive cash flow from operations.
  • In multiple years LITE reported negative net income over the last 5 years.
  • Each year in the past 5 years LITE had a positive operating cash flow.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M -400M 600M

1.2 Ratios

  • LITE has a Return On Assets of 5.24%. This is in the better half of the industry: LITE outperforms 79.17% of its industry peers.
  • LITE has a better Return On Equity (29.72%) than 93.75% of its industry peers.
  • The Return On Invested Capital of LITE (0.78%) is comparable to the rest of the industry.
Industry RankSector Rank
ROA 5.24%
ROE 29.72%
ROIC 0.78%
ROA(3y)-5.38%
ROA(5y)-0.03%
ROE(3y)-21.5%
ROE(5y)-6.75%
ROIC(3y)N/A
ROIC(5y)N/A
LITE Yearly ROA, ROE, ROICLITE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 -40

1.3 Margins

  • LITE's Profit Margin of 11.95% is amongst the best of the industry. LITE outperforms 81.25% of its industry peers.
  • LITE's Profit Margin has declined in the last couple of years.
  • Looking at the Operating Margin, with a value of 0.49%, LITE is in line with its industry, outperforming 45.83% of the companies in the same industry.
  • With a Gross Margin value of 33.44%, LITE is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
  • LITE's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 0.49%
PM (TTM) 11.95%
GM 33.44%
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%
LITE Yearly Profit, Operating, Gross MarginsLITE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • LITE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • 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.
  • The debt/assets ratio for LITE has been reduced compared to a year ago.
LITE Yearly Shares OutstandingLITE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
LITE Yearly Total Debt VS Total AssetsLITE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • LITE has an Altman-Z score of 7.17. This indicates that LITE is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 7.17, LITE belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • A Debt/Equity ratio of 0.06 indicates that LITE is not too dependend on debt financing.
  • LITE's Debt to Equity ratio of 0.06 is in line compared to the rest of the industry. LITE outperforms 58.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF N/A
Altman-Z 7.17
ROIC/WACC0.08
WACC9.42%
LITE Yearly LT Debt VS Equity VS FCFLITE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • LITE has a Current Ratio of 0.61. This is a bad value and indicates that LITE is not financially healthy enough and could expect problems in meeting its short term obligations.
  • LITE has a Current ratio of 0.61. This is amonst the worse of the industry: LITE underperforms 95.83% of its industry peers.
  • A Quick Ratio of 0.45 indicates that LITE may have some problems paying its short term obligations.
  • The Quick ratio of LITE (0.45) is worse than 95.83% of its industry peers.
Industry RankSector Rank
Current Ratio 0.61
Quick Ratio 0.45
LITE Yearly Current Assets VS Current LiabilitesLITE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. Growth

3.1 Past

  • LITE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 344.21%, which is quite impressive.
  • LITE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.64% yearly.
  • LITE shows a strong growth in Revenue. In the last year, the Revenue has grown by 48.89%.
  • LITE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.40% yearly.
EPS 1Y (TTM)344.21%
EPS 3Y-30.28%
EPS 5Y-17.64%
EPS Q2Q%297.62%
Revenue 1Y (TTM)48.89%
Revenue growth 3Y-1.33%
Revenue growth 5Y-0.4%
Sales Q2Q%65.46%

3.2 Future

  • The Earnings Per Share is expected to grow by 76.34% 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 50.60% on average per year.
EPS Next Y189.43%
EPS Next 2Y111.68%
EPS Next 3Y76.34%
EPS Next 5YN/A
Revenue Next Year76.34%
Revenue Next 2Y65.85%
Revenue Next 3Y50.6%
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.
LITE Yearly Revenue VS EstimatesLITE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B 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 2028 2 4 6 8 10

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 166.09, the valuation of LITE can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of LITE is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 27.10. LITE is valued rather expensively when compared to this.
  • Based on the Price/Forward Earnings ratio of 76.30, 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.
  • When comparing the Price/Forward Earnings ratio of LITE to the average of the S&P500 Index (28.06), we can say LITE is valued expensively.
Industry RankSector Rank
PE 166.09
Fwd PE 76.3
LITE Price Earnings VS Forward Price EarningsLITE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

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 62.50% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 193.47
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 76.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y111.68%
EPS Next 3Y76.34%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for LITE!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

