LUMENTUM HOLDINGS INC (LITE)
US55024U1097 - Common Stock
LITE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 51 industry peers in the Communications Equipment industry. While LITE seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, LITE is valued expensive at the moment.
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.
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.
1.2 Ratios
LITE has a Return On Assets of -14.13%. This is in the lower half of the industry: LITE underperforms 66.67% of its industry peers.
The Return On Equity of LITE (-62.62%) is worse than 76.47% of its industry peers.
| 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
The Gross Margin of LITE (18.33%) is worse than 90.20% of its industry peers.
In the last couple of years the Gross Margin of LITE has declined.
LITE does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
Compared to 1 year ago, LITE has more shares outstanding
LITE has less shares outstanding than it did 5 years ago.
LITE has a worse debt/assets ratio than last year.
2.2 Solvency
LITE has an Altman-Z score of 1.25. This is a bad value and indicates that LITE is not financially healthy and even has some risk of bankruptcy.
LITE has a Altman-Z score (1.25) which is in line with its industry peers.
A Debt/Equity ratio of 2.87 is on the high side and indicates that LITE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.87, LITE is doing worse than 86.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.25 |
ROIC/WACCN/A
WACC7.81%
2.3 Liquidity
A Current Ratio of 5.36 indicates that LITE has no problem at all paying its short term obligations.
The Current ratio of LITE (5.36) is better than 90.20% of its industry peers.
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.
The Quick ratio of LITE (4.04) is better than 92.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.36 | ||
| Quick Ratio | 4.04 |
3. Growth
3.1 Past
LITE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.52%.
LITE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.97% yearly.
The Revenue for LITE has decreased by -12.63% in the past year. This is quite bad
The Revenue has been decreasing by -2.78% on average over the past years.
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
LITE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 60.31% yearly.
Based on estimates for the next years, LITE will show a quite strong growth in Revenue. The Revenue will grow by 18.97% on average per year.
EPS Next Y57.57%
EPS Next 2Y92.28%
EPS Next 3Y60.31%
EPS Next 5YN/A
Revenue Next Year17.48%
Revenue Next 2Y22.81%
Revenue Next 3Y18.97%
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.
4. Valuation
4.1 Price/Earnings Ratio
LITE is valuated quite expensively with a Price/Earnings ratio of 97.91.
LITE's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of LITE to the average of the S&P500 Index (27.29), we can say LITE is valued expensively.
A Price/Forward Earnings ratio of 22.07 indicates a rather expensive valuation of LITE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LITE indicates a somewhat cheap valuation: LITE is cheaper than 60.78% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, LITE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97.91 | ||
| Fwd PE | 22.07 |
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 60.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.7
PEG (5Y)N/A
EPS Next 2Y92.28%
EPS Next 3Y60.31%
5. Dividend
5.1 Amount
LITE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LUMENTUM HOLDINGS INC
NASDAQ:LITE (12/23/2024, 6:43:10 PM)
After market: 83.3 +0.08 (+0.1%)83.22
-1.86 (-2.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners113.59%
Inst Owner Change-5.74%
Ins Owners0.79%
Ins Owner Change-1.06%
Market Cap5.72B
Analysts74.78
Price Target88.29 (6.09%)
Short Float %16.36%
Short Ratio6.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)62.02%
Min EPS beat(2)41.98%
Max EPS beat(2)82.06%
EPS beat(4)4
Avg EPS beat(4)34.31%
Min EPS beat(4)4.11%
Max EPS beat(4)82.06%
EPS beat(8)7
Avg EPS beat(8)21.61%
EPS beat(12)10
Avg EPS beat(12)15.97%
EPS beat(16)13
Avg EPS beat(16)13.27%
Revenue beat(2)2
Avg Revenue beat(2)1.02%
Min Revenue beat(2)0.41%
Max Revenue beat(2)1.64%
Revenue beat(4)2
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)1.64%
Revenue beat(8)2
Avg Revenue beat(8)-0.71%
Revenue beat(12)2
Avg Revenue beat(12)-0.96%
Revenue beat(16)3
Avg Revenue beat(16)-1.17%
PT rev (1m)40.98%
PT rev (3m)44.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.34%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-2.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.4%
Revenue NY rev (1m)4.79%
Revenue NY rev (3m)4.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 97.91 | ||
| Fwd PE | 22.07 | ||
| P/S | 4.15 | ||
| P/FCF | N/A | ||
| P/OCF | 85.84 | ||
| P/B | 6.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.85
EY1.02%
EPS(NY)3.77
Fwd EY4.53%
FCF(TTM)-1.22
FCFYN/A
OCF(TTM)0.97
OCFY1.16%
SpS20.07
BVpS13.04
TBVpS-10.76
PEG (NY)1.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -14.13% | ||
| ROE | -62.62% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 18.33% | ||
| 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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.87 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 49.49% | ||
| Cap/Sales | 10.9% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.36 | ||
| Quick Ratio | 4.04 | ||
| Altman-Z | 1.25 |
F-Score4
WACC7.81%
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)-73.52%
EPS 3Y-45.55%
EPS 5Y-24.97%
EPS Q2Q%-48.57%
EPS Next Y57.57%
EPS Next 2Y92.28%
EPS Next 3Y60.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.63%
Revenue growth 3Y-7.95%
Revenue growth 5Y-2.78%
Sales Q2Q%6.08%
Revenue Next Year17.48%
Revenue Next 2Y22.81%
Revenue Next 3Y18.97%
Revenue Next 5YN/A
EBIT growth 1Y-102.16%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year633.3%
EBIT Next 3Y136.42%
EBIT Next 5YN/A
FCF growth 1Y-125.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-84.07%
OCF growth 3Y-67.78%
OCF growth 5Y-40.46%