LUMENTUM HOLDINGS INC (LITE)
US55024U1097 - Common Stock
We assign a fundamental rating of 3 out of 10 to LITE. LITE was compared to 51 industry peers in the Communications Equipment industry. LITE scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. LITE is quite expensive at the moment. It does show a decent growth rate.
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 each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -14.13%, LITE is doing worse than 70.59% of the companies in the same industry.
Looking at the Return On Equity, with a value of -62.62%, LITE is doing worse than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.13% | ||
| ROE | -62.62% | ||
| 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 has a Gross Margin of 18.33%. This is amonst the worse of the industry: LITE underperforms 90.20% of its industry peers.
In the last couple of years the Gross Margin of LITE has declined.
The Profit Margin and Operating Margin are not available for LITE so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 18.33% |
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%
2. Health
2.1 Basic Checks
LITE does not have a ROIC to compare to the WACC, probably because it is not profitable.
LITE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LITE has less shares outstanding
The debt/assets ratio for LITE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that LITE is in the distress zone and has some risk of bankruptcy.
LITE has a Altman-Z score (1.21) which is comparable to the rest of the industry.
LITE has a Debt/Equity ratio of 2.87. This is a high value indicating a heavy dependency on external financing.
LITE's Debt to Equity ratio of 2.87 is on the low side compared to the rest of the industry. LITE is outperformed by 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.21 |
ROIC/WACCN/A
WACC7.88%
2.3 Liquidity
A Current Ratio of 5.36 indicates that LITE has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.36, LITE belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
LITE has a Quick Ratio of 4.04. This indicates that LITE is financially healthy and has no problem in meeting its short term obligations.
LITE has a Quick ratio of 4.04. This is amongst the best in the industry. LITE outperforms 92.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.36 | ||
| Quick Ratio | 4.04 |
3. Growth
3.1 Past
The earnings per share for LITE have decreased strongly by -73.52% in the last year.
Measured over the past years, LITE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.97% on average per year.
Looking at the last year, LITE shows a very negative growth in Revenue. The Revenue has decreased by -12.63% in the last year.
LITE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.78% yearly.
EPS 1Y (TTM)-73.52%
EPS 3Y-45.55%
EPS 5Y-24.97%
EPS Q2Q%-48.57%
Revenue 1Y (TTM)-12.63%
Revenue growth 3Y-7.95%
Revenue growth 5Y-2.78%
Sales Q2Q%6.08%
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 53.08% on average per year.
Based on estimates for the next years, LITE will show a quite strong growth in Revenue. The Revenue will grow by 17.62% on average per year.
EPS Next Y58.47%
EPS Next 2Y90.92%
EPS Next 3Y53.08%
EPS Next 5YN/A
Revenue Next Year12.11%
Revenue Next 2Y20.76%
Revenue Next 3Y17.62%
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
A Price/Earnings ratio of 100.72 indicates a quite expensive valuation of LITE.
The rest of the industry has a similar Price/Earnings ratio as LITE.
When comparing the Price/Earnings ratio of LITE to the average of the S&P500 Index (28.96), we can say LITE is valued expensively.
A Price/Forward Earnings ratio of 23.03 indicates a rather expensive valuation of LITE.
LITE's Price/Forward Earnings is on the same level as the industry average.
LITE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.72 | ||
| Fwd PE | 23.03 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
LITE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
LITE's earnings are expected to grow with 53.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.72
PEG (5Y)N/A
EPS Next 2Y90.92%
EPS Next 3Y53.08%
5. Dividend
5.1 Amount
LITE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LUMENTUM HOLDINGS INC
NASDAQ:LITE (11/21/2024, 6:32:43 PM)
After market: 85.05 -0.56 (-0.65%)85.61
+3.14 (+3.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 100.72 | ||
| Fwd PE | 23.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.13% | ||
| ROE | -62.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 18.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.87 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.36 | ||
| Quick Ratio | 4.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-73.52%
EPS 3Y-45.55%
EPS 5Y
EPS Q2Q%
EPS Next Y58.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.63%
Revenue growth 3Y-7.95%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y