LUMENTUM HOLDINGS INC

NASDAQ:LITE (2/27/2026, 8:15:42 PM)

After market: 700.2 -0.71 (-0.1%)

700.91

+23.91 (+3.53%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners113.75%
Inst Owner Change0.08%
Ins Owners0.49%
Ins Owner Change-1.72%
Market Cap50.04B
Revenue(TTM)2.11B
Net Income(TTM)251.60M
Analysts80.69
Price Target362.95 (-48.22%)
Short Float %14.97%
Short Ratio2.33
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)11.15%
Min EPS beat(2)4.9%
Max EPS beat(2)17.41%
EPS beat(4)4
Avg EPS beat(4)10.39%
Min EPS beat(4)4.9%
Max EPS beat(4)17.41%
EPS beat(8)8
Avg EPS beat(8)23.71%
EPS beat(12)11
Avg EPS beat(12)18.08%
EPS beat(16)15
Avg EPS beat(16)15.54%
Revenue beat(2)1
Avg Revenue beat(2)0.35%
Min Revenue beat(2)-0.17%
Max Revenue beat(2)0.86%
Revenue beat(4)2
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)1.05%
Revenue beat(8)5
Avg Revenue beat(8)0.38%
Revenue beat(12)5
Avg Revenue beat(12)-0.08%
Revenue beat(16)5
Avg Revenue beat(16)-0.45%
PT rev (1m)21.68%
PT rev (3m)55.79%
EPS NQ rev (1m)27.71%
EPS NQ rev (3m)31.45%
EPS NY rev (1m)1%
EPS NY rev (3m)18.84%
Revenue NQ rev (1m)12.29%
Revenue NQ rev (3m)16.1%
Revenue NY rev (1m)9.62%
Revenue NY rev (3m)24.69%
Valuation
Industry RankSector Rank
PE 166.09
Fwd PE 76.3
P/S 23.77
P/FCF N/A
P/OCF 202.61
P/B 59.11
P/tB N/A
EV/EBITDA 193.47
EPS(TTM)4.22
EY0.6%
EPS(NY)9.19
Fwd EY1.31%
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)3.46
OCFY0.49%
SpS29.48
BVpS11.86
TBVpS-8.56
PEG (NY)0.88
PEG (5Y)N/A
Graham Number33.55
Profitability
Industry RankSector Rank
ROA 5.24%
ROE 29.72%
ROCE 0.99%
ROIC 0.78%
ROICexc N/A
ROICexgc N/A
OM 0.49%
PM (TTM) 11.95%
GM 33.44%
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-Score7
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF N/A
Debt/EBITDA 0.18
Cap/Depr 111.49%
Cap/Sales 13.13%
Interest Coverage 0.52
Cash Conversion 95.63%
Profit Quality N/A
Current Ratio 0.61
Quick Ratio 0.45
Altman-Z 7.17
F-Score7
WACC9.42%
ROIC/WACC0.08
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)344.21%
EPS 3Y-30.28%
EPS 5Y-17.64%
EPS Q2Q%297.62%
EPS Next Y189.43%
EPS Next 2Y111.68%
EPS Next 3Y76.34%
EPS Next 5YN/A
Revenue 1Y (TTM)48.89%
Revenue growth 3Y-1.33%
Revenue growth 5Y-0.4%
Sales Q2Q%65.46%
Revenue Next Year76.34%
Revenue Next 2Y65.85%
Revenue Next 3Y50.6%
Revenue Next 5YN/A
EBIT growth 1Y103.26%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year357.67%
EBIT Next 3Y107.41%
EBIT Next 5YN/A
FCF growth 1Y69.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y309.62%
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.


Can you provide the valuation status for LUMENTUM HOLDINGS INC?

ChartMill assigns a valuation rating of 2 / 10 to LUMENTUM HOLDINGS INC (LITE). This can be considered as Overvalued.


What is the profitability of LITE stock?

LUMENTUM HOLDINGS INC (LITE) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for LITE stock?

The Price/Earnings (PE) ratio for LUMENTUM HOLDINGS INC (LITE) is 166.09 and the Price/Book (PB) ratio is 59.11.


Can you provide the dividend sustainability for LITE stock?

The dividend rating of LUMENTUM HOLDINGS INC (LITE) is 0 / 10 and the dividend payout ratio is 0%.